Category Archives: Arbitration

Survey finds 48% of Americans would be embarrassed to say they signed a contract without reading it.

The survey was conducted by the Goldberg Law Group. Only 16% of Americans say they read every word of a contract. I very much doubt it’s even that high. Almost certainly some of the people who said they read every word were too embarrassed to say they didn’t.  For example, when I polled consumer financial […]

Divided 11th Circuit Finds Browsewrap Arbitration Agreement Unenforceable

The last few years have had several decisions from state and federal courts of appeals addressing when “clickwrap” or “browsewrap” arbitration agreements are enforceable. “A clickwrap agreement requires a user to check a box or click a button to acknowledge acceptance of the agreement’s terms and conditions,” and “a browsewrap agreement contains hyperlinked terms, and […]

Arbitrator’s decision relied on nonexistent cases, suggesting AI use

Story here. It was in Canada. I suppose it was inevitable given how many others have relied on AI-hallucinated citations without checking. I suspect it has happened in the US as well, though perhaps without anyone knowing. Of course, if arbitrators don’t write opinions but merely ask AI questions and don’t verify the cites, no […]

NY Times Article on Exploitation of “No Surprises Act”

In 2020, Congress passed the No Surprises Act to protect medical consumers from surprise bills when they received emergency treatment, only to later discover the doctor did not accept their insurance. The Act established a process by which, rather than bill patients directly, out-of-network doctors and insurers would engage in mandatory arbitration. Today, the NY […]

Federal court denies AAA’s motion to dismiss claim that it violated antitrust and state UDAP laws

The case is Stephens v. Am. Arb. Ass’n Inc., No. CV-25-01650, 2026 WL 878981 (D. Ariz. Mar. 31, 2026). Here’s a paragraph from the opinion on the antitrust claim: With regard to the first element of Plaintiffs’ claim under § 2 of the Sherman Act— monopoly power in the relevant market—the AAA states in its […]

Consumers’ antitrust and unfair competition suit against AAA to go ahead

Last year, four consumers who were parties to arbitration agreements in which the sole choice of forum for dispute resolution was the American Arbitration Association sued the company under the Sherman and Clayton Antitrust acts, the Arizona Constitution, and state antitrust and unfair and deceptive practices laws. They alleged monopolistic practices, and that “the AAA […]

“Complete stranger” to contract not bound by arbitration clause, groups say

Public interest groups filed an amicus brief this past week in the case Gemini Trust Company, LLC v. National Association of Consumer Advocates, Inc. (NACA), opposing the company’s attempt to force arbitration of the dispute. In 2024, *NACA sued Gemini, a cryptocurrency exchange, in the District of Columbia Superior Court, alleging that the company’s terms […]

Nelson paper: Pre-Arbitral Red Tape

Ryan H. Nelson of South Texas has written Pre-Arbitral Red Tape. Here’s the abstract: While legal scholars debate the merits of mandatory arbitration, a more insidious barrier to justice has quietly proliferated beneath their radar. I call that barrier “pre-arbitral red tape”—that is, procedural condition precedents to initiating arbitration in a pre-dispute agreement between a consumer […]