Homeowners from across Texas Rally at the TX State Capitol prior
to the Hearings on Arbitration.
Hearing Audio Available
Aug
19 2002
Consumer Fairness Act of 2002 (Introduced in House) HR 5162 IH
107th CONGRESS To treat arbitration clauses which are
unilaterally imposed on consumers as an unfair and deceptive trade
practice and prohibit their use in consumer transactions, and for
other purposes.
Aug 14 2002
The arbitration agreement in the Goodwinís homeowners insurance
policy left them homeless and financially devastated.
On April 26, 2001 an 18-wheeler ran off of I-30 and crashed into
our home when its driver had a heart attack. We had lived in our new
home for only one day when the accident occurred, which rendered it
uninhabitable. Ý
Ý
The truck driverís insurance refused to pay for the repairs to our
home claiming that the driverís heart attack was an ëact of God,í
and therefore, not covered.
Aug 12 2002 Thanks to Texas Watch at www.texaswatch.org
for providing this information. Two Texas Legislative Committees
are currently studying the effects of arbitration. Go to
http://capwiz.com/txwatch/issues/alert/?alertid=392556&type=CU
to send an email to the Committee Chairmen asking them to prevent
companies from limiting consumerÇs rights through arbitration
agreements.
Aug 12 2002 From Texas
Watch: You may have unknowingly waived your constitutional
right to a trial by jury when you purchased you new home, used your
credit card or made a long-distance phone call.Ý Today, mandatory
arbitration agreements are found in almost all consumer contracts,
and they are successfully being used by big corporations to block
access to courts by consumers who have been treated unfairly.Ý Go to
www.texaswatch.org to learn
more about arbitration and its pitfalls for consumers.Ý
Aug 3 2002
Consumers say arbitration means quick frustration By Adolfo
Pesquera Express-News Business Writer. Consumers also have
complaints about the high cost of an arbitration. Arbitration cases
where damage claims exceed $75,000 typically cost consumers $6,000
to $20,000 more than trying the same case in court, say spokesmen
for Public Citizen and the Association for American Retired Persons.
July 30 2002
There's no way to arbitrate this issue Critics, firms at odds on
policy By Caroline E. Mayer The Washington Post. Arbitrators
can limit an aggrieved individual's access to a company's documents,
thus possibly reducing support for the complaint. Arbitrations are
decided in private. Decisions are kept confidential, so consumers
don't necessarily learn what the arbitrator based a decision on. And
many consumer agreements call for the arbitration firm to be chosen
by the company being complained about.
Jul 14 2002
No Suits Allowed Increasingly, Arbitration Is the Only
Recourse By Caroline E. Mayer Washington Post
Staff Writer.
)
As an arbitrator, you're going to get work as long as parties choose
to use you, and if this is your career or it makes up a good part of
your practice, then if you render a decision that is unpopular" with
parties that frequently use arbitration, they "may not choose to use
you again."…The
homeowner is convinced
she won't get a fair hearing.
Jul 8 2002
"Leaky Weekleys" Moldy 'Lemon' Homes Denied Day In Court
Weekley Boys Privatize the 'Justice' System. "A major
developer of this privatized ìjusticeî is David Weekley Homes, both
in its own right and through brother Richard Weekleyís Texans for
Lawsuit Reform (TLR). Since 1997, TLRís huge PAC has spent $2.6
million on all three branches of Texas government (see table). "
Jul 1 2002
A NEW
THREAT TO CIVIL JUSTICE The Assault on Arbitration by Texans
for Lawsuit Reform (President Richard Weekley, Texas homebuilder
David Weekley's brother) "Another bill, S.B. 1706, would have
prohibited the use of pre-dispute binding arbitration agreements in
many contracts, such as employment contracts, and would have imposed
new restrictions on other arbitrations. The bill, opposed by TLR,
failed to pass."
NOTE: S.B. 1706 was specifically for contracts that mandated
binding arbitration without disclosing the high cost, and possible
abuse, such as the contract used by David Weekley.
Jun 30 2002
The Seventh
Amendment A 100 Years of Government Encroachment by Newt
Gingrich:"Seen historically therefore, the Seventh Amendment, the
right to trial by jury in civil cases involving more than $20, is a
bulwark of political liberty rather than a procedural amendment. Its
purpose was to provide the citizen protection against the
government. The Founding Fathers included many lawyers who knew this
would make the judicial system slower, more inefficient and more
cumbersome. They saw this as a small price to pay for protecting
freedom from corrupt or tyrannical judges or from powerful or rich
persons with unfair influence."
June 4 2002 The Secrecy of Binding Arbitration.
"Arbitration, Other Matters: Each party agrees to keep all Disputes
and arbitration proceedings strictly confidential, except for
disclosing of information required in the ordinary course of
business of the parties or by applicable law or regulation."
--Contract Clark Wilson Homes, Inc. Austin Texas.
NOTE: Does this mean no media attention? No protesting?
No letters to our Senators and State Reps? Or to the Texas
Attorney Generals Office? (as if that would do any good.)
May
28 2002 Arbitration Should Stand on it's
Own. by John R. Cobarruvias. Guest Editorial in The Citizen. "Arbitration
clauses should be removed from new home contracts as a prerequisite
to purchasing the home. Only when a dispute arises should the owner
be given the option of binding arbitration instead of the current
court system. Only when the extra fees, rules, procedures, and
backgrounds of the arbitrators are openly disclosed to the homeowner
can they make a reasonable and educated decision."
"Disclosure of the facts to reach an informed choice will allow
binding arbitration to stand on it's own or fall on it's farce."
May 23 2002 Just how biased can an arbitration and arbitrator
be? Read Falbaum v. Houston Village
Builders Inc submitted to the Texas arbitration hearing May 15.
This was a case in Houston. This is well worth reading
May 23 2002 The use of Mandatory
Binding Arbitration Clauses in The Woodlands Texas. Can
you buy a new home in The Woodlands without giving up your 7th
Amendment Rights to a civil trial if you have a defect in the
biggest investment of your life?
May
23 2002 DR Horton's $10,000
Arbitration Clause. "If buyer does not seek arbitration prior to
initiating any legal action, buyer agrees that seller shall be
entitled to liquidated damages in the amount of $10,000."
May 19 2002
Nonprofit group pans arbitration Says system stacked against
consumers Associated Press
Touted
as a cheaper and faster alternative to lawsuits, binding arbitration
is expensive for consumers and denies them access to courts,
according to a report released last week by the non-profit group
Public Citizen.
May 17 2002
Consumer advocates hammer arbitration Homeowners from
across Texas Rally at the TX State
Capitol prior to the Hearings on Arbitration.
Hearing Audio Available
May 17 2002
Public should keep right to day in court Editorial Board AUSTIN
AMERICAN-STATESMAN Within the United States, however, some in
the business community are doing whatever they can to shake
themselves free of the judicial system in favor of "binding
arbitration" clauses in contracts that automatically send disputes
to an arbitrator rather than a courtroom.
May 16 2002
Who
really backs lawsuit abuse campaigns? Citizens Against
Lawsuit Abuse (CALA). Shouldnít the name be Corporations Against
Lawsuits? (Enough said)
May 16 2002
Home buyers object to clause in sales contracts Texas House panel
hears complaints about binding arbitration requirement By
David Pasztor AMERICAN-STATESMAN STAFF Home builders are drawing
most of the ire in Texas, said Jackson Williams of Public Citizen,
because almost all of them are now inserting binding arbitration
clauses into their contracts at the suggestion of the Texas
Association of Builders.
May 16 2002
Consumer advocates hammer arbitration By Adolfo Pesquera
Express-News Business Writer James Evans, a Houston attorney,
cited a case where a client's house slid down a hill because of an
improper foundation. After his client got nothing, Evans sued the
association and arbitrator Stephen Paxson, claiming Paxson, a
lawyer for the Greater Houston Builders Association, had lobbied to
change the law his client was relying on.
Note: Unknown to most in the audience, Stephen Paxson
was the last speaker at the hearing. He helped write an
Amicus to the
Supreme Court in favor of removing the implied warranty of
habitability and good workmanship, as well as an amicus in the
Perry Homes v. Atiwiler case
(02-98-00106-CV, 33 SW3d 376, 11-02-00)which the Supreme Court
refused to hear.
May 15 2002
Texas' mushrooming toxic mold epidemic offers a crash course in the
perils of binding arbitration. First, consumers learn that
their new dream home is a moldy lemon. Then they discover that
arbitration contracts strip their right to a jury trial and force
their claims before costly, secretive tribunals that favor builders.
The new Lobby Watch profiles a few consumers who bought moldy new
houses from arbitration enthusiast David Weekley Homes.
May 14 2002 Private
arbitration criticized Report says court often cheaper;
supporters say study is misleading By MARK CURRIDEN / The
Dallas Morning News Fifth U.S. Circuit Court of Appeals Judge
Patrick Higginbotham warned at a conference in Dallas two weeks ago
that the movement away from the public court system toward private
justice is a "dangerous situation with major public policy
implications."
May 14 2002
Arbitration could prove costly for homeowners By JANET
ELLIOTT Copyright 2002 Houston Chronicle Austin Bureau According to
the report, the filing fee for an $80,000 consumer claim in Cook
County, Ill., Circuit Court is $221. The American Arbitration
Association, one of several private companies providing arbitration
services, charges a filing fee of $1,250.
May 9 2002 THE CONSUMER PITFALLS OF
BINDING ARBITRATION A Report by the
Texas Watch Foundation The report raises questions about the
quality of justice delivered through binding arbitration between
parties of different bargaining levels and documents the uneven
playing field binding arbitration offers consumers and citizens
seeking justice.
May 5 2002
TX House Hearing on Arbitration Audio Available
May 2 2002 Washington Post:
Arbitration Often Costly, Study Finds Group Says Court System
Offers Fewer Charges and Lower Fees "This growing corporate
maneuver is threatening the rule of law," said Public Citizen
President Joan Claybrook. The high fees uncovered by the report
"makes it impossible for consumers and employees to vindicate their
rights," she said.
May 1 2002 May 1 -
Arbitration costs are so high, many victims are unable to pursue
complaints, new Public Citizen report reveals .
Arbitration, although widely billed as a low-cost alternative to
court, is actually far more expensive for consumers and employees
who seek redress for discrimination, fraud and malpractice, a new
Public Citizen report reveals. In fact, arbitration costs are so
high that many people drop their complaints because they canít
afford to pursue them, Public Citizen found.
May 2 2002 Small Claims Court vs
Mandatory Binding Arbitration.
Apr 15 2002
AT&T's arbitration system ruled illegal Reynolds Holding,
Chronicle Staff Writer Mandatory arbitration lost substantial
ground in the nation's courts again yesterday when a San Francisco
federal judge denounced AT&T's private system of resolving disputes
as an "illegal and unconscionable" attempt to deprive telephone
customers of their legal rights.
Apr 3 2002 HOBB and homeowners speak at
an arbitration hearing in Austin.
Audio available now.
Mar 23 2002
The Seventh
Amendment: A 100 Years of Government Encroachment By Newt
Gingrich Summary: The right
to trial by jury was treasured by the Revolutionary War generation
that founded America. British efforts to move cases into courts
without juries were seen as major steps toward tyranny. Americans
viewed juries as citizen protection against corrupt or tyrannical
judges. The purpose of the jury was to ensure that any act of
tyranny would be unenforceable in court as the citizens on the jury
would simply reject the case.
Mar 2 2002 HUD on binding arbitration: "the Department
precludes binding arbitration as the sole remedy."
Page 1 Page 2
Nov 7, 2001
INTERIM STUDY CHARGES -Texas House of Representatives . Interim
Studies on mold and binding arbitration.
BUSINESS AND INDUSTRY. Review trends in the use of
binding arbitration requirements in consumer agreements, with
special attention to transactions in which the consumer has little
or no bargaining power.
INSURANCE. Review issues associated with homeowners'
insurance coverage of toxic mold and mold related claims. Consider
measures that would ensure appropriate coverage and remediation of
damage and maintain the viability of the homeowners' insurance
market.
Aug 2, 2001 [ABOT] Insurance carriers hit with fines
Must pay medical bills By CLAY ROBISON Houston Chronicle
Austin Bureau . Perry vetoed the measure at the urging of civil
justice reformers and other business groups because it would have
removed arbitration as an option for settling health insurance
claims. [Mandatory and binding arbitration is NOT an option. It
is the ONLY option.]
Texans for Lawsuit Reform, which urged the veto, praised the
fines. "Governor Perry promised Texas doctors he would help them
with slow paying insurance companies, and he has," said the group's
president, Dick Weekley.
NOTE: Dick Weekley is the brother of David Weekley. See also
July 20, 2001
Perry's veto still a bitter pill for doctors By Gary
Susswein American-Statesman Staff. Binding Arbitration clauses
rip hearts out of doctors. "Perry said he vetoed the bill
because it would have prevented insurers from settling disputes
through alternate methods or binding arbitration, would have
encouraged frivolous lawsuits and would have driven up the cost of
health insurance."
July 19, 2001
Perry's veto still a bitter pill for doctors By Gary
Susswein American-Statesman Staff. Binding Arbitration clauses
rip hearts out of doctors. "Perry said he vetoed the bill
because it would have prevented insurers from settling disputes
through alternate methods or binding arbitration, would have
encouraged frivolous lawsuits and would have driven up the cost of
health insurance."
July 19, 2001
Doctors feel the wrath of Texans for Lawsuit Reform on binding
arbitration clauses.Viewpoints Houston Chronicle. One of the
most notorious take-it-or-leave-it clauses is a requirement that
doctors waive their legal rights under state law (and, by extension,
patients' rights) by agreeing that all disputes be sent to
mandatory, binding arbitration, which is expensive, cumbersome and
lengthy.
NOTE: TLR is headed by Richard Weekley, brother of
David Weekley, Texas
Homebuilder.The TLR is a so called "grassroots" organizations with
the consumer in mind. See:
Redefining reform Big business proponents contrive some
of the worst bills of the 74th session By Molly Ivins
"Say a builder has been using some cheesy
materials that fall apart after 10 years. No responsibility falls
to the builder--you have to sue the manufacturer"
July 9, 2001
High
court's term [Texas Supreme Court] ends amid exodus of justices
Precedents vulnerable to shifts in membership By MARY
FLOOD Houston Chronicle "Most arbitrations cost about $2,000
to $3,000 just to get them started, and if arbitration is always
compulsory, this pretty much puts consumers in a hole," said Rusty
McMains, a Corpus Christi state appellate specialist.
June 8, 2001 Texas Supreme Court Screws Homeowners Again and
Upholds Binding Arbitration. This is just one in two punch
knockout to the consumers. The next will be when they show their
loyalty to the Texas Homebuilders and relieve
them of the implied warranty of good workmanship and habitability.
"The Biggest Investment of Your Life in Texas" now has the
"Least Amount of Consumer Protection". Why would anyone buy a new
house?
June 8, 2001
Court ruling upholds binding arbitration. Consumers can be
barred from lawsuits Associated Press AUSTIN -- Consumers who
complain about defective products can be forced into binding
arbitration and barred from suing the manufacturer, the Texas
Supreme Court ruled on Thursday.
"Arbitration provides consumers with an immediate and an
inexpensive place to go," said Cami Boyd, a lawyer representing two
Texas-based mobile-hine"
May 29, 2001
Getting It Built Copping An Attitude: War of Words By Matthew
Power Builder Online.
"Brian Binash, executive vice president of
Emerald Homes in The Woodlands,
Texas, tells any client who refuses to sign his company's
arbitration clause to go elsewhere. He says they will continue the
practice, even if (and when) the roaring economy slows down. "
Mar 3,
2000 Added to Binding Arbitration:
Arbitration Rulings Called One Sided. By Caroline E. Mayer
Washington Post Staff Writer Like many banks, car
dealers and retailers, First USA N.A., the nation's second-largest
issuer of credit cards, no longer permits its customers to sue it in
court. Instead, any disputes must be resolved through arbitration by
a firm chosen by First USA.
Feb 26,
2000 Added to Builders in the News:
Supreme
Court 2000: Torts. Arbitration clauses need not bar suits.
Patricia Seifert and her husband, Ernest, contracted with U.S. Home
to build a house. The purchase and sale contract said that if
any dispute arose, it would be settled by mediation ó in which a
referee tries to work out a deal acceptable to both parties ó or, if
that failed, binding arbitration, in which one or more arbitrators
decides on a solution. After the Seiferts moved in, the air-
conditioning system sucked into the home deadly carbon monoxide
emissions from the coupleís car, which had been left running in the
garage. Ernest Seifert died, and his wife sued in 1996, contending
her husbandís death was a result of U.S. Homeís negligence.
Feb 4, 2000Added to Binding
Arbitration:
Consumers losing right to sue Buy an item off the popular eBay
auction Web site, and you've just given away your right to sue. If
you have a beef with eBay, you'll go before a private arbitrator
instead of a judge in court. The Web giant has even picked the
place: San Jose, eBay's home, but not exactly convenient to the vast
majority of consumers.
Feb 4, 2000 Added to Binding
Arbitration:
"Americans want arbitration." By Roger Haydock "Consumers and
businesses agree: They want an affordable, efficient and fair way to
resolve their disputes. They want arbitration." [I thought "What
....person....would write such stuff?] "Roger Haydock is
executive director of the Institute for Advanced Dispute Resolution
and a visiting professor at the University of San Diego Law School."
There is the answer!
Jan 10, 2000
MCI Settles Challenge to Arbitration Rule By Caroline E. Mayer
Washington Post Staff Writer Friday, December 24, 1999; Page E02 MCI
WorldCom Inc. has settled a challenge to its practice that bars
small businesses from taking billing disputes to court. However,
officials at the Federal Communications Commission indicated
yesterday that the agency may still review MCI's controversial
arbitration requirements because they may hurt consumers.
Jan 8, 2000 Letter from
Senator Hollings of
South Carolina to Jim Blackstone in support of HR 2258 The Consumer
Fairness Act.
Dec 14, 1999MCI's
fine art of fine print. By Caroline e. Meyer, The Washinton
Post. Another example of hiding arbitration clauses in contracts.
August 11, 1999Contract's
Fine Print Could Take Away Your Right to Sue
RALEIGH (WRAL) -- We have heard it over and over again; "Before you
sign a contract, read the fine print." Now, there is a serious, new
reason to do that.
Sept 30, 1999:
Stripped of legal rights by Richard Coe 10-19-1998
Criminals get a right to trial by jury. But if you buy a car,
sign a mortgage, buy health insurance or get an exterminator
contract, you probably donít get that same right.
Sept 28, 1999:
Consummate Consumer On the Hill, Going Nowhere By Don
Oldenburg Washington Post Staff Writer Wednesday, September 29,
1999. But some consumer advocates want to rally around this proposal
to prohibit "waive your right to sue" clauses that increasingly are
inserted, stealth-like, into everyday marketplace transactions, from
purchase agreements to service contracts.
Sept 28, 1999: Arbitration is replacing lawsuits Clauses
protect many businesses from court fights By Joel Campbell Deseret
News associate business editor. Consumers with disputes with
everyone from their employer to their auto insurer may find it
increasingly difficult to settle their differences in court.
Sept 20, 1999:
Card
customers being pressed to give up their right to sue
By Pat Curry Is using plastic money worth giving up your right
to sue your credit card issuer if you have a dispute with them?
"Linda Sherry, editorial director for
Consumer Action, a
national consumer advocacy group, says that while her organization
supports alternative dispute resolution as helpful and less costly
than litigation, they are "totally opposed" to binding arbitration."
Sept 17, 1999:
No suits for you Mad at a firm? Arbitration could be
your only recourse BY MARGARET MANNIX , US News 6/7/99 "As an
enforcer of consumer protection laws, I am tremendously alarmed
about the frequency of [mandatory arbitration clauses] and the
often disguised or inconspicuous way they are presented," says
Connecticut Attorney General Richard Blumenthal, adding
that the consumer is in a Catch 22. "He is blocked from going
to court by the arbitration clause and prevented from arbitrating by
high upfront expenses."
Sept 17, 1999:
Binding Arbitration
And Its Impact On Current Litigation by Stevann S. Wilson
and Maynard Green. A very DETAILED article on binding arbitration in
Texas. (Stevann Wilson is a full-time mediator and arbitrator. She
has practiced as a trial attorney for more than 20 years and
as an attorney-mediator and arbitrator for the past 7 years.)
Sept 17, 1999:
FORCED
INTO ARBITRATION? NOT ANY MORE More employees are
saying it's unfair--and many judges agree
Sept 16, 1999: Posted the
Council of
Better Business Bureaus Policy for Voluntary Consumer/Business
Arbitration in Contractual Commitments
Sept 10, 1999: House Bill 2258 "The consumer protection bill
of 1999" sponsored by Representative Guitteriez. This will will
make the use of binding arbitration clauses in consumer contracts
illegal. HOBB supports this bill.
Sept 10, 1999:
Home Owners For
Better Building Testifies Before The Texas State Interim
Committee On State Affairs. "ARBITRATION DEADLY FOR THE CONSUMER"
Aug 29, 1999: Featured in:
Read
the fine print posted 08/29/99 By Michael Pollick
The Herald Tribune: Read about how many of the homebuilders in
the US are using binding arbitration clauses in new home
contracts."Janet Ahmad, president of a San Antonio, Texas, group
called Home Owners for Better Building, said arbitration might not
be as inexpensive for the homeowner as the builders like to make it
sound. The going rate for attorney representation prior to and at an
arbitration is $2,000, Ahmad said. By agreeing to arbitration,
homeowners give up the right to a cost-free judge and jury."
