Errata: AAA fees.
In the article I wrote for the Florida Bar Journal, "What Does It Cost for AAA, JAMS, or CPR to Administer an Arbitration Case and How Do the Initial Filings Vary?" (July/August), I miscalculated the filing fees for two of the three examples for the American Arbitration Association (AAA). The proper formula to determine an AAA filing fee for a claim above $10 million is a base fee of $12,800, plus .01 percent of the amount above $10 million. For the example given for a $20 million claim, the base AAA fee would be calculated as follows:
* Base AAA filing fee for claim above $10 million: $12,800
* Plus .01% of amount above $10 million (+$10 million): $1,000
* Total AAA filing fee for a $20 million claim: $13,800
* Plus $6,000 final fee, which totals $19,800
1. While I miscalculated the filing fee for the $20 million claim in the original article, the calculation of the administrative fee for the $5 million counterclaim would remain the same. Thus, the AAA administrative fee for the $20 million claim and $5 million counterclaim is a total of $31,250 and not $40,250 as was erroneously stated in the article.
2. I also miscalculated the total amount for the $5,000,100 claim as $20,250, which should have been $18,250.
Coincidentally, the AAA rolled out new rules on June 15, 2014 (months after my article was written and submitted to The Florida Bar Journal), the "Supplementary Rules for Fixed Time and Cost Construction Arbitration." These new rules allow parties to significantly reduce both the administrative fees and the arbitrator fees if they agree to use them.
I regret my error and hope this correction clears up any confusion I may have created.
LARRY LEIBY, Ft. Lauderdale
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|Publication:||Florida Bar Journal|
|Article Type:||Letter to the editor|
|Date:||Nov 1, 2014|
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