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Study: Arbitrators Biased, Consumers Lose

A recent study, Arbitration with Uninformed Consumers finds that arbitration outcomes are often determined, not by the strength of the case or the law, but by arbitrator bias. Arbitrators, who are paid to hear cases and compete with one another for business, are more likely to side with whichever party is likely to bring them repeat or future work. “Competition among arbitrators for arbitration opportunities can drive all arbitrators to intentionally slant their case decisions.” In consumer disputes, there is no question that businesses are the side most likely to bring repeat or future work, so arbitrators tend to be business-friendly. This study is proof that businesses are acting in their best interest (and not the consumer’s) when they bind consumers to pre-dispute arbitration agreements: arbitration is good for business, bad for consumers.An 87-Year-Old Nun Says She Was Raped in Her Nursing Home. Here’s Why She Couldn’t SueTime Magazine has published a story about an Alabama nursing home resident who was prohibited from suing after she was allegedly raped one night in the facility. A pre-dispute arbitration agreement signed by the resident forced her into arbitration, where nursing home residents typically fare poorly, and the arbitrator ruled against her. Under a proposal from the Trump administration, nursing homes will be able to force all residents into arbitration for resolving disputes, decreasing the chances of residents obtaining justice when victimized.Read the article…Why do You Hate Grandmothers? Forbes Article Laments Federal Push for Nursing Home ArbitrationA recent Forbes Magazine article explains how a lawsuit to prevent lawsuits may have been the first step to worse care in America’s nursing homes.Read the article…Nursing Home Abuse is the Health Care Story You Should Be FollowingThis Huffington Post article eloquently and succinctly explains why pre-dispute arbitration agreements are a terrible deal for nursing home residents and why we need a federal ban.Read the article…Trump wants to deny nursing-home residents and their families the right to sueThanks to a rule put in place last fall by the Centers for Medicare and Medicaid Services, nursing homes that receive federal funding — which is most of them — could no longer include so-called mandatory arbitration clauses in their contracts. In other words, residents and their family members were given back the right to sue.Now the Trump administration is trying to get rid of that protection.Read the article…
Arbitration news archives
Alliance for Justice Releases “Lost in the Fine Print,” a Searing Review of Forced Arbitration – WATCH THIS VIDEO
What is Arbitration?What are Arbitration Agreements?
Arbitration is a way of resolving disputes using a paid decision-maker, called an arbitrator.

The arbitrator’s decision is binding and none of the disputing parties may appeal or use the state’s court system. The decision is private, meaning no one else will benefit from a successful case.
 Arbitration agreements are promises to use arbitration – and not the court system – to resolve disputes.

Most arbitration agreements are hidden in contracts so that consumers will not pay attention to the fact they are waiving important rights to seek justice.

In arbitration agreements, businesses win and consumers lose.
Justice Denied – A Personal Story About Nursing Home Arbitration Agreements
Why are they bad for Long Term Care Residents? Void & Avoiding Arbitration
When a resident of a nursing home signs an admission agreement that includes an arbitration provision, the parties are agreeing to give up their constitutional right to have a dispute decided in a court of law in front of a jury. They are agreeing to the use of binding arbitration before the dispute even happens.

Read more…
 How to avoid signing an arbitration agreement:Ask to sign after admission. Then simply don’t sign it.Cross out and withhold surrogate authority.Consider going somewhere else.How to Void: Click here for sample rescission letters