FedArb Updates Its Mass Arbitration Rules

November 13, 2023 | Federal Arbitration Inc

Motion for failure of claimants to meet their contractual prefiling obligations or failure to state a claim can be brought before paying filing fees.
Filing fees reduced to $100 per claimant.

November 14, 2023 – FedArb announced it updated its consumer and employment Mass Arbitration rules to resolve mass arbitrations more efficiently, and to provide both sides an opportunity to verify claimants with nominal front-end filing fees.

Mass Arbitrations arise when numerous individual claims by employees or consumers are submitted for arbitration and these claims have a common set of factual and legal issues. FedArb’s MDL framework allows a streamlined resolution of common issues and then, if needed, provides claimants with individual arbitrations on any individual issues.

FedArb’s Mass Arbitration rules now provide that prior to paying arbitration filing fees, the company may bring a motion to dismiss some or all of the claimants for failure to state a claim or failure to comply with any contractual prefiling arbitration provisions. Before bringing such a motion, the parties must meet and confer in good faith and the company, if requested, shall make reasonable efforts to work with claimants’ counsel to identify ineligible claimants. After the meet and confer process is completed, the company can bring its motion, which will be heard by a FedArb panelist after full briefing.

FedArb has also reduced its filing fees to $100 for each mass arbitration claimant.

“These changes better reflect the desire of both side to make sure that only bona fide claimants are before the mass arbitration tribunal,” said Kennen D. Hagen, FedArb’s president and CEO. “By providing a process before filing fees have to be paid, both sides will have a precise understanding of the scope of the claims at issue, which will better enable them to resolve the issues effectively and efficiently.”

About FedArb

For almost two decades, leading law firms have used FedArb’s panel of more than 60 former Article III federal judges and 60 distinguished neutrals to successfully mediate and arbitrate hundreds of high profile complex civil cases, typically achieving results more efficiently and cost effectively than through litigation. FedArb’s panelists also work with law firms on internal investigations, mock trials and on corporate monitoring assignments. FedArb provides around-the-clock administrative services and requires its neutrals to honor the parties’ deadlines, saving clients time and money.