Civil Procedure Outline- Arbitration

    **Abridged Arbitration**

  1. Arbitration was envisioned as a method for resolving disputes more quickly and with less expense than a typical trial.
    • In 1925, Congress enacted the Federal Arbitration Act (FAA) which stated that arbitration agreements are valid and enforceable unless there is a reason for the revocation of the contract.
    • Arbitration agreements are favored and are valid to enforce adjudicate statutory claims. The party wishing to get out of it must make a really good argument.
      • Just because an arbitration agreement does not mention the costs of arbitration does not allow a party to get out of it. (Green Tree)
      • Arbitration is even allowed to adjudicate important legal claims like antitrust suits. (Mitsubishi)
      • Arbitration is valid for employment discrimination suits; FAA applies in state court as well, preempts anti-arbitration state laws. (Circuit City)
      • The FAA even preempts state laws that create special requirements about notice of arbitration agreements in contracts. (Doctor's Associates)


  2. From Section 2 of the FAA, "What states may not do is decide that a contract is fair enough to enforce all its basic terms (price, service, credit), but not fair enough to enforce its arbitration clause. The Act makes such state policy unlawful, for that kind of policy would place arbitration clauses on an unequal footing, directly contrary to the [FAA’s] language and Congress’ intent."