FedArb Updates Its Mass Arbitration Rules for 2025

January 22, 2025 | Federal Arbitration Inc

January 22, 2025 – FedArb announced it updated its consumer and employment MDL-styled Mass Arbitration rules. The latest changes are designed to follow the best practices of the federal rules and eliminate procedural or substantive unconscionability issues.

FedArb’s updated rules add a robust affirmation requirement that tracks FRCP Rule 11 “reasonable inquiry” standard and makes clear that the standard for a Pre-Filing Fee motion to dismiss for failure to state a claim is the same standard employed to grant a 12(b)(6) motion to dismiss. These procedures are contingent on a meet-and-confer and are made before the parties are required to pay arbitration filing fees.

“Courts are increasingly scrutinizing mass arbitration rules to ensure they have the protections inherent in the Federals Rules,” said Kennen D. Hagen, president and CEO of FedArb. “We are gratified by the private and public companies that have updated their arbitration agreements to use FedArb’s ADR-MDL™ mass arbitration rules.”

As before, an MDL-type tribunal will adjudicate all common issues, instead of the variability inherent in batch or bellwether arbitrations. Any remaining issues are then determined either by an individual arbitration or by the submission of a claims form setting forth individual facts that will enable damages to be calculated in accordance with the findings of the MDL tribunal.

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.