Effective September 1, the American Arbitration Association (AAA) has finally updated its Commercial Rules and Mediation Procedures, concluding a two-year internal review. The amendments provide greater procedural discretion to arbitrators, further streamline expedited arbitrations, change the amount-in-controversy requirements for certain arbitration paths, and provide express confidentiality protections, among other things.

First, the amended rules give arbitrators more latitude in shaping the course of an arbitration. Under new Rule R-8, parties may now file requests to consolidate arbitrations or join additional parties. Absent agreement of all parties, the decision to allow consolidation or joinder is left to the discretion of the initial arbitrator or a special consolidation arbitrator, who must consider whether the arbitrations raise common issues of law or fact, whether the agreements to arbitrate are compatible, and whether consolidation would further “justice and efficiency.” Arbitrators also have flexibility to limit dispositive motion practice and to award fees and costs related to dispositive motion decisions. The rules also clarify optional remedies for non-payment of arbitration fees and costs an arbitrator may order.

Second, the amended rules make several changes to streamline expedited arbitrations. Under the amendments, no motion practice is permitted absent showing good cause and arbitrator permission, and no emergency relief is available. Discovery other than a basic exchange of exhibits also is prohibited.

Third, the amendments adjust the amount-in-controversy requirements for several types of arbitrations. Claims of up to $100,000 may now qualify for expedited arbitration, up from $75,000. On the other hand, the amount-in-controversy requirement for the large, complex case track has doubled, to $1 million. For a large, complex case to qualify for a panel of three arbitrators, claims and counterclaims must equal or exceed $3 million, triple the previous threshold.

Fourth, the amendments add a confidentiality provision, which codifies the arbitrators’ and AAA’s obligations to keep all matters related to an arbitration confidential. It also authorizes arbitrators to issue confidentiality orders as needed.

Finally, the amended rules expressly allow arbitrators to conduct hearings remotely by electronic means, codifying pandemic-era interpretations of the prior rules.

We will continue to monitor and report on similar developments affecting arbitration practice before AAA.

Photo of Chad R. Fuller Chad R. Fuller

Chad is a partner in the firm’s Consumer Financial Services practice with a primary focus in financial services litigation. He is an accomplished trial attorney who has served as lead counsel in state and federal courts across the country in which he represents…

Chad is a partner in the firm’s Consumer Financial Services practice with a primary focus in financial services litigation. He is an accomplished trial attorney who has served as lead counsel in state and federal courts across the country in which he represents clients in consumer class actions and general business litigation. Chad has particular speciality with the Telephone Consumer Protection Act, and has also broadened his practice into more traditional areas of health care litigation.

Photo of Michael E. Lacy Michael E. Lacy

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO,

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO, and state UDAP laws. He has significant experience litigating and trying corporate governance disputes, including shareholder derivative claims, corporate dissolution cases, and corporate divorce matters. Michael also represents public utility companies in litigation and regulatory matters, including condemnation and land use cases.

Photo of Virginia Bell Flynn Virginia Bell Flynn

Virginia is a partner in the firm’s Consumer Financial Services practice and specifically within the Financial Services Litigation practice. She represents clients in federal and state court, both at the trial and appellate level in the areas of complex litigation and business disputes…

Virginia is a partner in the firm’s Consumer Financial Services practice and specifically within the Financial Services Litigation practice. She represents clients in federal and state court, both at the trial and appellate level in the areas of complex litigation and business disputes, health care litigation, including ERISA and out-of-network issues, and consumer litigation in over 21 states nationwide. As a result of new legal developments, she increasingly counsels clients to ensure they comply with the myriad of growing laws in the consumer law with a particular emphasis on the intersection of TCPA and HIPAA.

Photo of Tina Safi Felahi Tina Safi Felahi

Tina represents health care clients, including health plans and health care insurers, in complex business litigation matters. She is particularly experienced in handling managed care disputes from inception through trial.

Photo of Sarah Siu Sarah Siu

Sarah Siu leverages her clerkship and litigation experience to help consumer-facing companies navigate the complex world of consumer protection litigation.