On January 15, 2024, the American Arbitration Association® (AAA) amended its Supplemental Rules on Mass Arbitrations as well as its fee schedule. The updated rules and fee schedule reflect that mass arbitrations continue to be filed with the AAA and the AAA is implementing additional processes in an attempt to streamline those arbitrations. Specifically, the amended rules are designed to clarify issues that were often presented in connection with the filing of mass arbitrations by increasing the role and influence of appointed Process Arbitrators. Similarly, although the amended fee schedule is likely to increase the cost per case, the increase in upfront costs and shared burden related to arbitrator appointment and ranking fees may help deter abusive mass arbitrations.
The following overview of material changes is not an exhaustive list of all changes, which have been summarized by the AAA in additional detail. The material changes include:
The material changes to the fee schedule include:
See below chart for a comparison between the 2023 and 2024 fee schedules:
2023 Multiple Consumer Fee Schedule | 2024 Mass Arbitration Fee Schedule |
Desk only Arbitration | Fees Regardless of Desk v. Live Arbitration Initiation Fees: Individuals: $3,125; Business: $8,125 (per mass arbitration filed). The initiation fee is credited toward Per Case Fees. Per Case Fees: $325 (first 500), $250 (501 to 1,500), $175 (1,501 to 3,000), and $100 (3,001 and beyond) per case Direct Merits Arbitrator Appointment Fees: $450/case for the business and $50 per case for the individuals Rank/Process Appointment Process Fees: $600/case for the business and $75 per case for individuals (arbitrator appointment fees are non-refundable in the event of settlement or withdrawal) Final Fee (due at time hearing is scheduled or final submission in a desk arbitration): $600/case Merits Arbitrator Compensation: $300/hour Process Arbitrator/Mediator paid at market value |
In-Person, Virtual, or Telephonic Hearing Arbitration Filing Fee: $325 (first 500), $250 (501 to 1,500), $175 (1,501 to 3,000), and $100 (3,001 and beyond) per case | |
Abeyance Fee: $2,500 every six months in abeyance | No Change |
Consumer Clause Registry Fee: $600/year | No Change |
Mediation: $10,000 plus $75/hour billed by mediator | AAA Administered Settlement /Mediation: $3,250 plus $2,500 every six months the case is open, $300/hour mediator compensation |
AAA Administered Settlement: $3,250 plus $2,500 every six months the case is open, $2,500 neutral compensation |