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Minimize Front-End Costs With Early Dispositive Motions
Legacy mass arbitration rules now allow only limited early case filtering by a process administrator who lacks authority to issue dispositive rulings — forcing parties to pay substantial filing fees before any evaluation of merit. This structure drives up costs and delays relief for claimants with valid claims.
FedArb is different. Our MDL-style framework allows for pre-filing motions to dismiss under Rule 12(b)(6) standards. A former Article III judge on FedArb’s panel adjudicates the motion, including any Rule 11 enforcement. The result: unmeritorious claims are either never filed or eliminated before fees accrue — keeping attention focused on cases that deserve resolution.
Compare Mass Arbitration Costs Across Providers
FedArb’s framework—built on judicial standards and applied by elite neutrals—helps parties avoid unnecessary upfront costs while ensuring meritorious claims move forward.
Assuming 10,000 Claimants
| AAA | NAM | JAMS | FedArb | New Era | |
|---|---|---|---|---|---|
| Front End Administration | |||||
| Initial/subscription/registration | $8,125 | $7,500 | $50,000 | $250,000 | |
| Process Admin/PreFiling Fee Motion | $30,000 | $30,000 | $70,000 | ||
| Administrative/Filing Fees | $1,250,000 | $2,775,000 | $130,000 | $750,000 | $2,500,000 |
| Arbitrations | |||||
| Arbitrator Appointment Fee | $6,000,000 | $5,250,000 | $400,000 | $5,000,000 | |
| MDL Processing | $100,000 | ||||
| Admin. Hearing Fee for 50 cases | $30,000 | $26,250 | $150,000 | ||
| Arbitrator fees @ $650/hr. | $1,300,000 | $550,000 | $16,250,000 | $300,000 | |
| Assumptions | 50 @ 10 hours | 2.5 hours each | 50 cases @ $6k | ||
| Claims Processing | $700,000 | ||||
| TOTAL | $8,618,125 | $8,601,250 | $16,817,500 | $1,970,000 | $7,900,000 |
Notes:
FedArb:
- Front End Administration assumes $80k for prefiling fee motion
JAMS:
- Case management fee is 13% of professional fees
- Assume each arbitrator does 50 cases, so 200 arbitrators @ $2,500
| AAA | $8,618,125 |
| NAM | $8,601,250 |
| JAMS | $16,817,500 |
| FedArb | $1,970,000 |
| New Era | $7,900,000 |
Recommended by Leading Law Firms and Implemented by Major Companies
FAQs
Companies can save millions of dollars compared to legacy arbitration providers by eliminating massive upfront filing fees. In large-scale filings, traditional per-claim fee structures can generate $5 million or more in administrative costs before any merits review occurs. FedArb’s Mass Arbitration Rules reduce that early financial exposure by permitting threshold legal review before significant arbitration fees are incurred.
Mass arbitration filing fees become expensive because many providers require full per-claim administrative fees at the outset of the proceeding. When hundreds or thousands of claims are filed simultaneously, those fees are triggered immediately — regardless of whether the claims satisfy basic legal standards.
The largest early costs in traditional mass arbitration are administrative filing fees assessed on a per-claim basis. When every claim activates full filing and case management fees at the beginning of the process, overall costs escalate rapidly before common legal issues are resolved.
FedArb’s Mass Arbitration Rules allow early review of threshold legal issues — including Rule 11 affirmation requirements and Rule 12(b)(6) motions to dismiss — before substantial arbitration fees are triggered. By resolving common issues first in a coordinated, MDL-style process, FedArb avoids the immediate imposition of per-claim filing fees that drive excessive upfront costs.
Yes. FedArb permits early dispositive review, including motions to dismiss under Rule 12(b)(6), before significant arbitration fees attach. The Rule 11 affirmation requirement further ensures that claims satisfy established legal standards before the process moves forward.
FedArb prevents unnecessary cost escalation by resolving common legal issues in a coordinated proceeding before individual claims advance. This MDL-style structure promotes efficiency, discourages unsupported filings, and aligns administrative costs with meaningful dispute progression.
Unlike legacy providers that require full per-claim filing fees at the outset, FedArb’s fee structure is designed to eliminate massive upfront costs. Administrative expenses are aligned with the progression of the case rather than triggered solely by the volume of claims filed.
No. Mass arbitration becomes disproportionately expensive when per-claim filing fees are imposed immediately without early legal review. When administered under FedArb’s coordinated, MDL-style framework, arbitration can preserve contractual rights while promoting efficiency and cost control comparable to multidistrict litigation.