Mass arbitration occurs when plaintiff firms file large volumes of individual arbitration demands simultaneously against a single respondent. Because the company's own clause requires individual arbitration and typically obligates it to pay most administrative and arbitrator fees, the aggregate fee exposure can reach millions before any merits are addressed.
The tactic emerged directly in response to class action waivers that pushed claimants out of collective litigation.
Alternative Names:
Mass Arbitration Campaign, Bulk Arbitration Filings
Why it Matters?
Mass arbitration inverted the strategic value of arbitration clauses. A provision drafted to prevent aggregation now enables a form of aggregation with worse economics for the defendant, since fees accrue per claim regardless of merit. Companies have responded by revising clauses to add bellwether protocols, batching procedures, and pre-arbitration mediation requirements, and courts are actively assessing whether those revisions are themselves enforceable.
Frequently Confused with
Related terms
Frequently asked questions
Why is mass arbitration expensive for defendants?
How are companies responding?
