In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
Section 7 of the Arbitration Act 1996 confirms that the doctrine of separability applies to arbitration agreements. It makes clear that even if the main contract never came into existence, the arbitration agreement can still be binding.
Some potential consequences may include: Breach of Contract: If arbitration is a contractual requirement and one party refuses to participate, they may be in breach of the contract. The non-complying party may be held liable for damages resulting from the breach.
Without a valid arbitration agreement, no arbitration can take place or award can be rendered. In other words, a valid arbitration agreement is the cornerstone of any arbitration proceedings. Townsend, J.M., Drafting Arbitration Clauses: Avoiding the 7 Deadly Sins, Dispute Resolution Journal, 2003, p. 1.
Under California law, you cannot be fired solely for refusing to sign an arbitration agreement. The California Labor Code provides strong protections for employees, ensuring that refusal to sign an arbitration agreement cannot be used as grounds for termination.
Most employers in the U.S. now require employees to accept a mandatory arbitration clause—waiving their right to sue in court as a condition of work. Arbitration clauses are often buried in the fine print of one-sided employment contracts that businesses impose, and that workers have no power to contest.
The Scope of the Clause. This section of the clause is critical; it sets the boundaries for which disputes the tribunal is authorised to determine. Choice of Rules. The Number of Arbitrators. Appointing Authority. Choice of Venue. The language of the proceedings. Finality. Exclusion of the right of appeal.
Even if there were no pre-hearing briefs, keep your open- ing short, providing an executive sum- mary of your case in chronological order without getting into the weeds. Try to sum up some key points in phraseology the arbitrator will remember. If you have compelling evidence, mention it.
Arguments should flow easily from the relevant facts and applicable law. Avoid exaggerating the strengths of your case as well as disparaging the opposing side. Remember that professionalism and credibility are critical to persuasiveness.
Because of limited discovery, lack of a jury, and limited appeal rights, arbitration outcomes are riskier and more final than court litigation. It is hard to see why arbitration would be fairer than court litigation. Arbitration is litigation, just not in court.