A mandatory arbitration clause prevents a legal conflict from going to a judicial court. This means that the parties involved must resolve the matter through arbitration. In arbitration, neutral arbiters review the evidence, and then decide on the outcome and the amount of money to be paid, if any. Any payout in arbitration is known as an arbitration award.
Businesses usually have the option of taking legal action together as a unified force, whereas individual consumers are often denied the same right when they believe that a company has wronged them. Most consumer advocates believe that arbitration is not enough, and that class action should remain an option because it protects consumers in many ways. Group lawsuits offer the following benefits to consumers:
They return more money to more people
They allow consumers to right a smaller wrong that would be too costly in an individual lawsuit
They prevent large companies from keeping money from ill-gotten gains
They return money to consumers that they might otherwise forfeit
They protect future consumers by halting or deterring harmful behavior
They offer a powerful way to obtain justice when a large number of people are harmed
A rule was recently proposed by the Consumer Financial Protection Bureau to stop companies from denying groups of consumers from going to court when they are treated unfairly. Opponents have attempted to overturn the rule, and the House has passed legislation toward that goal, but it makes no sense to deny consumers the same legal option that businesses use when they have been wronged. Everyone deserves their day in court when there has been an injustice.
If you have experienced an injustice, please call the New Jersey medical malpractice lawyers at Eichen Crutchlow Zaslow & McElroy, LLP at 732-777-0100, or contact us online for a free consultation. Our offices are centrally located in Red Bank, Toms River, and Edison, and we serve clients throughout New Jersey.