AFA 2007 Hearing

The Adminstrative Law Subcommitte Held a Hearing About Binding Mandatory Arbitration Clauses. Tell Your Congresspeople and the Members of the Subcommittee to Cosponsor the Arbitration Fairness Act!

Below are 5 different letters. The first will only go to your Senators and Representatives. The others will goto members of the Adminstrative Law Subcommittee based on the location of the arbitration horror story within the letter. For example, Chairwoman Sanchez (CA-47) will recieve letters about victims of Binding Mandatory Arbitration in California.

Take Action: Send a Letter

Message Recipients

Your Congresspeople

Committee Members 1

Committee Members 2

Committee Members 3

Committee Members 4

Review Letter for Your Congresspeople

Subject:*

Below is preformatted letter to your elected officials. We encourage you to edit and change the text as you see fit.

Dear (recipient name),

I ask you to consider the story of Deborah Wilson who was hurt by a Binding Mandatory Arbitration clause:

Deborah Williams’ and Richard Welshans’ dreams came true when they opened their own franchise of the Coffee Beanery in suburban Maryland. Unfortunately, it quickly turned into a nightmare. The company had used deceptive business practices to make the franchisees look more profitable than they actually were.

They went into arbitration with the company to try and recover some of their losses. When Deborah and Richard found out that the arbitrator shared an accounting firm with the Coffee Beanery, they unsuccessfully tried to get her removed.

Before the hearing, a state Securities Commissioner had already ruled that the company had violated Maryland law; however, the arbitrator overruled this finding.  The arbitration procedure took place in Ann Arbor, Michigan so Deborah, Richard and their attorney had to fly to Michigan three times over the course of eleven days, costing them around $100,000.

The arbitrator ordered Deborah and Richard to pay the Beanery $150,000.  This miscarriage of justice has forced them to mortgage their home and file for bankruptcy.  Even though this award was financially devastating, it pales in comparison to their loss of trust in the civil justice system.

Deborah will tell her story to the House Administrative Law Subcommittee tomorrow, October 25th, 2007.  I hope that you will send a staffer to hear more about her stuggles with Binding Mandatory Arbitration.

Deborah is just one of thousands of victims of Binding Mandatory Arbitration.   These clauses, buried within many consumer contracts for credit cards, nursing homes and car purchases, stack the deck against ordinary Americans and force consumers to give up their rights before a dispute even occurs.

Although it is too late to fix this particular injustice, you have a chance to prevent thousands of more Americans from facing the same fate.

I urge you to cosponsor the Arbitration Fairness Act of 2007 because it will ban pre-dispute Binding Mandatory Arbitration clauses in consumer and employment contracts.  Without Binding Mandatory Arbitration clauses for big businesses to hide behind, American consumers will be able to hold companies accountable.

These clauses have already hurt thousands of Americans already, and will continue to do so if Congress doesn’t pass the Arbitration Fairness Act of 2007.

Again, I urge you to cosponsor the Arbitration Fairness Act of 2007 which bans the unfair practice and allows hard-working Americans to seek justice through the courts, often the only place they can face powerful interests on a level playing field.

Review Letter for Committee Members 1

Subject:*

Dear (recipient name),

I ask you to consider the story of Guy Combs, a veteran from Texas, who was hurt by a Binding Mandatory Arbitration clause:
Vietnam veteran Guy Combs bought a house in his hometown of Alpine, Texas.  After living in the house for only four years, Guy discovered that his home had severe structural problems.

He asked his builder to repair the damage, but the builder offered to pay only $3,000 for $300,000 worth of damages.  When Guy bought the home he unknowingly signed an arbitration agreement, which was not explained to him at the time.  Therefore, he was forced to settle his dispute in arbitration.

Guy describes arbitration as “third world justice.”  The arbitrator refused to recognize that there were damages to Guy’s home despite the testimony of twenty expert witnesses that Guy hired.

The arbitration process cost him $77,000.  The arbitrator billed him a flat fee of $150,000 but after negotiations he brought the fee down to $50,000 plus interest.  Guy did not want to lose his ranch and, since there was no means for appeal, he paid the fees.

Guy has a PhD from Brown and he thought he understood our legal system, until his rights were eviscerated by arbitration.

Guy is just one of thousands of victims of Binding Mandatory Arbitration.   These clauses, buried within many consumer contracts for credit cards, nursing homes and car purchases, stack the deck against ordinary Americans and force consumers to give up their rights before a dispute even occurs.

Although it is too late to fix this particular injustice, you have a chance to prevent thousands of more Americans from facing the same fate.

These clauses have already hurt thousands of Americans already, and will continue to do so if Congress doesn’t pass the Arbitration Fairness Act of 2007.

Review Letter for Committee Members 2

Subject:*

Dear (recipient name),

I ask you to consider the story of Sarah Hogan from California who was hurt by a Binding Mandatory Arbitration clause:

In January 2001, Sarah Hogan named her daughter, Barbara, as her agent, granting her power of attorney.  In May 2004, when Sarah was suffering from Stage II Alzheimer’s disease, Barbara admitted her to Country Villa Plaza Healthcare Center, a skilled nursing care facility.  At the time of admission, Barbara signed two arbitration agreements.  Both were optional and each contained a 30-day rescission right.

Unknown to Barbara, County Villa Services had implemented a plan to under-staff their nursing homes in order to increase profits.  While in the facility, Sarah received substandard infection protection and she was not hydrated properly.  She suffered severe dehydration and infections of the blood and urine, which led to her death on July 10, 2004.

In July 2005, Barbara and her three brothers filed a complaint for wrongful death, elder abuse and violation of patient rights, but Country Villa forced them into arbitration.

Sarah is just one of thousands of victims of Binding Mandatory Arbitration.   These clauses, buried within many consumer contracts for credit cards, nursing homes and car purchases, stack the deck against ordinary Americans and force consumers to give up their rights before a dispute even occurs.

Although it is too late to fix this particular injustice, you have a chance to prevent thousands of more Americans from facing the same fate.

These clauses have already hurt thousands of Americans already, and will continue to do so if Congress doesn’t pass the Arbitration Fairness Act of 2007.

Review Letter for Committee Members 3

Subject:*

Dear (recipient name),

I ask you to consider the story of Mary Finn from Ohio who was hurt by a Binding Mandatory Arbitration clause:

Eight-two-year-old Mary Finn had a home built for her by Ray Murphy Homes but due to numerous structural problems (the home did not meet building standards) she did not purchase the home.   She tried to get her down payment back, but was told she was bound by an arbitration clause.

Using the “fast track” system, she went through arbitration with the American Arbitration Association.  The builder and attorneys kept cancelling, so it was not a fast process, as advertised.

During arbitration Mary encountered misrepresentation and fraud.  The builders hid the damage on the house by limiting inspections and Mary paid high costs and was misled about the costs of arbitration.

The builder's lawyer took money out of their retainer to pay for the builder's filing fee without their knowledge or approval.  She still can not get the builder into arbitration because he refuses to make himself available.

She refers to arbitration as “rape” because she has felt so violated through the process.

Mary is just one of thousands of victims of Binding Mandatory Arbitration.   These clauses, buried within many consumer contracts for credit cards, nursing homes and car purchases, stack the deck against ordinary Americans and force consumers to give up their rights before a dispute even occurs.

Although it is too late to fix this particular injustice, you have a chance to prevent thousands of more Americans from facing the same fate.

These clauses have already hurt thousands of Americans already, and will continue to do so if Congress doesn’t pass the Arbitration Fairness Act of 2007.

Review Letter for Committee Members 4

Subject:*

Dear (recipient name),

I ask you to consider the story of Wallace Hinshaw of Florida who was hurt by a Binding Mandatory Arbitration clause:

When Wallace Hinshaw opened an account with Wachovia Bank, he had no idea of the torturous times to come. After being paid for a development project, Wallace deposited $27 million into his account.  Inexplicably, the bank simply took out the money. Wallace tried to sue but was forced into binding arbitration because of a depositor’s agreement he signed when he opened the account.

During arbitration, officers of the bank made unsubstantiated accusations against Wallace. They even called the US Attorney’s office and asked them to initiate a criminal investigation on him. Even though these accusations were later proven and admitted by the bank to be false, because arbitration does not allow for discovery and the results cannot be appealed, it was too little too late.

Based on the false testimony, the arbitrator actually ordered Wallace to pay the bank $1.5 million. In the end, he was forced to pay over $50,000 in arbitration fees, with not a dime to show for it.

Wallace is just one of thousands of victims of Binding Mandatory Arbitration.   These clauses, buried within many consumer contracts for credit cards, nursing homes and car purchases, stack the deck against ordinary Americans and force consumers to give up their rights before a dispute even occurs.

Although it is too late to fix this particular injustice, you have a chance to prevent thousands of more Americans from facing the same fate.

These clauses have already hurt thousands of Americans already, and will continue to do so if Congress doesn’t pass the Arbitration Fairness Act of 2007.

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