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.

The new data applies to workplace arbitration, which is generally the same bucket of fail as consumer arbitration.

LeRoy examines a “snowballing futility for employees” who are forced into arbitration. If they manage to win, despite the built-in institutional bias, the employer can take it to state court and get the award overturned, forcing the employee to start over from scratch. On the other hand, if they lose, the courts are highly unlikely to disturb the decision.

From the study:

Remarkably, state appellate courts confirmed only 56.4 percent of employee wins in arbitration. But when the same courts ruled on employer victories, they confirmed 86.7 percent of awards.

Just one of many reasons to support the Arbitration Fairness Act.

The “Snowballing Futility” of Arbitration for Employees [Consumer Law & Policy Blog]
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