Arbitration vs Litigation Costs
Arbitration typically costs 40-60% less than traditional litigation and resolves disputes in months rather than years. AAA filing fees range from $1,875 to $12,800+ based on claim amount. Arbitrator compensation runs $1,500-$3,000+ per day. While forum costs are higher than court fees, the savings in attorney time and faster resolution usually make arbitration more economical.
Choosing Between AAA and JAMS
AAA offers structured fee schedules and extensive panel lists nationwide. JAMS is known for high-quality arbitrators (often retired judges) but at premium rates. For smaller disputes, AAA may be more cost-effective. For complex, high-value cases, JAMS arbitrators' expertise may justify the higher cost.