The Arbitration Acumen Podcast concludes its series on mass arbitration with a discussion with Adam Shoneck, vice president for business development and outreach at the American Arbitration Association (AAA).
Adam talks with host J.P. Duffy about the rise of mass arbitration following the US Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, the surge of “mega” filings beginning in 2019 and how the AAA responded with structured procedures.
Episode Highlights
[4:35] From Concepcion to “Mega” Mass Arbitrations: The episode by exploring the impact of the AT&T Mobility LLC v. Concepcion decision which allowed businesses to include class action waivers in arbitration agreements. In response, plaintiff firms began filing thousands of coordinated individual arbitrations, with the first “mega mass arbitrations” emerging in 2019. These filings, often involving more than 5,000 claims, dramatically increased procedural complexity and fee exposure.
[8:30] Why the AAA Created the Mass Arbitration Rules: The AAA initially administered mass filings as purely individual cases because arbitration clauses required individual proceedings. This approach proved inefficient and burdensome. In 2021, the AAA introduced its Mass Arbitration Supplementary Rules (originally called “multi-case filing rules”), which were drafted internally over approximately six months to create structure and predictability for large coordinated filings.
[23:02] Filing Safeguards and Legitimacy Checks: Following a 2024 rule update, filing attorneys must attest to the accuracy of submissions. Claimants in turn must submit individual demands plus detailed intake spreadsheets. While the AAA conducts administrative screening, respondents and the process arbitrator often play a significant role in challenging potentially illegitimate claims, such as claims from non-customers, deceased individuals or with inaccurate entries.
[26:07] Process Arbitrator: Early Issue Gatekeeper: A key innovation in the rules is the early appointment of a process arbitrator. Selected from a party list, this neutral resolves threshold issues such as fee allocation, rule applicability, preconditions to filing, and legitimacy challenges. Adam notes that most cases begin settling after the process arbitrator phase concludes, when the procedural landscape becomes clearer and merits fees loom.
[30:56] No Bellwethers: A Deliberate Institutional Choice: Unlike some providers, the AAA’s rules do not impose bellwether or test cases. Citing decisions such as Heckman v. Live Nation Entertainment, Inc., Adam explains that the AAA avoided procedures that could bind future claimants who had not yet participated. The institution determined that mandatory bellwethers risked fairness and enforceability concerns.
[37:02] The Future of Clause Drafting: In 2024, the AAA administered 92 mass arbitrations (82 consumer; 10 employment), with over 100,000 consumer cases arising in the gaming and entertainment sector, including antitrust, RICO and consumer protection claims. Most matters settle at rates comparable to individual arbitration. Looking ahead, Adam anticipates increased experimentation with batching and consolidation — referencing developments such as Jones v. Stars Interactive Holdings — as well as continued rule refinements and technological improvements to streamline administration.
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The opinions expressed in this podcast are those of the speakers and do not necessarily reflect the viewpoint of their institutions or clients.
