Another Court Rejects A Company's Attempt To Avoid Mass-Arbitration Fees

The U.S. District Court for the Northern District of Illinois is the latest court to require a company to pay millions of dollars in fees to adjudicate mass arbitrations. Judge Harry D. Leinenweber compelled Samsung Electronics America, Inc., and Samsung Electronics, Co., Ltd. to arbitrate according to Samsung's Terms & Conditions and ordered Samsung to pay over $4 million in initial fees to the American Arbitration Association (AAA) before the merits of any individual claims are considered.

The Rise of Mass Arbitration

Mass arbitration is a response to the growth of mandatory arbitration clauses and class-action waivers in consumer and employment contracts. It involves hundreds, thousands, or even tens of thousands of coordinated—but individual—arbitration demands filed against the same party and with those claimants usually represented by the same or coordinated counsel.