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History of the AAA & Alternative Dispute Resolution

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* 1920 Enactment of the New York State Arbitration statute - the first modern arbitration statute in the United States.

* 1922 Arbitration Society of America founded - predecessor of the American Arbitration Association. The founders, were: Jules S. Bache, banker, Jules S. Bache & Co.; Henry Ives Cobb, president, Merchants Association of the City of New York; Horace De Lisser, president, Broadway Association; James A. O'Gorman, U.S. Senator; Julian W. Mack, judge, U.S. District Court; Moses H. Grossman, lawyer and founder; Charles L. Guy, justice, New York Supreme Court; Frank H. Sommer, dean, New York University Law School; Samual McCune Lindsey, president, American Academy of Political Science; Julius Rosenwald, Sears Roebuck & Co.; David A Schulte, Schulte Cigar Stores; Charles Fleischer, editor, New York American; Franklin Simon; Emmerson McMillin, president, A.S.A. and president, American Light, Heat & Traction Company; and J. Noble Braden, secretary, A.S.A.

* 1925 Enactment of the United States Arbitration Act (Federal Arbitration Act).
-- Arbitration Foundation founded - predecessor of the American Arbitration Association.
-- Arbitration Conference founded - predecessor of the American Arbitration Association.

* 1926 American Arbitration Association founded through the consolidation of the Arbitration Society of America, the Arbitration Foundation and the Arbitration Conference.
-- Creation of the AAA's National Panel of Arbitrators with 480 arbitrators.
-- Formulation of Draft State Arbitration Act which served as a model for modern arbitration law.
-- Actors' Equity Association's Basic Minimum Contract is one of the first industry contracts to include an arbitration clause wherein controversies arising between actors and managers are referred to the AAA.

* 1931 Publication of First Code of Arbitration Practice and Procedure of the American Arbitration Association

* 1932 Accident Claims Tribunal of the AAA established.

* 1934 Inter-American Commercial Arbitration Commission established.

* 1936 Membership in AAA's National Panel of Arbitrators totaled 7,000.

* 1937 Voluntary Labor Arbitration Tribunal of the AAA established.
-- American Institute of Architects adopts new arbitration procedure for standard building contracts and provides for administration by the AAA.

* 1938 First course ever in arbitration law given by New York University Law School.

* 1940 AAA facilities for Motion Picture Arbitration System in 31 cities in the U.S. created by consent decree.

* 1941 American Defense Fund established and use of arbitration clause in munitions contracts promoted.

* 1944 Bureau of Labor Statistics reports that 75% of collective bargaining agreements in leading industries in the country provide for arbitration as the terminal point in grievance machinery.

* 1945 First course ever in industrial arbitration given by New York University's Graduate School of Business Administration

* 1946 Membership in AAA's National Panel of Arbitrators reached 10,821. -- Publication of AAA's Code of Ethics for Arbitrators. -- Course in arbitration law given at Yale Law School.

* 1947 First case goes to the International Court of Justice: Great Britain v . Albania, for destruction of British destroyers in Corfu Channel in previous year.

* 1948 Labor cases now constitute over 62% of all AAA administered cases.

* 1951 Death of Frances Kellor, a founder and First Vice President of the AAA from 1926-1951.

* 1952 Agreement signed between the AAA and the Japan Commercial Arbitration Association providing for the use of arbitration clauses in Japan-American trade contracts and for 2 tribunals in New York and Tokyo, where disputes may be resolved.

* 1953 Membership in AAA's National Panel of Arbitrators totaled 13,000.

* 1954 Dedication ceremonies were held at the AAA for its new arbitration library consisting of over a thousand books, pamphlets, articles and unpublished manuscripts.

* 1955 National Conference of Commissioners on Uniform State Laws gave final approval to a draft of the Uniform Arbitration Statute.

* 1956 The United Nations Economic and Social Council approved plans for a meeting in April 1958 aimed at furthering the development of arbitration in private law disputes as a measure beneficial to international trade. On the agenda will be a Draft Convention on the Recognition and Enforcement of Foreign Arbitral Awards. -- Total AAA caseload numbered 2,817 cases.

* 1957 Minnesota became the first state in the union to adopt the Uniform Arbitration Act. Maine and Florida became the second and third states, respectively, to adopt modern arbitration laws.

* 1958 U.N. Conference on International commercial Arbitration took place in New York. The central issue before the conference was the adoption of procedures for enforcement of international trade arbitration awards regardless of the place of arbitration or the nationality of the parties and arbitrators.

* 1960 In a series of three landmark decisions known as the Steelworkers Trilogy, the Supreme Court ruled that doubts about arbitrability of labor-management grievances should be resolved in favor of arbitration and that courts should permit arbitrators to exercise flexibility in awarding remedies for violations of collective bargaining agreements.

* 1966 Total AAA caseload numbered 12, 957 cases.

* 1968 AAA established its Center for Dispute Settlement to ease urban crises through arbitration, mediation, and fact-finding.

* 1970 U.S. ratified United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958.

* 1971 Chief Justice Warren E. Berger spoke out in support of arbitration and the AAA in July 1st issue of Forbes.

* 1974 Supreme Court upheld international trade arbitration in its Scherk v. Alberto-Culver decision.

* 1976 United Nations Commission on International Trade Law adopted the UNCITRAL Arbitration Rules for world-wide use.
-- Total AAA caseload numbered 35,156.
-- Membership in AAA's National Panel of Arbitrators reached 37,000.

* 1979 The first National Women's Arbitrator Development Program, co- sponsored by the AAA, the FMCS and the New York State School of Industrial and Labor Relations was established as a method of recruiting and training qualified women arbitrators.

* 1981 Inaugural ceremony held July 1 for U.S.-Iranian Claims Tribunal.

* 1982 Chief Justice Warren E. Berger issued a nationwide call for greater use of private arbitration as an alternative to litigation.
-- President Reagan signed a bill authorizing the arbitration of patent disputes.

* 1984 Supreme Court ruled in Southland Corp. v. Keating that the United States Arbitration Act creates federal substantive law which is applicable in both federal and state courts and which supersedes conflicting state law in transactions evidencing commerce.

* 1985 In a landmark ruling (Mitsubishi Motors Corp. v. Soler Chrysler- Plymouth, Inc.) the Supreme Court held that where a transnational contract contains a broad arbitration agreement, antitrust claims are arbitrable.
-- The UNCITRAL Model Law on International Commercial Arbitration was adopted at UNCITRAL's 18th session held in Vienna.

* 1986 The arbitrability of claims by investors against securities brokers was upheld by the Supreme Court in a major ruling handed down in Shearson/American Express v. McMahon.
-- Membership in AAA's National Panel of Arbitrators and Mediators reached 60,000.
-- Total AAA caseload numbered 46,683.

* 1990 Enactment of the Administrative Dispute Resolution Act.
-- Enactment of the Civil Justice Reform Act.
-- Florida became the first state to require brokers to give customers the option of taking cases to the AAA rather than using an industry- sponsored forum.

* 1991 Putting forward the views of the Bush administration at the 113th annual convention of the American Bar Association, Vice President Quayle made 5 specific recommendations for implementing ADR procedures. The suggestions emerged from a study by the President's Council on Competitiveness whose Federal Civil Justice Reform Working Group made a total of 50 recommendations.

* 1993 Alternative Dispute Resolution came into its own within the American Bar Association with the creation of the ABA's Section of Dispute Resolution to replace its Standing Committee on Dispute Resolution.

* 1994 Martindale-Hubbell publishers introduced the new Martindale- Hubbell Dispute Resolution Directory which lists approximately 70,000 arbitrators, mediators, judges, attorneys, law firms and other neutral professionals who specialize in ADR.
-- The ABA Section of Dispute Resolution noted that most ABA accredited law schools now offer ADR courses
-- Total AAA caseload numbered 59,424.

* 1995 AAA President William K. Slate II testified at a hearing of the Committee on Long-Range Planning of the Judicial Conference of the United States that as the courts become inundated, the federal courts must be encouraged to consider and pursue alternative dispute resolution.

-- Membership in AAA's National Panel of Arbitrators and Mediators culled to just over 27,350.

This file was prepared from material copyrighted by, and is posted with the permission of, the American Arbitration Association. For more info visit the AAA's web site at https://www.adr.org

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