Powered by Lexis+®
Jurisdiction(s):
United Kingdom
United Kingdom
United States: Mass arbitration in consumer contracts—bellwether mechanisms, arbitral forum developments, fee payment risks, and stand-alone class action waivers
Published on: 13 June 2024
Published by a Law360 reporterLegal News
Article summary
The Concepcion decision has, among other effects, made arbitration terms in consumer contracts increasingly prevalent and regularly enforced across the country. Though arbitration clauses are designed to give consumers a straightforward path to address their grievances, plaintiffs' lawyers have often submitted hundreds, if not thousands, of closely similar arbitration demands against target companies—using the prospect of eye-watering filing charges—to pressure high-value settlements. This fresh wave of mass arbitrations has prompted many retailers to wonder whether the upsides of arbitration clauses outweigh their potentially very costly downsides. Below, we briefly summarise the current landscape.
The Mass Arbitration Threat
Mass arbitration is a tactical manoeuvre in which plaintiffs' counsel lodges dozens, if not hundreds or thousands, of near-identical claims all at once. At thousands of dollars per claim—which can include administrative fees, hearing fees, professional fees associated with the arbitrator and more—these costs can swiftly mount to millions, separate from any defence costs or judgments. Moreover, these fees are typically due regardless of the value of the matter or, broadly speaking, the strength of the claims...
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
Popular documents
When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...
This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...
Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
Discover more from LexisNexis
