Doing Our Part

Dispute Resolution Journal, May-Jul 2009 by Slate, William K

From the President of the American Arbitration Association (AAA)

Three years ago the AAA formulated an initiative aimed at testing an alternative to the regular commercial fee schedule. We learned a great deal from that test, which we conducted in a number of cities. Not surprisingly, one of the main things we learned is that cost is a major concern for many ADR users. As the current business environment remains fragile at best, cost concerns are even more acute. Therefore, effective June 1st, the AAA launched a "Pilot Flexible Fee Schedule" that is available to all customers who file arbitration cases in the following areas: commercial, construction, international, and employment. (Employment cases are limited to those involving claims by an individual, not on a classwide basis.) Consider this program the AAA's own stimulus package for the field of conflict management.

What are the advantages to you? The key attribute of this schedule is that it allows you to "pay as you go," which is a great deal more flexible. Second, you have an opportunity to greatly reduce costs if both parties mutually select an arbitrator- from the AAA roster or outside-on your own. Arbitrator selection from a list of suitable candidates created by the AAA case manager is one the most challenging aspects of case management. The reduced fee is offered as an incentive to parties to work together on arbitrator selection so that the list method is not needed in the case.

The Pilot Flexible Fee Schedule is listed with the Standard Fee Schedule in several sets of AAA's rules. I encourage you to compare the two schedules. To find them, visit www.adr.org/rules_updates, or call your local AAA office or AAA Customer Service at 800-778-7879 for more information.

On a somewhat related note, the AAA is offering AAA Non-binding Resolution Services in order to reduce costs and save you time. One of these services is traditional mediation, but a new offering is non-binding arbitration. The latter process is especially suitable for companies looking to resolve business-to-business, business-to-consumer, and/or employment disputes, because it gives them an advance look at how a decision maker would view the case. The AAA's Non-Binding Resolution Services could be the appropriate, flexible alternative to litigation as well. It not only allows you to contain costs and save time, it also helps you maintain relationships with partners and customers, and facilitate better outcomes. To learn more about these non-binding services, e-mail the AAA at settlementoptions@adr.org.

William K. Slate II