Constitutional Right to a Trial by Jury
The right to a trial by a jury of one’s peers is a constitutional right guaranteed to every citizen under the laws (Note 4). In all criminal cases, the defendant has the constitutional right to have a jury of their peers at trial (Note 5). However, when you agree to an arbitration clause, you essentially waive this right and agree to resolve disputes via a neutral third party called an arbitrator (Note 6).
Understanding Arbitration Clauses
An arbitration clause is a provision in a contract that requires the parties to resolve their disputes through an arbitration process. Both parties essentially agree to settle disputes out-of-court with an arbitrator (Note 1). Decisions coming from arbitration are legally binding unless the parties otherwise stipulate that the outcome is non-binding. This essentially means that both parties agree to settle disputes out-of-court with an arbitrator. Decisions coming from arbitration are legally binding unless the parties otherwise stipulate that the outcome is non-binding.
The Allied Bruce Terminix Cos. v. Dobson Case
The case of Allied Bruce Terminix Cos. v. Dobson was a pivotal United States case that validated arbitration clauses in consumer contracts (Note 2). In 1987, Steven Gwin, a homeowner in Birmingham, Alabama, bought a lifetime “Termite Protection Plan” from a local office of Allied-Bruce Terminix Company (Note 3). The termite prevention contract specified that any controversy would be settled exclusively by arbitration. After the Gwins sold their house and transferred their plan to the Dobsons, the Dobsons initiated a suit against the Gwins, Allied-Bruce, and Terminix following a termite infestation. Allied-Bruce and Terminix asked the trial court for a stay to allow for arbitration under the contract and the Federal Arbitration Act, but their request was denied. The Alabama Supreme Court affirmed the trial court’s denial of their request based on a state statute and the State’s constitution, which invalidated pre-dispute arbitration agreements. However, the U.S. Supreme Court held that the Federal Arbitration Act applied to all disputes involving commerce, including adhesive consumer contracts and, thus, the arbitration clause was valid and enforceable.
Consequently, when it comes to forcing consumers to waive their constitutional rights, Terminix was and has always been at the forefront.
The Federal Arbitration Act
The Federal Arbitration Act (FAA) is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration (Note 7). It applies in both state courts and federal courts7. The FAA provides for contract-based compulsory and binding arbitration, resulting in an arbitration award entered by an arbitrator or arbitration panel as opposed to a judgment entered by a court of law.
The American Arbitration Association (AAA)
Many consumer contracts use the American Arbitration Association (AAA) as the preferred forum. The AAA provides for fair administration of consumer disputes and will exercise its authority to decline administration of arbitration demands where an arbitration clause contains material violations of the AAA Consumer Due Process Protocol (Note 8). This protocol was developed in 1998 in cooperation with representatives from government agencies, consumer interest groups, education institutions, and businesses (Note 9).
Cochran Bowers PC and Arbitration Cases
The lawyers at Cochran Bowers PC have arbitrated many cases against Termite Service Providers, including Terminix and Rentokil North America. Rentokil Initial, a United Kingdom-based global pest control business, acquired Terminix for $6.7 billion, creating the world’s largest pest control company (Note 11).
The Importance of Legal Expertise in Arbitration
Because your right to appeal is virtually non-existent in arbitration, you will need a lawyer that is familiar with the ins and outs of the arbitral process (Note 10). A knowledgeable lawyer can help navigate the complexities of arbitration, ensuring that your rights are protected throughout the process. These cases can be expensive to work up because expert witnesses will undoubtedly play a central role in Termite Fraud and Termite Damage Claim arbitrations, whether they advise behind the scenes or testify in the proceeding. In either case, their input and/or opinion will be used to assist the arbitrator regarding the merits of your claim.
Note 6: https://www.law.cornell.edu/constitution-conan/amendment-6/right-to-trial-by-jury-scope-of-the-right
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