JAMS Revises Arbitration Policy

Friday, April 1, 2005 - 01:00

The following statement was released by JAMS, The Resolution Experts:

In November of 2004, JAMS announced a policy regarding the administration of arbitrations where there is a contract that contains a clause prohibiting consumers from joining class action arbitrations.

JAMS is withdrawing its policy for the following reasons:

The initial statement of the policy suggested to some that JAMS had deviated from its core value of neutrality. We want to reaffirm to all of our constituencies that we have a fundamental responsibility and commitment to absolute neutrality and the highest ethical and professional standards.

Recent court decisions on the validity of class action preclusion clauses have varied by jurisdiction. In this legal environment, our attempt, as a national ADR provider, to bring uniformity to the administration of class wide arbitrations stemming from these clauses has created concern and confusion about how the policy would be applied. Accordingly, we are retracting the previously announced policy and reaffirm that JAMS and its arbitrators will always apply the law on a case by case basis in each jurisdiction.