• 16
  • November
    2011

Thumbnail image for JayIt seems like arbitration is everywhere these days. Whether you're hiring a contractor to build a house, or getting a loan, or buying a new cell phone, there will likely be an arbitration clause buried in the fine print of your contract.

The concept is simple: the parties to a contract agree they'll submit any disputes to the neutral party called an arbitrator. The arbitrator's decision will be final and binding. According to advocates of arbitration, it's faster, easier and less expensive than going to court. But they're wrong!

To begin with, many of the organizations that serve as arbitrators are anything but neutral. In fact, organizations like the American Arbitration Association and the National Arbitration Forum, which handle thousands of arbitration cases every year, have come under fire for being biased in favor of big business and debt collectors. Arbitration is also an expensive affair. Most arbitration clauses require the consumer to foot all or part of the arbitration bill. Instead of paying a $40 filing fee to resolve the dispute in court, you could be forced to pay hundreds or even thousands of dollars in arbitration fees. Arbitration also means surrendering one of your most cherished constitutional rights--the right to a jury trial.

In most consumer contracts, arbitration clauses are not negotiated by the parties. Instead, the seller simply inserts the clause into a standard, preprinted contract, and then tells you to take it or leave it. And that's not fair!

Thankfully, West Virginia law offers protection to consumers. In a recent case, the West Virginia Supreme Court struck down an arbitration clause in a nursing home admission contract. Brown vs. Genesis Healthcare Corporation, 2011 WL 2611327 (W.Va. 6/29/11). When a patient died from neglect, the nursing home tried to keep the patient's family from having their case heard in a court of their choosing and decided by a West Virginia jury. Rejecting the nursing home's arguments, the West Virginia Supreme Court found that the arbitration clause in the contract was both unfair and unenforceable.

The law firm of Bordas & Bordas has been at the forefront of litigating arbitration issues. We are committed to protecting the rights of consumers. If you have any questions concerning arbitration or the enforceability of an arbitration clause, contact us for a free consultation.

--Jay Stoneking