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: court-o-rama.orgSee You in Court!
By Anne Skove, Esq.
Everybody "knows" that the reason big companies use arbitration clauses is because they hate litigation. Right?
Wrong!
Empirical evidence (is there any other kind?) gathered by Eisenberg, Miller, and Sherwin, shows that in fact companies use such clauses only when it comes to consumers. They prefer (!) litigating non-consumer contracts.
And the arbitration clauses that do exist are not there to avoid litigation. Rather, they are meant to avoid class actions.
See Empirical Arbitration Analysis Reveals Companies Prefer Litigation, Sarah Cole, ADR Prof Blog (February 6, 2008).
Full post as published by court-o-rama.org on February 06, 2008 (boomark / email).
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