JAMS and AAA Jointly Fund $750,000 Grant to Promote Diversity in Alternative Dispute Resolution

Improving diversity in selecting arbitrators and mediators has long been a goal of many organizations.[i]  However, until recently there was no data supporting any method for achieving that goal. In 2020, Professor Homer LaRue and Alan Symonette published an article citing empirical research[ii] showing that including at least two minority or women candidates in a candidate pool of three or more greatly improved the chances of such candidates being chosen as arbitrators.[iii]

The Ray Corollary Initiative and Its Mission

This research led the authors and others to found RCI in 2021. Named after Charlotte Ray, the first Black woman admitted to the Bar in the United States, RCI is a non-profit corporation whose mission is to “increase diversity, equity, and inclusion in the selection of arbitrators, mediators, and other ADR neutrals.” Its work includes encouraging ADR providers and lawyers selecting neutrals to take the RCI pledge, doing research, and providing tools to support selection of diverse neutrals. The “Ray Corollary” builds on the “Mansfield Rule,” begun in 2017, where 30 leading law firms pledged to consider at least 30% women, LBGTQ, and persons of color for firm leadership and governance roles, equity partnership, client pitch opportunities and senior lateral positions.[iv]

Networking Events Create Opportunities—“Choose Who You Know”

Professor Homer LaRue notes that lawyers frequently select neutrals based on who they know.[v] To counter this, RCI creates networking opportunities between minority and women ADR professionals seeking to be selected as neutrals and the lawyers and clients who make these selections.  Most recently, on June 26, 2024, RCI held a “Meet the Neutrals—Speed Networking” event at the Labor and Employment Relations Association (LERA) Triad Conference held in Midtown Manhattan. It held a similar event at Howard University Law School last year. The JAMS-AAA grant will enable RCI to sponsor more of these events, creating opportunities for ADR selectors and neutrals to meet in an informal environment and to develop connections that may improve the chances for diverse neutrals to be selected as arbitrators.

The RCI Pledge for ADR Providers and Users

Both JAMS and AAA signed the RCI Pledge for ADR Service Providers[vi] in which the organization sets a goal to include at least 30% diverse neutrals as candidates on any list (three or more) from which the neutrals for a given matter are ultimately selected. They agree to ask their outside law firms and counterparties to do the same. In addition, they agree to track the percentage of diverse neutrals proposed in arbitrator rosters from which neutrals are selected and, to the extent possible, to track the percentage of diverse neutrals appointed. There are similar pledges for law firms and for ADR users.[vii] Signing the pledge is a first step in increasing diversity; tracking actual results and creating accountability are critical to turning the pledge into reality.

Practical Steps to Increase Diversity in ADR Professionals

Increasing diversity in ADR requires concerted action by many organizations and individuals over time. RCI’s focus is on the neutral selection process and does not address the issues of developing and recruiting diverse ADR professionals. However, by increasing awareness of the need for diversity in ADR, RCI encourages diverse individuals to consider ADR careers and invites those of us involved in ADR to encourage and mentor diverse ADR professionals. In addition, law schools and law firms can provide diverse individuals with training about ADR methods and principles to enhance their ADR skills.

Cornell University’s Labor Arbitrator Development Program

Cornell University’s labor arbitrator development program at the ILR Scheinman Institute on Conflict Resolution is an excellent example of a method to increase the number of qualified arbitrators.[viii] This 15-month program offers students both course work and mentoring regarding labor arbitration as well as field experience by observing arbitration hearings. Students learn award writing techniques and develop arbitration process skills. They receive assistance in developing an ADR career plan. A similar curriculum could be used to develop construction arbitrators and mediators, providing a pipeline of qualified ADR professionals, including diverse individuals, in the future. Many law schools already offer courses in negotiation, arbitration, and mediation, which could be expanded to provide more specific training for commercial and construction arbitrators and mediators. Students could obtain practical experience through clinic programs and partnering with law firms, allowing them to observe and participate in mediations and arbitrations.

The JAMS-AAA joint grant provides a strong foundation for RCI to continue its mission. By making this significant financial commitment to improving diversity in ADR, these organizations underscore that diversity is critical to ADR’s future. As design and construction company workforces become more diverse and as cross-border collaboration becomes more common, the need for diverse ADR professionals increases. “The lack of diversity among neutrals has the potential impact of discrediting the benefits of the ADR process.”[ix] As Professor LaRue stated at the Howard Law School event, “ADR faces an existential crisis. That crisis is an unwillingness by would-be users to accept as fair a system of justice that selects decision-makers and facilitators only from a narrow demographic of the population.”[x]

Efforts to increase diversity in ADR up to now have had limited success. This grant and RCI’s continued work provide impetus to achieve the goal.