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If an employee can show some substantial relationship between the fraud committed or the misrepresentation made by the employer and the arbitration agreement, a court will void the agreement.
An arbitration clause can be either binding or nonbinding. A binding arbitration clause means that the arbitrator's decision on a specific dispute will be final. The courts will enforce that decision, and neither party can appeal or fail to act according to the decision.
While parties are not required to have an attorney to participate in arbitration, arbitration is a final, legally-binding process that may impact a party's rights. As such, parties may want to consider consulting an attorney at any time before, during, or after the arbitration.
Arbitration agreements are presumptively valid, enforceable, and irrevocable in Massachusetts, unless grounds exist for revocation under contract law (M.G.L. ch. 251, §1 and Miller, 863 N.E.2d 537 at 543).
Arbitration is normally binding, although non-binding arbitration exists and is similar to a case evaluation. When an arbitrator makes a decision it is called an award. By binding, it means that the parties agree in advance to accept the decision of the arbitrator.
Under the Armendariz standards, an arbitration agreement will not be enforced in California if it is both "procedurally unconscionable" and "substantively unconscionable." Any arbitration agreement required as a condition of employment (i.e., any mandatory arbitration agreement) is automatically considered procedurally
1 Arbitration agreements for medical malpractice are written contracts between health care providers and patients in which both agree to arbitrate any dispute or claim arising from the medical care provided to the patient by the health care provider.
To enforce the right to arbitrate, the party must then file a motion to stay the lawsuit in favor of arbitration. If both parties to the agreement ignore the right to arbitrate, the right is waived.
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.