2006/Vol. 5 No.1 - Hamline Law - Hamline University

70 THE JOURNAL OF AMERICAN ARBITRATION [Vol. 5:1
317.14 days from panel request to final award. 285 This may be faster
than getting to trial, but not that much faster in many states. 286
The arbitration process can be too expensive. One of the often cited
benefits of arbitration is that it saves money. 287 Yet, there is no scientific
evidence to prove that litigation is actually more costly than
arbitration. 288 Arbitrators in large commercial disputes and important
labor disputes are well paid. It is not unusual for well-known arbitrators
in the United States to charge two to three thousand dollars per day. 289
International arbitrators charge fees in excess of their domestic
counterparts. 290 The nature and complexity of disputes submitted to
285. Id.
286. U.S. District Court for the District of Minnesota, Rules of Procedure for
Expedited Trials (effective July 2, 2001), http://www.mnd.uscourts.gov/ (expedited
trial rule is separate from U.S. District Court for the District of Minnesota Local
Rules L-1 thru L-83 (effective May 16, 2005)).
287. Bompey, Delikat, & McClelland, supra note 270, at 34.
288. Elizabeth Hill, Due Process at Low Cost: An Empirical Study of
Employment Arbitration Under the Auspices of the American Arbitration
Association, 18 OHIO ST. J. ON DISP. RESOL. 777, 784 (2003).
289. Richard M. Alderman, Pre-dispute Mandatory Arbitration In Consumer
Contracts: A Call for Reform, 38 HOUS. L. REV. 1237, 1250 n.53 (2001).
290. See ICC Rules, supra note 84, at app. III(B). In the following table adapted
from the ICC, one can see that an arbitrator handling a $100 million case for the
ICC would be compensated between $61,750 and $285,800. Id.
Sum in Dispute Administrative Arbitrators’ Fees
(in US dollars) Expenses
Minimum Maximum
up to 50,000 2500 2500 17% of amount in
dispute
50,001 to 100,000 2500 + 3.5% of 2500 + 2% of amt. 8500 + 11% of
amt. over 50,000 over $50,000 amt. over 50,000
100,001 to 4250 + 1.7% of 3500 + 1% of amt. 14,000 + 5.5% of
500,000
500,001 to
1,000,000
1,000,001 to
2,000,000
2,000,001 to
5,000,000
amt. over 100,000
11,050 + 1.15% of
amt. over 500,000
16,800 + .7% of
amt. over
1,000,000
23,800 + .3% of
amt. over
2,000,000
over 100,000
7500 + .75% of
amt. over
1,000,000
11,250 + .5% of
amt. over
1,000,000
16,250 + .25% of
amt. over
2,000,000
amt. over 100,000
36,000 + 3.5% of
amt. over 500,000
53,500 + 2.75% of
amt. over
1,000,000
81,000 + 1.12% of
amt. over
2,000,000