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Thursday, November 5, 2015

NY Times Details the Proliferation of Compelled Arbitration Agreements in Consumer Transactions, Health Care Claims and Employment Relationships

The New York Times completed a three-part series on the increasing use of arbitration provisions in consumer transactions and employment relationships yesterday.  The series slams the use and proliferation of mandatory arbitration provisions contained in agreements where there is unequal bargaining power and leverage between the contracting parties.  It outlines the use of arbitration agreements to defeat class action lawsuits, the use of arbitration agreements in health care and the proliferation of such agreements in employment arrangements. For example, data cited by the NY Times found that the number of lawsuits forced into arbitration has been on a steady rise over the past decade, and highlights the fact that citizens are being denied their right to a jury trial under the U.S. Constitution.  While the issue is much more complicated then the series would have you believe, there is no question that the growth of arbitration has been a very effective tool in defending against litigation.  This is an excellent series that should be read by businesses, consumers, lawyers and consumers.


You can access the first installment of the series here.  The first article in the series focuses on the rise of arbitration agreements in all types of transactions, and U.S. court's overwhelming acceptance of such agreements following the U.S. Supreme Court's holdings in key cases involving the Federal Arbitration Act, including American Express Co. v. Italian Colors Restaurant and Oxford Health Plans v. Sutter

You can access the second installment here.  The second article focuses on how arbitration privatizes the judicial process and strips citizens of their right to a jury trial. It highlights potential problems that arise with arbitration, including conflicts of interest and procedural unfairness.

You can access the third installment here. The third article discusses the use of religious arbitration and other non-traditional methods of resolving disputes  and the challenges of requiring persons to submit claims in such proceedings.

If you have questions about the use of mandatory arbitration, challenges to arbitration provisions, or questions about the Federal Arbitration Act or Utah's Arbitration Act, please call our office at (801) 758-7604 and speak to one of our litigation attorneys, or you can visit us online at www.utahtriallawyers.net.