Skip to content
Do you have adblock enabled?
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Jacobin Magazine)   Turns out you can drown a company in its own forced arbitration clauses   (jacobinmag.com) divider line
    More: Awkward, Arbitration, arbitration association, way of the rideshare company, mass arbitration, arbitration claim, employees of a company, Supreme Court of the United States, targeted company  
•       •       •

2514 clicks; posted to Business » on 30 May 2022 at 8:45 PM (18 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



16 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-05-30 8:33:18 PM  
Fark user imageView Full Size
 
2022-05-30 8:56:14 PM  
Hoist with their own petard.
 
2022-05-30 9:12:33 PM  
So... the idea was that both sides would pay the arbitrator the same amount and thus a balanced outcome was assumed. But if I read this correctly, the arbitration firms must be waiving fees and rubber stamping forms just to rake off the companies.
 
2022-05-30 9:25:37 PM  

wildcardjack: So... the idea was that both sides would pay the arbitrator the same amount and thus a balanced outcome was assumed. But if I read this correctly, the arbitration firms must be waiving fees and rubber stamping forms just to rake off the companies.


Leopards?  Eating faces?

Well, I never!
 
2022-05-30 9:37:23 PM  
As always, only the lawyers profit. The victims only get pennies.
:(
 
2022-05-30 10:23:04 PM  
Guess mass arbitration filing will be outlawed shortly. Sounds dangerously close to holding corporations accountable for their actions
 
2022-05-30 10:36:58 PM  

FarkMeAmadeus: Guess mass arbitration filing will be outlawed shortly. Sounds dangerously close to holding corporations accountable for their actions


I'm sure Congress will jump right on that.
 
2022-05-31 12:19:12 AM  
Dealing with arbitration or prearbitration claims is 50% of my job. I know American Arbitration Association rules quite well.

These kinds of cases are brought by people who either want a quick buck or don't understand that if you don't pay your bills in full, on time, we'll shut off your utilities, your cell phone, your whatever.

80% of the arbitration demands I see could have been avoided if the claimant PAID THEIR BILLS.
 
2022-05-31 4:23:36 AM  

baronbloodbath: Dealing with arbitration or prearbitration claims is 50% of my job. I know American Arbitration Association rules quite well.

These kinds of cases are brought by people who either want a quick buck or don't understand that if you don't pay your bills in full, on time, we'll shut off your utilities, your cell phone, your whatever.

80% of the arbitration demands I see could have been avoided if the claimant PAID THEIR BILLS.


I mean 80% of the arbitration demands could have been avoided if we correctly subsidized utilities and prevented corporate profiteering. John Oliver even addressed this one within the last few weeks.
 
2022-05-31 5:56:31 AM  

baronbloodbath: Dealing with arbitration or prearbitration claims is 50% of my job. I know American Arbitration Association rules quite well.

These kinds of cases are brought by people who either want a quick buck or don't understand that if you don't pay your bills in full, on time, we'll shut off your utilities, your cell phone, your whatever.

80% of the arbitration demands I see could have been avoided if the claimant PAID THEIR BILLS.


I don't believe TFA.  So arbitration attorneys are starting to see clients recover about what they are owed?  Don't most plaintiffs claim less than $500 in damages?  I remember Chipotle was being brought into arbitration by 10,000 employees who were forced to clock out and clean the restaurants after hours for free.  That amount is a lot less than the arbitration fees per plaintiff.  So the idea here is to launch thousands of cases to settle out of arbitration.  What are the actual checks sent to clients though?  Presumably these specialist law firms are not doing this for free.  It's around $15MM just to file the arbitration, then billing for attorneys fees which could easily add up to $100MM.  So a $200MM settlement would get plaintiffs around 35% to 40% of what they asked for.  What a country.

No doubt congress will right these wrongs
/cue laugh track
 
2022-05-31 6:51:51 AM  
LOL so companies will just write into their contracts that you can't participate in mass arbitration. Wanna bet that happens?
 
2022-05-31 7:13:49 AM  

Northern: baronbloodbath: Dealing with arbitration or prearbitration claims is 50% of my job. I know American Arbitration Association rules quite well.

These kinds of cases are brought by people who either want a quick buck or don't understand that if you don't pay your bills in full, on time, we'll shut off your utilities, your cell phone, your whatever.

80% of the arbitration demands I see could have been avoided if the claimant PAID THEIR BILLS.

I don't believe TFA.  So arbitration attorneys are starting to see clients recover about what they are owed?  Don't most plaintiffs claim less than $500 in damages?  I remember Chipotle was being brought into arbitration by 10,000 employees who were forced to clock out and clean the restaurants after hours for free.  That amount is a lot less than the arbitration fees per plaintiff.  So the idea here is to launch thousands of cases to settle out of arbitration.  What are the actual checks sent to clients though?  Presumably these specialist law firms are not doing this for free.  It's around $15MM just to file the arbitration, then billing for attorneys fees which could easily add up to $100MM.  So a $200MM settlement would get plaintiffs around 35% to 40% of what they asked for.  What a country.

No doubt congress will right these wrongs
/cue laugh track


You're not understanding the tactic.  It's not about the monies recovered that people are owed.  It is literal death by one-thousand cuts in that the companies have to pay half the cost for arbitration and have each case tried separately.  Thousands of cases are filed in the same timeframe, which makes for a nightmare for a company's legal team as well as all of the tiny expenses which also add up.
 
2022-05-31 7:46:08 AM  

Chief Superintendent Lookout: Northern: baronbloodbath: Dealing with arbitration or prearbitration claims is 50% of my job. I know American Arbitration Association rules quite well.

These kinds of cases are brought by people who either want a quick buck or don't understand that if you don't pay your bills in full, on time, we'll shut off your utilities, your cell phone, your whatever.

80% of the arbitration demands I see could have been avoided if the claimant PAID THEIR BILLS.

I don't believe TFA.  So arbitration attorneys are starting to see clients recover about what they are owed?  Don't most plaintiffs claim less than $500 in damages?  I remember Chipotle was being brought into arbitration by 10,000 employees who were forced to clock out and clean the restaurants after hours for free.  That amount is a lot less than the arbitration fees per plaintiff.  So the idea here is to launch thousands of cases to settle out of arbitration.  What are the actual checks sent to clients though?  Presumably these specialist law firms are not doing this for free.  It's around $15MM just to file the arbitration, then billing for attorneys fees which could easily add up to $100MM.  So a $200MM settlement would get plaintiffs around 35% to 40% of what they asked for.  What a country.

No doubt congress will right these wrongs
/cue laugh track

You're not understanding the tactic.  It's not about the monies recovered that people are owed.  It is literal death by one-thousand cuts in that the companies have to pay half the cost for arbitration and have each case tried separately.  Thousands of cases are filed in the same timeframe, which makes for a nightmare for a company's legal team as well as all of the tiny expenses which also add up.


That's exactly it. My Fortune 50 company (hint in profile) has only five people to deal with arbitration. We received about 3,000 threats to arbitrate and about 200 actual arbitration demands last year.

In 2019 those same numbers were ~800 and 50, respectively.
 
2022-05-31 8:40:23 AM  
Well well well, if it isn't the consequences of my own actions.
 
2022-05-31 9:12:57 AM  

baronbloodbath: Chief Superintendent Lookout: Northern: baronbloodbath: Dealing with arbitration or prearbitration claims is 50% of my job. I know American Arbitration Association rules quite well.

These kinds of cases are brought by people who either want a quick buck or don't understand that if you don't pay your bills in full, on time, we'll shut off your utilities, your cell phone, your whatever.

80% of the arbitration demands I see could have been avoided if the claimant PAID THEIR BILLS.

I don't believe TFA.  So arbitration attorneys are starting to see clients recover about what they are owed?  Don't most plaintiffs claim less than $500 in damages?  I remember Chipotle was being brought into arbitration by 10,000 employees who were forced to clock out and clean the restaurants after hours for free.  That amount is a lot less than the arbitration fees per plaintiff.  So the idea here is to launch thousands of cases to settle out of arbitration.  What are the actual checks sent to clients though?  Presumably these specialist law firms are not doing this for free.  It's around $15MM just to file the arbitration, then billing for attorneys fees which could easily add up to $100MM.  So a $200MM settlement would get plaintiffs around 35% to 40% of what they asked for.  What a country.

No doubt congress will right these wrongs
/cue laugh track

You're not understanding the tactic.  It's not about the monies recovered that people are owed.  It is literal death by one-thousand cuts in that the companies have to pay half the cost for arbitration and have each case tried separately.  Thousands of cases are filed in the same timeframe, which makes for a nightmare for a company's legal team as well as all of the tiny expenses which also add up.

That's exactly it. My Fortune 50 company (hint in profile) has only five people to deal with arbitration. We received about 3,000 threats to arbitrate and about 200 actual arbitration demands last year.

In 2019 those same numbers were ~800 and 50, respectively.


Better yet, "How dare you use my own spell against me, Potter."
 
2022-05-31 11:00:24 AM  

TedCruz'sCrazyDad: FarkMeAmadeus: Guess mass arbitration filing will be outlawed shortly. Sounds dangerously close to holding corporations accountable for their actions

I'm sure Congress will jump right on that.


Hey, they do ban awful things from time to time. Remember when payday loan and title loan places were popping up everywhere. Somehow now that those are banned they're all mattress stores.

/so many mattress stores
// Front for illegal loans?
/// rent a mattress full of cash?
 
Displayed 16 of 16 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking




On Twitter


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.