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FEATURED MEDIATORS
 
5/17: Charles Schwab Drops Forced-Arbitration Clause From Contracts After AT&T somehow convinced the U.S. Supreme Court that a couple of sentences buried toward the end of a contract that maybe .05% of customers ever think about reading was all that was needed to preempt class-action lawsuits, many large companies have rushed to pack their user agreements and licenses with clauses that force customers into arbitration. But, stuck in a battle with an industry regulator, the folks at Charles Schwab have decided to go another way, announcing that they have gotten rid of their arbitration clause… for now. read
Amazon.com’s response to two former sellers complaining about tied-up payments can be summed up as: We’ll see you in arbitration. Seattle-based Amazon, in a 28-page document filed in U.S. District Court in Seattle, asks Judge Marsha Pechman to move the case to arbitration. The two sellers claimed in a lawsuit filed in March that Amazon refused to pay them for more than 90 days after it shuttered their accounts. They want full restitution of “monies wrongfully obtained,” plus interest and other unspecified damages. In its response, Amazon noted that when the plaintiffs signed up to sell products on its website they agreed to arbitrate any disputes. The suit, which seeks class-action status, says Amazon routinely holds sellers’ money longer than allowed to rack up interest and “reap many tens of millions of dollars annually.” read
As discussed by the American Association for Justice, the new law seeks to end the abusive practice of so many large corporations, including nursing home conglomerates, that seek to insulate themselves from legal accountability with forced arbitration. As the AAJ summarized, the law is critically needed, because when it comes to arbitration, “The process is secretive, costly and rigged so that corporations cannot be held accountable. By removing access to justice, it grants corporations a license to steal and violate the law.” read
A judge handling a $2 billion lawsuit against banks including JPMorgan Chase & Co. (JPM) and UBS AG (UBSN) brought by the former Thornburg Mortgage invited their lawyers to file statements on the possible appointment of a mediator to resolve the dispute, according to a federal court filing in Baltimore. read
The selection criteria for in-house counsel choosing mediators is 'a-changin'. A survey of in-house dispute resolution counsel from 76 arge international corporations focused on what criteria the counsel used when selecting a mediator. The results highlighted that almost half of the counsel who responded to the survey don't consider the legal expertise of the mediator as a relevant factor when selecting a mediator. The majority of respondents felt that the core area of expertise of the mediator was a more important factor. read
Mediation is the only way forward for "messy and expensive" company law disputes according to the senior judge who manages corporate divorces. High Court judge Ms Justice Mary Laffoy said that company law disputes, often between longstanding friends and siblings, as well as husbands and wives, are highly expensive and time consuming, with many lasting for years. "Mediation has application across the board, and I think most judges would welcome a mediation act" said Judge Laffoy. read
Johannesburg - Over 70% of debt mediation cases resulted in a positive outcome for consumers in the first quarter of this year, the National Debt Mediation Association (NDMA) says. "Each consumer's case is unique and requires a different solution, and the ability of the NDMA to provide expert advice and guidance has benefited consumers immensely," CEO Magauta Mphahlele said in a statement. The NDMA closed 863 cases in the first quarter of the year, up from 679 in the last quarter of 2012. read
A group of 37 federal lawmakers urged U.S. securities regulators to prohibit Wall Street brokers from forcing customers to sign away their legal right to sue. read
The UK Intellectual Property Office has recently launched a new mediation services to help businesses resolved disputes faster and more cheaply. The move follows the Hargreaves report which identified reasons why an earlier mediation service was rarely used and assessed how it could be improved to meet the needs of businesses. The service will now offer a greater choice of mediation options including telephone sessions and will provide a wider list of specialist accredited mediators and a more flexible fee scale. Disputes from infringement of an IP right, issues about IP licensing, copyright licensing issues and patent entitlement will all come within the ambit of the services. read
IP cases in the entertainment industry are great candidates for mediation and arbitration. The importance of secrecy and privacy, The need for expertise and the flexibility that ADR offers are three reasons why intellectual property and entertainment practitioners should use ADR as much as possible. read
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Marketplace Featured Listings
Nothing makes you more tolerant of a neighbor's noisy party than being there.
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Canada has decided against forcing banks to use the Ombudsman for Banking Services and Investments (OBSI) and will provide new regulations permitting them to hire private mediators to resolve client disputes. OBSI was created in 1996 to handle complaints against banks and since 2002 has also been responsible for resolving investment complaints; investment dealers are still required to use OBSI. The issue arose after Canada’s two largest banks, the Royal Bank of Canada and Toronto-Dominion Bank, withdrew from OBSI in favor of private mediation and other banks were expected to follow. However, some consumer advocate groups and regulators are concerned that if banks hire private mediators the independence of the mediators could be compromised.
Financial Post (April 30, 2012)
A World Bank paper discusses the effectiveness of alternative dispute resolution, looking at the empirical benefits of mediation and other forms of ADR and noting the need for additional studies outside the U.S. The short paper, by the Investment Climate Impact Project, focuses on measurable issues of cost savings and timing. It also discusses less measurable impacts, such as improving business relationships and problem-solving skills, reducing pressure on courts, and improving investors’ perceptions about the safety of business investments in emerging markets.
Settling Out of Court, Note No. 329 (2011); The World Bank Group’s Viewpoint Policy Journal
The world’s first international conflict resolution group for disputes over derivatives and other complex financial instruments has been established as a non-profit under Dutch law and is based in the Hague. The group is the Panel of Recognized International Market Experts in Finance (P.R.I.M.E. Finance). While a panel of experts is already on its newly-launched website, the group will begin offering mediation and arbitration services in January 2012. The organization states that it benefits from various subsidies, so may be less expensive than other alternatives.
Commodity Focus.com (June 28, 2011); P.R.I.M.E. Finance
The High Court in Hong Kong refused to enforce an arbitral award from China because one of the party-appointed arbitrators acted as a mediator and met with a person connected with one of the parties to propose a settlement. Although the court found that lack of transparency and other concerns tainted the arbitral award, the court made clear that it was not rejecting the concept of med-arb, which is expressly permitted in Hong Kong and common in Asia.
International Law Office (June 7, 2011); Gao Haiyan v. Keeneye Holdings Ltd., HKEC 514 (April 12, 2011)
The World Intellectual Property Organization’s (WIPO) Arbitration and Mediation Center will provide mediation services for Creative Barcode members; Creative Barcode is a new mechanism for facilitating safe disclosure of creative concepts and ideas in business deals and proposals by using barcoded files. In more traditional endeavors, some 2,700 cybersquatting cases were filed with the WIPO Center in 2010, setting a new record. The cases were handled by over 300 panelists in 49 countries in 13 languages. The WIPO Center also continues to handle significant numbers of intellectual property disputes.
Dexigner (March 22, 2011); Ag-Ip-News.com (March 31, 2011)
In a twist on mini-trials, “jury mediation” brings together typical jurors to receive a short presentation from the parties, including key documents and even witness testimony, after which the “jury” deliberates and provides its conclusions and reactions in conversation with a mediator and trial consultant. The goal is to decrease uncertainty and increase the information on which parties can make informed settlement decisions in mediation.
New Orleans City Business (March 25, 2011)
While recognizing that the parties’ franchise agreement provided that disputes must go through mediation prior to litigation, the federal court entertained plaintiff’s effort to maintain the status quo during mediation by seeking a preliminary injunction. However, the court denied plaintiff’s request after analyzing the factors required for a preliminary injunction.
Edelman v. Certified Restoration Dry Cleaning Network, No. 11-10781 (U.S.D.C. E.D. Mich., March 11, 2011)
