Liable For Fee ONLY Through Arbitration

[jferry]

Originally Posted by jferry

In the archive, I answered a question from Justin Watts [jwatts on your search] about E & O. The answer is in the archive. It is also in Paul Hinsperger's "Great Posts" archive and it was widely reported on TIJ.

If Paul would repost his "Great Posts" collection, it would be a great benefit to a lot of our newer members.

Here is Paul's Great Posts link:

http://www.nachi.org/forum/showthread.php?p=727#post727

Here's the link to my E & O post:

http://www.nachi.org/bbsystem/viewto...=181626#181626

[Joe Farsetta]

In order for an arbitration clause to be enforced, its first test is that it is not onerous. Suggested language for ADRS is not onerous. The HI pays annually for the service, and the plaintiff pays a reasonable fee to bring action.

38 ADRS cases never moved forward last year after speaking to the potential plaintiff. The process was explained at length, including carefully reviewing the inspection report, recollecting conditions met on the day of the inspection, and examining the SOP the inspector operated under. All sound advice for a plaintff preparing a case pro se. 33 dissapeared after this. In some instances, where a client could have sued, after speaking with ADRS, they chose the route of calm communication with the inspector. Those went away also (5).

ADRS is also non-binding. For some who may not know be aware, arbitration has been challenged and overturned. Some arbitrators have even been sued. We communicate, coach, mediate, and if needed, arbitrate.

In an official lawsuit with a judge, sometimes arbitration is offered as a last resort before trial. Folks had better have a valid reason for rejecting it, or these judges can get pissed off. Not good for the parties. Judges and court admind dont like the system clogged with trivial actions. They want to get rid of them. I have seen cases where arbitration is agreed to in the 11th hour in a courtroom, and the plaintiff and defendent lead to another room with an arbitrator sitting there. Binding arbitration, by the way. Not a whole lot of time, either.

It happens. ADRS is a cost effective alternative that works.