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The High Price of Legacy Mass Arbitration Rules
Legacy mass arbitration rules don’t allow litigants to narrow the case at an early stage, which encourages the mass solicitation of potential claimants, often abusively. This drives up costs and makes it harder to identify legitimate claimants who are entitled compensation.
Traditional mass arbitration providers create costly and inefficient hurdles, including:
- No dispositive motions
- Limited or no ability to bring Rule 11 motions
- Unqualified process administrators with limited or no ability to narrow the case
- Massive front-end filing fees
- Limited or no ability to select decision-makers
- Variability in rulings from batch or bellwether arbitrations
Efficient, Quick, Uniform Resolution
Minimize front-end costs with early dispositive motions
FedArb helps you minimize risk, manage costs and speed up case resolution by enforcing Rule 11 affirmation requirements. Our expert-driven process, led by top jurists, ensures early case assessment and a clear understanding of its scope.
- Eliminate non-meritorious claims before paying filing fees. Pre-filing fee motion to dismiss filters out unmeritorious cases early with Rule 12(b)(6) standards and former Article III judges.
- Faster, more effective settlements. A FRCP MDL-styled consolidated process eliminates issues of procedural and substantive unconscionability, ensuring all parties have a clear picture of potential claims, leading to more meaningful settlement discussions. Read our mass arbitration rules.
- Uniform, efficient outcomes. Our ADR-MDL™ process treats all claimants equally – unlike the variability inherent in batch or bellwether arbitrations – by resolving legal, discovery and damages issues common to all cases before individual arbitration begins.
- Reduce frivolous claims with a rigorous “reasonable inquiry” requirement using FRCP Rule 11 affirmation standards.
- $5-$7MM savings versus other arbitration providers. Massive upfront fees are eliminated. Filing fees are paid after the motion to dismiss decision. View our fee framework.
- Resolve cases in under a year for those involving statutory damages with FedArb’s mass arbitration rules, integrated case management software and former Article III judges.
CEO Ken Hagen discusses the recent mass arbitration ruling
The Ninth Circuit ruled that Starz Entertainment LLC can’t be forced to individually arbitrate 7,300 video-privacy claims. The consumers had alleged the company unlawfully shared their personal information with Meta Platforms Inc. and Google LLC.
The court wrote that the ADR provider, not Starz, made the decision to consolidate the arbitrations.
In this video FedArb CEO Ken Hagen breaks down the ruling and what it implies for the future of mass arbitrations.
Recommended by Leading Law Firms and Implemented by Major Companies
Resolve Cases with Established Jurists Skilled in Mass Claims Resolution
FedArb offers seasoned jurists with Rule 11 and 12(b)(6) experience can reduce your mass arbitration burden
- Largest panel of former Article III judges (60). Review our panelists.
- Federal rules provide case law. See FedArb’s rules for mass arbitration.
- Highly responsive, 24/7 case administration team.
- Decades of arbitration experience. Leader in mass arbitration since its inception.
- Challenges against FedArb rules have been uniformly rejected.
- Flexibility to use any arbitration rules: AAA, JAMS, CPR, ADR Services or any other rules.
FedArb ADR-MDL Framework to Expedite Resolutions and Reduce Fees
No filing fees required until after the motion to dismiss decision
Stage 1
Registration date
Company registers arbitration provision with FedArb.
Cost: $50,000
Stage 2
3 months
Claimants submit demand for arbitration with Rule 11 attestation.
Optional Prefiling Motion
- $50K-$100K/motion
- Filing fee of $100/actual claimants due 30 days after ruling
Stage 3
4-12 months
MDL Panel decides common issues.
Any remaining individual issues decided by:
- Submission of claims form: $1MM
- Individual expedited arbitrations: $350K
FAQs
FedArb has been a leader in mass arbitration since its inception and has decades of experience in alternative dispute resolution (ADR). FedArb’s mass arbitration rules and former Article III judges allows companies to minimize risk, manage costs and speed up case resolution by enforcing Rule 11 affirmation requirements.
FedArb’s mass arbitration rules are designed to ensure fairness, efficiency and consistency by following well-established MDL procedures under the Federal Rules. Our ADR-MDL™ process allows both parties to assess the scope of potential claims early, leading to more meaningful settlement discussions.
Key features include:
- Early Case Filtering: Former Article III judges review optional Rule 11 and Rule 12(b) motions before arbitration fees are paid, dismissing unmeritorious claims upfront.
- Uniform Treatment of Claimants: An MDL-style tribunal resolves all legal, discovery and damages issues common to all cases, avoiding inconsistencies found in batch or bellwether arbitrations.
- Streamlined Individual Resolution: Valid claims proceed through either an expedited arbitration or a simple claims form process to determine individual damages.
- Updated 2025 Rules: Strengthened affirmation requirements align with FRCP Rule 11’s “reasonable inquiry” standard, and pre-filing motions to dismiss follow the Rule 12(b)(6) standard.
By staying all arbitrations until common issues are resolved, FedArb eliminates procedural inefficiencies and excessive costs, ensuring a fair and predictable process for all parties.
Legacy mass arbitration rules don’t allow litigants to narrow the case at an early stage, which encourages the abusive collection of potential claimants. This drives up costs and makes it harder to identify legitimate claimants who deserve compensation.
FedArb’s mass arbitration rules address these issues by filtering out unmeritorious claims early and consolidating cases with common issues, allowing parties to focus on the real disputes. Our ADR-MDL™ approach and Rule 11 and 12(b)(6) standards minimizes fees and delivers swift and fair resolutions.
FedArb’s mass arbitration fees are structured across three stages to ensure fairness and efficiency:
- Stage 1 – Registration: Companies register their arbitration provision with FedArb. Cost: $50,000
- Stage 2 – Claim Submission (3 months): Claimants file arbitration demands with a Rule 11 attestation.
- Optional pre-filing motion: $50,000-$100,000 per motion
- Filing fee: $100 per actual claimant (due 30 days after ruling)
- Stage 3 – MDL Panel & Individual Claims (4-12 months):
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- MDL panel resolves common issues
- Remaining individual issues:
- Claims form submission: $1,000,000
- Individual expedited arbitrations: $350,000
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This tiered approach ensures early claims assessment, cost control, and an efficient resolution process.
Mass arbitrations with legacy arbitration institutions can be costly and inefficient, as they require massive upfront filing fees and have inexperienced process administrators who are not empowered to narrow cases or impose sanctions. FedArb’s mass arbitration process addresses these issues by filtering out unmeritorious claims early and consolidating cases with common issues, allowing parties to focus on the real disputes. Our approach enforces Rule 11 standards, ensuring both sides are held accountable for improper filings. By partnering with FedArb, you not only save on fees but get swift and fair resolutions.
FedArb’s mass arbitration panel features the largest group of former Article III judges, all with extensive experience in multidistrict litigation (MDL). With over 60 presidentially appointed judges spanning diverse legal specialties across the country, our panel brings unparalleled expertise. These judges apply Rule 11 to dismiss unmeritorious cases early, ensuring a fair and efficient process. Unlike traditional batch or bellwether arbitrations, which create inconsistencies, our judges treat all claimants equally by resolving key legal, discovery, and damages issues before individual arbitration begins. This judicial oversight ensures a consistent and just process for all parties involved.
To get started, contact FedArb to register your arbitration provision. This process includes establishing key procedural requirements, such as informal resolution steps and claimant identification guidelines, ensuring a streamlined and efficient approach to mass arbitration.