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New Developments – Binding Arbitration Recognized as Unregulated and “Private Judging”
Sunday, 19 November 2006

L.A. Times Slams Arbitration as "Private Judging"
A Law.com article suggested that arbitration was suffering a fall from grace. This Texas article suggested that companies were backing away from arbitration..."Is Justice Served?" from the L.A. Times. Written by a lawyer with 20-years' experience, it refers to arbitration as "private judging" which is "largely unregulated and tilted." Indeed, it names various arbitration companies, slams former judges who are now arbitrators, and labels it "the pay-for-justice phenomenon."

L.A. Times Slams Arbitration as "Private Judging"
by Christopher HOPKINS
November 17, 2006

We have previously commented on studies and articles which have been decidedly for and against arbitration. A Law.com article suggested that arbitration was suffering a fall from grace. This Texas article suggested that companies were backing away from arbitration. A more recent arbitration study suggested ADR was alive and well. A Vanderbilt law article pronouced arbitration fair and countered a prior study. More locally, we provided these two posts (one and two) where prominent West Palm Beach lawyers got into a name calling dispute over arbitration. Likewise, West Palm plaintiff lawyer Craig Goldenfarb contributed this article to our site.

So we turn to the latest perspective in "Is Justice Served?" from the L.A. Times. Written by a lawyer with 20-years' experience, it refers to arbitration as "private judging" which is "largely unregulated and tilted." Indeed, it names various arbitration companies, slams former judges who are now arbitrators, and labels it "the pay-for-justice phenomenon."

The three points of the article are that (1) arbitration leads to cases resolved out of the public view, (2) judges are leaving $150k/year public service jobs for high paying arbitration salaries, and (3) large companies are using arbitration to diminish hard-won consumer rights.

One concern was that arbitrators have "repeat user bias" — meaning that companies (or lawyers) who send an arbitrator a lot of business get an edge by currying favor with the arbitrator through a constant stream of business.

In two paragraphs, the author suggests that privacy and the reduction of rules are benefits of arbitration.

A Stanford study is cited for the finding that 55% of consumer contract contain an arbitration clause.

We thank Victoria Pynchon of Beverly Hills, Ca for bringing this article to our attention. She has a brief blog reply to the article here. Visit Victoria's Settle It Now Negotiation Blog.
http://floridaarbitrationlaw.com/blogs/index.php?blog=5&title=l_a_times_slams_arbitration_as_private_j&more=1&c=1&tb=1&pb=1

 
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