Friday, May 1, 2009

Arbitration

A Senate Bill sponsored by Russ Feingold of Wisconsin would prohibit enforcement of pre-dispute arbitration clauses in employment, consumer, franchise, and civil rights disputes. Similar legislation has been introduced in the House of Representatives by Representative Hank Johnson of Georgia. While this type of proposed legislation introduced by Sen. Feingold and Rep. Johnson did not make it beyond the committee stage in the prior session of Congress, the present attempt has a much better chance of success given the Democratic party's present majorities in the House and Senate. Groups who support the legislation argue that mandatory arbitration clauses are unfair and deny a person her right to a jury trial. Opponents contend that arbitration provides a fair and quicker dispute resolution system. I will provide updates as necessary on this proposed legislation.

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