Pre-Dispute Binding Arbitration Clauses Perpetuate Injustice
When someone is wronged by another, he or she expects to find recourse in our justice system. When a corporation takes advantage of a consumer, that person often takes solace in the fact that she will have her day in court. More and more, however, these hopes and expectations are never realized. Victims are shocked to learn that they have contractually signed away their right to go to court. Pre-dispute mandatory binding arbitration agreements represent a fundamentally unfair method for holding corporations responsible for their wrongdoings. Consumers and employees are kept in the dark as to their rights, and they are not free to bargain for a better deal. Instead, they must "take it or leave it" and run the risk of facing a potentially biased tribunal who will decide the outcome of their case.

Public Citizen says rules tilt playing field toward builders
A national consumer advocacy organization is urging attorneys general in 17 states, including Georgia, to enforce bans on mandatory arbitration clauses often used by the home building industry... One metro Atlantan who agrees with the group is Marietta resident Greg Cole. He says construction problems at his $429,000, 3,400-square-foot house led to cracks, leaks and mold that sickened the whole family. They went to binding arbitration with John Wieland Homes and Neighborhoods, as the home warranty required, but Cole said the house has not been fixed and continues to deteriorate. His family lives elsewhere.

Mandatory Binding Arbitration - Forced Arbitration - Is Bad For Consumers And Congress Should Act
This week on National Public Radio (NPR) “All Things Considered” highlights new legislation banning pre-dispute mandatory binding arbitration clauses. A recent article posted on Injury Board is a good resource on the subject of forced arbitration and covers the NPR story: NPR Examines "An Arbitration Culture".

Rape Case Highlights Arbitration Debate
Jamie Leigh Jones was a 20-year-old Halliburton employee in 2005 when she was sent to work in Iraq. She'd been there just four days when she joined a small group of Halliburton firefighters outside her barracks at the end of the day. One of them gave her a drink. She took two sips, and Jones says that was the last thing she remembered...Jones had been raped, repeatedly...Jones has decided that if she can't have her day in criminal court, she'll sue Halliburton and its former subsidiary, KBR, in civil court. "I want corporate accountability," she says.

Iraq Rape Case, Stresses Dire Need for Arbitration Reformt
Halliburton, its subsidiary KBR, and the employees who raped Jones, have faced no criminal or civil consequences for their actions, leaving the physically and emotionally damaged Jones to question if certain corporations are immune from the law.  Halliburton/KBR denies responsibility for Jones’ rape, allowed the employees involved to stay on the job after she left Iraq, declined to ensure that the responsible employees faced criminal charges, and now claim they can’t be sued in court either, pointing to a mandatory arbitration clause in Jones’ employment contract.

The Arbitration Fairness Act Gets Support From NASAA
The North American Securities Administrators Association, NASAA, announced last week that it fully supports the Arbitration Fairness Act, which makes forced arbitration unenforceable. The Arbitration Fairness Act currently making its way through Congress, which will make binding arbitration agreements before an actual disagreement occurs unenforceable, has been given a boost by being endorsed by an organization of state securities regulators. The North American Securities Administrators Association, NASAA, announced last week that it fully supports the legislation, introduced as S. 931 by Senator Russ Feingold (D-WI) and H.R. 1020 by Representative Hank Johnson (D-GA).

Public Citizen says rules tilt playing field toward builders
A national consumer advocacy organization is urging attorneys general in 17 states, including Georgia, to enforce bans on mandatory arbitration clauses often used by the home building industry. One metro Atlantan who agrees with the group is Marietta resident Greg Cole. He says construction problems at his $429,000, 3,400-square-foot house led to cracks, leaks and mold that sickened the whole family.They went to binding arbitration with John Wieland Homes and Neighborhoods, as the home warranty required, but Cole said the house has not been fixed and continues to deteriorate. His family lives elsewhere. “This is a system that clearly does not work for the homeowner,” he said. “I hope what this group is doing can help change things in the future.”

How the Building Industry Uses Forced Arbitration to Evade Accountability
New home buyers are told (often at the last minute) that they will receive a warranty, which is often characterized as a “gift”  or "bonus" ...warranties dictate that any disputes between buyers and builders must be settled through mandatory binding arbitration, or forced arbitration. This privatized adjudication system provides the ultimate home court advantage for builders and warranty companies. Arbitration firms rely on builders and warranty firms for their business. They have every incentive to keep builders and warranty companies happy.  A promotional brochure for AAA’s spring 2009 construction conference advised builders not to miss the opportunity to hear about “How you can control the arbitration process through advocacy and by drafting appropriate clauses for your contracts” and promises tips on “identifying the right arbitrator for your case.
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Poll: Americans Oppose Forced Arbitration, Demand Corporations Be Held Accountable
Washington, DC – Americans widely oppose corporations using mandatory binding arbitration clauses in the fine print of consumer and employment contracts, according to national polling of likely voters conducted by Lake Research Partners. Forced arbitration clauses are hidden in the fine print of everything from cell phone, home, credit card and retirement account terms of agreement to employment and nursing home contracts...Fair Arbitration Now Coalition, an organization of consumer and community groups released poll results last week showing most people have no idea they're giving up a constitutional right when they sign contracts containing an arbitration clause. When details of mandatory arbitration are made clear, 59% of Americans say they oppose the practice and would back legislation requiring that arbitration be voluntary, the poll found...companies win nearly 84% of cases they initiate. Six in 10 likely voters support the Arbitration Fairness Act – including majorities of Democrats, Republicans and Independents.
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Sue the company? Most contracts force consumers to forfeit that right
Mandatory arbitration clauses have become a routine part of the fine print in most financial, telecom and employment contracts, as well as numerous other customer agreements...Consumer advocates, sensing a shift in the political winds under President Obama, believe the time is right to challenge mandatory arbitration and have banded together to support legislation ending the practice..."We have no problem with arbitration," said David Arkush of the watchdog group Public Citizen... He was speaking on behalf of the Fair Arbitration Now Coalition, an organization of consumer and community groups. The coalition released poll results last week showing most people have no idea they're giving up a constitutional right when they sign contracts containing an arbitration clause. When details of mandatory arbitration are made clear, 59% of Americans say they oppose the practice and would back legislation requiring that arbitration be voluntary, the poll found...companies win nearly 84% of cases they initiate.