This post first appeared on the Securities Arbitration Alert blog. The blog’s editor-in-chief is George H. Friedman, Chairman of the Board of Directors for Arbitartion Resolution Services, Inc.
FINRA Dispute Resolution Services (“DRS”) has posted case statistics through May, with recent trends continuing to show a very strong year in arbitration filings – especially industry cases – and a continued drop-off in mediations.
Headlines
We offer these headlines: 1) overall arbitration filings through May – 1,444 cases – are up 37% for the year (was plus 24% in April); 2) cumulative customer claims increased 20% (was plus 23% last month); 3) industry arbitration filings were up 64% (from up 26% in April); and 4) the long-term decline in mediation cases continues. There were 402 new arbitrations filed in May, spurred by a surge in industry case filings.
Mediation
There were 317 mediation cases in agreement, an 18% decrease from 2022. This stat has been declining steadily in recent months, and is way down from May 2022’s torrid plus 137% pace. The mediation settlement rate was 85% (it was 83% in April).
Potpourri
Overall arbitration turnaround times were 16.5 months (a slight decrease), with hearing cases now taking 18.6 months (also a slight decline). There are now 8,124 DRS arbitrators, 3,969 public and 4,155 non-public. This stat was down across the board last month. Pending cases stand at 3,336, up 116 from April.
(ed: *The big increase in industry cases filings bears continued watching. **If the trend holds, the 1,444 arbitrations filed through May straight-lines to about 3,500 yearly arbitration filings, a decent year by recent measures. Last year showed 2,671 arbitration cases filings. The all-time high-water mark was 2003, when that post tech-wreck figure was 8,945 cases. ***Past year stats can be found here.)
