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opinion
arbitration
Mandatory Binding Arbitration Still Sucks
BusinessWeek has published a pretty substantial cover story on arbitration, and why it disadvantages consumers. Consumerist readers will be familiar with many of the story's criticisms: one study finds 99.8% of arbitration cases are decided in the corporation's favor, some arbitration firms market themselves to companies as a sympathetic and partial judge, the arbitration process is intentionally structured to handicap consumers, and more. More »
The Supreme Court rejected T-Mobile's appeal in 3 cases yesterday, which means an earlier federal ruling that says states "can refuse to enforce arbitration clauses if they include bans on class actions" will stand. Now T-Mobile has to go back to state courts to deal with the class action lawsuits against it. [Associated Press]
survey says
81% Of Americans Hate Mandatory Binding Arbitration
According to science, even the President is more popular than mandatory binding arbitration. A recent poll shows that Americans hate everything about the extrajudicial resolution system, from its inescapable omnipresence, to its unappealable decisions that rob consumers of their day in court. The poll provides a refreshing contrast to a different study commissioned by the U.S. Chamber of Commerce, which found that Americans love mandatory binding arbitration more than pie. More »
worst company in america
Round 33: Comcast vs The American Arbitration Association
Tier 1 voting is over (we'll get a nice standings chart up soon). Now it's time for things to get more intense, now we'll have some real competition. This is Round 33 in our Worst Company in America contest, Comcast vs The American Arbitration Association.
This is a post in our Worst Company In America 2008 series. The companies nominated for this honor were chosen by you, the readers. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america
lawsuits
Class Action Against Credit Card Companies Conspiring To Make Us All Accept Mandatory Arbitration Revived
Ross vs Bank of America is a class action suit against a pile of banks alleging that they conspired to make all consumers accept mandatory binding arbitration clauses. It got a boost on Friday when the Second Circuit remanded it back to lower courts for further consideration (read the 15 page decision here). The previous court had dismissed the case because it felt plaintiffs couldn't prove actual injury. The Second Circuit reversed, saying, "A card that limits the holder to arbitration is less valuable (all other factors being equal) than a card that offers the holder a choice between court action or arbitration." What did these banks do that was so bad? The plaintiffs claim a broad conspiracy between all the credit card players to institute mandatory arbitration agreements and kill off all non-arbitration agreement cards on the market, a gross violation of antitrust laws. Here's the breakdown: More »
disputes
If You Happen To Prevail In Arbitration, Get Ready To Lose On Appeal
Arbitration is even worse than we thought. We already knew that consumers lost 94% of the extra-judicial proceedings, but new data shows that the few who manage prevail are likely to have their wins overturned on appeal. More »
arbitration
San Francisco Sues Provider of Arbitrators [WSJ via U.S. PIRG Consumer Blog]
Arbitration Mill Sued By San Francisco
A San Francisco attorney has sued the National Arbitration Forum for being biased towards credit companies and ignoring consumer rights.
In 2004, the suit alleges, California resident Elizabeth Marcotte was hit with a $25,0000 award, plus $10,000 in attorneys' fees, in a credit-card collection case. But Ms. Marcotte allegedly wasn't notified about the arbitration, because she was served at an old address, even though she had notified the credit-card company of her new address. The NAF awarded the attorneys' fees without requiring proof that the debt collector actually incurred the fees, according to the suit. Ms. Marcotte wasn't reached for comment.NAF is the same company that once decided that a 61-year-old identity theft victim owed $46,000 to a bank she never actually did business with.In another credit-card collection case, the NAF allegedly entered an award against California resident John Sheakley, without responding to his request to appear at a hearing and explain why he didn't owe the purported debt to a bank that was a predecessor of FIA Card Services.
San Francisco Sues Provider of Arbitrators [WSJ via U.S. PIRG Consumer Blog]
worst company in america
Round 2: Facebook vs The American Arbitration Association
This is round 2 in our Worst Company In America contest, Facebook vs The American Arbitration Association. Their major crimes: The American Arbitration Association is the main supplier of kangaroo courts to companies who want to deprive consumers of most of their rights in the event of a legal dispute. Most contracts you sign with companies these days contain a mandatory arbitration clause. Facebook is a social networking site for yupsters that for a while was spying on all your purchases and selling the data to big big advertisers so they could sell you more ads. Which is the greater threat to our way of life? Choose!
PREVIOUSLY: Comcast vs Menu Foods
This is a post in our Worst Company In America 2008 series. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america/
health
Cancer Patient Wins $9 Million From HealthNet In Arbitration Settlement
An arbitrator called HealthNet's practices "despicable" after awarding $9 million to a cancer patient who whose medical coverage was canceled by the company after she was diagnosed with breast cancer.More »
The award issued by an arbitration judge was the first of its kind and prompted Health Net to announce it was scrapping its cancellation practices that are under fire from state regulators, patients and the Los Angeles city attorney.
arbitration
Supreme Court Sends "Judge Alex" Back To Arbitration
TV's "Judge Alex" is probably less a fan of arbitration that you'd think, according to CNN. He's been handed a Supreme Court decision that forces him back into the waiting arms of the American Arbitration Association.The 8-1 decision came in a lawsuit by Alex E. Ferrer, a former Florida Circuit Court judge who decides minor civil disputes as a form of TV entertainment.More »
contracts
Dealership Tells Customer Abitration Is Awesome For Corporations
Sean writes: "The wife and I were purchasing a car this weekend. After the typical pulling of teeth to get a price quote over email, we headed into the dealership on Saturday to finalize the deal. We were finally ushered into the finance guy's office, pitched the warranty, gap insurance, etc., and got to the contract itself. I looked over the agreement and saw the 'binding arbitration' clause. Knowing it wasn't a battle I could win, nor an issue I could avoid by shopping elsewhere, I let it go with a simple, "I don't like the binding arbitration clause." To my surprise, he responded, "Arbitration is the best thing invented for corporations!" More »
taxes
Opt Out Of H&R Block's Arbitration Agreement
Reader Justin writes in to tell us how to opt-out of H&R Block's arbitration clause in their 2007 Client Service Agreement. More »
contracts
Sex Assault Suit Vs. Halliburton Goes To Arbitration
A woman who says she was sexually assaulted by co-workers while working for a contracting company in Iraq, KBR, affiliated with Halliburton, lost her chance to get her case heard in a real court of law. A judge ruled yesterday that the mandatory binding arbitration clause in her contract holds firm and so its off to kangaroo court she goes. The unfortunate court decisions is a rape of justice, this is an instance where the arbitration clause should have been ruled unconscionable. More »
photos
The Burger Of Mandatory Binding Arbitration
If you step into this Whataburger in Kilgore, Texas, you automatically agree to the burger joint's mandatory arbitration clause. At least that's what the sign on the door says. According to Mother Jones:
Sorey says when he went in, he told a befuddled cashier that he didn't think that the arbitration notice was enforceable, that anyway he wasn't agreeing to it, and, "I need a taquito and a coffee." He says he sat down, watched some traffic, and ate his taquito. "I didn't choke, I didn't burn myself, and I didn't sue 'em," he reports.That's one burger that's hard to swallow. Might choke on your after you read this sign. That's one raw burger. Etc.
Eat Burger, Waive Right to Sue [Mother Jones]
(Photo: Dan Sorey)
cable
Opt Out Of Comcast's Arbitration Agreement
Included in the Comcast January bills was a new Comcast Agreement for Residential Services pamphlet, and a new opportunity for customers to opt out of mandatory binding arbitration as a way to settle disputes with their cable provider. Just go to comcast.com/arbitrationoptout, enter the required information, and hit go. Boom, you've just held onto your constitutional rights. Here's a related post on the 9 ways arbitration screws consumers over.
Arbitration Opt Out [Comcast] (Thanks to Stephen!)
verizon
$1 Billion ETF Class Action Against Verizon Approved
Somehow, an arbitrator has approved a massive $1 billion class action lawsuit against Verizon over their early termination fees. In letting the lawsuit proceed, the arbitrator wrote, "...millions of class members are entitled to adjudication of the central common questions of fact or law in this arbitration related to whether the $175 early termination fee imposed by respondents Cellco Partnership d/b/a Verizon Wireless ... is based upon an unenforceable liquidated damage clause." With cellphone companies switching to prorated ETFs and the rise in ETF-related lawsuits around the country, one wonders if we won't see the death of ETFs in the next few years. By that time, cellphone companies will have figured out a new technique to keep people from leaving their contracts.
Verizon Wireless faces class action over ETFs [RCRWirelessNews] (Thanks to Steve!)
consumer rights
