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Shedding Light on the AAA's Streamlined Three-Arbitrator Panel Option - Alternative Dispute Resolution News

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Alternative Dispute Resolution News

Posted on: Aug 2, 2018

From JDSupra:

On May 1, 2017, the American Arbitration Association (AAA) announced a new procedure under the AAA’s Arbitration Rules aimed at lowering the administrative cost of arbitrations involving three-arbitrator panels.

The new procedure, referred to as the “Streamlined Three-Arbitrator Panel Option,” allows parties to reduce arbitrators’ fees by allowing a single arbitrator to manage the arbitration through the preliminary procedural and discovery stages while calling on the complete three-arbitrator panel for the evidentiary hearing and final award. According to the AAA, “a three-arbitrator panel can actually cost five times as much as a single arbitrator” and “[b]y maximizing the use of single arbitrator, parties can capitalize on the cost savings, while still preserving their right to have the case ultimately decided by a panel of three arbitrators.”

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