JAMS Announces New Mass Arbitration Rules and Procedures | McGlinchey Stafford

Following in the footsteps of the American Arbitration Association (AAA), JAMS recently announced the creation of its own mass arbitration procedures and guidelines, designed, in part, “to facilitate the fair, expeditious and efficient resolution of arbitrations massive “.

The new guidelines will apply to any mass arbitration, defined as 75 or more similar arbitration claims or a different amount specified in the parties’ arbitration agreement, filed against the same party or a related party on behalf of claimants individuals represented by the same law firm. or law firms acting in coordination with each other.

JAMS’ new mass arbitration procedures also include certain filing requirements that must be met by a claimant, including the requirement that an attorney’s affidavit certify that the information contained in each claim is true and accurate to the lawyer’s knowledge. This appears to be designed to address ethical considerations raised by many surveyed companies facing mass arbitration.

Notably, the new rules authorize and enable the use of a process administrator, designed to “determine such preliminary and administrative matters as may be necessary to ensure the orderly and efficient resolution of claims filed in mass arbitration, pursuant to under the terms of the control of agreements, procedural fairness and integrity of the arbitration process. This includes the power and authority to consider, among other things:

• Whether the filing requirements have been met.
• If the conditions precedent of the arbitration agreement have been met.
• What arbitration demands should be included.
• What rules apply.
• Whether it’s grouping, consolidating or consolidating requests.
• Any other unfounded question having an impact on the administration of the file.

JAMS’ new mass arbitration procedures also include an updated fee schedule. Under the new fee schedule, a non-refundable filing fee of $7,500 (regardless of the number of files) must be paid before the process administrator is appointed. In consumer cases, the most a consumer must pay for the initial filing fee is $2,500, with the company covering the rest. The updated fee schedule also provides for a case management fee in the amount of 13% of professional fees and a one-time appointment fee of $2,000 (for a two-party case), regardless of the number of cases or the group of cases for which the arbitrator is appointed. has. A Process Administrator will also charge in accordance with the rate set out in its general fee schedule.

The updated rules and fee schedule appear designed to address common complaints related to the mass arbitration process, including exorbitant initial filing fees and the inability to quickly resolve procedural issues at the outset and before incur significant filing fees and costs.