BusinessWeek magazine`s article on complaints that the National Arbitration Forum (NAB) was biased in favour of professional customers towards consumers and that a complaint by the Minnesota Attorney General, which claimed fraud and bias, forced the NAB forum to stop settling consumer disputes. At the time, NAB was apparently the largest company in the United States to have withe-indized credit cards (often under mandatory arbitration clauses in consumer credit card contracts). Arbitration aims to provide a faster and simpler alternative to a high-speed process. The process is informal. The ability to bypass procedural formalities saves time. For example, traditional rules of evidence do not apply. As a result, parties to arbitration proceedings do not face numerous prolonged delays related to civil proceedings. The use of deposition statements and live statements via teleconference is common in arbitration proceedings and saves time and money without sacrificing integrity. Epic Systems is undoubtedly a welcome relief for any employer who has been the subject of a class or group action. But should every employer automatically consider an arbitration procedure to be the right approach, simply because they can be exempted from the right of workers to assert class and grouping rights? Not necessarily. Arbitration is a method of resolving disputes without going to court.
Sometimes a lawyer will recommend an arbitration procedure to a client as the best way to resolve a claim. As part of the arbitration process, the dispute is referred to a third party (the arbitrator) who will resolve the dispute after hearing a submission from both parties. The presentation can only be documents presented to the arbitrator on each side. More often, each page, in addition to the documents submitted, will make oral arguments personally. As a general rule, each page will have a lawyer to make oral argument for it. Sometimes there are witnesses testifying. Pro: Third parties who may be ultimately liable cannot be brought to arbitration without their consent. The most common example is a dispute between an owner and a general contractor over an alleged error in the construction designs. According to arbitration rules, an architect responsible for defective designs cannot participate in the conciliation between the owner and the general contractor without the architect`s consent. As a result, most arbitration proceedings concern only both parties. A. There are a number of questions to consider whether a company should require its employees to send all labor rights to an arbitration tribunal.
This type of guidance has since been the opinion of the U.S. Supreme Court in Epic Systems Corp. v. Lewis, who advocated mandatory arbitration agreements, even though they led employees to waive their rights of appeal in a class action or class action. For: As a general rule, an arbitrator is not bound by legal principles, he is not required to explain or justify the decision. In addition, the decision is not subject to an error-of-law review. An arbitrator is generally empowered to make a decision on the basis of what he or she deems fair and equitable under the contract between the parties. Con: Although it is not mandatory, most parties choose to be represented by a lawyer. As a result, cost savings that are not related to a lawyer are often not realized.
And unlike court documents, which are relatively nominal, arbitration normally requires significant registration and arbitration fees.