Commercial Arbitrations and Lawsuits, using JAMS and also American Arbitration Association
JAMS and American Arbitration Association
The commercial arbitration rules are significantly different than the consumer rules and the costs are higher. The arbitrator usually permits discovery and has the tendency to let you take all the discovery you want, but this is their option. You pay the arbitrator an hourly rate, usually over $400, and have to pay a filing fee that varies based on the size of the claim.
The major arbitration organization such as JAMS and American Arbitration Association have separate rules for commercial arbitrations. The rules are distinguished from arbitrations that are handled for consumer transactions or employment relationships. The rules are different. The fees are significantly different. The procedure is different.
The underlying concept differentiating commercial arbitrations for consumer arbitrations is the concept that commercial arbitrations are disputes between commercial entities or businesses. We assume there is a presumption that these businesses completely understand the agreements they are signing, and they can and are able to afford arbitrations as they have arbitrations rather than going work.
These assumptions are not necessarily, always true. However, the rules and fees are based on these underlying assumptions. The good and efficient evolution of these organizations is that you can now file online, and you do not necessarily have to use the post office. JAMS recently implemented an online filing procedure. The American Arbitration Association has had an online filing system for a significant time span. It is efficient, quick and streamlines the entire process. It is significantly easier than filing a lawsuit. It is significantly less expensive than filing a lawsuit. It provides for automated email correspondence between the American Arbitration Association and the litigants. This is significantly different than the court system.
Jams in my opinion is significantly American Arbitration Association. In my experience JAMS uses almost exclusively Federal Judges and experienced State Court Judges. The American Arbitration Association does utilize some judges however, a large majority of the arbitrators are experienced attorneys.
Commercial Arbitration excellent and expedient way of moving a dispute between parties to a resolution. One of the major differences in arbitration as opposed to court is the hearsay rule. In arbitration your symbols optional where and in court is mandatory. Without the implementation of the hearsay rule it is much more efficient and easier to present testimony as the witness is not wired to appear at the hearing. There are pluses and minuses the hearsay rule however arbitration worms have decided that the hearsay rule is very expensive force and the enforcement of the hearsay rule in arbitration is optional at best.
In many arbitrations in which I participated in the arbitrator will accept an affidavit or certification from a witness without requiring the witness to appear at the hearing/trial. The are no travel expenses, there are no travel costs, and it is much more streamlined and simpler to present an affidavit or certification. However, the litigation strategy can permit you to call the witness. The rules behind the arbitration form provide the attorneys more options when: the witnesses. If you want employer witness to feel free if you don’t generally, they can appear by written documentation or by video