Business Arbitration Under AAA, JAMS and NAM Rules

Most businesses discover what their arbitration clause says only after a dispute is already live. By then the clause has chosen the forum, the rules, the fee exposure and often the number of arbitrators. This article walks through what a business filing or defending a large claim before the AAA, JAMS or NAM needs to understand before the first filing, drawn from Dilendorf Law Firm’s experience representing clients in complex arbitrations across all three forums.

Start with the terms you agreed to

Founders and operating companies routinely sign platform terms, vendor contracts and investor agreements with arbitration clauses they have never read. Those clauses often control the outcome.

When a contract names the AAA, the Commercial Rules become part of the agreement [1]. The clause often dictates the forum, governing law, number of arbitrators, and whether the prevailing party is entitled to attorneys’ fees.

Some decisions must be made before the case begins: under the AAA rules the arbitrator “need not render a reasoned award unless the parties request such an award in writing prior to appointment of the arbitrator” [1]. A business that wants an explained decision, and the ability to analyze it, has to ask early.

The cost is front-loaded

Arbitration can be efficient, but substantial fees are often due before the case even begins.

Under the AAA Commercial Fee Schedule, a claim of $500,000 to under $1 million carries a $6,650 initial filing fee and a $7,525 final fee; a claim of $1 million to under $10 million carries $8,925 and $9,675; and “Arbitrator compensation is not included in this fee schedule” [2].

Fees “are to be paid by the party bringing the claim or counterclaim at the time the demand or claim is filed,” and if a party refuses to pay its share, the other side may pay for all parties “otherwise the arbitration will be administratively closed” [2].

The arbitrator may also “order the suspension of the arbitration” when deposits are not received [1].

In complex cases with a three-member panel and multiple hearing days, forum and arbitrator fees alone can reach $60,000 to $80,000 before any expert or attorneys’ fees are incurred. Budget for the entire arbitration, not just the filing fee.

Fee-shifting: the risk that exceeds the claim

Many commercial terms make the losing party responsible for the winner’s attorneys’ fees.

The AAA rules permit “an award of attorneys’ fees if all parties have requested such an award or it is authorized by law or the parties’ arbitration agreement” [1], and JAMS allows the award to “allocate attorneys’ fees and expenses and interest” where the agreement or applicable law provides [3].

In 2026, we saw a merchant pursue claims against Stripe and leave with an award exceeding $1 million in attorneys’ fees against it.

For any business considering whether to file a claim or how aggressively to defend one, fee-shifting risk belongs in the initial strategy discussion, not as an afterthought.

The arbitrator is the whole court

There is no judge, jury or appellate panel; the arbitrator is all three.

Under the AAA list process, each party receives “an identical list of 10” candidates and has 14 days “to strike names objected to, number the remaining names in order of preference” [1]; JAMS gives each side seven days to strike two names and rank the rest [3]; NAM uses lists of three to eight names depending on the format [4].

No party may “communicate ex parte with an arbitrator or a candidate for arbitrator concerning the arbitration” [1], so the research has to be done from the public record and prior awards.

In contested cases, the arbitrator selection process alone can take three to six months. That time is often well spent. Once appointed, any challenge to an arbitrator’s impartiality is typically decided by the administering institution, and its determination “shall be conclusive.” [1].

Procedure is whatever the arbitrator sets

Federal and state civil procedure do not apply. At the preliminary hearing the parties and arbitrator “establish a procedure for the conduct of the arbitration that is appropriate to achieve a fair, efficient, and economical resolution” [1].

Information exchange is managed for efficiency; in AAA large complex cases depositions are ordered only “in exceptional cases” [1], JAMS allows one deposition per side by right [3], and NAM requires discovery costs to be “commensurate with the amount of the claim” [4].

Dispositive motions proceed only if the arbitrator finds the motion “likely to succeed and to dispose of or narrow the issues” [1].

The schedule set at the preliminary conference governs discovery, expert disclosures, and the hearing date, often 12 months or more away. The party that arrives with a discovery plan and expert budget shapes the case; the party that does not reacts to it.

The protective order and artificial intelligence

The arbitrator may condition exchange of confidential information “on appropriate orders to preserve such confidentiality” [1].

In practice, that order is often a recycled template, silent on key issues such as who may access confidential materials, how they are handled after the case ends, and whether AI tools may be used with protected information.

Some orders treat any AI use as irreparable harm, exposing parties without enterprise-grade tools to breach claims. Others say nothing, leaving trade secrets to the opposing party’s discretion.

Negotiating these provisions is now a core part of arbitration strategy for any business with proprietary data at stake.

The hearing, the award and the limits of appeal

The final evidentiary hearing may be in person or remote; the AAA arbitrator sets the method “including video, audio or other electronic means when appropriate” [1], and the JAMS arbitrator may conduct it “in person or virtually” [3].

The location of the parties, witnesses, and experts often determines where the arbitration proceeds. Once the award is issued, it is binding, and the arbitrator “is not empowered to re-determine the merits of any claim already decided.” [1].

A court may vacate only on the narrow grounds in the Federal Arbitration Act, including “evident partiality or corruption in the arbitrators” or arbitrators who “exceeded their powers” [5]; an error of law is generally not enough, and proving bias is extremely difficult.

Otherwise the award is confirmed and enforced as a court judgment [6]. The time to win is before the hearing, not after the award.

This article is for general informational purposes only and does not constitute legal advice. Provider rules and fee schedules change; the current versions govern. Reading it does not create an attorney-client relationship with Dilendorf Law Firm. Prior results do not guarantee a similar outcome. Attorney Advertising.