| ADReport |
Alternative
Dispute Resolution Section Newsletter |
| Volume Three,
Number One |
Bob Park, Chair
Jonathan S. Rosenthal, Editor
Elizabeth Yarema, Co-Editor |
AAA Makes Changes Aimed at
Fairness for
Consumers in Arbitration
From AAA news release
The American Arbitration
Association (AAA), in following the developing case law, is implementing changes
to its rules and procedures to provide safeguards to consumers involved in the
arbitration process. The most recent changes include modifications to the fee
structure for consumer disputes to make the process financially accessible,
particularly to consumers with smaller claims.
While claims under $10,000
already had a cap on the consumers’ fee of $125.00, now for cases between $10,000 and $75,000, consumers’ fees will be capped at $375, with businesses picking up the administrative costs
and the remainder of the arbitrator’s
fee. Additionally, a number of AAA arbitrators will offer pro bono services in
appropriate cases.
The new Supplementary
Procedures for Consumer Disputes went into effect March, 2002.