JAMS recently has become the latest arbitral institution to publish rules tailored to the unique issues presented by mass arbitration filings. Mass arbitration filings have become a popular tactic among plaintiffs’ lawyers and a significant source of potential exposure for companies.
Effective May 1, 2024, parties agreeing to arbitration under the JAMS Rules will be able to opt into the application of the Mass Arbitration Procedures and Guidelines (the “Procedures”) and an accompanying Mass Arbitration Procedures Fee Schedule (“Fee Schedule”) for certain mass filings. The Procedures and Fee Schedule include features similar to those available under the rules of other arbitral institutions, including the American Arbitration Association (the “AAA”) and National Arbitration and Mediation, including the designation of a Process Administrator to hear and determine preliminary and administrative matters in a more streamlined and cost-efficient manner. For JAMS to assign a Process Administrator, the parties must pay a flat fee of $7,500, at least $5,000 of which shall be paid by the business in consumer mass arbitrations.
We previously discussed here the AAA’s mass arbitration procedures, which were last updated on April 1. The Procedures adopted by JAMS differ from the AAA’s current mass arbitration procedures in several notable ways, including those summarized in the table below.Continue Reading JAMS Implements New Procedures for Mass Arbitrations