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    Arbitration Costs and Forum Accessibility: Empirical Evidence

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    Full-text available at SSRN. See link in this record. (18.82Kb)
    Issue Date
    2008
    Author
    Drahozal, Christopher R.
    Type
    Article
    Version
    http://ssrn.com/abstract=1878006
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    Abstract
    Is arbitration cheaper than litigation, or more expensive? Does arbitration enhance access to justice for consumers and employees, or does it prevent them from vindicating their legal rights? Subject to the standard caveats, the available empirical evidence suggests the following tentative conclusions on those two questions. First, the upfront costs of arbitration will in many cases be higher than, and at best be the same as, the upfront costs in litigation. Whether arbitration is less costly than litigation thus depends on how attorneys’ fees and other costs compare, and the evidence here is inconclusive. Second, for employees and consumers with small and mid-sized claims, the availability of low-cost arbitration makes arbitration an accessible forum, and possibly a more accessible forum than litigation. But for consumers with large claims, and for employees not able to use low-cost arbitration, the evidence is less clear. For such claimants, administrative fees and arbitrators’ fees likely will exceed court filing fees. The question is whether other cost savings in arbitration offset the higher upfront costs. Moreover, even if arbitration is more affordable on net, it still may not be a more accessible forum than litigation. Accessibility depends not only on dispute resolution costs, but also on expected recoveries. Third, whether arbitration is an accessible forum for claims that can only be brought on a class basis remains uncertain. The extent of such claims, as well as whether class arbitration is a suitable substitute for class actions, needs further research.
    Description
    Full-text available at SSRN. See link in this record.
    URI
    http://hdl.handle.net/1808/11264
    Collections
    • Law School Scholarly Works [621]
    • Distinguished Professors Scholarly Works [918]
    Citation
    Christopher R. Drahozal, Arbitration Costs and Forum Accessibility: Empirical Evidence, 41 U. MICH. J. L. REFORM 813 (2008).

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    Contact KU ScholarWorks
    785-864-8983
    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    785-864-8983

    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    Image Credits
     

     

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