American Arbitration Association

American Arbitration Association
Name	American Arbitration Association
Founded	0 1926
Location	New York City, New York, U.S.
Key people	Michele M. Gissendanner (President & CEO)
Focus	Alternative dispute resolution
Website	www.adr.org

American Arbitration Association. The American Arbitration Association is a not-for-profit organization and one of the world's leading providers of conflict resolution services, administering cases through arbitration, mediation, and other forms of alternative dispute resolution. Founded in 1926, it operates a network of domestic and international offices, offering a comprehensive set of rules and a roster of impartial neutrals to resolve disputes outside of traditional court litigation. Its services are utilized across numerous sectors including construction, employment, consumer finance, and international trade, impacting the legal and business landscapes significantly.

History

The organization was established in 1926 through the merger of the Arbitration Society of America and the Arbitration Foundation, with early proponents including legal scholar and future Supreme Court Justice Harlan F. Stone. Its creation was part of a broader movement to promote arbitration as an efficient alternative to the often slow and costly judicial system. A pivotal moment in its history was the passage of the Federal Arbitration Act of 1925, which provided a legal framework for enforcing arbitration agreements. Throughout the 20th century, it expanded its role, developing specialized rules for various industries and playing a key part in the growth of international commercial arbitration, notably through its international arm, the International Centre for Dispute Resolution, founded in 1996.

Services and operations

The organization administers a vast array of dispute resolution processes, primarily arbitration and mediation, across multiple dedicated practice areas. Key administered forums include the International Centre for Dispute Resolution for cross-border cases, the Construction Division for industry-specific disputes, and the Employment Arbitration Tribunal. It maintains a large, diverse panel of arbitrators and mediators, including experts in fields like intellectual property, insurance, and healthcare. Additional services include the design of dispute resolution systems for corporations, online dispute resolution platforms like AAA WebFile, and extensive training and education programs for neutrals and legal professionals through the AAA University.

Rules and procedures

The organization provides a comprehensive, constantly updated framework of procedural rules tailored to different dispute types, such as the Commercial Arbitration Rules, Construction Industry Arbitration Rules, and Employment Arbitration Rules. These rules govern all aspects of the process, from the filing of a demand for arbitration and selection of neutrals to the conduct of hearings and the rendering of awards. Procedures for large, complex cases often involve preliminary hearings, streamlined discovery protocols, and expedited processes for smaller claims. The rules are designed to ensure a fair, efficient, and enforceable process under governing laws like the Federal Arbitration Act and the New York Convention.

Governance and structure

Governed by a Board of Directors composed of leaders from the legal, corporate, and academic sectors, the organization's national headquarters are located in New York City. Operational leadership is provided by a President and CEO, with regional case management centers and hearing facilities located across the United States in cities like Los Angeles, Chicago, and Miami. Its international operations are spearheaded by the International Centre for Dispute Resolution, with offices in Dublin, Mexico City, and Singapore. An independent, standing committee of the Board, the National Roster Committee, oversees the application and ethical standards for the thousands of neutrals on its national and international rosters.

Notable cases and impact

The organization has administered many high-profile disputes that have shaped legal precedent and industry practices. Significant cases have involved major league sports, including salary arbitration for Major League Baseball players, and complex commercial disputes between Fortune 500 companies like IBM and Fujitsu. Its administration of mass claims, such as those related to the September 11th Victim Compensation Fund, demonstrated its capacity for large-scale alternative dispute resolution. Its work has profoundly influenced the widespread adoption of arbitration clauses in consumer contracts, employment agreements, and construction contracts, making arbitration a standard feature of modern American commercial life.

Criticism and controversy

The organization has faced significant criticism, primarily concerning its role in administering mandatory predispute arbitration agreements in consumer arbitration and employment arbitration. Critics, including advocacy groups like Public Citizen and members of the United States Congress, argue these clauses often favor corporate repeat players and deprive individuals of access to the judicial system and rights to class action lawsuits. Some court decisions, including from the Supreme Court of the United States in cases like AT&T Mobility v. Concepcion, have upheld such agreements, fueling debate. Additional critiques have focused on arbitrator selection processes, transparency, and the costs of arbitration for individual claimants, leading to ongoing legislative scrutiny and calls for reform.

Category:Alternative dispute resolution organizations Category:Organizations based in New York City Category:Organizations established in 1926