Many trial lawyers yearn to get rid of arbitration clauses in credit card and other consumer finance contracts, which (among their other effects) block them from rolling many small claims into large class actions. Will the new Consumer Protection Finance Bureau (CPFB) go along with their wishes? [Daniel Fisher, Forbes] Related: Alison Frankel, Reuters.
According to what seems to be the sense of many in the Florida legal profession, doctors and their patients should not have the right to enter enforceable arbitration agreements before the fact to resolve disputes, but lawyers and their clients should have the right to enter enforceable agreements before the fact to limit liability for excessive charging of legal fees. Thanks for clarifying! [White Coat, scroll; earlier]
Remember the “Halliburton rape” case, where the national media uncritically passed along claims that a young woman had been viciously assaulted by co-workers while stationed in the Middle East, then confined to a container by beastly managers when she tried to complain, and finally suffered the ultimate indignity when her employment contract required her to submit the claims to arbitration? It’s a tale that was advanced by politicians like Sen. Al Franken (D-Minn.), by some of the usual suspects in opinion journalism, and especially by the litigation lobby as part of its campaign against contractually provided-for arbitration (as with the much-reviewed, HBO-aired “Hot Coffee“). Not a few of these advocates — like the left-leaning ThinkProgress — threw “allegedly” to the winds and flatly accused the co-workers of rape.
Unless you’d read one of the very few skeptical evaluations of the case — many of them written by Ted Frank — you may have been shocked this July when a Houston jury summarily rejected Jamie Leigh Jones’s lawsuit. Now — better late than never — the Houston Chronicle shreds the popular narrative of the affair and its media coverage in particular (ABC News: a tale of “sexual brutality, corporate indifference and government inaction.”) Is it too much to hope that anyone will be embarrassed enough to apologize?
More: As commenter E-Bell notes, journalist Stephanie Mencimer, with whom we’ve had our differences in the past, deserves due credit for this July coverage in the unlikely venue of Mother Jones. And quoth @Popehat: “‘Putting the victim on trial’ is code for ‘defending yourself and testing the evidence.'”
On upholding consumer and employee agreements to arbitrate, as in the days before the telegraph, it can take a while for the word to get from D.C. to the West Coast. [Cal Biz Lit]
Contractually stipulated arbitration works less poorly than the NYT editorialists seem to think — and lawyer-driven class action litigation not nearly as well [Daniel Fisher, Forbes, more]
For a number of years organized trial lawyerdom has made it a top priority to attack contractual clauses providing for arbitration of employment, consumer and other disputes, arguing that only litigation — that is to say, their own services — can provide the needed fairness, deterrence and compensation. Such is the Litigation Lobby’s overreach in this matter that even a veteran liberal, former Ninth Circuit judge and Carter education secretary Shirley Hufstedler, is constrained (with co-author William Webster) to part company with bills introduced by Wisconsin Senator Russ Feingold and others: “Astonishingly, such legislation would effectively abolish arbitration as a viable alternative for such disputes.” [National Law Journal]