Overview

Since AHLA and AAA have different fee structures, the gap in price for administering an arbitration varies depending on amount in controversy, the number of parties, the number of arbitrators, and whether and when a case settles. The number of hours billed by the arbitrator or panel also may be a factor. As the examples below illustrate, AHLA is significantly less expensive for smaller claims and dramatically less costly for large claims.        

Fee Structures

Initial Filing Fees

Two-Party Case: AHLA’s non-refundable charge for filing a claim (or counterclaim) and obtaining a list of 5 candidates to review and rank is $1,100. The cost increases in $200 increments to obtain lists of 10, 12, or 15 candidates. 

AAA has standard and flexible fee schedules for domestic commercial cases. The flexible schedule offers a 50% reduction in the filing fee; however, if the case remains open for 90 days, AAA imposes a Proceed Fee that is nearly as high as the standard Initial Filing Fee. The standard Initial Filing Fee is partially refundable if the case closes within 60 days.  The amount of the refund diminishes over time. The flexible Initial Filing Fee and Proceed Fees are non-refundable. 

Multi-Party Cases: AHLA charges a flat $200 fee for each additional party (beyond two). AAA charges 10% more for the filing fee for each additional separately represented party. This add-on is capped at 50% for up to 10 separately represented parties. 

Final Fee

AHLA does not charge an additional fee if a case goes to hearing. AAA charges a non-refundable fee unless a scheduled hearing is cancelled 24 hours in advance.

Arbitrator Fees

AHLA and AAA both allow arbitrators to invoice parties for billable hours, but AHLA retains 18% of the amount billed and collected.^[1] An arbitrator who is on both rosters might charge 18% more on an AHLA case to break even. The AAA roster includes a much higher percentage of retired judges with high hourly rates, so whether AAA’s average hourly rates are lower than AHLA’s is unclear.  

Closing Fee

If a party has more than $1000 on deposit when a case closes, AHLA charges $250 to process a refund. AAA does not appear to charge a closing fee.

Examples

The following three examples illustrate how the fees differ, and how vastly different the fees are for large cases and cases that go to hearing.

 

Small Case Settles Early
Parties	2
Candidates	5
Demand	$100,000
Outcome	Settled in 90 days
AHLA
Initial Filing Fee	$1,100
Closing Fee	$250[2]
Total	$1,350
AAA Standard[3]
Initial Filing Fee	$1,925
Total	$1,925

 

 

 

  

Mid-Size Case Settles Pre-Hearing
Parties	3
Candidates	10
Demand	$500,000
Outcome	Settled in 210 days
AHLA
Initial Filing Fee	$1,500
Closing Fee	$250[4]
Total	$1,750
AAA Standard
Initial Filing Fee	$6,050
Total	$6,050
AAA Flexible
Initial Filing Fee	$3,025
Proceed Fee	$4,725
Total	$7,750

 

 

 

 

  

Large Case Does Not Settle
Parties	2
Candidates	15
Demand	$1,200,00
Outcome	Award
AHLA
Initial Filing Fee	$1,700
Closing Fee	$250[5]
Total	$1,950
AAA Standard
Initial Filing Fee	$7,700
Final Fee	$8,475
Total	$16,175
AAA Flexible
Initial Final Fee	$3,850
Proceed Fee	$6,275
Final Fee	$8,475
Total	$18,600

 

 

 

^[1] AHLA and AAA both permit an arbitrator to charge for direct costs such as travel and photocopying.

^[2] Charged only if the amount on deposit at the time of settlement exceeds $1,000.

^[3] AAA’s flexible fee schedule is not available for a case of this size.

^[4] See note 2.

^[5] See footnote 2.