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The obvious reason that large companies want arbitration is because it's cheaper. People file frivolous lawsuits against large companies all the time, and sinc
by fallingknife 4y ago
The obvious reason that large companies want arbitration is because it's cheaper. People file frivolous lawsuits against large companies all the time, and since it costs minimum $100K in legal fees to take a case to trial, these companies (or their insurance companies) will generally choose to just settle and make a payout because it's actually cheaper than going to court, even if they win. Arbitration is a much quicker and cheaper process, so it effectively counters the tactic of filing frivolous suits for greenmail payments.
- acdha 4y agoCompanies also routinely _claim_ that lawsuits are frivolous but that doesn't mean we should take their word on it. It's not even remotely true that it costs a minimum of $100K, so I would start by questioning whether the person who told you that had an ulterior motive.
- fallingknife 4y agoI know that there are tons of frivolous greenmail lawsuits because I have been at companies on the receiving end. I know how much lawyers cost through personal experience. What is your evidence? What are your motives?