mass arbitration

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We previously wrote about an Illinois federal district court order requiring Samsung to pay about $4 million in arbitration fees in connection with 35,000 individual arbitration demands filed as part of a “mass arbitration” and the Seventh Circuit’s subsequent stay of that order after Samsung appealed. The Seventh Circuit has now decided the appeal—in favor of Samsung—an important ruling that may help level a mass arbitration playing field that heretofore has been tilted heavily in favor of the consumers.… Continue Reading

Our special guest is Professor Richard Frankel of Drexel University Thomas R. Kline School of Law and the author of a recent article on mass arbitration.  In this episode, we first discuss what mass arbitration is, how it relates to class action lawsuits, and the role of public enforcement.  We then discuss the industry and consumer positions on the use of mass arbitration and the empirical study conducted by Prof.… Continue Reading

After several years of refusing to adopt special rules applicable in mass arbitration proceedings, JAMS announced that it has issued Mass Arbitration Procedures and Guidelines and a Mass Arbitration Procedures Fee Schedule effective May 1, 2024.  The Mass Arbitration Procedures apply “only where the Parties have agreed to the application of these Procedures in a pre- or post- dispute written agreement.” … Continue Reading

Alleging violations of the Illinois Biometric Information Privacy Act (BIPA), approximately 50,000 Samsung customers filed individual arbitration demands with the American Arbitration Association (AAA) pursuant to an arbitration clause in Samsung’s customer agreement. Samsung refused to pay its share of the AAA’s administrative fees, totaling about $4 million, and the AAA closed the matters for lack of payment.… Continue Reading

The U.S. Chamber of Commerce’s recent publication of an 80-page report titled “Mass Arbitration Shakedown: Coercing Unjustified Settlements” has fanned the flames on an already heated debate between consumer advocates and industry lawyers over the propriety of mass arbitrations. 

We have addressed mass arbitration issues and potential defenses extensively in our prior blogs.… Continue Reading

An appeal pending in the U.S. Court of Appeals for the Ninth Circuit is poised to decide whether an arbitration agreement that requires mass arbitration disputes to be resolved by multiple rounds of bellwether arbitrations lawfully facilitates a quicker and more efficient resolution of the disputes than would be achieved by pursuing thousands of individual arbitrations—as appellant Verizon Wireless, Inc.… Continue Reading

Professor Glover is the author of the first major academic study of mass arbitration, which is soon to be published as a law review article.  In Part II of this two-part podcast, we discuss the economics of mass arbitration, including the minimum claim amount necessary to make mass arbitration viable and how consumers’ recovery in arbitration compares with their recovery in class actions, the use of targeted advertising and other methods by plaintiffs’ attorneys to reach potential claimants, and changes companies might consider to their arbitration agreements to address the growing use of mass arbitration, such as changes addressing cost sharing and carve outs for claims eligible for adjudication in small claims court.… Continue Reading

Prof. Glover is the author of the first major academic study of mass arbitration, which is soon to be published as a law review article.  In Part I of this two-part podcast, after reviewing the historical background of the Federal Arbitration Act, key SCOTUS arbitration decisions, and the evolution of mass arbitration, Prof.… Continue Reading