Arbitrations in the Los Angeles region rose 16% last year, the highest percentage increase in the nation last year, according to a recent study by the American Arbitration Association (AAA).
The increase is the highest for Los Angeles, where for the past five years arbitrations have risen by double digits, said Michael Powell, vice president of the AAA’s Los Angeles Regional Office.
Why the jump? “The only thing we can put our fingers on is the increase in mediation,” Powell said. “We think all the attention put on ADR (alternative dispute resolution) in California has made a difference in companies that are drafting contracts and including arbitration clauses.” The increase was especially prevalent in the entertainment and health care industries, he said.
In 2006, arbitrations in those industries rose 50% and 48%, respectively. “Entertainment and health care are new areas of business for us,” he said. In addition, AAA’s revenue in Los Angeles County rose 20% last year because the office handled more cases worth at least $1 million, he said.
- Amanda Bronstad
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