Franchisees are often better served with arbitration than litigation, which can take longer and cost more.
In fact, if this matter is deemed to be subject to the Federal Arbitration Act, the court will stay the litigation involving the other parties until the arbitration between Mr. Sheen and Warner Bros. is completed.
That case tests whether businesses can short-circuit a consumer class action by invoking the federal Arbitration Act, which encourages arbitration instead of litigation.
FORBES: Class-Action Foes Have Trifecta Before Supreme Court
The federal law allowing arbitration instead of litigation is riddled with exceptions Congress even exempted car dealers and active-duty military personnel from parts of it and most retail transactions would be untouched.
The conservative majority on the court, led by Chief Justice John Roberts has shown a strong preference for upholding the Federal Arbitration Act, which encourages businesses to use arbitration instead of courtroom litigation to settle their differences.
Joel Barras, an attorney at Reed Smith LLP represents a variety of regional and national employers in collective bargaining, labor arbitration, and employment-related litigation.
FORBES: What Employers Should Expect If Romney Is Victorious
Those favoring arbitration contend it is faster than court litigation.
Trial lawyers desperately want to neuter the Federal Arbitration Act, which sweeps all manner of litigation into its maw.
"If the tax passes we definitely have a case for arbitration and we will not hesitate to introduce that litigation, " he says.
The attorney tried more than 300 cases in 21 states, his family said, before retiring from his litigation practice in 2009 to focus full-time on his mediation and arbitration practice.
Arbitration typically involves a quick resolution and tends to be less expensive than litigation (although not always).
FORBES: ADIOS/SAYONARA: Kicking a Bad Business Relationship To The Curb
The law was designed to rein in judges who had repeatedly ignored contracts requiring arbitration, perhaps out of a deep-seated aversion to ceding control over litigation.
FORBES: Supreme Court Shows Skepticism About Class Arbitration
Congress passed the Federal Arbitration Act in 1925 to encourage litigants to settle their disputes without resorting to full-blown litigation.
FORBES: Supreme Court Shows Skepticism About Class Arbitration
应用推荐