Here. An excerpt: [The Chamber] slammed the U.S. Securities and Exchange Commission for sometimes pursuing violators of securities law in the comfort of its in-house courts rather than try the cases in the public courts. There are "substantial differences" in the processes used in the two forums, the Chamber's Center for Capital Markets Competitiveness wrote […]
Category Archives: Arbitration
by Jeff Sovern Richard posted a link last week to the Times article about how debt collectors first sue in court and then when consumers sue them, use arbitration clauses to block the consumer law suit. Today the Times published four letters responding to the article, including mine. I want to comment on two of […]
by Jeff Sovern In a recent American Banker essay, I argued that businesses praise arbitration not because they genuinely value it, but because it enables them to block class actions. I said that for two reasons: first, that if businesses truly believe arbitration is superior to litigation, as they say they do, they should prefer […]
S.I. Strong of Missouri has written Incentives for Large-Scale Arbitration: How Policymakers Can Influence Party Behaviour. Here's the abstract: At this point, the future of large-scale arbitration (i.e., class, mass and collective procedures) can best be described as mixed. On the one hand, class arbitration has been curtailed in the United States as a result […]
Here. Excerpts: [T]he U.S. Chamber of Commerce, the most powerful business lobby in the country, started a new effort to block the Consumer Financial Protection Bureau by lobbying lawmakers to attach a rider to the federal budget bill that would force the regulator to conduct a new study before issuing any rule, according to people […]
by Jeff Sovern Here. Excerpt: [C]ompanies can use class action waivers to block consumer protection laws unless consumer protection laws find a way to block class action waivers. * * * Last month, the bureau made public a proposal to block class action waivers in arbitration clauses. A leading advocate for arbitration in the financial […]
The second installment of the blockbuster New York Times series on forced arbitration is here. The headline is "In Arbitration, a 'Privatization of the Justice System.'" Whereas the first installment was focused on the macro effects — how the Supreme Court's rulings have resulted in a massive suppression of claims by consumers and employees — this […]
by Jeff Sovern Deepak posted earlier about the extraordinary Times story on arbitration. I have been studying arbitration for some time, and yet some items in the story were new to me. Though the entire article demands to be read, here are two especially revealing quotes: Since no government agency tracks class actions, The Times […]
Jessica Silver-Greenberg and Robert Gebeloff of the New York Times have a must-read story today, the first of several, on the rise of forced arbitration: "Arbitration Everywhere, Stacking the Deck of Justice." The piece weaves together the history of the silent legal coup achieved by the Chamber and the Roberts Court with stories of the […]