650.328.9500
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 | ||
| Adminstrative/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
Recommended by Leading Law Firms and Implemented by Major Companies
FAQs
Unlike legacy providers, FedArb allows parties to file pre-fee motions to dismiss under Rule 12(b)(6) standards. This means that unmeritorious claims can be dismissed before filing fees are triggered—potentially saving millions in unnecessary costs.
FedArb’s arbitrators include former Article III judges with deep experience managing complex litigation. Their ability to enforce procedural standards and make early rulings gives both sides confidence in the integrity and efficiency of the process.
Yes. FedArb’s MDL-style framework allows experienced neutrals to consolidate overlapping claims and dismiss meritless ones early—streamlining the process and focusing on claims that warrant resolution.
Most providers require payment of filing fees before any claim review. FedArb offers a structured process where experienced arbitrators can decide early dispositive motions, apply Rule 11 standards, and reduce exposure to abusive filings—often saving parties $5–7 million.
Yes. FedArb promotes fairness and accountability by giving experienced neutrals the authority to assess claims on the merits early. This benefits all parties by ensuring faster resolution of legitimate disputes and reducing procedural gamesmanship.