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Arbitration

The American Bar Association reports that 100 million Americans are effectively barred from seeking justice by the high cost of lawyers and the lawsuit system. In fact, the ABA Journal reported that most lawyers wouldn’t even take a case that is worth less than $20,000. The complaints of most consumers don’t begin to approach that level. Thankfully, arbitration gives those boxed out of the legal system an opportunity to have their claim heard. Congress has long encouraged arbitration and the U.S. Supreme Court has repeatedly upheld it as a fundamental contractual right.

   
NEWS

Is Mandatory Consumer Arbitration Dying?
Aug 19, 2010 | Public Citizen Consumer Law & Policy Blog

Chevron urges arbitration in $27 billion Ecuador case
Aug 05, 2010 | Reuters

Supreme Court’s Arbitration Ruling Draws Liberals’ Ire
Jun 21, 2010 | Wall Street Journal Law Blog

Attention Lawyers: Time to Tighten Up Those Arbitration Clauses
Apr 27, 2010 | Wall Street Journal

OP-ED: Arbitration Works For Consumers
Jan 27, 2010 | Citizens Against Lawsuit Abuse

That right has come under attack by personal injury lawyers who are fiercely trying to preserve their monopoly on the civil justice system. While it provides a welcome option from the need for money eating, emotionally draining litigation, there are changes that can make this alternative more consumer friendly. Clearly, arbitration is a trade off. Consumers freely choose to forego a trial by jury in favor of this option, which typically provides a quicker, cheaper and confidential way to resolve a dispute.

Increasingly, consumers are “freely” agreeing to submit disputes to alternatives to the court system when they purchase items ranging from computer software to cell phones, cars to homes. The key word is “freely.” Some critics – typically personal injury lawyers who make a living by filing lawsuits – argue that consumers have no real choice. These lawyers and their surrogate critics claim that ordinary folks are being “forced” to use arbitration and that takes away their constitutional right to a jury trial.

Fact is nobody can take away an individual's right to a jury trial. An individual can, however, agree to give up that right. That is precisely what people do when they agree to arbitrate. This is no different, in that respect, than agreeing to any other contract term.

There is nothing forced or mandatory about it.

Parties are entitled to the same substantive rights and remedies through arbitration as they are in court. The benefits are many: you cut to the chase without all the legalese, endless discovery, delays and procedural maneuverings that go on in court.

It commonly takes two and a half years or more to get a civil case before a judge; an arbitration case can often be resolved within a matter of weeks. Just like in court, a plaintiff can hire outside counsel to represent him in arbitration on a fee or contingency basis. The defendant will have an information advantage in terms of how similar cases have been resolved. However, the plaintiff's lawyer should be the equalizer that brings qualifications, experience and a talent for discovery.

Critics often claim that arbitrators favor defendants in their rulings. Yet the only study comparing arbitration and jury awards found that arbitrators tend to rule in favor of the plaintiff more than juries and those similar amounts of damages were awarded in comparable cases.

The Texas Legislature has enacted numerous safeguards to assure that this system's provisions are enforceable only if they are fair and knowingly agreed to by consumers.

LAWSUIT ABUSE VICTIMS:
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