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There is at present a general recognition that arbitration has many benefits and advantages over traditional litigation in medical malpractice claims. It is recognized that arbitration provides the health care provider the advantages of privacy, lower defense costs, and objective damage awards.
Arbitration is often resolved much more quickly than court proceedings, so attorney fees are reduced. Also, there are lower costs in preparing for the arbitration than there are in preparing for a jury trial. For binding arbitration, there are limited opportunities for appeal.
The arbitration agreement is valid only if signed by parties with full civil act capacity, and such parties must be competent, specifically: (i) A person with full civil act capacity is at least 18 years old and does not lose or limit her/his civil act capacity or difficulties in perception, mastery of acts.
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.
A mandatory arbitration agreement should identify the rules, procedures, and evidentiary guidelines to be applied. Many agreements opt for a particular forum's rules and procedures. If there are any rules that the parties want to opt out of (e.g., a limitation on discovery), state as much in the arbitration agreement.
Arbitration typically provides a speedier resolution than proceeding in court. The limited right to appeal arbitration awards typically eliminates an appeal process that can delay finality of the adjudication.
A defendant can waive the arbitration requirement by engaging in a court litigation that the consumer initiates, by refusing to pay arbitration fees or refusing to participate in the arbitration, or (according to some courts) by initiating collection litigation in a public forum against the consumer prior to the
Criticism of Mandatory Binding Arbitration Contracts, loans, and other agreements created by banks, credit card issuers, and cell phone companies often contain mandatory binding arbitration clauses in order to prevent customers from being able to join class-action lawsuits.
ADR has the potential to help reform the current tort system, reducing cost and increasing both parties' satisfaction. Easing the reporting requirements for the NPDB would lead to more widespread acceptance of ADR among physicians.
Takeaway. When there is any dispute as to the validity of an arbitration agreement, parties shall decide whether they should go to the court or the arbitral tribunal by considering whether it is clear on the evidence and the construction of the agreements on the question of jurisdiction.