FAQ: AAA-ICDR^® Mass Arbitration Rules Revisions

The American Arbitration Association-International Centre for Dispute Resolution^® (AAA-ICDR) recently updated its Mass Arbitration Supplementary Rules and Fee Schedules, demonstrating our unparalleled expertise and extensive experience in handling a wide range of mass arbitrations. Our rich history of facilitating resolutions spans individual cases, numerous hurricane disaster-relief mediation programs, foreclosure-dispute assistance for homeowners, large-scale government settlements like the Automobile Industry Special Binding Arbitration Program and various forms of joint arbitration, including class, collective and private-attorney-general actions. These recent modifications are designed to enhance further parties’ ability to effectively resolve their disputes, reflecting our commitment to fair and efficient dispute resolution. Please see below for frequently asked questions about these significant changes.

When were these revisions to the Mass Arbitration Supplementary Rules and Fee Schedules announced?

The revisions were released in two phases: the first on January 15, 2024, and the second on April 1, 2024.

What are the main changes to the Mass Arbitration Supplementary Rules?

The key revisions include the introduction of an affirmation requirement, changes to the Process Arbitrator’s authority, updated fee schedules, and inclusion of B2B and construction matters.

How do the April 1, 2024 updates differ from earlier Mass Arbitration Supplementary Rules versions?

As of April 1, 2024, the Mass Arbitration Rules were expanded to include disputes beyond consumer or employment/workplace contexts, specifically B2B and construction matters, with a specific fee schedule for these disputes.

What is the minimum threshold of cases for the Mass Arbitration Supplementary Rules to apply?

The threshold remains at 25 cases for consumer or employment/workplace disputes. For other disputes, such as B2B and construction matters, a new minimum threshold of 100 cases has been established.

What new requirements are introduced for filing and answering in mass arbitrations?

New filings and answers must be accompanied by an affirmation that the information provided is true and correct to the best of the representative’s knowledge.

How have the Initiation Fees for mass arbitration been restructured?

For consumer or employment/workplace disputes, individuals pay a flat fee of $3,125, and businesses pay $8,125. These fees are flat regardless of the filing size and give immediate access to a Process Arbitrator and Global Mediator. For all other mass arbitration disputes, the filing party pays a flat $20,000. Under the Mass Arbitration Rules, parties must mediate but can opt out in writing.

How will Home Construction Rules cases be treated under the new rules?

Home Construction matters are subject to the 100 case filing requirement, but utilize the consumer mass arbitration Fee Schedule.

What changes have been made to the authority of the Process Arbitrator?

The Process Arbitrator has the authority to determine non-merits issues affecting case administration arising out of the nature of the mass arbitration, such as whether filing requirements and contractual pre-conditions were met, the process for selecting Merits Arbitrators and the locale of merits hearings. They may also determine whether their rulings are binding on future cases of the same mass arbitration. In addition, Merits Arbitrators are no longer bound by the Process Arbitrator’s decision if it is deemed an abuse of discretion.

How are fees structured after the Process Arbitrator has made a ruling?

Once the Process Arbitrator has ruled on disputed issues, the AAA-ICDR charges a per-case fee for each case that proceeds. The initial flat initiation fees offset these per-case fees. As the arbitration process progresses, additional fees are charged at key milestones, such as arbitrator selection and scheduling the evidentiary hearing or final submission. Fee schedules are tailored to the type of dispute: consumer, employment/workplace, and others. These revisions aim to facilitate the movement of past procedural issues toward resolution on the merits. The AAA-ICDR is committed to ensuring that its fees do not interfere with its mission of fair, effective, efficient and economical dispute resolution.

What additional services does the AAA-ICDR offer for handling mass arbitrations?

The AAA-ICDR offers API services for case filing and document exchange, AI integration tools like ClauseBuilder^® AI (Beta) and a sophisticated case management platform, WebFile.

View the amended AAA-ICDR Mass Arbitration Supplementary Rules and Fee Schedules at: https://www.adr.org/mass-arbitration.