An arbitration clause can take an injury claim against a corporation out of court. Instead of a public trial with a jury, your case is decided in private by a judge or panel the parties pay, and awards tend to be lower. Not every arbitration clause holds up, so have a lawyer review it before you assume it binds you.
Arbitration clauses are all over the place. Corporations love to insert them into the terms and conditions you click on and probably rarely read when you sign up for a service online, and they’re in many other types of contracts as well. Here is what it means when you agree to arbitration.
How Arbitration Differs From Court
Arbitration is one way to resolve civil disputes, the kinds of disputes that otherwise go to court and can result in damage awards. The difference is that if you go to arbitration, your case is resolved in secret. It doesn’t take place in a courthouse and isn’t open to the public. And arbitration cases certainly aren’t live-streamed.
Remember the Johnny Depp and Amber Heard case that was all over the news a while back? If that case had been arbitrated, no one would have known anything about it.
Arbitrations are decided by a single arbitrator, or sometimes a panel of arbitrators, who the parties pay. Arbitrators are often retired judges or experienced lawyers. There is no jury in an arbitration. You’re essentially hiring a private judge to resolve your dispute. Many consumer arbitration clauses say that the corporation will pay the arbitration fees, including the arbitrator’s fees. But of course, the corporation picks the arbitration forum (there are lots of these) and tends to try to hire the same arbitrators over and over when those arbitrators have given them good results in the past. Sometimes, the arbitration clause requires the parties to split the cost of the arbitration, which is much easier for a big corporation than it is for some ordinary person who that corporation injured.
| Court | Arbitration | |
|---|---|---|
| Where it happens | A courthouse, open to the public | In private, not open to the public |
| Who decides | A jury can decide your case | A single judge or a panel of judges the parties pay, with no jury |
| Who picks the decision-maker | The court | The corporation usually picks the forum and tends to hire the same judges again when they have ruled its way before |
| Cost of the decision-maker | Not paid by the parties | Sometimes paid by the corporation, sometimes split between the parties |
| Damage awards | Set by the jury | Tend to be much lower than jury awards in similar cases |
Issues to Consider Before Arbitration
Another reason corporations love arbitration is that these judges or arbitration panels tend to issue much lower damage awards than juries do in similar civil cases that involve similar facts.
When you combine the secrecy of arbitrations with the possibility of lower damage awards, it’s easy to see how arbitrations can benefit corporations much more than they do individuals harmed by those corporations. See what Marlo Greer has to say about arbitration in her TikTok on the subject.
What to Gather Before You Talk to a Lawyer
If you think an arbitration clause may apply to your injury claim, pull together what you can find:
- The signed agreement or the terms you accepted
- The version of the terms in effect when you accepted them
- The date you signed or clicked to accept
- Any letters, emails or messages about the dispute
Related Reading
Injured by a Corporation With an Arbitration Clause?
If you’ve been seriously or permanently injured because of the negligence or willful behavior of a large corporation, contact Greer Law Group for help, even if you believe an arbitration clause may bind you. We’ll review the arbitration agreement and your case and advise you on how we can help. Not all arbitration clauses are fair, and it’s not unusual for a court to strike down an arbitration clause and allow the case to proceed in court. And even if you are forced to arbitrate your claim, you’re still entitled to the kind of quality representation that we can provide.
To learn more about how Greer Law Group can help you with your potential arbitration against a large corporation, call us at 303-331-6460 or use our contact form to schedule a free, in-depth, no-obligation case evaluation.
