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:

A Secret, Private Forum With No Jury

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 – 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 judge, or sometimes by a panel of judges, who the parties pay. There is no jury in an arbitration. You’re essentially hiring a judge to resolve your dispute. Many consumer arbitration clauses say that the corporation will pay the arbitration fees, including the judge’s fees. But of course, the corporation picks the arbitration forum (there are lots of these) and tends to try to hire the same judges over and over when those judges 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.

Lower Damage Awards

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 recent TikTok on the subject.

Let the Greer Law Group Help

If you are facing a situation where you’ve been injured because of the negligence or willful behavior of a large corporation, contact the 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 the Greer Law Group can help you with your potential arbitration against a large corporation, call us at (720) 637-2467 or use our contact form to schedule a free, in-depth, no-obligation case evaluation.