Legal Question in Business Law in California

Re: Big company wants to bully me into arbitration. Should I worry ?

We would have to review any letters, contracts or

documents that you have. Normally, you have to sign an arbitration clause for mandatory arbitration to be subject to it.

Re: Big company wants to bully me into arbitration. Should I worry ?

When you get the notice from the Arbitration company that let's you know a claim has been filed, call them up and ask about the procedures for you to challenge their jurisdiction.

An arbitration judgment can be perfected by filing it with the court for confirmation of the judgment. Don't let this happen. Fight the jurisdiction up front.

Give us a call if you need help.

Re: Big company wants to bully me into arbitration. Should I worry ?

Usually with credit cards within the past couple of years, the arbitration clause is in the little pamphlet they send a customer which is hardly ever read.

I've had some success with credit card arbitration if you feel like giving me a holler.

Re: Big company wants to bully me into arbitration. Should I worry ?

First, you can't be forced to arbitrate unless you have previously agreed to arbitrate such matters or disputes, Arbitration is based upon a contract to arbitrate between the claimant and the respondent. Most responsible arbitration services, such as the American Arbitration Association, will not take on a case until they have seen the contract to arbitrate. I cannot say whether this is always the case with "in house" or "on call" arbitrators working in a particular industry such as securities brokerage or credit cards.

If this big company has a claim against you, remember that the alternative to arbitration is a lawsuit, which would be much more expensive for you to handle. So, assuming the arbitrator you get is as competent and fair as the judge who would otherwise hear your case, you should come out better by agreeing to arbitrate versus being sued. Many defendants fight to get their cases out of court and into arbitration.

I don't think it's safe to assume you haven't made yourself subject to arbitration, since many people sign contracts without knowing the contents and without reading them.

Further, I suspect that if 97% of respondents are found liable to the claimant(s) in some degree or other, it's likely that 90% of them were REALLY liable and the other 7% didn't defend themselves very well. There has been so much scrutiny of arbitration clauses and arbitration processes, and so many class actions, that most of the bad arbs have been put out of business.

Sorry to be less than sympathetic, but I believe the system works decently if not perfectly, and that if you really don't owe anything and take the time to defend diligently, you'll win whether in court or before an arb. If the amount at stake is large, by all means get a lawyer.

Re: Big company wants to bully me into arbitration. Should I worry ?

I don't believe you specify what you're arbitrating. If it's with a credit card company as another attorney seems to have suggested, then indeed he is correct - you were sent a pamphlet with the arbitration term in it at some point and by continuing to use the account, rather than closing it, you agreed to arbitration.

As to the 97% figure, this sounds highly suspect to me. I recall hearing that major car manufacturers actually lost most of the arbitrations they were involved in with unhappy consumers, but still preferred the process, due to the lower legal costs.