Simplified Arbitrations

If a party files an arbitration claim in which the amount in dispute is $50,000 or less, exclusive of interest and expenses, FINRA will process the claim using the Simplified Arbitration rule. Simplified arbitration cases are also called "paper" or "small claims" cases.
 
All provisions of the Code apply to these arbitrations, with some exceptions.  
 
Arbitrator 
 
A single arbitrator will decide an arbitration administered under this rule, unless the parties agree in writing otherwise.
 
Hearings
 
No hearing will be held in simplified arbitrations unless the claimant requests one. If no hearings are held, the arbitrator will render an award based on the pleadings and other materials submitted by the parties.
 
Discovery
 

• Customer Code
  The parties may request documents and other information from each other.  However, the Document Production Lists in the Discovery Guide and described in Rule 12506 will not apply to these arbitrations. The arbitrator may, in his or her discretion, choose to use relevant portions of the Document Production Lists in a manner consistent with the expedited nature of simplified proceedings.
   
• Industry Code
  The parties may request documents and other information from each other.   

 

Increases in Amount in Dispute
 
If any party to a simplified arbitration increases the amount in dispute to more than $50,000, the arbitration will no longer be administered under this rule, and the regular provisions of the Code will apply.
 
View the following for additional information:

• Customer Code Rule 12800;
• Industry Code Rule 13800; and
• FAQ in the Arbitrator's Guide.