Arbitration is a dispute resolution alternative that aims to keep court costs down and quicken the time it takes to reach an agreement between two parties. Originally, arbitration was used to settle matters between two companies on equal footing. Today, arbitration is used by large corporations against consumers who are at a blatant disadvantage, having few resources and no power in the industry. While arbitration was first intended as an alternative for parties in mutual agreement of using arbitration instead of taking matters to court, these days millions of consumers are forced into it without even realizing it. Talk to an attorney if you believe you are bound by an arbitration clause in your personal injury case.
Where Can I Find Arbitration Clauses?
Arbitration clauses are hidden in contracts of everything from the terms and conditions of your credit or debit card to your cable, internet, or Netflix subscription. If you are a fan of shopping online, you may be surprised to know that Amazon’s Conditions of Use subjects shoppers to binding arbitration to resolve disputes. Even some healthcare providers hide these in the paperwork you have to fill out before a doctor will see you. Nursing homes and adult care facilities may also include arbitration clauses in their contracts, although changes to the laws allowing this are currently in progress.
How does Arbitration Hurt?
When a powerful entity such as a hospital is pitted against a single consumer, it rarely works out well for the consumer in the end. Arbitration is cheap for the company that mandates arbitration, and it is a high-cost pursuit for the claimant who wishes to proceed with the complaint. The “neutral third party” who is in charge of deciding an appropriate course of action is usually a retired judge, a judge who does arbitration as a source of extra income, or a lawyer trained in arbitration. These arbitrators have usually been hired several times by the same company and have a chummy relationship with the company, automatically inserting bias into the supposedly “neutral” nature of their position. Ultimately, forced arbitration is currently an accepted way for companies to strip consumers of their legal right to sue.
High Costs to Pursue Claim
To begin the arbitration process, claimants