Market Solutions to Market Problems: Re-Examining Arbitral Immunity as a Solution to Unfairness in Securities Arbitration
By Peter B. Rutledge, February 8, 2012
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This article describes common complaints regarding unfairness of the securities arbitration process and offers a model for addressing such complaints. The author argues that arbitrators need to be stripped of their absolute immunity from civil actions for damages resulting from their misconduct or legal errors. It is argued that this measure, as opposed to any regulatory solution, will tap market forces as a more effective way to achieve the desired fairness.
