The Federal Arbitration Act (FAA), 9 U.S.C. §§ 1–16, codifies the federal policy of enforcing arbitration agreements. In Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1 (1983), the Supreme Court noted that “Section 2 [of the Act] is a congressional declaration of a liberal federal policy favoring arbitration, notwithstanding any state substantive or procedural policies to the contrary. The effect of the section is to create a body of federal substantive law of arbitrability,...
Legal Times published Posner’s response in a second article. “Please convey my congratulations to Bryan Garner on inventing a new form of arbitration,” Posner wrote in an email to Legal Times. “Two parties have a dispute; one appoints an arbitrator to resolve the dispute; the other disputant is not consulted.”
“How beautifully that simplifies arbitration!” Posner continued. “No need for the parties to agree on an arbitrator, or for the American Arbitration Association to list...
We’ve discussed the ins and outs of arbitration at length previously. I’ve spent the last few years in a number of arbitration proceedings so in no particular order here are my recent thoughts on the process:
1. Speed. From start to finish there is no faster means to an end than arbitration. I always tell folks it is hard to go to trial, everything is stacked against it. In most cases you go once you are the oldest case meaning you are looking at 2 years before a trial. That means lots of starts...
The United States Court of Appeals for the Fifth Circuit has ordered that a dispute between numerous independent pharmacies and CVS Caremark Corporation and three of the company’s related business entities (“CVS”) be submitted to arbitration. In Crawford Professional Drugs, et al. v. CVS Caremark Corp., et al., No. 12-60922 (5th Cir. April 4, 2014), 23 drugstores that participated in a pharmacy benefit-management network offered by CVS claim the corporation inappropriately used...
Can crowd arbitration do justice? It depends, of course, on the definition of justice. According to H.L.A. Hart inThe Concept of Law, justice means having like cases being treated alike. H.L.A. HART, THE CONCEPT OF LAW (2nd ed., Oxford, Clarendon Press, 1994), Ch. VII. Only relevant differences should be considered when reaching a different result from another case. Id. Under this definition, crowd arbitration’s justness depends on the consistency of the community in similar cases. Because...
Do the benefits of time and cost savings make crowd arbitration a less reliable means of dispute resolution? In fact, the result is the opposite–having more people participate is actually likely to make the dispute resolution far more reliable and predictable than any other method. This reliability comes from the power of numbers. Statistically, averaging a larger sample provides a more accurate reflection of the community’s reasoning and values. Put another way, crowd arbitration eliminates...