AAA Arbitrations

Arbitration is a private dispute-resolution process the parties agreed to in their contract, rather than a public court proceeding. The dispute is decided by one or three arbitrators the parties participate in selecting, not by a judge and jury. Discovery is generally more limited and faster than in federal court, the hearing is private and confidential, and the schedule is usually shorter. The trade-off is finality: an arbitration award is subject to only very narrow judicial review, so there is effectively no appeal on the merits. An award can be confirmed by a court and enforced like a judgment under the Federal Arbitration Act.

Only on very narrow grounds. Under the Federal Arbitration Act (9 U.S.C. § 10), a court may vacate an arbitration award only for reasons such as fraud or corruption in procuring the award, evident partiality of an arbitrator, arbitrator misconduct that prejudiced a party, or the arbitrators exceeding their powers. A court will not vacate an award simply because the arbitrators got the facts or the law wrong. This limited review is why the hearing itself is decisive; the record and arguments presented to the panel are, in practice, the only opportunity to win the case.

First, read the arbitration clause closely with counsel: it dictates the governing rules (AAA Commercial Rules, Construction Rules, or ICDR international rules), the seat, the number of arbitrators, and the scope of what must be arbitrated, and whether the dispute the counterparty raised actually falls within it. Some disputes, or some parties, may not be bound to arbitrate, and a threshold arbitrability challenge can sometimes be raised in court. Second, calendar the deadlines: the AAA rules set strict time limits to file an answering statement and any counterclaims, and missing them carries consequences. Third, begin arbitrator selection planning immediately; the AAA will send a roster, and the strike-and-rank process that follows is the most important strategic decision in the case. Fourth, preserve documents and identify the witnesses and evidence the merits will turn on, since discovery is limited and the record must be built early. Engaging counsel at the demand stage, rather than after the panel is seated, preserves every one of these options.