Alternative Dispute Resolution (ADR)/Arbitration

  • Home >
  • Issues >
  • Alternative Dispute Resolution (ADR)/Arbitration

Alternative Dispute Resolution (ADR) refers to methods and processes of resolving claims without litigation, such as arbitration, mediation, and small claims procedures. ADR can be formal or informal and provides a method to avoid the expense and inefficiency of litigation. Read More...

ADR is widely used in the U.S., where empirical studies demonstrate that it is cheaper, faster, and often offers more compensation for the consumer. There are also well-established ADR procedures in many of the EU member states and in other countries around the world.

Arbitration

Arbitration is an effective dispute resolution process where an independent third party reviews the facts of a case and applies the appropriate resolution, resulting in the avoidance of costly and time-consuming courtroom litigation. However, arbitration is now under attack by plaintiffs’ lawyers, who see it as a barrier to the expansion of profitable class action lawsuits. Class action lawsuits often lead to plaintiff lawyers pocketing millions of dollars in fees, while those they represent receive little or nothing of significant value from the settlement.

For many, arbitration is the better way to go as it produces resolutions much faster than class actions and other types of court-based litigation, which often last years. Arbitration also results in more money for employees and leads to decreased costs of legal fees for both sides. Eliminating arbitration will not only lead to litigation costs steadily increasing, but the courts demanding assignments will increase, leaving millions of Americans with very limited opportunities for restitution.

Legislative measures to limit the use of arbitration have largely been unsuccessful. Multiple bills and amendments that would have banned arbitration have been proposed and blocked since the early-2000s. Due to the clear advantages of arbitration over litigation in any number of situations, research shows that most Americans prefer arbitration as it puts money into the hands of individuals seeking just compensation, instead of feeding our nation’s excessive litigation monster.

Due to the clear advantages of arbitration over litigation in any number of situations, and the need to preserve this important dispute resolution process, ILR has established the Coalition to Preserve Arbitration. The Coalition’s membership is varied and broad. AT&T is one member of the Coalition and has provided legal and technical support on an in-kind basis in connection with our arbitration-related activities. This disclosure is being made to comply with the requirements of the Lobbying Disclosure Act of 1995, as amended by the Honest Leadership and Open Government Act of 2007.

01/01/2019

Suggested Resources

Research

All Results for Alternative Dispute Resolution (ADR)/Arbitration

  1. Report: Securities Lawsuits Filed at "Record Pace" in 2017

    January 29, 2018 | News

    A NERA Economic Consulting report found "an explosion" of securities of securities lawsuits, which were filed at a "record pace" in 2017, reports D&O Diary.... Read More

  2. In the News Today - December 14, 2017

    December 14, 2017 | News

    9th Circuit Strikes Constitutional Challenge to the Arbitration Act; Growth in class actions to come under scrutiny... Read More

  3. In the News Today - November 29, 2017

    November 29, 2017 | News

    NLRB Judge Says Arbitration Agreements Violate Labor Laws... Read More

  4. CFPB Anti-Arbitration Rule Officially Repealed

    November 02, 2017 | Blogs

    The Consumer Financial Protection Bureau's anti-arbitration rule has been officially repealed, Reuters reports. ... Read More

  5. In the News Today - October 10, 2017

    October 10, 2017 | News and Blog

    Are shareholders the real losers from class actions?; New Report Shows Class Actions Hurt Consumers. But We Already Knew That.... Read More

  6. In the News Today - August 14, 2017

    August 14, 2017 | News and Blog

    Republicans for Richard Cordray: The Wall Street Journal Editorial Board published their view on the Congressional Review Act that would repeal the CFPB's anti-arbitration rule. The editorial singled out the Trump administration for not firing CFPB Director Cordray, as well as Republican Senators like Lindsey Graham as major roadblocks holding up the legislation.... Read More

  7. CFPB's Anti-Arbitration Rule Hurts Consumers

    August 04, 2017 | News and Blog

    Despite using its own data to craft its anti-arbitration rule, the CFPB "paints an incomplete picture of how arbitration compares to class action suits," says the American Action Forum.... Read More

  8. GOP Lawmakers Introduce Measures to Repeal CFPB Rule

    July 21, 2017 | News and Blog

    More than a dozen Republican senators, including most GOP members of the Senate Banking Committee, introduced a resolution Thursday morning to repeal the CFPB rule under the Congressional Review Act (CRA), writes the Hill. ... Read More

  9. Supreme Court Urged to Enforce Class-Action Waivers in Workplace Arbitration

    June 12, 2017 | News and Blog

    Several companies urged the U.S. Supreme Court last week to enforce class-action waivers in workplace arbitration agreements, writes Reuters.... Read More

  10. In the News Today - February 27, 2017

    February 27, 2017 | News and Blog

    The number of class action lawsuits filed in Canada more than doubled in 2016 compared to the year before according to a report from NERA Economic Consulting. Additionally, the report found that a U.S.-listed company is six times more likely to get hit with a securities suit than a Canadian listed company.... Read More