“Arbitration” is typically an out-of-court proceeding in which a case’s evidence is presented and a neutral third-party, called the arbitrator, makes the “binding decision.” It is the most common method of alternative dispute-resolution (ADR), but has recently faced criticism for its ways of allegedly circumventing the civil justice system.
Supporters of arbitration believe that such clauses are more effective at mediating and resolving issues than litigation, not to mention more cost-effective, but unlike court rulings, the binding rulings of arbitration cannot be appealed and can only be discarded if: it is proven that the arbitrator was biased; or the arbitrator’s decision was a violation of public policy. There are two types of arbitration: binding, in which the arbitrator’s decision will be enforced by the court and must be followed by the participants; and non-binding, in which either party may reject the decision and take the case to court. Binding arbitration is generally more common than non-binding.
Recent criticism of arbitration has focused on its use to override the justice system as well as certain religious undertones, as many businesses require their employees to sign contracts which include religious or binding arbitration clauses to avoid being sued in the civil justice system. This is especially dangerous when employers are given the opportunity to overstep their boundaries without strict regulations; employees who agree to these clauses may effectively forfeit their right to go to court individually or via class-action against the company. With arbitration clauses on the rise in all sorts of contracts, from employment and banking to nursing homes and substance abuse programs, all consumers must be aware of the rights they may be waiving upon agreeing to an arbitration clause, binding or non-binding.
If you or a loved one has been injured in an accident, contact the expert Chicago car accident lawyers at America’s Consumer Lawyer for a free consultation. We are a Chicago-based injury law firm representing individuals (and their families) who have suffered an injury in an accident. We will handle your case quickly and advise you every step of the way, and we will not hesitate to go to trial for you.
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