{"id":890947,"date":"2016-09-15T12:39:03","date_gmt":"2016-09-15T18:39:03","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=890947"},"modified":"2016-09-15T12:39:03","modified_gmt":"2016-09-15T18:39:03","slug":"pick-poison-given-jury-can-arbitration-really-bad","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/pick-poison-given-jury-can-arbitration-really-bad\/","title":{"rendered":"Pick Your Poison: Given What A Jury Can Do, Is Arbitration Really That Bad?"},"content":{"rendered":"

Alan M. Wolper | Ulmer & Berne LLP<\/a> | September 1, 2016<\/p>\n

Some of my clients simply cannot say enough bad things about the arbitration process. It is expensive.\u00a0 It is unfair.\u00a0 There\u2019s no industry panelist anymore.\u00a0 Claimants can get away with anything.\u00a0 Panels are sometimes comprised of people who care more about how many sessions they can get paid for than the merits of the case.\u00a0 Or who can\u2019t stay awake to hear the evidence.\u00a0 It has come to the point where some broker-dealers have simply removed the arbitration clause<\/a> from their customer agreements\u00a0in an effort to induce customers to duke it out in court.\u00a0 Moreover, given a relatively\u00a0recent decision\u00a0from the Second Circuit that reduces the number of people who actually constitute \u201ccustomers\u201d capable, under FINRA rules, of compelling a BD to arbitrate, there is an increase in cases going to court that, historically, could have been arbitrated.<\/p>\n

All I can say is, be careful what you wish for. Yesterday, following a seven-week trial \u2013 yes, seven weeks \u2013 a California state court jury returned a verdict against MetLife for a total of $15 million in punitive damages.\u00a0 Notably, the plaintiff had only invested $279,769 in the product she was complaining about.\u00a0 Which, by the way, was not sold by MetLife.\u00a0 Or approved by MetLife.\u00a0 Indeed, the plaintiff was never even a MetLife customer, which is why the case went to court and not arbitration. \u00a0Apparently, the jury didn\u2019t much care about those facts.<\/p>\n

So, here\u2019s the thing: arbitration is hardly perfect<\/a>, and many of the complaints I hear are totally valid.\u00a0 But, before we all rush headlong into litigation, it is necessary to take a deep breath and consider these facts:<\/p>\n