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Topic: Binding arbitration

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In the News (Fri 19 Jul 19)

  Binding arbitration: 'unfair and undemocratic'
Binding arbitration, a little noticed clause in many agreements and contracts, strips consumers of their fundamental rights, including the right to sue individually or join a class-action suit if they have a problem with a company.
A consumer usually doesn't recognize the import of the binding arbitration clause in a particular agreement or contract until there is a problem.
Because the arbitration is binding, you have to use it and can't mediate or sue.
www.bankrate.com /brm/news/advice/20041117a1.asp   (1270 words)

 Policy Statement on Mandatory Binding Arbitration of Employment Discrimination Disputes as a Condition of Employment   (Site not responding. Last check: 2007-10-20)
Similarly, the arbitrator's authority is defined and conferred, not by public law, but by private agreement.11 While the courts are charged with giving force to the public values reflected in the antidiscrimination laws, the arbitrator proceeds from a far narrower perspective: resolution of the immediate dispute.
Although binding arbitration does not, in and of itself, undermine the purposes of the laws enforced by the EEOC, the Commission believes that this is the result when it is imposed as a term or condition of employment.
Arbitration of labor disputes pursuant to a collective bargaining agreement is less likely to favor the employer as a repeat-player because the union, as collective bargaining representative, is also a repeat-player.
www.eeoc.gov /policy/docs/mandarb.html   (4743 words)

An officer or employee of the agency who offers to use arbitration must otherwise have the authority to enter into a settlement concerning the matter or must be specifically authorized by the agency to consent to the use of arbitration.
Prior to using binding arbitration under this subchapter, the head of an agency, in consultation with the Attorney General, must issue guidance on the use of binding arbitration and when an agency officer or employee has the authority to settle a dispute using binding arbitration.
For example, arbitration may be appropriate where the parties are only concerned with monetary remedies such as "the machine was to perform at ABC level and the contractor was to be paid XYZ amount".
www.adr.gov /arbitra.htm   (5735 words)

 FERC: ADR - Binding Arbitration   (Site not responding. Last check: 2007-10-20)
In binding arbitration, a party or representative presents a dispute to an impartial or neutral individual (arbitrator) or panel (arbitration panel) for issuance of a binding (non-appealable) decision.
In some cases, the parties may retain a particular arbitrator (often from a list of arbitrators) to decide a number of cases or to serve the parties for a specified length of times.
Binding arbitration is most appropriate when the parties want a third party to decide the outcome of their dispute for them but would like to avoid the formality, time, and expense of a trial.
www.ferc.gov /legal/adr/continuum/bind.asp   (163 words)

 Voluntary Binding Arbitration Agreements? Think Before You Act.
In considering whether to include a binding arbitration provision in your contract, you should consider the pros and cons of resolving commercial disputes through arbitration as opposed to traditional litigation.
Unpredictability - because arbitrators generally are not required to follow legal precedent or procedural or evidentiary rules, and because many arbitrators are not licensed attorneys, the outcome of arbitration may be much less predictable than the outcome of traditional litigation;
If your agreement fails to address these essential points, you may spend as much time arguing in the arbitration proceeding over whether the particular dispute is subject to arbitration, and the rules governing that proceeding, as you will spend in actually resolving your dispute.
www.fwlaw.com /arbitration.html   (623 words)

 Binding Arbitration Is Not Frequently Used to Resolve Health Care Disputes
Detractors charge that arbitrators are reluctant to grant large awards to patients who deserve them, that even egregiously bad decisions cannot be appealed, and that arbitration decisions set no precedents for future decisions to follow.
The researchers discovered that, contrary to popular belief, arbitration agreements are not widely used in the medical setting, and, where they are, their use typically results from organizational policy directing it.
Most physicians who asked patients to agree to binding arbitration reported that they did so on the recommendation of their insurer, and one-third said they did so because it was the policy of their provider group (see Figure 3).
www.rand.org /publications/RB/RB9030   (1450 words)

Moreover, arbitration may be voluntary -- in that both parties have agreed to resolve their dispute by this method -- or compulsory -- in that some other requirement such as a statute compels the parties to resolve their dispute by this method.
Arbitrators are retained for a single matter, their service expires at the resolution of that matter, and they fix their own compensation.
As a result, an arbitrator's compensation even for a case involving the government is not limited to the fee paid by the government and an arbitrator remains free to turn to other sources for funding of his or her operations and expenses, subject of course to conflict of interest and ethical limitations.
www.usdoj.gov /olc/arbitn.fin.htm   (12627 words)

 New Page 2
Arbitration requires the parties to give up rights, which does not induce trust and which is the reason why arbitration currently still faces a series of legal obstacles.
Arbitration is a process where a third party chosen by the parties, or nominated by the institution chosen by the parties, renders a decision on a case while applying fundamental procedural principles.
And there is the binding character of the outcome, which can limit the business contexts of the process, as the scope of arbitrability is restricted under some arbitration laws to protect the weaker party, which may be a consumer in an electronic commerce transaction.
www.ombuds.org /center/adr2002-11-schultz.html   (9249 words)

 The Nader Page | In the Public Interest
This is called binding arbitration which keeps the consumer from seeking justice in the court room even after the arbitrator's decision.
In theory, the arbitrator is supposed to be neutral and agreed on by both parties, but many dealers designate the arbitration company in the sales contract when the automobile is purchased.
One big reason is that many consumers don't realize the requirement for binding arbitration is in the contract-and dealers aren't likely to mention the issue until the buyer has signed the contract and the consumer is about to drive away with the shiny new car..
www.nader.org /interest/120503.html   (850 words)

 What you can do about binding arbitration   (Site not responding. Last check: 2007-10-20)
While both state and federal courts are upholding many binding arbitration clauses because of the federal Arbitration Act of 1925, there are some clauses that are being struck down by courts.
To make permanent change in binding arbitration clauses, change needs to occur on the federal level, including reform in or repeal of the federal Arbitration Act, according to Samantha Coulombe of the consumer advocacy group Public Citizen.
"Arbitrators could be required to explain the reasons behind their award instead of just stating what the award is," she says.
www.bankrate.com /brm/news/advice/20041117b1.asp   (1104 words)

 Binding arbitration no good for teachers
Binding arbitration is being considered as a way to avoid Washington state teacher strikes.
Binding arbitration works for police officers and firefighters because they are not restricted from bargaining their salary levels.
I would have more faith in binding arbitration and in elected leaders if they could apply similar efforts to take the tough votes to allow appropriate and fair compensation for educators regardless of where they teach.
seattlepi.nwsource.com /opinion/159343_strikerebuttal05.html   (574 words)

 Arbitration Briefs
Arbitration agreements are matters of contract law, and a court interpreting such an agreement should consider the intent of the parties.
This express limitation of the scope of the arbitration agreement led the court to conclude that the Isbell agreement was meant to exclude unnamed third parties, and was restricted to disputes arising between or among the signatories of the contract.
Thus, while an arbitration clause in a contract is not unconscionable under Alabama law based merely on the fact that it is contained in a contract of adhesion, a plaintiff may avoid the arbitration clause by showing that the contract meets the elements of unconscionablity under Alabama law.
www.mindspring.com /~wf1/arbitration_briefs.htm   (14287 words)

 Binding Arbitration in new home contracts   (Site not responding. Last check: 2007-10-20)
May 19 2002 Nonprofit group pans arbitration Says system stacked against consumers Associated Press Touted as a cheaper and faster alternative to lawsuits, binding arbitration is expensive for consumers and denies them access to courts, according to a report released last week by the non-profit group Public Citizen.
Arbitration, although widely billed as a low-cost alternative to court, is actually far more expensive for consumers and employees who seek redress for discrimination, fraud and malpractice, a new Public Citizen report reveals.
Arbitration could be your only recourse BY MARGARET MANNIX, US News 6/7/99 "As an enforcer of consumer protection laws, I am tremendously alarmed about the frequency of [mandatory arbitration clauses] and the often disguised or inconspicuous way they are presented," says Connecticut Attorney General Richard Blumenthal, adding that the consumer is in a Catch 22.
www.hobb.org /arbitration.shtml   (3265 words)

 yaledailynews.com - Unions propose binding arbitration   (Site not responding. Last check: 2007-10-20)
Yale administrators called binding arbitration a poor substitute for bargaining and indicated they prefer to settle contracts at the bargaining table.
In binding arbitration, both sides' proposals would be submitted to a neutral decision-maker who would then settle the differences between the parties.
He said that though the unions have proposed moving to binding arbitration in previous negotiations, the two sides have been able to settle contracts between themselves.
www.yaledailynews.com /article.asp?AID=21630   (621 words)

 Remar's Review - Mandatory Binding Arbitration Clauses in Auto Contracts Limit Consumer Rights
In an automotive contract, the information about required arbitration may be included as a clause in the contract (typically in fine print, often on the back of the form) or as a separate form.
Arbitration is an alternative method of resolving disputes in which two parties present their sides of a problem, complaint or grievance to an arbitrator or panel of arbitrators.
In mandatory arbitration, a company requires a consumer to submit any dispute that may arise in the future to binding arbitration and to waive their right to sue, to participate in a class action law suit, or to appeal.
www.dcu.org /streetwise/feb2003.html   (1553 words)

 IRS Testing Binding Arbitration Procedure for Appeals   (Site not responding. Last check: 2007-10-20)
The arbitration process is optional and must be formally agreed to by the taxpayer and the IRS appeals office.
The agreement to arbitrate between the taxpayer and appeals must be reduced to writing, and Announcement 2000-4 proposes a model arbitration agreement.
It is important to note that the findings by the arbitrator are only binding on the parties for the taxable years at issue in the arbitration, and the findings cannot be used as precedent unless otherwise provided in the agreement to arbitrate.
www.mobar.org /journal/2000/marapr/taxes.htm   (633 words)

 TAISMHO Binding Arbitration
As Binding Arbitration is practiced in the United States, the outcome of such proceedings is not simply a question of which party was injured, or whether the amount awarded, if any, is just.
As evidenced by the alleged Binding Arbitration Agreements, the Arbiter is almost completely dependent on the sellers of goods or services for the volume of their business and, therefore, it is the sellers of goods or services that hold the power to improve or diminish the Arbiter’s creature comforts.
If arbitration did not provide them with greater odds of winning and thereby, higher corporate profitability, then it is this simple—there would not be any arbitration agreements, or at the least, there would be far less exuberance to make it a national standard, thereby abridging the Seventh Amendment to our Constitution.
www.taismho.com /recentpub/binding_arbitration.html   (1683 words)

 Binding Arbitration   (Site not responding. Last check: 2007-10-20)
This is a story of a homeowner, being myself, taking my builder to binding arbitration over a number of serious code violations.
I proceeded to binding arbitration without the aid of an arbitration attorney.
Arbitrations are confidential, however I will share some guidelines and advice on how to approach arbitration without an attorney.
www.1-arbitration.com   (117 words)

 CMS Passes On Binding Arbitration   (Site not responding. Last check: 2007-10-20)
Because federal law requires a certified health care provider to accept Medicare or Medicaid reimbursement as payment in full, it appears to be illegal for a nursing facility to require or accept binding arbitration as a condition of admission or continued care, if the resident's care is being reimbursed through either federal program.
The fairest reading of the memorandum seems to be that surveyors will not cite a facility which requires or accepts binding arbitration at admission, but will cite a facility which retaliates against an existing resident for that resident's refusal to consent to binding arbitration.
These two positions are of course logically inconsistent - because an arbitration agreement at admission would be just as illegal as an arbitration agreement during a resident's stay - and seem to reflect CMS's interest in avoiding the arbitration issue while nonetheless preventing turmoil in facilities.
www.nsclc.org /news/03/02/cmsbindingarb.htm   (334 words)

 Boston.com / News / Local / Maine / Labor board votes to send conflict to binding arbitration
The contract dispute between the city and its police union is headed to immediate, expedited arbitration, raising the possibility that the conflict will be resolved before next week's Democratic National Convention.
The state's labor management board voted unanimously Monday to send the issue to arbitration, where a ruling would be binding and cannot be appealed.
The police association opposes allowing a third-party arbitrator to resolve the dispute, saying that would usurp the union members' ability to vote on a new contract.
www.boston.com /news/local/maine/articles/2004/07/19/labor_board_votes_to_send_conflict_to_binding_arbitration   (877 words)

 Lingle making sense on binding arbitration - The Honolulu Advertiser - Hawaii's Newspaper
After the Democratic majority passed the bill restoring binding arbitration for the union last year, Lingle vetoed it, only to see it become law when both houses overrode her veto in a special session.
Today, arbitrators aren't obliged to consider the state's overall financial condition or the fact that when one union wins a raise, the other public unions feel equally deserving.
Compel arbitrators to figure cost ramifications if the raise were applied to all other bargaining units.
the.honoluluadvertiser.com /article/2004/Feb/02/op/op01a.html   (239 words)

 How to Request Arbitration
AMSA is not a governmental agency and we do not have the authority to order your mover to provide refunds or reimbursements for damages, force a settlement or to demand any type of compensatory payment from your mover; however, we do routinely remove movers from our membership that show a repeated pattern of consumer abuse.
Second, it is important to note that the Arbitration Program operates under Federal guidelines and is limited in the type of cases that may be arbitrated.
The Forum uses a panel of former judges and other legal professionals to review disputed claims cases; the administrative fee, which is divided equally between the parties, is paid to the Forum: AMSA does not receive any portion of the administrative fee.
www.moving.org /before/solving.html   (840 words)

 FERC: ADR - Non-binding Arbitration   (Site not responding. Last check: 2007-10-20)
In non-binding arbitration, parties or their representatives present a dispute to an impartial or neutral individual for issuance of an advisory or non-binding decision (i.e., the parties do not have to accept the opinion).
Under the process, the parties have input into the selection process, which gives them the ability to choose an individual or panel with some expertise and knowledge of the disputed issues.
Non-binding arbitration is appropriate when the dispute includes some or all of the following characteristics:
www.ferc.gov /legal/adr/continuum/non-bind.asp   (138 words)

 NCPA - Daily Policy Digest - Binding Arbitration Rising
Then arbitration spread to disagreements between companies and their customers and employees.
The American Arbitration Association -- the only arbitration firm whose finances are available to the public because it's a nonprofit organization --administered more than 218,000 cases in 2001, a 10 percent increase from 2000 and the seventh year that its caseload increased.
Increasingly, businesses are putting language in their contracts requiring that all future disputes be handled by a third-party arbitration firm -- usually one selected by the company.
www.ncpa.org /iss/leg/2002/pd071502f.html   (242 words)

 Give Me Back My Rights! the Dangers of Mandatory Arbitration Clauses
When a corporation includes a BMA requirement in its contracts, it means your dispute must be decided by a private legal system.
Because BMA clauses are "binding," you must abide by the decision and have no right to appeal.
The judges, called arbitrators, do not have to follow the law or even justify their decisions.
www.stopbma.org   (239 words)

 Binding Arbitration   (Site not responding. Last check: 2007-10-20)
Labor: Bid to establish binding arbitration puts pressure on Davis, a UFW ally in '75 triumph
Davis, who has final say, is put in a tough spot during a reelection year.
Analysis of SB 1736, Binding Arbitration Legislation: Life-improving Change for Farm Worker Families
www.ufw.org /1contarb.htm   (1662 words)

 CreditCourt Forum: Mandatory Binding Arbitration   (Site not responding. Last check: 2007-10-20)
Household filed their Motion to Dismiss or to Compel Binding Arbitration in my case.
Just about every business includes mandatory binding arbitration clauses.
Opposition to Motion to Compel Arbitration and to Stay Discovery; A...
forum.creditcourt.com /discus/messages/803/2194.html   (69 words)

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