U.S. Sen. Jeff Sessions Introduces Fair Arbitration Act of 2007

Press Release

U.S. Sen. Jeff Sessions Introduces Fair Arbitration Act of 2007

U.S. Sen. Jeff Sessions (R-AL) today introduced legislation designed to reform the arbitration process by making it fairer and more workable for consumers, employees, small business owners and others.

Called the "Fair Arbitration Act of 2007," the legislation would amend the Federal Arbitration Act of 1925 by granting several specific due process rights to anyone involved in arbitration.

"This bill will ensure that those who can least afford to go to court can go to a less expensive arbitrator with confidence that the arbitration process will treat them justly," said Sessions, a member of the Senate Judiciary Committee, which has jurisdiction over the issue. "It will make the arbitration system fairer and more user-friendly for both sides of a dispute."

Arbitration allows parties to settle their disputes without going to court, through the use of a neutral decision-maker. Under the current Federal Arbitration Act, an arbitration clause in a contract is enforceable in court if the parties agree to it as part of a contract that affects interstate commerce.

Although there have been cases of arbitration abuse in recent years, Sessions believes the process is a valid alternative to resolving disputes in court at the cost of skyrocketing legal fees.

"If flaws in the federal arbitration process appear, Congress has a duty to make improvements to the Federal Arbitration Act," Sessions said. "All Americans should be confident that they will be treated fairly if they agree to arbitration."

Sessions believes the arbitration system can be improved, and his legislation seeks to make the arbitration process more equitable for everyone. Among other things, the bill would:

· Require arbitration contract clauses to have a heading in large, bold print that would say whether arbitration is mandatory or optional.

· Give all parties to arbitration an equal voice in selecting a neutral arbitrator.

· Give all parties the right to a fair hearing in a nearby or reasonably convenient forum.

· Give parties the right to conduct discovery and present evidence, cross-examine witnesses presented by the other party and hire a stenographer to produce a record of the hearing.

· Provide for reimbursement of costs to consumers under certain circumstances, and waive fees in case of hardship.

· Grant consumers the right to opt out of arbitration into small claims court if that court has jurisdiction over the claim and the claim doesn't exceed $50,000.

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