Mandatory arbitration clauses in consumer contracts, employment contracts, and almost any online agreement you click “Accept” often act in favor of the company and not the employee or consumer. Epic Systems is undoubtedly a welcome relief for any employer who has been the subject of a class or class action. But should every employer automatically consider arbitration to be the right approach simply because it can obtain the waiver of workers` right to pursue collective and collective rights? Not necessarily. In arbitration, both parties are usually not represented by a lawyer. An arbitrator is chosen and both parties have the opportunity to present their side of the situation. The rules of evidence do not apply. Disadvantage: Unlike a court decision which generally allows the party to enforce the judgment within 30 days, an arbitral award cannot be enforced until an appeal is filed and a court has formally upheld the arbitral award and a court decision is rendered in accordance with the arbitral award. This process usually takes at least 90 days. If you are considering introducing an arbitration clause into a contract or are faced with having to sign a contract with an arbitration clause, consider these pros and cons when deciding whether you want to initiate arbitration. Pro: In arbitration proceedings, the successful party may file a claim with the local court to confirm the arbitral award and render a judgment in accordance with the arbitral award.
As soon as a court renders a judgment, the award can be enforced like any other court decision, including the seizure of bank accounts and the enforcement and seizure of assets. In summary, arbitration is a very useful tool for resolving disputes, but careful consideration should be made to whether it applies or is preferable to a particular dispute. Your lawyer will advise you if this is appropriate in your case. Tagged with: American Arbitration Association, arbitration, business law, commercial litigation  BusinessWeek magazine articles regarding lawsuits that that the National Arbitration Forum (NAB) was bias in favor of business clients over consumers and that a lawsuit by the Minnesota Attorney General claiming fraud and bias forced the NAB Forum to stop arbitrating consumer disputes. At that time, NAB was apparently the largest company in the United States to settle outstanding credit card debts (often as part of mandatory arbitration clauses in consumer credit card contracts). The general wisdom you often hear is that arbitration costs less. But this is not necessarily true. Many companies can be supported by lawyers for conciliation and the cost of an arbitrator can be high. A study by Corporate Counsel showed that, in 19 cases, arbitration cost more than litigation, and the average time for arbitration was two months longer than in comparable disputes. In many of these cases, the case was closed to the other, which reduced time and saved a lot of money.
The arbitrators, on the other hand, are reluctant to “agree” before the hearing of each other. With the right agreements, both parties can benefit from the process instead of going through the justice system problems that could take years to finally find a solution. As a result, an arbitral award is rarely set aside in arbitration proceedings, even if the evidence does not support the outcome. As we recently reported, the U.S. Supreme Court recently stated in Epic Systems Corp. v. Lewis, No. 16-285 (U.S.
May 21, 2018) (consolidated cases) that employment contracts requiring employees to resolve disputes individually are not contrary to national labor relations law. Epic Systems` decision paves the way for employers to require employees to sign arbitration agreements that waive workers` right to partner with other employees to bring a class or class action in court. . . .