Alternative Dispute Resolution

CFPB seeks to ban mandatory arbitration of consumer disputes over banking, credit cards and loans

Updated: In a proposed rule (PDF) that could potentially affect hundreds of millions of accounts, the Consumer Financial Protection Bureau is seeking to ban mandatory arbitration clauses in a wide range of consumer contracts. Under the rule, which is to take effect next year after a public comment period, mandatory…

May 5, 2016 9:45 AM CDT

2nd Circuit upholds NFL decision, says Tom Brady must serve 4-game ‘Deflategate’ suspension

Noting that substantial deference is granted to labor arbitration awards, a divided federal appeals court panel on Monday reinstated a four-game suspension imposed on New England Patriots quarterback Tom Brady by the National Football League concerning the so-called Deflategate scandal. Reversing a federal district court, the 2nd U.S. Court of…

Apr 25, 2016 1:55 PM CDT

Is online dispute resolution the wave of the future?

Is online dispute resolution the wave of the future? Or is it a niche area that will always have applications in certain areas, but won’t be going mainstream anytime soon? Colin Rule, founder and chief operating officer of online dispute resolution software provider Modria, is obviously a believer in the…

Mar 18, 2016 1:00 PM CDT

Will Consumer Financial Protection Bureau adopt rules to rein in mandatory arbitration clauses?

It seems likely that the Consumer Financial Protection Bureau will develop a rule to end the use of mandatory arbitration clauses by financial services companies such, as banks and credit card companies, according to a business and consumer columnist for the Los Angeles Times. The CFPB is reviewing the use…

Feb 26, 2016 1:00 PM CST

Can son bind mother in nursing home to arbitration? Suit over slaying raises the issue

Lawyers will argue next month that a Massachusetts nursing home shouldn’t be able to force arbitration in a lawsuit over the death of a 100-year-old woman who was allegedly killed by her 97-year-old roommate. The suit in Massachusetts state court argues the arbitration clause in the nursing home contract is…

Feb 22, 2016 12:32 PM CST

BigLaw firm billed for ‘outlandish’ Ritz-Carlton stays, first-class airfare, suit alleges

Updated: A suit filed by a bankruptcy trustee alleges Williams & Connolly’s legal bills for an arbitration “exceeded the bounds of reasonableness” and the expenses it incurred were “outlandish.” The suit (PDF), filed last Wednesday by a trustee for the corporate owner of several vocational training schools, also targets Duane…

Jan 25, 2016 7:42 AM CST

Suit accuses Fitbit of unfair practices for inaccurate pulse trackers, late-revealed lawsuit ban

A would-be class action lawsuit filed on Tuesday claims Fitbit engages in unfair trade practices by selling “wildly inaccurate” pulse trackers and informing consumers of a lawsuit ban after they buy the product. The suit, filed in San Francisco federal court, claims Fitbit’s Charge HR and Surge fitness watches, which…

Jan 8, 2016 5:45 AM CST

Debt buyers use courts to collect debt, then cite arbitration clauses to deflect legal challenges

Debt collectors who buy up debt and sue to recover the money are deflecting class action suits challenging their practices with arbitration agreements purportedly signed by the debtors with their original lender. Consumer lawyers criticize the practice as “the legal equivalent of debt collectors having their cake and eating it,…

Dec 23, 2015 6:15 AM CST

SCOTUS upholds contract ban on mass arbitration in second ADR case involving California law

DirecTV’s service agreement barring mass arbitration by its customers must be enforced by California courts, the U.S. Supreme Court has held in a 6-3 opinion considering the interplay of unusual contract language and a 2011 Supreme Court decision. Justice Stephen G. Breyer wrote the majority opinion (PDF) in DirecTV v.…

Dec 14, 2015 10:07 AM CST

Court-ordered mediation ends judge-prosecutor dispute; blanket disqualification motion is dropped

Mediation ordered by the chief justice of the Kentucky Supreme Court has apparently resolved a dispute between a Jefferson County judge and prosecutor. Jefferson Circuit Judge Olu Stevens and Jefferson County Commonwealth’s Attorney Tom Wine met for several hours Friday, and Wine has dropped a blanket disqualification motion seeking to…

Dec 7, 2015 4:10 PM CST

Customers suing over fake Wells Fargo accounts are sent to arbitration

Wells Fargo customers who tried to sue over fake accounts set up in their names have learned they can’t take their cases to the courthouse. Federal and state judges in California have ruled the cases must go to arbitration because of agreements the customers signed when opening legitimate accounts, the…

Dec 7, 2015 8:56 AM CST

Chief justice orders mediation for top prosecutor and judge in dispute over Facebook posts

The chief justice of the Kentucky Supreme Court has ordered a Jefferson County judge and the commonwealth’s attorney into mediation to resolve a contentious dispute sparked by an issue over the racial composition of juries. Initially up for review by Kentucky’s top court was whether Circuit Judge Olu Stevens had…

Dec 2, 2015 1:10 PM CST

Buying a bamboo floor? This company requires religious arbitration; courts uphold clauses

Religious tribunals are being used in U.S. cases that go beyond spiritual questions to sort out allegations ranging from financial fraud to wrongful death. Christian tribunals are getting a green light from courts, which are upholding contract clauses that require religious arbitration, the New York Times reports. Its story is…

Nov 3, 2015 8:18 AM CST

Arbitration clauses effectively eliminate consumer rights for many, New York Times reports

Once virtually unheard-of, clauses requiring individuals to arbitrate consumer and employment disputes are now ubiquitous in documents ranging from applications for cable television service, a credit card or a bed in a nursing home to job-related paperwork. Additionally, many such agreements also bar individuals from bringing class actions. The result…

Nov 2, 2015 9:00 AM CST

Mediators find more tools through neuroscience

Mediators and other practitioners of alternative dispute resolution are using information gleaned from the research of world-class neuroscientists to calm emotions and help mediations resolve more easily. With the advent of functional magnetic resonance imaging and the growing interest in brain mapping, neuroscientists and those trained by them are teaching…

Nov 1, 2015 1:10 AM CDT