Posts Tagged ‘arbitration’

June30

Sen. Franken condemns 5-4 decision in Rent-a-Center v. Jackson

By: Editor

From Consumer Law & Policy Blog: On the Senate floor, Senator Al Franken condemned the Supreme Court’s decision in Rent-A-Center v. Jackson (in which a 5-4 majority of the Court upheld the power of arbitration agreements to remove even threshold questions of validity from review by a court) and discussed how the case of Jamie Leigh Jones illustrates the effect of cases like Circuit City Stores v. Adams.

“Clearly this is a ruling that Congress needs to fix and I look forward to working with my colleagues to do so,” said Franken. “Sometimes it’s easy to forget that Supreme Court matters to average people, to our neighbors and our kids.”

Posted in: Congress, Consumer Protection, Litigation, Social Justice0 comments

June28

The push for arbitration fairness continues

By: Dorry Samuels

When the Supreme Court ruled last week in favor of Rent-A-Center in another controversial 5-4 decision, the justices again put the interests of corporations above those of the people.

The New York Times published this great editorial about it over the weekend, highlighting the absurdity of SCOTUS’s decision:

The court ruled last Monday there was nothing wrong with requiring that the fairness of an arbitration clause be determined by — an arbitrator.

Congress is working to fix the problems with mandatory binding arbitration agreements as the members hash through the Arbitration Fairness Act (H.R. 1020 and S. 931) and the Fairness in Nursing Home Arbitration Act (H.R. 1237 and S. 512).

While it was scheduled for markup last week, the committee did not get to the AFA and the nursing home bill last Wednesday. Stay tuned for a rescheduled date for Congressional action on these bills because your representatives in Congress will need to hear from you.

Learn more about forced arbitration and the problems with it.

Posted in: Activism, Social Justice0 comments

June21

Supreme Court decides another case in favor of corporate power

By: Editor

From the Consumer Law & Policy Blog: A divided Supreme Court today dealt a major blow to consumers and employees seeking to challenge arbitration agreements on the ground that they are unfair or unconscionable. Public Citizen was co-counsel in the case, Rent-a-Center v. Jackson, and will be spearheading efforts in Congress to curtail its effects.

In a 5-4 decision by Justice Scalia, the Court held that if a company’s arbitration agreement includes a clause delegating fairness challenges to the arbitrator, a court must enforce that agreement and send the matter to arbitration. The Court’s decision arose out of an employment discrimination claim brought by Antonio Jackson, an African-American Nevada man, against his former employer. When Mr. Jackson sued, the company invoked its arbitration agreement and claimed that, under the agreement, any challenges to the agreement had to be decided by the arbitrator.

Until today’s Supreme Court decision, consumers and employees had the right, under Section 2 of the Federal Arbitration Act, to go to court and ask a judge to find an arbitration agreement unconscionable or unfair and therefore unenforceable. Although most arbitration agreements are enforceable, court review weeded out the very worst abuses—like imposing exorbitant fees, forcing consumers or employees to travel great distances to arbitrate, or allowing a corporation to pick an arbitrator that is clearly biased in its favor.

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Posted in: Litigation, Social Justice1 comments

June11

I wouldn’t sign the document

By: Christine Hines

Yesterday evening I met with a financial advisor from a large financial company. The meeting was going well and I was ready to sign on for much-needed financial advice until we started discussing the agreement.

First, he told me that the agreement was not a contract. I quickly corrected him and explained that they were one and the same. Then I started flipping through the three-page document. Lo and behold, there it was, in bold: an arbitration clause AND a statement claiming that there is no agreement to enter into any class action arbitration.

I explained to him in my excitable way that I wouldn’t sign the document, explained to him what the arbitration clause meant and its impact on consumers. He was shocked. In a very brief moment he removed the professional mask and showed that he was appalled by the provision’s meaning. I told him about the need to support the Arbitration Fairness Act in Congress. He asked if it would eliminate arbitration. I explained that it wouldn’t – but it would make it voluntary, rather than forced.

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Posted in: Consumer Protection, Social Justice4 comments

March8

A consumer's nightmare: A victim of forced arbitration tells his story

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[youtube=http://www.youtube.com/watch?v=9sCUmXfy03c]

In 2007, John Perz (whose story has been covered by Consumer Reports, and who tells his own story here) bought a used car from a local lot in San Diego. The car had a rattle, but the salesman promised Perz that if he made an appointment, the rattle would be fixed free of charge. When he brought the car back the next week, however, the mechanic told him that not only could the car not be fixed, but the 48 hour return window had already passed, meaning Perz was stuck with a car that rattled and rolled. He had the car inspected and learned that the certified vehicle he purchased had substantial water damage, possibly from a flood, and had previously been wrecked.

However, when purchasing the car, Perz signed the dealer’s arbitration agreement, meaning that despite hiring a lawyer his case would never reach a judge. Despite being advertised as faster than litigation, after three years his case is still in arbitration. Now he’s up against an arbitrator whose record against consumers is abysmal.

Consumers for Auto Reliability and Safety produced this video detailing Jon Perz’s fight against the dealer and against arbitration. Check it out!

Posted in: Congress, Consumer Protection1 comments

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