The American Arbitration Association-International Centre for Dispute Resolution® (AAA-ICDR) introduced significant updates to its Mass Arbitration Supplementary Rules and corresponding fee schedules on January 15, 2024, with a notable expansion announced on April 1, 2024. The most recent amendments broaden the scope of applicability to include B2B, commercial, construction and international cases.
“B2B disputes are becoming increasingly prevalent within the realm of mass arbitration. The updated Rules are designed to provide a targeted resolution pathway for such disputes,” said Elizabeth Corsetti, American Arbitration Association® (AAA®) assistant vice president.
The revised Mass Arbitration Supplementary Rules facilitate a more inclusive and efficient arbitration process, extending beyond the initial concentration on consumer and employment disputes.
“These changes are informed by our experience in mass arbitration and represent an innovative step forward in resolving mass claims. The AAA takes pride in offering efficient, fair and cost-effective solutions to parties,” said Heather Santo, AAA vice president.
January 15, 2024, Update Highlights:
- Early Resolution Opportunities: A flat Initiation Fee covers an administrative review of the filing, an administrative conference call with the AAA, and the appointment of a Global Mediator and/or Process Arbitrator, facilitating quicker settlement analysis and discussions.
- Reduced Friction: New affirmation requirements help ensure accurate filings and pleadings, minimizing delays and unnecessary complexities.
- Cost Predictability: Staged fees beyond the Initiation Fee provide transparent and manageable expenses as cases progress.
- Process Efficiency: An expanded Process Arbitrator role tackles potential hurdles early, allowing parties to focus on substantive issues.
April 1, 2024, Update Highlights:
Expanded Scope: The Mass Arbitration Supplementary Rules have been broadened to cover a variety of disputes, including B2B, commercial, construction and international cases, moving beyond their initial focus on consumer and employment/workplace issues.
Case Threshold: Mass arbitration disputes not categorized as consumer or employment/workplace must meet a minimum threshold of 100 cases. The threshold for consumer and employment/workplace disputes remains at 25 cases.
These updates underscore AAA-ICDR’s dedication to improving the arbitration process, making it more accessible, transparent and efficient for all parties in various cases. Through these enhancements, AAA-ICDR reinforces its role as a pioneering institution in dispute resolution, committed to addressing the needs of its diverse clientele.