In 2017, seven out of every 10 AAA construction cases with claims of $1 million or more settled prior to going to award.

In recognition of this fact, the AAA has introduced the Streamlined Three-Arbitrator Panel Option to help parties in construction cases lower the costs and escalate the speed of the dispute resolution process.

How this works. In cases where the rules or the parties’ agreement requires a panel of three arbitrators to hear and decide the case, utilizing this option allows parties to move through the preliminary and exchange of information (discovery) stages of a case working with a single arbitrator, a much more efficient progression. This saves not only the cost of the two other arbitrators but also the unavoidable delays in time in coordinating all the arbitrators’ schedules. The full panel participates in the subsequent evidentiary hearing and renders the final award on the case.

The AAA has found that a three-arbitrator panel actually can cost approximately five times as much as a single arbitrator. By maximizing the use of a single arbitrator, the parties will be able to capitalize on the cost savings provided by a single arbitrator, while still preserving their right to have the case ultimately decided by a panel of three arbitrators.

The AAA offers several alternatives so that parties can utilize this service in the optimal way for their case. To learn more about the Streamlined Three-Arbitrator Panel Option, contact one of our executives or complete the form.