What is Mass Arbitration?
Mass arbitration is a legal strategy where hundreds or thousands of people assert their individual legal claims in arbitration against a company at the same time. It forces corporations to face accountability when their terms of service block traditional class action lawsuits or mass tort litigation.
Key Takeaways
- Individual legal claims: Unlike a class action settlement claim, you retain control of your own active legal dispute and can seek the full value of your damages.
- Arbitration, not litigation: Arbitration is a private legal proceeding decided by a neutral third party, and the rules are different from litigation in a public court before a judge. Arbitration is designed to resolve legal claims more quickly and efficiently than litigation, but there are more limited rights to appeal an arbitration decision if you disagree with the outcome. Companies often include clauses in their contracts and terms of service that require arbitration of disputes, which prevent people from filing class action lawsuits.
- Collective action: Mass arbitration gives consumers a collective voice. Arbitration claims cannot be brought as class actions, but in mass arbitration, hundreds or thousands of individual arbitration claims can be filed at the same time.
- Rolling timelines: Individual cases are often processed in batches, meaning resolution takes patience and typically happens in waves.
Your Responsibilities as a Claimant
Like mass tort litigation, filing a legal claim in a mass arbitration requires far more involvement than submitting a passive class action settlement claim on a website. You are an active claimant initiating a legal dispute. That comes with three key responsibilities:
- As a claimant, you have a strict legal duty to preserve evidence. You cannot throw away or delete any documents, communications, or devices that have any information related to your legal claim--even if you think it's not that important or if it might even weaken your case. Your obligation to preserve all relevant information lasts for the entire duration of your legal claim.
- To support your legal claim, you will also need to swear to the exact facts of your experience and injuries under penalty of perjury.
- Finally, be ready for the long haul. Arbitration can take years, and you'll need to stay alert for communications from your attorneys related to your legal claim. Sometimes there will be long periods of waiting, followed by a flurry of activity that impacts your legal claim and requires your input. If your contact information changes, make sure to let your attorneys know so they can always reach you when needed.
Where ClaimsHero Fits In
Traditional law firms operate on manual labor and cannot effectively manage thousands of individual arbitration cases. As a licensed Arizona ABS law firm built like a tech company, ClaimsHero has the software to solve this bottleneck. We manage the logistical workload of mass arbitration—onboarding clients, verifying potential legal claims, and compiling evidence—so our partner law firms can focus their efforts on legal strategy and fighting the corporation to secure compensation. We pool our technological infrastructure with their courtroom experience to make it possible for more people to hold corporations accountable.
Frequently Asked Questions
Is mass arbitration the same as a class action? No. In a class action, one person typically represents all potential class members, and the settlement payout is standardized. In mass arbitration, you are asserting your own individual legal claim based on your specific damages.
What's the difference between mass arbitration and mass tort litigation? Mass tort litigation typically involves hundreds or thousands of coordinated cases that are filed in public court and managed by one judge. Mass arbitration typically divides the coordinated arbitration cases between many different arbitrators (who are neutral third parties but not necessarily judges) and the proceedings take place privately. Arbitration proceedings are designed to resolve legal claims more quickly than litigation, but there are usually more limited rights to appeal an arbitration decision.
Do I pay upfront for mass arbitration? No. We advance all the filing fees and costs. We operate on a contingency fee model, meaning you pay nothing out of pocket. We only get paid if we win.
Can I participate in a class action settlement and mass arbitration at the same time? No. You cannot double-dip. Submitting a class action settlement claim means you waive your right to sue the defendant, including through arbitration. If you want to file an individual legal claim in arbitration, you would need to opt out of any existing class action settlement in order to maintain a valid legal claim.
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. Consult with a qualified attorney for advice specific to your situation. Past results do not guarantee future outcomes.
