Thursday, April 12, 2012

Mandatory Binding Arbitration Article From CJ&D

According to the Center for Justice in Democracy Factsheet on Arbitration, "Mandatory binding arbitration is a process by which parties “agree” (although consumers rarely know they have “agreed”) to have a third party arbitrator (single arbitrator or a panel), instead of a jury or judge, resolve a dispute. Arbitrators are not required to have any legal training and they need not follow the law. Court rules of evidence and procedure, which tend to neutralize imbalances between the parties in court, do not apply. There is limited discovery, making it is much more difficult for individuals to have access to important documents that may help their claim. Arbitration proceedings are secretive. There is no right to public access. Arbitrators do not write or publish detailed written opinions, so no legal precedent or rules for future conduct can be established. Their decisions are still enforceable with the full weight of the law even though they may be legally incorrect. This is especially disturbing since these decisions are binding so victims have virtually no right to appeal an arbitrator’s ruling."
Fact Sheet: Mandatory Binding Arbitration -- A Corporate End Run Around the Civil Justice System

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