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Arbitration Latest News
Binding Abritration decision devistating for homebuyer in California
Sunday, 01 April 2007

C.A.: State Law Banning Forced Arbitration Preempted
The Federal Arbitration Act preempts a California law that bars enforcement of predispute arbitration agreements in construction and design defect disputes, the Third District Court of Appeal has ruled... The defendants asked Judge Suzanne Kingsbury to compel Shepard to comply with a binding arbitration clause in the real estate purchase agreement.  Shepard opposed the motion on the basis of Code of Civil Proceedure Sect. 1298.7, which permits a purchaser of real property to pursue defect litigation regardless of any arbitration clause.

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Two Binding Arbitration Bills Filed
Tuesday, 13 March 2007

Leveling the Arbitration Playing Field for Consumers
Consumers and state legislators are quite concerned about these practices, but there is an incorrect perception that states can do little about this because of the preemptive effect of the Federal Arbitration Act (FAA) and other federal law.  This model law – developed by the National Consumer Law Center – avoids such preemption and significantly limits abuses in this area.  The model demonstrates that states have broad authority to regulate such abuses, despite the preemptive effect of the FAA.

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Texas Curbing Mandatory Arbitration
Saturday, 03 March 2007

Progress on Curbing Mandatory Arbitration in Texas
As predicted this year is shaping up to be one of the best in many years, for the restoration of consumer protection rights. The filing of a bill (HB1686) by Representative Ruth Jones McClendon of Texas last week has to rank as one of the most exciting news events thus far.The McClendon bill would effectively ban the use of binding mandatory arbitration (BMA) agreements in contracts for new homes as well as home repairs.

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Pattern of Binding Mandatory Arbitration (BMA) - Builder Wins Again
Saturday, 03 March 2007

Why? Question About Arbitration
After enduring the three day insidious arbitration process and three years of torment, my husband and I received our "Award of the Arbitrator” from the American Arbitration Association ("AAA"). (It takes thirty days for the arbitrator to make a ruling. Those days are referred to as post study. We were billed $1687.00 dollars, for her painstaking post study, for an already made-up mind.)...We are staring at this piece of paper issued because we were fraudulently induced to purchase a substandard, defective, $360,000 dollar, uninhabitable house. This award says: for our attempt to exercise our seventh amendment rights and for going before a judge for a hearing, on fraud becasue of fraud we are to pay the builders, Tremont/Stature, $14,597.50. We are to pay them because WE breached the contract.

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Tort Deform Blog: The Two Faces of the National Arbitration Forum
Friday, 02 March 2007
Valkyrie Hanson: The Two Faces of the National Arbitration Forum
Adrianne was forced into arbitration by dept collectors for an alleged dept she owed on an MBNA credit card. The dispute was handled by the National Arbitration Forum or (NAF). The entire proceeding went on without her knowledge or a chance to clear it up. It would be bad enough if the story ended there, but it gets worse. Adrianne has never held an account with MBNA and she didn’t owe the money. She was notified of the alleged dept and the secret arbitration proceeding 3 months after the award was granted to the dept collector. She was told that she owed close to $15,000.00. When she inquired about the mysterious account and the debt, the sum suddenly changed to $8,000.00. Despite the fact that Adrianne never held an account with MBNA and did not owe the debt, NAF refuses to vacate the award.
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Bill address Binding Arbitration Clauses in Builder Contracts
Saturday, 24 February 2007

A service to homebuyers
The lead article in the Denver & the West section of last week's Sunday Denver Post took on a very important topic: the rights of homeowners to sue homebuilders over defective construction. Unfortunately, the article was missing some important information. The article, by Karen Crummy, looked at the current debate in the state legislature about a bill to prohibit new home sales contracts in which the buyer waives some of his rights to sue the homebuilder. The article performed a very important public service by informing readers that some of these waivers may be unenforceable in court, according to a University of Denver professor. Related article: Homebuyers cede rights

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Promise not important to American Abritration Association - Business More Important
Friday, 23 February 2007

American Arbitration Association Breaks Its Promise Not to Hear Pre-Dispute Arbitration
In a number of public statements over the last four years, the AAA has solemnly promised the public, the media and legislators that notwithstanding any contract agreements to the contrary, it would not handle pre-dispute binding arbitrations in cases brought by medical patients against health care institutions.  But, I have just learned of a serious instance where the AAA has quietly broken that widely trumpeted promise.  Apparently, the AAA IS administering arbitrations in medical cases when it feels like doing so.

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Texas Supreme Court Justice says private litigation may harm public good
Tuesday, 20 February 2007

Texas' chief justice calls for overhaul of state courts
It should also examine the growing use of private dispute resolution to settle legal disputes outside the public courts, Jefferson insisted.  "The outcomes in a private system need not be consistent," he said, warning that injustice can result because "appellate review is virtually nonexistent." In addition, he cautioned, "a privately litigated matter may well affect public rights. Its resolution may ultimately harm the public good or, because those decisions are secret, impede an innovation to a recurring problem, much to the detriment of Texas citizens."

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Fight brewing on contract waivers that can shield builders of botched houses
Saturday, 17 February 2007

Homebuyers cede rights
After nearly five years of trying to get the homebuilder to fix the problem, Fonseca is finally going to arbitration. But the language in his purchasing contract makes it sound as if he doesn't even have a chance. "I waived a lot of my rights," he said. "I didn't realize what I was signing with all the papers at the closing." Fonseca isn't alone. At least 20 of the state's biggest homebuilders have similar contracts in which home owners waive many legal remedies to construction defects, according to the Colorado Home Alliance, a homeowner advocacy group that has spent weeks collecting the contracts.

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Action News 2 Atlanta - Binding Arbitration
Friday, 09 February 2007

CONSUMER INVESTIGATION: In A Bind
Got a beef with your builder? Your credit card company? Your cell phone provider? Chances are, going to court is not an option. When you signed your contract, you signed up for binding arbitration -- and you may wish you hadn’t after hearing from Consumer Investigator Jim Strickland.   See News2 Investigative report

 
Editorial: Arbitration is the privatization of the Judicial System
Wednesday, 31 January 2007

The deck is stacked against homebuyers
The danger is that an arbitrator has the power of a Supreme Court Justice since arbitration decisions are final and can not be appealed.  For the past 10 years this consumer abusive system has been exploited by the homebuilding industry to avoid all warranty responsibility for defectively built homes.

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