Clients, what is your cost of arbitration? What if your
customers try to demand arbitration all at the same time? What if
you had to pay the filing fees for that arbitration? Are you really
saving money? Maybe traditional litigation or a class action suit
is more efficient.
Recently, global retailing giant Amazon elected to do away with
their arbitration clause after receiving 75,000 arbitration demands
at once, costing the company a fortune. Due to the rise in
sophisticated plaintiffs law firms armed with targeted marketing
and case management technology, plaintiffs firms are now able to
file mass arbitration demands for hundreds if not thousands of
clients all at once. This tactic is being used by plaintiffs firms
to force large companies into settlements who want to avoid paying
high arbitration fees.
