Category Archives: Arbitration

Fitbit Lawyer Admits Admits No Rational Consumer Would Arbitrate $162 Claim

by Jeff Sovern So Allison Frankel reports for Reuters in a story headlined Fitbit lawyers reveal ‘ugly truth’ about arbitration, judge threatens contempt. Here are the first three paragraphs: At a hearing Thursday in San Francisco federal court, a lawyer for the fitness tracking company Fitbit told U.S. District Judge James Donato that no rational customer would arbitrate a $162 […]

Noll Article: Public Litigation, Private Arbitration

David L. Noll of Rutgers has written Public Litigation, Private Arbitration? 18 Nev. L.J. 477 (2018).  Here is the abstract: How should legal disputes be allocated between litigation and arbitration? Given strong incentives for many actors to arbitrate everything, the question turns fundamentally on the scope of arbitration under the applicable law. In "Re-Inventing Arbitration: How Expanding the […]

Industry Lawyer Concedes Arbitration Clauses Suppress Claims and Reduce Payments to Consumers

by Jeff Sovern Industry lawyer Thomas B. Hudson of Hudson Cook has authored Arbitration Agreements: Not Always Good All the Time for AutoDealer Today, in which he writes: An arbitration agreement is the dealer’s first and best line of defense against class-action lawsuits. If you think that isn’t reason enough, have a word with the many […]

Tinder’s Diabolical RETROACTIVE Arbitration Clause

by Jeff Sovern One of my students told me about Tinder's new retroactive arbitration clause which, of course, includes a class action waiver. As with many such contracts, consumers accept it by using the service, regardless of whether they have read it or not–and we know few consumers actually read such things.  The arbitration clause, […]

Report That Companies Include Provisions in Arbitration Clause that They Know the Arbitrator Won’t Enforce–But That Might Suppress Claims Even More

by Jeff Sovern Level Playing Field is reporting that companies include in their arbitration clauses provisions that AAA, their arbitration service, has informed them have to be waived, meaning AAA won't enforce them. The clauses in question may deter consumers, who don't know that they won't be enforced, from bringing the arbitration at all. For […]

Horton Empirical Study of How Arbitrators and Judges Decide Differently on Whether to Allow Class Actions

David Horton of California, Davis has written Clause Construction: A Glimpse into Judicial and Arbitral Decision-Making, Duke Law Journal, Vol. 68, Forthcoming. Here is the abstract: For decades, the U.S. Supreme Court has insisted that forcing a plaintiff to arbitrate — rather than allowing her to litigate — does not affect the outcome of a dispute. […]

Interim Bank Regulator Norieka: A Swamp Case Study

by Jeff Sovern Last May, President Trump appointed bank lawyer Keith Norieka as interim head of the Office of the Comptroller of the Currency. Now that the full-time Comptroller has taken office, Norieka is returning to his firm "where he’ll consult large domestic and international banks on precisely the issues handled by the agency he […]

Arbitration Opt-Outs Hit a New Low: Now They Are Undeliverable

by Jeff Sovern Some arbitration clauses permit consumers to opt out of arbitration and class action waivers provided the consumer acts within a stated period. For example, Asana provides in § 13.8 of its Terms of Service for a 30-day opt-out. Those wishing to opt out are instructed to send "written notice of your decision to opt […]