Posted by: “fred f”   Apr 13, 2012

Arbitration is “privatized justice” and very bad for property owners.

Mandatory binding arbitration was originally intended for disputes between corporations. It’s now being forced onto consumers in many contracts, including those for credit cards, cell-phone service, home building, insurance, and nursing homes. Arbitration agreements stop consumers from suing over negligence and defective products. To shield against harassment and discrimination complaints, employers may require employees to sign one as a condition of employment.

The deck is stacked against consumers. Companies choose the arbitration firms and can reward them with repeat business for favorable results. There’s no judge, jury, or public record, and courts cannot set aside a decision just because it’s capricious. Companies can delay or hold the arbitration anywhere in the country they have a presence. So consumers are locked into a privatized justice system with no accountability or transparency.

Consumers Union believes that consumers should not be forced to sign away their day in court as a condition of doing business….. (which is exactly what happens when buying housing within a “planned community”)


 Winton Woods (an AZ attorney)
Subject: AZ HB 2290

This bill still contains the sloppy language that may result in mandatory arbitration by a “nationally recognized” arbitration association which may be extraordinarily expensive. It is a very bad idea to establish a requirement that disputing parties in small cases may be forced into arbitration that can easily be more expensive than litigation. The bill is drafted poorly, perhaps on purpose, and will discourage homeowners from disputing association actions when they are made aware of the potential cost of arbitration. In its present form this is a very anti-homeowner piece of legislation that will cause many problems.

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