impartial arbitrator

[imoldernu]

Not everyone will be interested in this as a subject for discussion, but maybe they should be. The impartial arbitrator has the final decision in matters that are subject to binding arbitration.
Since almost every contract that one may enter in to today, has a "binding arbitration" clause, it could be well to understand just what that means. Whether your visit to an on-line website, a retailer, a credit card or one of the tens of thousands of other contracts... simple or complex... binding arbitration basically disqualifies you from suing in court for damages... instead requiring that any final decision be made by an impartial arbitrator.

In effect, this usually precludes a personal suit in a regular court of law, as well as usually precluding class action suits.

So the question is, who is this impartial arbitrator? Who is it that has the legal knowledge to understand the letter of the law, while maintaining a completely open minded view of the issue under dispute.

One view:
https://globalarbitrationnews.com/the-double-requirement-that-the-arbitrator-be-independent-and-impartial-20150227/

The very recent Equifax hacking situation has brought to the fore, the"free" website to check for further hacking for one year, but... with the small print that costs that are questioned after the first year may not be 'suable'... and that any issues arising from the"contract" be subject to binding arbitration.
''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

I have tried to think of how I would be able to handle a case of binding arbitration, given the size of the company I might be suing, and the size of the legal department that I would be up against. Just who could this legally knowledgeable "Impartial arbitrator" be?

Who actually goes to binding arbitration? More important!!!... Who wins?

 

[Blue Collar Guy]

So the question is, who is this impartial arbitrator? Who is it that has the legal knowledge to understand the letter of the law, while maintaining a completely open minded view of the issue under dispute.

End your search now, Everyone knows I have no preformed notions of any kind. I would be the perfect arbitrator.

 

[imoldernu]

To the general issue of binding arbitration, some information that the Consumer Financial Protection Bureau has issued a rule that takes place on the 10th of September and goes into effect on contracts beginning March 10th of next year, that precludes financial firms from standing behind the binding arbitration rules that have so far been upheld by the Supreme Court.

https://globalarbitrationnews.com/cfpb-rule-bars-financial-firms-using-consumer-class-action-waivers/

If the rule survives the obvious opposition by the firms, this would overturn binding arbitration in financial contracts.

Whilst I am not a legal expert, it seems to bode well for the little guy who can't afford to fight the armies of lawyers who produce the interminable contracts that are indecipherable to the average person. (My internet contract has a nominal "READ TIME" OF 79 minutes even without the 20 ancillary included document references.)

A glimmer of hope... YMMV.

 

[OldShooter]

The idea of a completely impartial arbitrator is flawed.

Arbitrators are picked from a list by agreement of the two parties to the dispute. One party (the consumer) is not a source of repeat business for the arbitrator while the other (Megacorp) can be a source of additional business for the arbitrator, but only if he/she is generally favorable to them.

This creates what is called an "agency problem" where the arbitrator's decisions become suspect. i.e., not necessarily impartial.

 

[SecondCor521]

I thought that when they introduced the arbitration clauses it was presented as a benefit to the consumer. The little guy could get an answer to his complaint quickly, impartially, and without the cost of an attorney and courts.

Now arbitration is criticized because it isn't impartial and "prevents" one from getting their day in court.

I am reminded of Dr. Seuss' sneetches. While I understand it is actually an allegory about the Jewish people in Nazi Germany, I tend to apply it to situations where we are told that one thing is better then the opposite is better, usually by someone who does not have our best interests at heart.

 

[Ginny]

Clark Howard says not to get their "free" service. I have started to freeze my credit.

Don’t sign up for Equifax’s free credit monitoring! Here’s what to do instead | Clark Howard

 

[wolf]

The idea of a completely impartial arbitrator is flawed.

Arbitrators are picked from a list by agreement of the two parties to the dispute. One party (the consumer) is not a source of repeat business for the arbitrator while the other (Megacorp) can be a source of additional business for the arbitrator, but only if he/she is generally favorable to them.

This creates what is called an "agency problem" where the arbitrator's decisions become suspect. i.e., not necessarily impartial.

+1. Family members recently had lawyer dispute. Arbitrator agreed with
Lawyer, not the consumers. Lost case, had to pay additional lawyer fees
and penalty.

Arbitrator source of income is from the lawyers, so they are favorable to them. Your statement is entirely correct.

 

[kcowan]

We had a case but it was a "no brainer". A little tech company on the west coast and TRW.

We had advised them of their contract shortcomings via email, and their lawyers claimed that only a formal letter would suffice. The arbiter was in a neutral state and found in our favor. I suspect the neutral state clause was what saved us.

 

[imoldernu]

Revisiting the legal aspects of binding arbitration, vis a vis the latest regulation change. An NPR discussion that discusses your legal rights, in plan talk.Most of us have signed away rights that we had as recently as a month ago.

https://the1a.org/audio/#/shows/2017-10-30/whos-watching-wall-street/112533/@00:00

 

[NYEXPAT]

My only experience was back in Oct 1987, when I shorted the S&P futures contract, the day the market crashed and the clearing broker tried to screw me out of a few million. It was easy peasy, took place in an oak paneled conference room. I testified for about a half hour in the morning and by late afternoon the money was sitting in my bank account. Needless to say, I never went back to my wall street office, as I knew they would be gunning for me after that haircut!