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Published byRoss Holmes Modified over 9 years ago
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ARBITRATION
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Arbitration Key Characteristics Informality resulting in greater speed, less cost Choice of Decision maker Privacy
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Private Arbitration Court – Annexed Arbitration
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Uses of Arbitration Commercial: Parties create process; trade association rules; AAA panel and rules Labor- 95% of CBA Medical malpractice Major League Baseball
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History of Arbitration Ancient process : rabbinical tradition 18 th century commercial disputes Colonial America 20 th century -Statutory authorization New York 1920- pattern for UAA Federal: USArbitratuion Act 1925. Railway Act- 1926 Taft Hartley Labor-Management Relations Act-1947
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Initiating Arbitration Contract clause to arbitrate future disputes Alternative for current dispute
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Arbitrability Presumption of Arbitrability Court review of whether or not dispute is covered Defenses: Fraud in inducement re: arbitration clause Fraud in underlying contract decided by arbitrator
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Judicial Review of Awards Under both UAA and Federal law, review is extremely limited. Standards: Corruption, fraud or misconduct by arbitrators. “Manifest disregard” of law as opposed to erroneous interpretation. Labor: “Draws its essence from contract
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Missouri Act: Chapter 435 Adopted in 1980: presumption of arbitrability Any controversy except contract of insurance or “adhesion contract” Ct will look to other UAA cases Notice Requirement: Bold face type Exclusion of governmental subdivisions applies to disputes between them.
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Variations High/ Low: Parties agree in advance on limits of loss/ recovery Final offer: Major league Baseball Incentive: Not binding but penalty for rejection
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Concerns about Arbitration Adhesion: credit cards, banks, medical malpractice Bias of arbitrators towards repeat players. Waiver of court review of civil rights claims. Role of Arbitrator: Judicial v. Mediative
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Amanda & the Hospital How would you advise her?
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Other perspectives What suggestions are offered by Hayford & Peeples to improve commercial arbitration? What conclusions does Maltby reach about the efficacy of arbitrating employment cases?
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Med-Arb What are the advantages of this process over simply mediation or arbitration? What are the limitations?
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Private Judging Statutory authority Private process Judge must follow substantive and evidentiary rules Judgment is binding, but subject to regular appeal process Judge Judy is example
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Advantages Criticisms Selection of judge Speed private “Rich man’s” justice Closed to public “Brain drain”
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