Yes, yes. For a wide variety of reasons, the forced arbitration process is generally bad for employees. Mandatory arbitration deprives you of your right to access the public justice system. Refusing this access – without you being able to make a reasonable voluntary decision to waive that right – is a considerable loss. The case concerned a possible conflict between two contracts. The first was an enterprise agreement that included a compromise clause and a decision to arbitrate in accordance with the JAMS arbitration rules (which contain a delegation provision). The enterprise agreement contained, in essence, a number of non-competition obligations that prevented the defendant`s conduct. The second contract, and later, was a withdrawal agreement that did not refer to an arbitration procedure, included a merger clause and was to, at least in part, succeed the previous agreement. In particular, the takeover agreement should free the defendants from their obligations under the operating contract.
The agreement provided for a binding arbitration provision: 17. I was offered a new job and I noticed a forced arbitration agreement in the papers I had to sign. Do you want me to sign? The public judicial system offers the protection of a relatively free system of employer influence – a protection that is often not provided in forced arbitration proceedings. In addition, the judicial system is open to public law review and its decisions are appealed. In the event of a job, access to discovery is essential because so much information you need to prove your case is in the hands of your employer. Unlike arbitration in labour or commercial disputes, instead of having a contract that governs the relationship between the parties, there are laws that must be interpreted and enforced, because they apply to the employment relationship, which make these cases more complex and require judges with experience in law. These features, along with many other valuable features of the public justice system, are either limited or not available in the forced arbitration system. In general, the courts are highly critical of any restriction of facilitation that, without the arbitration agreement, would otherwise be available in public courts. As a result, most forced arbitration agreements now explicitly state that there is no limitation on claims or damages that the employee may receive.
Any limitation of the remedies available to the courts greatly increases the likelihood that the agreement will be set aside by courts deemed unenforceable. More and more contracts contain arbitration provisions. While the main idea for the parties is to resolve their dispute with an arbitrator and avoid going to court, the parties are sometimes resistant and are not prepared to accept the result if it is not in their favour. However, a district court will apply an arbitration agreement and the resulting arbitration decision as long as a particular dispute enters the scope of the agreement.