Who pays for AAA arbitration?

Abeyance fees are charged by the AAA when the parties put a case on hold for more than a year. If the fee is not paid, the case is closed. Each party will have costs to conduct their case in arbitration just as they would in court.

What makes arbitration an attractive option for companies?

The confidential nature of arbitration is especially appealing where a company’s proprietary, trade secret information is involved, or where there is some other dispute over sensitive company information or technology. Another aspect of arbitration that makes it an attractive option is that the parties can select their arbitrator.

What are the terms and conditions of Arbitration?

The agreement to arbitrate, and the terms and conditions, is usually included in the business agreement or contract that gives rise to the dispute. The parties, usually through AAA, the American Arbitration Association, or JAMS, Judicial Arbitration and Mediation Services, appoint an arbitrator to oversee their dispute.

Who is the arbitrator in an arbitration case?

The arbitrator is an attorney or former judge and oversees all aspects of the arbitration, and presides over the final hearing. It’s very much like a civil court proceeding, but more relaxed and streamlined with respect to the discovery process, rules of evidence, and pleadings requirements.

How are the arbitrators at CPR paid for?

CPR provides both administered and non-administered arbitration services. Unlike AAA or JAMS, CPR does not receive a portion of the fees paid to its arbitrators. CPR is funded largely through annual dues, third party grants (no government money), program fees (generally associated with annual programs) and gifts.

How does the AAA work with an arbitrator?

Parties submit arbitrator compensation to the AAA ahead of time so that the arbitrator is paid for all work she or he does on the case. The AAA then sends the compensation to the arbitrator. If the case ends before all the money is used, the AAA refunds it to the parties who paid it.

What are the costs of an arbitration case?

There are two main types of costs in arbitration — administrative fees paid to the American Arbitration Association, and arbitrator compensation and expenses paid to the arbitrator who decides the case.

What are the rules for arbitration under the American Arbitration Association?

Labor – Any dispute, claim, or grievance arising from or relating to the interpretation or application of this agreement shall be submitted to arbitration administered by the American Arbitration Association under its Labor Arbitration Rules. The parties further agree to accept the arbitrator’s award as final and binding on them.

Why are arbitrators important in the dispute resolution process?

Choosing the right arbitrator or mediator is one of the most important decisions parties make in the dispute resolution process. Parties need arbitrators and mediators who understand the intricacies, vulnerabilities, and variances of their cases and industries.