One of the major complaints about consumer arbitration is the hassle and expense of a consumer going on a road trip to attend the arbitration hearing to seek a recovery. A recent Second Circuit decision underscored this problem, and prompted me to write this blog post. In Duran v. The Hass Group, L.L.C., no. 12-3568-cv…
Before we know it, a new hockey season will be upon us. In that spirit, I report on a Federal Arbitration Act “preemption hat trick” that was completed August 12th by the Supreme Judicial Court of Massachusetts’ decision in McInnes v. LPL Financial, Inc., SJC-11356. For those not familiar with hockey, a “hat trick” occurs…
Back in 1997, George Friedman, a member of the ARS Board of Directors, predicted and planned for the economic collapse of 2008, alternative energy needs, hybrid and electric cars, and now the future of arbitration. Check out his predictions that were applauded at the 2013 Securities Experts Roundtable in Boston.
In April, George Friedman responded to a US News & World Report column by Dan Solin criticizing the FINRA arbitration forum. Solin, a long-time critic of FINRA, has just published a new article critical of FINRA executives’ compensation relative to investor performance. Friedman, one of our Board Directors, is uniquely qualified to respond to this…
In early May, bills were introduced in the House and Senate , attempting to breathe new life into the concept of a federal Arbitration Fairness Act (“AFA”). The bills would amend the Federal Arbitration Act (“FAA”) by adding a new chapter invalidating predispute arbitration agreements (“PDAAs”) for consumer, investor, employment, or civil rights claims. The proposed legislation is similar to prior failed efforts to similarly amend the FAA going back at least to 2005.
This article analyzes the AFA of 2013 and concludes that, while a well- intended effort to address a legitimate concern – PDAAs imposed via an adhesion contract by dominant parties on weaker parties like consumers and employees – it in fact is a potentially dangerous overreaction that could end up harming those it intends to protect. The article closes with the author’s recommendation for a better way to address these concerns.