Issues Arising Out of Mass Arbitrations & Solutions to Combat Them

Arbitrations have been around for thousands of years. The benefits derived from arbitrations are numerous, as they provide individuals with a more efficient and cost-effective way of disputing their claims. Importantly, arbitrations provide consumers with a network to dispute claims they may not otherwise litigate in civil court. However, within the last few years, the rapid spread of mass arbitrations throughout the nation has contributed to various ethical issues within our justice system.143 Combatting the issues presented with mass arbitration is crucial to maintaining and creating a more efficient adjudication process. To address the issues associated with mass arbitrations, companies should consider splitting costs of initial filing fees equally, demand that arbitration providers handle issues associated with mass arbitrations more efficiently and resolve certain small claim disputes in a state’s small claims court. The solutions to mass arbitration will hold attorneys to the proper ethical standard of care and will prevent abuse of the arbitration system. Since arbitrations are beneficial to both the individual and the corporation, these changes will help benefit both parties to ensure the practice of arbitrations will continue to be an efficient dispute resolution method.