In more than a decade of litigation to entrench corporations’ power to impose arbitration on consumers and employees, the U.S. Chamber of Commerce has steadfastly championed arbitration as a fair and efficient alternative to class actions.
The report, written by Mayer Brown lawyers Andrew Pincus, Archis Parasharami, Kevin Ranlett and Carmen Longoria-Green, asserted that plaintiffs' firms may be skirting an array of ethical rules in their mass arbitration campaigns. Among other potential pitfalls, the Chamber cited conflicts of interest among clients who diverge on accepting settlement offers; restrictions on client solicitation; and prohibitions on representing out-of-state clients.
The report liberally spreads blame for the purported scourge of mass arbitration. Federal judges, the report said, have so far refused to recognize or confront abuses by plaintiffs' lawyers engaged in these campaigns. The real victims of these mass arbitration abuses, according to the Chamber report, are consumers and employees. If companies follow the lead of Amazon.com Inc and abandon mandatory arbitration because of the threat of mass claims, the report said, consumers and workers will no longer be able to benefit from the efficiencies of arbitration to resolve small disputes.
A batch system, Webb said, would restore fairness by refocusing cases on actual claims. “At the end of the day,” Webb said, “it’s in the interests of arbitration providers to resolve this.” The other firm named in the report is Keller Postman. Name partner Warren Postman – who worked for the U.S Chamber before joining the mass arbitration firm – called the Chamber's position “cynical and hypocritical” in an email statement.
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