ACA International Joins Coalition Urging Opposition to Anti-Arbitration Bills in 116th Congress

Coalition opposes bills that would result in more class action lawsuits and limit employees’ and employers’ options to resolve claims out of court.

9/10/2019 9:00 AM

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ACA International Joins Coalition Urging Opposition to Anti-Arbitration Bills in 116th Congress

ACA International, in partnership with the U.S. Chamber Institute for Legal Reform and a coalition of national and state organizations, is urging members of Congress to oppose anti-arbitration bills in the 116th Congress.

ACA signed on to a letter to members of Congress focused on the Forced Arbitration Injustice Repeal (or FAIR) Act, (H.R. 1423 and S. 610), which would effectively outlaw arbitration provisions in private contracts. The bills were introduced in both chambers by U.S. Rep. Hank Johnson, D-Ga., and U.S. Sen. Richard Blumenthal, D-Conn., in February.

“Federal law has protected arbitration as a means of resolving disputes between businesses, consumers and employees since 1925. These bills will result in more class action lawsuits,” the letter states.

However, pre-dispute arbitration clauses in contracts are a benefit, to consumers, small businesses, and their employees.

“For example, a recent study by the Institute for Legal Reform found that employees prevailed three times more often, recovered twice as much money, and resolved their claims more quickly in arbitration than in litigation. In addition, courts work to ensure that arbitration agreements of all types are fair and do not provide an untoward advantage to any party,” according to the letter.

Additional findings in the study include:

  • Employees on average won twice the amount of money through arbitration ($520,000) than in court ($270,000). 
  • Arbitration disputes were resolved faster (569 days) on average than in litigation (665 days).
  • Seventy-nine percent of arbitration cases were filed by employees who made less than $100,000, showing that employees across salary levels utilize arbitration to resolve their disputes.

“The only clear beneficiary of eliminating arbitration clauses are plaintiffs’ trial lawyers who would directly benefit from class action litigation replacing cost-effective and fair arbitration as a viable way to resolve disputes,” the letter states.

Read the complete letter through ACA International’s Advocacy Resource Center.

The House Judiciary Committee reviewed H.R. 1423 during a markup Tuesday, Sept. 10.

Related Content from ACA International:

ACA International Joins Industry Advocacy Against Anti-Arbitration Bills


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

ACA International Joins Coalition Urging Opposition to Anti-Arbitration Bills in 116th Congress

ACA International, in partnership with the U.S. Chamber Institute for Legal Reform and a coalition of national and state organizations, is urging members of Congress to oppose anti-arbitration bills in the 116th Congress.

ACA signed on to a letter to members of Congress focused on the Forced Arbitration Injustice Repeal (or FAIR) Act, (H.R. 1423 and S. 610), which would effectively outlaw arbitration provisions in private contracts. The bills were introduced in both chambers by U.S. Rep. Hank Johnson, D-Ga., and U.S. Sen. Richard Blumenthal, D-Conn., in February.

“Federal law has protected arbitration as a means of resolving disputes between businesses, consumers and employees since 1925. These bills will result in more class action lawsuits,” the letter states.

However, pre-dispute arbitration clauses in contracts are a benefit, to consumers, small businesses, and their employees.

“For example, a recent study by the Institute for Legal Reform found that employees prevailed three times more often, recovered twice as much money, and resolved their claims more quickly in arbitration than in litigation. In addition, courts work to ensure that arbitration agreements of all types are fair and do not provide an untoward advantage to any party,” according to the letter.

Additional findings in the study include:

  • Employees on average won twice the amount of money through arbitration ($520,000) than in court ($270,000). 
  • Arbitration disputes were resolved faster (569 days) on average than in litigation (665 days).
  • Seventy-nine percent of arbitration cases were filed by employees who made less than $100,000, showing that employees across salary levels utilize arbitration to resolve their disputes.

“The only clear beneficiary of eliminating arbitration clauses are plaintiffs’ trial lawyers who would directly benefit from class action litigation replacing cost-effective and fair arbitration as a viable way to resolve disputes,” the letter states.

Read the complete letter through ACA International’s Advocacy Resource Center.

The House Judiciary Committee reviewed H.R. 1423 during a markup Tuesday, Sept. 10.

Related Content from ACA International:

ACA International Joins Industry Advocacy Against Anti-Arbitration Bills


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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