An Unhappy Bargain: The Downsides of Arbitration

[...]in federal and some state courts, even after the pleading stage, courts must "freely give" parties leave to amend their pleadings when justice requires, such as when material new facts or evidence is revealed. [...]there was no procedural mechanism to assert new claims based on the al...

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Bibliographic Details
Published in:Litigation 2019-10, Vol.46 (1), p.44-48
Main Authors: KRAMER, KATIE BURGHARDT, KUSHNER, AMIAD
Format: Article
Language:English
Subjects:
Arbitration
Costs
FEATURES
Federal court decisions
Judges & magistrates
Judicial reviews
State court decisions
Trials
Online Access:Get full text
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Summary:[...]in federal and some state courts, even after the pleading stage, courts must "freely give" parties leave to amend their pleadings when justice requires, such as when material new facts or evidence is revealed. [...]there was no procedural mechanism to assert new claims based on the alleged fraud. [...]in arbitration, the winning party often receives an award to recover its fees and costs, which may also include its legal fees. While some losing parties simply pay the arbitration award, an arbitration award is not enforceable unless it is converted to a court judgment, so even in the best of circumstances, ancillary court proceedings may well arise, carrying additional costs and compelling further attorney fees. [...]proceedings to confirm or vacate an arbitration award often follow, setting in motion a whole new legal action.
ISSN:0097-9813
2162-9765