Tagged: arbitration agreements

“But in interviews with The Times, more than three dozen arbitrators described how they felt beholden to companies. Beneath every decision, the arbitrators said, was the threat of losing business. Victoria Pynchon, an arbitrator in Los Angeles, said plaintiffs had an inherent disadvantage. ‘Why would an arbitrator cater to a person they will never see again?’ she said.”

Victoria definitely decreased her chances of being selected as an arbitrator with the honest statement made above.

Source: Michael Corkery and Jessica Silver-Greenberg. “In Arbitration, A ‘Privatization Of The Justice System.'” New York Times. November 1, 2015. http://www.nytimes.com/2015/11/02/business/dealbook/in-arbitration-a-privatization-of-the-justice-system.html.

“[A]rbitration, an investigation by The New York Times has found, often bears little resemblance to court.”

Source: Michael Corkery and Jessica Silver-Greenberg. “In Arbitration, A ‘Privatization Of The Justice System.'” New York Times. November 1, 2015. http://www.nytimes.com/2015/11/02/business/dealbook/in-arbitration-a-privatization-of-the-justice-system.html.

“The sharp shift away from the civil justice system has barely registered with Americans. F. Paul Bland Jr., the executive director of Public Justice, a national consumer advocacy group, attributed this to the tangle of bans placed inside clauses added to contracts that no one reads in the first place. ‘Corporations are allowed to strip people of their constitutional right to go to court,’ Mr. Bland said. ‘Imagine the reaction if you took away people’s Second Amendment right to own a gun.'”

Source: Robert Gebeloff and Jessica Silver-Greenberg. “Arbitration Everywhere, Stacking The Deck Of Justice.” New York Times. October 31, 2015. http://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-stacking-the-deck-of-justice.html?_r=0.

“The consequences of arbitration clauses can be seen far beyond the financial sector. Even lawsuits that would not have been brought by a class have been forced out of the courts, according to the Times investigation. Taking Wall Street’s lead, businesses — including obstetrics practices, private schools and funeral homes — have employed arbitration clauses to shield themselves from liability, interviews and arbitration and court records show. Thousands of cases brought by single plaintiffs over fraud, wrongful death and rape are now being decided behind closed doors. And the rules of arbitration largely favor companies, which can even steer cases to friendly arbitrators, interviews and records show.”

Source: Robert Gebeloff and Jessica Silver-Greenberg. “Arbitration Everywhere, Stacking The Deck Of Justice.” New York Times. October 31, 2015. http://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-stacking-the-deck-of-justice.html?_r=0.

“This is among the most profound shifts in our legal history. Ominously, business has a good chance of opting out of the legal system altogether and misbehaving without reproach.” — William G. Young, a federal judge in Boston who was appointed by President Ronald Reagan

Source: Robert Gebeloff and Jessica Silver-Greenberg. “Arbitration Everywhere, Stacking The Deck Of Justice.” New York Times. October 31, 2015. http://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-stacking-the-deck-of-justice.html?_r=0.

“By banning class actions, companies have essentially disabled consumer challenges to practices like predatory lending, wage theft and discrimination, court records show.”

Source: Robert Gebeloff and Jessica Silver-Greenberg. “Arbitration Everywhere, Stacking The Deck Of Justice.” New York Times. October 31, 2015. http://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-stacking-the-deck-of-justice.html?_r=0.

“Some state judges have called the class-action bans a ‘get out of jail free’ card, because it is nearly impossible for one individual to take on a corporation with vast resources.”

Source: Robert Gebeloff and Jessica Silver-Greenberg. “Arbitration Everywhere, Stacking The Deck Of Justice.” New York Times. October 31, 2015. http://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-stacking-the-deck-of-justice.html?_r=0.

“By inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies like American Express devised a way to circumvent the courts and bar people from joining together in class-action lawsuits, realistically the only tool citizens have to fight illegal or deceitful business practices. Over the last few years, it has become increasingly difficult to apply for a credit card, use a cellphone, get cable or Internet service, or shop online without agreeing to private arbitration. The same applies to getting a job, renting a car or placing a relative in a nursing home.”

Source: Robert Gebeloff and Jessica Silver-Greenberg. “Arbitration Everywhere, Stacking The Deck Of Justice.” New York Times. October 31, 2015. http://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-stacking-the-deck-of-justice.html?_r=0.

“[G]iven the history and make-up of the current Court, it is unlikely that the ideal plaintiff exists to persuade the Court to establish a bright-line rule opposing pre-dispute mandatory arbitration in employment discrimination cases.  Additionally, the Court would likely hesitate to establish a blanket rule allowing mandatory arbitration in employment agreements due to strong opposition from employee advocacy groups and members of Congress. The more likely scenario is one in which Congress takes action by passing a new law banning this practice. In fact, some legal scholars have argued that Congress should amend the FAA to exclude pre-dispute mandatory arbitration for employees and consumers, thereby allowing states to regulate this phenomenon and ensuring that parties who do participate in pre-dispute arbitration agreements are on relatively equal footing.”

Source: Bahareh Moradi. Pre-Dispute Mandatory Arbitration Employment Agreements. Upper Level Writing Requirement Research Papers. pg. 22-23. 2014.

“The ideal plaintiff to bring suit to resolve whether an employee can litigate a civil rights violation despite a pre-dispute mandatory arbitration agreement will present a set of facts that strongly persuade the Court one way or the other. For the individual employee and employee advocate groups, the ideal plaintiff would have to sway the Court to broadly ban pre-dispute mandatory arbitration in employment agreements. The plaintiff-employee would need to be able to demonstrate that his or her claims are of such egregious violations of constitutionally protected rights that they demand review and oversight of a judge — someone who is publicly authorized through election or appointment to uphold the constitution and the federal laws guaranteeing the rights that the plaintiff-employee claims were violated.”

Source: Bahareh Moradi. Pre-Dispute Mandatory Arbitration Employment Agreements. Upper Level Writing Requirement Research Papers. pg. 21-22. 2014.