Lowger Needs To Knowclientvideos.justia.com/ ANDREWS Special Advertising Supplement ARBITRATION...
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Transcript of Lowger Needs To Knowclientvideos.justia.com/ ANDREWS Special Advertising Supplement ARBITRATION...
Arbitration: what Everg
Lowger Needs To Know
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FRANK ANDREWS
Special Advertising Supplement
ARBITRATION
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Special Advertising Supplement
ARBITRATION
rhe neurreil is seleereel and ihe parriea have
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that errnferenee e;<enrially doing wher Will
rrzlkeel aboui. Ybu begin ru crcare whnr rhl>
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in place rhe hrundmrion llrr your luhirmrlnrr.
Nor welynne takcs ndva|1mgenf1ha[oppol»
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PRYOIL One of rl-in reasons :har ei lol of
our luuyer lueuele ure fruerrrrerl .rr imiini-
rlureel by urlurrerrruu prueeerlrue, ri eyeu
with rhe inereaie in pupuleiriry in (lic las:
eleeride there me ~rill >o many lawyer; who
have never prrrrearurrerl ur one, Arul lruvyere
are ueeusionied ro and ure very enlnhrrnible
wirh being handed a ~er ol” rule< and rnld,
"Okay, ruuy ge llglrr given rlue ser uf rules,
these rules ofcvidence, these rules olfprmxe-
clure, and dim rules of`l'u>w vvc°rc going rn
conducr a trial," Tliqfre nnr uied io and nor
coniiolreihle widi saying leris wipe (lic elare
elerur urul ler\ ereure my leuul ulrer ufruleiwe ein rhlnk of I eornpare lr rn kids in u
swixnniing pnnl on ,i summer aiiernnon_ ll
ynu leuve rhern nur :here lol u while ihey're
gurug re luyeur rr guure 'l'lrey're lun gelug
rn rnerke srullf up, lrui ihey're going ru love
ir end rliey're going io have u lm of fun. I
wi~}i leiwyers wrruld gei io the pnirir wliere
rhey were eonrlnrmhle in doing that euid
rurr wiping rhe :lure eleurr und inventing u
procen that (hs [hen cliepure.
soUssAN= The eeuueer luugrruge .rr rr
recent arhxrranon in which l was rhe sole
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wus rn denide, wherher or nnr rhe employee
was rermrrrureel ibr muse, l`h;ir mn my srlle
issue. llre uxntraci preruleel rlre reruerly if
ir was dererrruried elm rhe employee was
rerruluurerl fur euuee bo eleerly puruer
een design an arhirreuiun elaine ru fir rhelr
plirrieuleir neecle, Bur, l highly reenrnrnend
rlre elrulilug of euelr rr clause uer be givcn
slmrr \hriFi
ANDREWS: Wlrur l really cn|oy u elurrg
ahour rhe seeond day of an aiblrmrinri
Wlrlr luwyere rluu lure rrer/er ul>rrr.rre<l
before and during n recem they say, “'I'hi>
is so rnueh lreuer rhen rhe euurrlwuie.
This lr greerj'
NEVITT' Wm mug up mrrur url uure Arr
rhm' zwzyx m /mga ufllb /hr mit rf ummm-gy
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SOUSSAN: l .rur erreuru, no hear ullur
rlre reir uf .lu panel luu ru ery became in
rlre euruplee, large .rrlureruuru nu llrulurg
rlur the leuryere are rlurrru rrlureer er ruuelr
ureeuyery as uw ururlrl lfu were full lrluuu
llrrgrruru ur ure eeurrluueMARVIN: Tlrru u e ,rrrrlrlerrr llre urlrlf
rriruru luelf is A eleerure uf rlre perrleg
euurruer, Aurl ur rlre errerrr rlur rlre lruryerr
urelr re rrgree rlur rlrey ueerl uuue ruul
ruure yeu would erpeer rlre rrlurruurre ro
he relucmxir re interfere with that ruruurulur agree. Alrluurglr l personal lrellere rlur
ru urlrlrrurerr had u elury ru rruruee rlre
erlrrrrulrur, lru at leer rlu erlrrllry ru uuelr
rhe rrrurrrrqe ru ru luru lr uuglrr he tliui ihey
errulrl do wirlw leu erul ueeruuplulr rlre slime.
Must .rrlrluuruur edrrrlulerurrrrr urgurrrur
ruuu lure rules rlrur ere rleelguerl Hur ulllerf
eur euruplerurlee ol5c.lispu\c,'I1'J the eruurrlur lrx er smaller rlupure, urell, rue, hliye
rules rlur lrerur ur rlre ,rurrller elrepure, mr
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pure rlrey have rule; rlrer lrerrer ur rlur Weof dispute, sur the l>rrru»ru lure re rrlwue
thc mme. vrru miglu be ru erlurrruleu ru rr
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ruueuur el rruurey ru elupure urul lr rurlelrr
be geulug very uvcrblown. Ar rluu peuu
in time you rreerl re lurereeele ruul rry ro
urrulr ure rrurrueyr ,uul make uuyeerreur.lr rulglu require rerreluug rlre preelreurlug
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ure eurl, rlreyre geurg nn have no explain ru
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l resent erlurr.rrrrr\ relllug me lurw ur pur my
we uu In rrlrllruru ru rlur. rrue ur ure very
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Special Advertising Supplement
ARBITRATION
is A rrrurr of eqrrrry; yurr`re supposed ro du
¢qurry."\xe|1, rfyorr avuuw rrru lm refs sry
and drc (Llairnrurr will rrnr recover bucarrsfe
you arc rurrrrurng rhe hw, I rvuurrr uur gu
orrrside rhe law in nrrlur ro allow Ihr rmow
ery \&ru Would?
BA"l'1`AGLINI: No, l'rrr nor saying, l vvorrld.
Bur in my experrenee, rhrs is whrrr I have
discovered,
cr-rALK= rr. May of this year, rhe Texas
Supreme Llorrrr reporred an urbrrrarirrrr.
And rhar urhrrraridrr ward was rtrrrlcrecl
on Dccemlrer 2/I, 2002. This rs whar rhe
arbirralor aw;\r<‘lec.l <r\'cr n $242,000 hours,
The home owners got S8UU,U00, includ-
ing resrrruriorr of rhe purchure price rr(
rheir house, rrrerrral rrrrguirh of S20D,()00,
exemp1uryuurrrugerufs2on,ou0, urui urrur-
ney\ fccs <1l5Sll0,flUU, l'lrerc’s nn wrry rn
hell rlrrrr rl'rar’s u "rl-rlir rlre baxby," Arrri I
dorrr ever cl<r Splir rl-re baby uwurds. I`ve
lrccn uppumrerl rrr over 525 urbrrrurrurrs. 1
r_=rrr’r remember rr rirrre rlrar grnyrlririg I did
reserrrbled splrr rhe buhy:
SOUSSAN: Brrr you hear lr all rl-rr rims.
ANDREWS: Well, l rlrink rhe perccprirrrr
comes lmnr rhe fuer rhur ry-pirully b<»rh
srdes so oversmre their claims rhar rr ends up
appearing ru be rlrar [he baby was splir, bur
jusrice rw rrcruully wrvccl.
MARTIN: There rury he roruerlrirrg ro
rhar, Frurrrr. Everyone ur rlris rubre rm beer.
irrvrrlved m rr lor of rrrhrrrrrrions. I donlr
ever' recall an arbirrrrrirm wlrreh u splrr rhe
lraby cirerrmsrzrnee was cven dlscrrsred by
rhe arbrrmrurs. New ir is orierr rrrre rhar
rhe rrrbirruror-5 may rror have urrrhderree irr
rl-re clxrmarrfs rlarrrrrge rrrrrdel lr rrreums rhur
rhe eluirr-rsrnr miglrr seek rr remedy rhar by
reasurr of whmrever circumsranee. And I’rrr
sure youlvc seen rl-rrs marry rrmes, cspecially
rn New ‘rirrk lxw eases, where amrmey (ees
prulrrrhly jusr urenr available, hrrr rlreylre
seeking rhem rmyway. Ir r-rruy be rrrre rl-rrrr
rhere is an arrrrlysrs of availxblc remedy lr
may he rr-rre rlrere`< an urrralysrs of rlrrrnrge
model. And rhose who actually prevail
don`r ger uinywlrcre near as rrrrreh ar rhey
wish ro have been urvurderl Thar rlrwsrrlr
seem ru be rhe ruse .rr ,ruur lirigsrrinn. Bur
rhurs urrr rr Splrr rhe hurry erreurrrrrrrree. 1
really dir lwcllevc rhar urhirramrs rry ro Rrcrrs
rm rhe rssucs. Anil rhey rry ro clearly rleride
wlru wins, who luscs, hui rr'§ rlrc whar is
won is surrrcllmeu fNEVITT: It nm uppmr :hm way
r>rworz» r want ru ,rrrrru uur rrur rrur
uruer urrrr urupre rr urrrvrrrrrrg rrre ruuyerr
or Tuurr Wrrrr .rlrmlrrrely .ru gurrrrurre ur.
rrru rssrre ar rrrr. more wrur rugr rrupuerrrrrr
we urr everrry qrrrr bcrwecn rrrrer ur' ur
wrur “ru uuurwrur prrsrirrrure rrruur rrru
uurrurr rrur Wu never splrr rrrr hurry, uerer
rupprrruu, never wan; uurr rhrue ur us wru,
,srurrurrry ruur u yew urrr rrrurr arlrirrurron
prurels do rr urrrrrrurry. rrrru fm in rhrr
group ru rrrr exrerrr rrur r rrrrrrrr rireres rrrrrrr
an uverwlrelrrurrg rrurprrrrruu, prrrrreuiurly
on rruuer _ we ruu rurrr rrruur rhur .u u
sepauure ruur rrrrerf ru rurur up Wrrrr ruruu
srurrerhrng rrur rrsrrurrru r ruruururrrreeu
urruuuu. Bur rrreyrc urrr doing ir fur rrry uf
rrre ryurrur rerrrrru rrur suruerimrs ueurrrr
rurgrr. rrs rsruuuu rurrrr of ur ruvr r rrrr
experience, which is rrur wrruu rerrrrruurrups
rarr _ uurr rrur rruurr el ruy rrrrrrrrruruu yrru
rvrur ru, Wrrrrrrr. rr; I rnarriuge ur u erm,
srruerruu rnnrrrrcr rrr errrplrryrrrerrr reiurruru
rrrrp. uvhrrrever rr rr, rhur wrrrr. rr rrrrrrurrsrup
rurrr, rr .rrrurur rrcver is eurirely our rrrrrx
Hrulr Nuw, snmcrrrrrea rr rr. Absolutely rr rr.
Bur rrurrr urrrrr, rr; rrur. frurr vu uure you
ur us 1 iudge nr rur urbrrrurur and yrru lureu
ru u ferv uryr of rurrrrurrrur .rrrur yuu see rrrr
vrrirrgs urrfurrrrl rurcl rrru rvrrrerrrr or merr-
rrrp, c<\nvc|S.1rr0m,f;rxes .urrr ,rruurar rrurrs.
ger, rruererr rurrr >orne rrrurr of rrrruuurugrr
.rrru you ur, rrrrrr uurr yur. rrurr our wrrur
rumruurrr rr. rrru rrrurrururrru rrur rrrurru ir
ro rrrurr urrglued. rr ryrururry srarts wrrrr rr
urcrrruuwrr in eumrrrurrieariurr uurr ar urrrrr,
down ru rvusr rrcrweru use purum. Arrrr su rr
rlrur errrrrrry .ure rule, Qrrrlr? Olien, r rr.,» .ur
Arid ,rr ro rrrrruw up urrur rruurr Suu, rurur
purer r,ur¢...rr,r rcncl ru rurrrr ru rrv ru do rv
urrrrrrrrug rlur is rr... Arrrr rr, .award rrur sure
evemhirrg rheyfre ,rrrrug fur urru ro rrrrc ro
rurrrplerely ger rurrrurrrru. wuurrrrrr rn uruse
inslarrcv rcscmlwle rr lair urrrcrrmc.
sovssrrrvr creurry errr. rue is ,urrgeu urr
rrs uuru mrrrrr, Ohcrr you Wrrr ruur .r siruuf
rrrrn urrrere uurrr uurrres ru u contract ruuu
rsrerrrruu rrru ruurrrrrr. rr. rlrur regurd, rrreru
rmy nor be u rrur ~wruu¢r“ rrrrurur yu.. ruyr
ru .rr.u1,qr rrurruger ru ruerr prrrry rsur rrr my
uurruurr rlur rr nor “rplirrrug rrrr rurry." Nur
uuurrr r, for erurrrple. ru r prrlrurr rrurrrrrry
derrrh use ruurrr .r rrurmurrr rerrrrre' ruuuey
ru be .rrru rr..rrrr.urr rrru uru rurrr rru
rrurrrerr ufprurrrurr rrrr dclenrivc producr,
rvr_»rrmN= wrrr. 1ri<»u`r rrurrrr r.rr,»ur.r lure
uuurrr rlu rrur. Bur .fur rrrr ruufrurrr rum,
December rs, aoox
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Tuum EVITT
Special Advertising Supplement
ARBITRATION
wucn you go uw lughcr mu oF¢¢u= mu,lgomm and more myolycmem hy [fum of
Suppm Sn um; A o\ll [un r|1ela\wy¢n hzuc
m make my on bclmlfofrlmeu dum.Cl-lALK¢ 1 thank us unpmmm lu polm
Om, wo, um like 1,u\/is and AAA anyhave my experirncul admanasfmuun um;Bu. if you gm ru CPR, old C1-R, “UW
culled [lu lmernariunal lugumc for 1>upmI’rrverulou and R¢u.|uam. ulcy wlll hu?,lm go ul ub.mm. Bur mono nm,ynu`rs an on your own.
SOUSSAN: rw .mf had any lluncuuy m
mmmg up Wu, ,mm of p.m.[u1 nrbim-mu an l pm. <;|¢l.f1yy~u have [0 do mch0m¢w.,f1< bum u is nor an ff.>uf.,.<»uml»1f
problem.cmu<= Nu. Bu you do havr uhosc
asm And [hen/\mcric.1n Heahh LlwymA5§0¢».mfm uw docs fu.. .um Macc..hqfvc gm mu, mm rules and u»de_ ml[ny will gef you an ubafumfo buf they
wma my help you .M you mm m dnl'longe um nrbummr muumm And umuxmcrlmcs occur.
soUssAN= um will, 1 ,mc on rhme
pmfu all dxf umacrmuc Bu( in nm A <m.lu\ prom.vnvom HOW ir nmplmml, 1 dunk 1<m»\\<
hut 1 emud up ls A pany 3ppua.u¢<| uhm/mf on one u1‘u.¢u marren 3 you of .wo ago.
And my nod l fuc which prr\/U\\Qd;lr1y~
L>0<ly@.\ the panel from hwing any auplu B
10 what me fm Wm gong m he thu lucy
charged fo. our mums. vo.. nu I., ug" luagmlnnu um you would not seek fu hmany lnpur into whar your fm woe gning to
ho and .un you mud abide by whnrrvrr
they wulcd,
MARTIN: Bm yn” <du4..1ol in your fame
and oxpcuscs and whenever
rayon sun. 1 W manllcli to lm." frmnm fum in Paris, nam, any thought
very highly army mum ml my wlloguelon the panel lo [hc Wm uw when they
sou :he invoices om fo vhs pal-[lm and :hc
push-back W yu iuuusdimre and Ma uma Qonfcrencc all Wu uumcdmrely Lonvcncd
w an [uf |W,f@u and mlxc panel. And wf um.411 agm um my would §u.m.f whmuir wok _ an Agreed mmm ofwuhdmwglofrl1cm;\rrcrlr<»m un Icc, and um. anywud m.m»nH@ U, .ll A pam: and We
would @ about clurging :hum 0... "mufeel, 1 Wu my mama [hm for H wh|le,
MAKTIN: 1 acmally had 3 slnxilar open,
mcs Alum uou1ol| m yum. In boon on
scveml of dmr xnnucrs Actually, wluu rhcy
do u rhey dmgc :hc puma an ad vnlorcm
mnoum in conurovcnwy appmaglx ls prcrry
Suu l-lypepiolly bcmusc [hu W l. pipclinc
ndyuing our And [hr ddmini>muion &cs
wcre hugs. And uhm .uhiufmm would :hen
bc plud our of mhlu fund according mo a souof umc and mouriols analysis. Then mhuy
mluircd :hm the ;u|_»iu-.uors wure. wlm I
all, rules of engagemeru .15 mo how :he nm-rcfv going no go Hmrward. And .111 :hey dn
is give you oudmes_ And rho; also rexcrvs
mf riglu <0 "wer puhlul. your Oplnaon
unlm any approve “_ su rluu`s vm dice,Wf mm Q suvul:u lgm=n\¢,u_ Bfouuf Whad gum forvmrd .n the u1,zm\u0n` .111 um
nrhumron lobbied rhe ICC for rcunn of zu
muah uf rluu money lu plmiblc no Khc paunes. They uc my mm an [hen l\ppf<u<h.
NEVI'l'l`: Lu; gl /U mf mpil q`j1,dfm/wzmm/ny/9' mbzmrm, I-hm/e, ¢L» yan mm/
ra mr/zmrnr an rh/nf
MARTIN; lluw mud you nm bl an Favor
ul`Ll\;\r, Fmnk?
ANDREWS: l nm. I rhluk xhcre should Lu
yum limirod judidal uumunuy my Mba'
mums, and rn vom: mcnx :here ny hum uk
nor by smure; |r's iuu by msc hw, I mean.
[he aublmuor rhar wen: so far in the homeuw. l'vr boon uupmed by some uf rho
'Ibm dccisionw on noml|>closur<- of relu-
rinn>lup> by ;ubummr», and mhcy have nmsc: nude du ,ubiu;uinn_ Bur Lhcrs should
he some type ofiuduml unmunuy so :hm
youu: nur yiuing uhcrr knnd of ooucunxcd
uhm you may be ncxr.
SOUSSAN: um mm [hm you xnay he
suod? Do you know ofnny me in which an
arbirnuor ha> horn msd?
ANDREWS: l dn.
PRYOR: ()h. ~ure.
CHALK: I do, mo. Bur :hens are very
dom few.
ANDREWS; Then* nn* very few hun l
think you had n slnlariun whore you had an
arhirmmr [hm had .1 nugnunr lmdnche and
:hey fndfd up uynng nn lsr :hc luynrd nude
|:uec,1\|v: he wullnucd th: arhimumu wuh A
lnignumC1-mu<= Anullm bag pmhlcm wuu you
puvue arhimuions youyf gm w ffpmcm,vo-"scifi
SOUSSAN: Oklxy, now, hold nn. \bu`rc
mlldng .whom vaouur, \E1cnnu m mr i> dif-
fcrunr than being und.
Déliclllhcr 15, 2008
6
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ARBITRATIONSpecial Advertising Supplement
rions and lxow [hose disclosures are handledin d-le midsr of rhe proceeding.
MAKTIN: 1 guess rhe worst niglxrrnare
would he ro be in rhe middle of rhe arbi-
tration and wine ro rhe eorreluvion dialwharever hae raken place thus lar lun so
prejudiced yuu :har you could no longer be
lair And rhe-n wlxnie de you do? And daen
how do you in rhe nonadmrnisrered way
deal wirl-r whar ,Inn wrnrlel normally do,
Cl-lALK¢ lixaerly Youd have an eaay way
ro do ir. I would gn ro my admilusrraror
eurd say "Look, zanlr verve any more," and
r_llen Ier the adnunisrraror deeide how ro
handle rhar. Bur you ran`r do dial wirh a
privare. Disclosures are erineal. I mell you rhe
problem wirh anorher ioue that rhal raises
is whar krnd of database does the arhirrarormainrain as he or she gen irrrn the hundreds
of arbirrarions ro be able ro know rhar rhe
law Hn-n, rhe Lawyer, llxe disclosed wirnessa,the parties, rhe panel members are peoplethat ynulve had prior and the ABA, AAA
code of er_hies says relarionships and gooon ro |usr ridieulous lengrhs, frankly rhe
code does. about inleresls. I do my ronlliers
check in rhe law Iirrn and I ask people do
yon have any lnrereen in sn and sn, Well,
lhey rhink l`m crazy léru know inreresrs? I
mean, romantic?
NEVYIT: .Sburuiv lx/er yank/ rr/uvglu /ww' 11
lar qfdisrlmllmr bfmlerr as me lr/I hmm :be
legal wmmunigl U /lvfrry mm/L Am! rhe more
you dz llrbimmma, I/rr more 1/urhlnzvfryallle
10
going m /1/we ra do. I/ seem: rr bu lwmrfirrlm-
ng and lr /ink rle/ny, wo.
cmue The more yon disclose rhe nnneeenlldenee rhe parries have in you. I’ve
served on a nonpmflt hospiral hoard, unbr-runarely lor a number of years. The hos-
piral closed Ihr some inevirable eeonomie
re‘.1sons_'l‘l\e lnnlenlprey cnsucd. l've now
been sued u a direernr along with 43 nrher
direerors in rhe hospiral. And I really laced
J conundnlm. l mean, a real serious Issue
hr me is do I disclose that? So I’ve gor a
paragraph ihar long beouue there are rhar
many parries involved. Anel I disdnsed lhar
and I rhoughr, "\X/ell, rhar`s rhe end ol” my
career u an arbirraror. And I`ve now been
making daar drselosure For rwo years and
nobruy; lllsjeeeeaMAKITN: I rlrink rhis goes haek rn whar
Will l rlaink you lnrpl-ee people when
you Iarrly and in a derailed way make diselo-
sures, 'lhnr in irself is enrrenqr and evlelenee
of fairness,
NEVl'I'l`: One thing I was mriau: lzffrm rr
rl:/rm il iz rqnpm/mm 1/1 hjfmure 1/fb:/mrran?
MARTIN; snrne would any always.
Olienrlrnls, elnlrne for nelellnnnal remedy,
like arrorney’s fees, are dealr wldr larer
Imause you have a decision. and rhal deci-
sion miglu indicate that someone wouldhe enrieleel lu auorney`s fees or nor. Ifnol,rnen why love ,nn dealr warn rnern; yonmay have wsmed some rrme. If so, rhen, ofcourse. you um deal wirh them larer, and
you ran dml wirh rhem nn a submission
basic or on a eonnnued hearing lrasis. Thatsthe .non ennnnon anplalnnon_ Bur rlrere
are eases in which rhey are more srridenr
nnenrprs lo biful-care the issues. So l gunsirk sort of an analysis ofoase hy rale. I know
some arbilrarors rhar rourrnely bilureale in a
sense lnelanse rlrq/ will reeewe cltlxer anor-neyls fees, if die claim lnlghr have porenual
for arromeyk fees. or rhey`ll reserve a eleei-
sion on rhe apporrionmenl ofcosrs/Ihe real
renon for doing ir ix an opportunity ro rsnle
an inlerloeuroly award, so dxey can conrrnl
rl-le yurisdierion and give ehernselves as nrueh
rirne as rhey rhmk they rniglu need ro issue
dle Hnal award.
NEVITT; An- I//r mnrrdemzivnr any dyfér-em: bmrure ill an lzrfrrnnfinn, as appaslv/ /a I1
/:meh nial’MARTIN: No. l rhlnk if you’re used to
that analysis and a bench rrial lr should be
about the san-le. Alrlxough, whar wsu lr I was
looking ar rhe odrer day? l ean'r reeall. Bur
rhere was an arhirrarion agreement in whidr
rhere was a very dlsereer liabilrry quesrion.
Now, beyond that quesrion, rhere eould
have been inn a quagxxire of issues nvsner-
aled wirh Ilahiliry and responses ro porerrrial
damages, Anrl l rnlnle ar was blfureareel ln
order rn .noni rlnn diseovery. Blfurenreel ns
avoid rhar burden unless ir beeame apparent
or needed ro.
ANDREWS: Yu couldnr do dns from the
heneh - but whar if you reued sorr ol an
advisory amrd ro ler rhe parties know where
you are at r_his poinr and Ier rhern have rhe
oppnmlrriry ro eonre back and rell you
where youre riglu or where youlre wrong?
And rhey mlgl1riuS\ go and sertle ir.
MARTIN; Ive done lr lnysell' where ,nnresolve an issue even rhe damages asvneiared
with that issue. And rhen you mrghr ar rhe
sense rinse have reserved the question nf
alrorneys Fees. I n one ansrnnee, lr was lnirneer
and I ordered rhem ro olfcr nondiserrmina-
rnry wnrraers, er rerera And drq' didn`r do
ir. Su dren we had ro do somemhing ahour
rhar. And of course. welve never enrered a
I-irral award or anyrhing rr wm all inrerloeu~
rory But die rnosr shocking, rhing in lhar
msrarree wen dial rhey did rror eorne lo a
conrraer. And so I wrote the eonrrael. and il
wcnr ro rhe Fililx Clrculr Flrrh Cireuir said,
yeah, rhars llne: judges shouldrrr he doing
char, bur iris okay ifarbirrarols do lr.
Cl-lALKe Thar reuses a Ven' rnrerenlng
D£'(7€n\hcrI5. 2008
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ARBITRATIONSpecial Advertising Supplement
of a special niasrei posirion_ Youre looking
at ri eerraln por or muncy and dividing ir
up. I was :alking about clas acrion in :hetrue sense of :he word, where you have :o
go :hrough all :he phase: uf deierminanon
and ulrimarcly damages.
ANDREWS: I like Harlank answer on rhar.
I rhink irs :he safe harbor if is unified.CHALIQ Bu: I :hink From an admlnisrra-
:ive snaridpoin: both AAA and ]/\l\/IS have
procedures for class action in place for :ha:.
SOUSSAN: They did. 'I‘ha:’s righr. Bu: if
dae arbinarors decide on ccniliearinn
NEVITT: Am! r/1/nl 4 big szamh/mg hlooé ir
lo gr; cmyiedMARTIN: I:'s almus: :lie whole hole.
SOUSSAN: Indeed, I: ls.
NEVITT: W /me abmiz mi mniiizer sa
I Mm/ in go amiirid the mum und do ir my/rm!
ball gvpf quanan nz u/hnrryizii zhzn/r are zvendr
for arbizmzian, I /err//io mr m/-wwfifd r//ur
aerioris /ful are ibm /1:/ver rr:-noir?
ANDREWS: \x/e're seeing rnore and rnnre
me of arbi:ni:ion. And an lawyers ge: more
aceuironied :o using arhirrarion, :heybecome more coniforrable wir_h il. I:'s also
more :omfonable for :he arbi:ra:ors and
rhe arlrninisrrarors when we have lawyers
:har are knuvvledgcablc in :he arbi:ra:ion
process and aren’: eirher soared of i: or jus:
so unfamiliar wirh I: :har :hey d<»n': know
\vha:'s going :o happen ro :hem_ There is
delinirely a gr<»wr_h in die indusrry.
BA'I'I'AGI_.IN`l: One of the :hings :hal I
I2
speak about regularly is the drift :han has
occurred from wha: used ro be a :radi:ion
in Texas or permissive arhirrarinn, where
par:ies were free :o conrracr and arbi:ra:e,
:o a sirunnon now compounded hy manyileosions by rhe Texas snprerne Cnnn in
:he las: :en years, compelling arbitration
when die parries have no: agrcecl :o i: under
varinns esroppel rhenries In many types ofeases employees now :an be compelled :o
arhirrare even ii they never saw an arbitra-
rinn egreernenr, nrerely by going ro vvnrle
and getting a paydaeck. Tha: has been held
as .i mane: of law :o have agreed ro an arbie
n~.inon egreei-nen: Personal injury elm, rhe
W-rl-M Hamer oise, Nnvenrher nfzoos, is a
prirne exarnple ofa personal injury plainriii'
being compelled io arbirrare, an asdnnaric
plainnl-I suing for personal injury damages
being compelled under a :heory :har she
was arrempring :o benefir from a wniraer
:hzn she was no: a parry ro. 'lliere have been
many decisions :ha: would in:li:a:e dia:
:he Supreme Cour: has grearly embraced
:his idea :har :hereis a srrong public policy
layering arbinanon in :he s:a:e. And wirh
:har srared or expressed policy now by :he
Supreme Corin, any rime :heres a decision
ro he made wherher or no: a case is ro he
arbirrared, die eourrs will grearly favor arbie
rrarinn :ri d-ie exclusion of a eonsiderarion for
:he righ: :o a jury :rial In orher words, :here
may no: be a :rue balance anymore. `I‘he
scales may have ripped in favor of arbirra-
rinn ro :he exclusion nf a fair considemriina
of wha: rha: means in due broader scheme
ahonr our rivil jnsnee sysreni in :he srnre. So
wha: I'm seeing is some push-back ro rhar.
'l‘here'< a realizarion by praericing nrror-neys,
rhar, wan a rniniire, are we going in :he right
direerion, is :his rhe way ir’s snpposed rn
be? While we all appieciare :han parries are
free ro :un:rac: :o arbitrate, have we gone
overboard wirh :his and are we going down
a dangerom paeh.
MARTIN; Wirhour a doubr, :he courrs
are embracing arbirrarion and :hey're liber-
ally consrruing under wha: circumsrance a
parry should do or could be compelled :o
arbirrame. I :hink :ha:’s jus: :he ease. Oneof :he :hings I fear is dia: somehow ndaers
will :ry :o coeop :he arbirrarion process.
Bpecially in consumer arbirrarion, deli:
collection, or possibly ernployrnenr rn orher
arem where parries migli: no: really realize
rhar rheir ilispnre is going io be resolved
in arhirramion. And when :hey :alked ro
:hen lawyer abou: i:, :he lawyer may he in
eonrr, nor realising :liar rhe divpure is going
:o arbirrarion. I:’s incuniben: upon all :he
arbirrarore, :hose organiaarion: rhar ailrnine
isier arbirrarion and we who are involved in
arbirrarion, ro have some sense and, haue:ye:, rules or fairness which prorcet :he par-
ries in :his circums:ar\cc. Arbivanrxn can be
eusrly. Consumer arbirrarion forced uponan individual who is not accilsmmed :o
paying lawyer fees, paying orpennve eiisern e
December 15, 2008
1
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