Reminding us that business-to-business (B2B) disputes comprise its “core activity and services,” the American Arbitration Association recently released supporting statistics for 2015.
See: B2B Dispute Resolution Impact Report, 2015 Key Statistics
Over the past year, AAA administered 8360 B2B cases, involving total claims of over $13 billion. The average ‘large case’ claim was $5,685,996. There were 83 parties in one arbitration; the largest case resolved by a single arbitrator had a claim for $232 million.
Interestingly, the report announced that 56 percent of all B2B cases were resolved prior to going to award, many incurring no arbitrator compensation. The largest mediated claim was for $2.5 billion.
In what AAA classifies as the “Technology industry,” the largest claim was for a relatively modest $100 million. Pharma/Biotech, separately listed, included AAA administration of a claim for $750 million.
The Silicon Valley Arbitration & Mediation Center (which does not administer cases) seeks to encourage resort to ADR services by the broader technology community. This latest data from the AAA illustrates that corporate America relies heavily on arbitration and mediation to resolve business disputes more quickly and inexpensively. Our Tech List of eminent neutrals with deep backgrounds in technology is should give confidence in the effectiveness of ADR for companies in the Silicon Valley and beyond.
