8
   

Are arbitration clauses unconstitutional?

 
 
OmSigDAVID
 
  2  
Reply Fri 9 Mar, 2012 10:07 am
@boomerang,
Addressing your original question,
it does not appear that arbitration clauses in contracts violate the Constitution.





David
0 Replies
 
joefromchicago
 
  2  
Reply Fri 9 Mar, 2012 10:29 am
@boomerang,
boomerang wrote:

I might have misunderstood the case they were talking about.

The main case "Hot Coffee" deals with is the woman who burned herself when she spilled McDonald's coffee on herself. McDonald's wanted a jury trial and so they had one.

You can't agree to arbitrate tort claims. There's simply no mechanism for that. The only claims that can be arbitrated are contract claims, unless a court system has a mandatory arbitration process for those types of claims -- in which case that isn't the kind of arbitration that you're talking about.

boomerang wrote:
I guess there isn't an arbitration clause when you buy fast food but it seems like the case was supposed to go to arbitration until McDonald's decided on a jury trial.

I'm confident that's not the case. There may have been a settlement offer or even an attempt at mediation (which isn't the same thing as arbitration), but it's impossible that the woman agreed beforehand with McDonald's that any tort claim that she might bring would be handled by arbitration.
0 Replies
 
joefromchicago
 
  3  
Reply Fri 9 Mar, 2012 10:34 am
@Thomas,
Thomas wrote:
On the third hand, the company that issued my credit card is incorporated in Delaware. Therefore, any legal dispute between this New-Jersey resident and it would seem to fall under federal jurisdiction as interstate commerce. No?

You forget that there's a jurisdictional minimum for diversity cases. If you rack up a $75,000 credit card bill, then you might have a federal case.

Thomas wrote:
And on the fourth hand, it appears that the right to trial by jury is commonly guaranteed under state constitutions as well. To be sure, I didn't check all 50 of them. But the constitutions of my state, your state, and Boomerang's state all do guarantee it. So the substance of Boomerang's point remains unaffected: How can arbitration clauses pass muster under any constitutions, state or federal, that guarantee trial by jury as a fundamental right?

Because some fundamental rights, such as the right to a jury trial, can be waived by contract.
OmSigDAVID
 
  1  
Reply Fri 9 Mar, 2012 10:39 am

The foundational authority for arbitration
is voluntary contractual agreement of the parties. That is the theory.
0 Replies
 
Thomas
 
  1  
Reply Fri 9 Mar, 2012 02:12 pm
@joefromchicago,
joefromchicago wrote:
You forget that there's a jurisdictional minimum for diversity cases. If you rack up a $75,000 credit card bill, then you might have a federal case.

Okay, I'll be working on that.

joefromchicago wrote:
Because some fundamental rights, such as the right to a jury trial, can be waived by contract.

Thanks for the clarification.
0 Replies
 
Irishk
 
  1  
Reply Fri 9 Mar, 2012 02:37 pm
There was an interesting arbitration case last month wherein SCOTUS unanimously reversed a high court in W. Virginia. I'll just post the last paragraph (although the preceding few paragraphs at the link are interesting, as well)...

Quote:
In any event, the result, to nobody’s surprise, was a brief and unanimous per curiam opinion restating the Supreme Court’s view that federal law preempts any state law purporting to prevent the arbitration “of a particular type of claim.” The case will join the long, and still unbroken, line of FAA cases enforcing arbitration clauses. The day presumably will come when the Supreme Court will confront an arbitration clause it does not find enforceable, but it didn’t come yesterday.


Link
0 Replies
 
Founding Father
 
  1  
Reply Sat 16 Aug, 2014 09:55 am
@boomerang,
the (UN)American Arbitration Ass-ociation HATES BLACKS and its arbitrators will always decide against any side that has a black person as witness! I lost my case with AAA because my chief witness was a black investigator from the Inglewood, CA Contractors Board who I called to testify that none of the work was done by my contractor who abandoned the job, I sued in AAA for a refund and the contractor counter sued me. I lost because Attorney Fenster (Beverly Hills) hated blacks. I was forced to pay $35,000 for work NEVER done! The only way to get rid of Arbitrations is to cance the US Constitution. I Hereby CANCEL THE US CONSTITUTION. Richard Rutgard, founding father
0 Replies
 
 

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