In September of 2004, the ERAI created a value added service called the ERAI Grievance Committee. The purpose of the Committee is to:

• Serve as a sounding board for ERAI when investigating and mediating disputes
• Provide a means by which Buyers and Sellers involved in disputes can obtain a binding or nonbinding third party review.
• Ensure companies who have had complaints filed against them are given an impartial review of their dispute and/or enable Reporting and Reported Companies the opportunity to dispute the findings of an ERAI Investigation by which they can demand a third party review
• Work with ERAI to establish policies and procedures which will govern future similar complaints

The Committee is comprised of a body of active Members in good standing with ERAI who serve on a voluntary basis and who are not compensated financially during their time of service. They review cases on as "as needed" basis by email or via the ERAI Teleconference Center. Their identities are not revealed to ERAI Members not participating on the Committee or to the Reporting or Reported Companies involved in disputes, unless the parties involved in the said dispute sign a non-disclosure agreement which prohibits them from ever disclosing the names or company names of the individuals serving on the Committee. This level of confidentiality was enacted for one reason - to prohibit the ability to manipulate the findings of the group. This service became so popular the ERAI now has two active Grievance Committees who now alternate reviewing cases. Periodically, ERAI will replace Committee Members who wish to resign or remove Committee Members who feel they are unable to review a particular case in a fair and unbiased manner. The Committee works on the honor system and is prohibited from sharing case information outside of their group meetings.

When cases are presented, the identity of the Buyer and Seller may or may not be kept confidential. This is decided by either the ERAI or the companies who wish to bring a case before the Committee. When ERAI presents a case to the Committee, in order to obtain an opinion as to how we should proceed in an investigation or mediation, we typically keep the identity of Buyer and Seller confidential to ensure the group's findings are based on the merits of the case. Some of the cases presented to ERAI are extremely difficult to navigate. The ERAI Grievance Committee has become one of our most invaluable resources.

WHEN TO CALL UPON THE ERAI GRIEVANCE COMMITTEE

SOUNDING BOARD TO ERAI
As was previously stated, the ERAI Grievance Committee is utilized as a sounding board by the ERAI Complaints Department. If processing a complaint of a unique or particularly difficult nature, ERAI will call upon the Committee for guidance. Typically in these situations, we will prepare a summary of the case we are reviewing and will withhold the names of both the Reporting and the Reported Company. The summary is sent to the Committee without the knowledge of the parties involved in the dispute for the sole purpose of guiding ERAI as we work to either investigate or mediate a dispute. Upon receipt of the Committee's findings, we will either proceed or dismiss the case as directed.

There are situations when we will disclose that ERAI has reached an impasse and will advise all parties that we feel there is no choice but to take their case to the Grievance Committee. If neither party is in agreement with this course of action, we will dismiss their case. If one party is in agreement and the other is not, we will proceed with utilizing the Committee but the case will be submitted as Anonymous vs. Anonymous. If both parties want their identity revealed, we will do as requested and will identify them in the Grievance Summary. In situations where the parties involved in the dispute are aware the Committee's services are to be enacted, they will be provided with a copy of the Grievance Committee Summary prior to submitting the said summary to the group for review. If one party or the other believes the report is not prepared in such a way to depict all pertinent facts, it will be revised until such a time both Buyer and Seller agree the summary fairly represents the dispute in question.

Upon receipt of the Committee's findings, a second summary is prepared by ERAI in which we report in detail the feedback we obtained from the group and in which we advise them of the final outcome of their case. The Grievance Committee's findings can be overturned by ERAI if they propose a settlement that would place ERAI, the Buyer or the Seller in jeopardy. It is rare we find ourselves in this situation. More often than not, if we have a "Hung Committee", the summary will be sent to the second Grievance Committee for review. If the second Committee reaches the same conclusion as the first, both the Buyer and Seller will be advised their case cannot be settled and thus, it will likely be dismissed.

BINDING vs NONBINDING REVIEW
There are times when the Buyer and Seller mutually agree to bring their case before the ERAI Grievance Committee for review with the intention of resolving a pending complaint. In these situations, the Buyer and Seller are offered to either enter into binding or nonbinding negotiations. Typically, the Buyer and Seller will opt for a nonbinding review. If two parties can agree to trust a third party's involvement, then they are usually simply at a standoff in a minor dispute or recognize they have played a role in contributing to the problem and simply want to resolve the matter and move on. This is an optimal situation for all parties because if everyone can agree to use the ERAI and the Grievance Committee, more often than not, we are able to work out an amicable resolution suitable to all parties.

Binding review is not a frequent occurrence because it can involve the ERAI Legal Counsel which means applicable attorney fees may apply. Should the Buyer and Seller agree to use a Binding Settlement agreement, it is understood in advance that should the party found responsible not comply with the Grievance Committee's instructions for settlement, legal action will likely follow on behalf of the other party.

FAIR AND IMPARTIAL REVIEW
ERAI takes its reputation for acting as a fair and impartial third party to every case seriously. We never want a company or person to have the ability to falsely claim we acted inappropriately or in a manner that would cause harm to them personally, their business or to the ERAI name. To ensure every Reporting and Reported Company receive only the highest level of service and to guarantee that ERAI has not acted inappropriately or unfairly to one party or the other, every Reported and Reporting Company has the right to take their case to the ERAI Grievance Committee. If someone does not agree with the ERAI's position in a matter, they are informed of this right and are afforded the opportunity to direct their concerns in writing to the Committee. As with all other cases, a summary of the case is prepared and the Reporting or Reported Company includes their assessment of our actions and why they disagree with our handling of the case. If the Committee agrees with ERAI, the Reporting Company's grievance against us is dismissed. If the Committee sides with the other party, we will follow their instructions as to how to rectify the problem unless the said instructions would place ERAI or the Reporting or Reported Company in jeopardy of legal action. If that should happen, the ERAI Legal Counsel would assume responsibility for finalizing the case on behalf of the Association.

ESTABLISHING POLICIES AND PROCEDURES
ERAI has established a living internal Operations Manual which houses case studies and polices that have been enacted to ensure complaints of a similar nature are handled consistently. The Committee is often times asked to aid in the review of "Proposed Policies" and will work with ERAI until a "Formal Policy" can be agreed upon. These policies are then referenced when handling subsequent complaints. We do not currently have a policy in place for every situation which is why the document is referenced as "living", meaning it is constantly being modified and/or improved.

To learn more about the ERAI Grievance Committee please contact the Complaints Processing Department.