Agreement Arbitration Document With Class Action Waiver In Massachusetts
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FAQ
The Massachusetts Act adopted the central provision of the FAA, which makes both pre and post dispute agreements to arbitrate “valid, enforceable and irrevocable,” except on the grounds for the revocation of other contracts. M.G.L. c. 251 § 1.
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
However, employers that mandate arbitration often include class-action waivers in their employment contracts. This prevents workers from litigating their cases jointly, and instead requires them each to proceed with their relatively small individual claims through arbitration.
1 In the context of arbitration, waiver occurs when a party consciously and intentionally gives up its right to arbitrate a particular dispute, thereby choosing litigation as the preferred method of dispute resolution.
Arbitration agreements require that persons who signed them resolve any disputes by binding arbitration, rather than in court before a judge and/or jury. What is binding arbitration? Binding arbitration involves the submission of a dispute to a neutral party who hears the case and makes a decision.
1 In the context of arbitration, waiver occurs when a party consciously and intentionally gives up its right to arbitrate a particular dispute, thereby choosing litigation as the preferred method of dispute resolution.
See 9 U.S.C. § 1. In Concepcion, the U.S. Supreme Court ruled that class action waivers in arbitration agreements are enforceable.
Cons of Joining a Class Action Lawsuit Limited Control: As a class member, you have less control over the litigation process. If you're not chosen as the lead plaintiff, you'll be forced to relegate most of the decisions regarding settlements and trial strategy to the representative and their attorney.
