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Basavaraj (Asst, Manager-Legal)     07 July 2010

No Lawyers, Please


April 5, 2008
From WASHINGTON, D.C. -- Confident that a lawsuit will not produce a fair result, most Americans do not want their day in court. When asked in a newly released poll conducted on behalf of the U.S. Chamber of Commerce how they'd like to settle a dispute with a company, 82% chose arbitration, saying they preferred the cheaper, faster method. Only 15% preferred litigation. These latest findings support earlier findings by the American Bar Association showing that 78% of lawyers "believe that arbitration is generally timelier than litigation, and 56% feel it is more cost effective."

Despite the overwhelming evidence supporting arbitration, the ABA trial bar is asking Congress to prohibit Americans from agreeing at the start of a business relationship to submit disputes to arbitration. Representative Hank Johnson (D., Georgia) and Senator Russ Feingold (D., Wisconsin) have introduced legislation to do just that. Their bill goes a step further in fact, retroactively invalidating tens of millions of contracts nationwide. Even trial lawyers can dream.

71 percent of respondents say they oppose efforts in Congress to remove binding arbitration agreements from consumer contracts. Catholic University professor Peter Rutledge believes that the elimination of arbitration clauses in this manner "unravels the quilt of dispute resolution." Citing numerous categories of arbitration in which consumers already win a majority of cases, Rutledge suggested that the demise of arbitration clauses in consumer contracts would lead to a pandemic of class action lawsuits, making lawyers once again the big winners.

Another lost benefit if these special interest groups get their way is lower consumer prices which come about as a result of stripping out the cost of lawyering. "Recognition of this [benefit] has been standard in the law-and-economics literature for at least a quarter of a century," notes esteemed University of Kansas law professor Stephen J. Ware.

Larry Akey, spokesman for the U.S. Chamber of Commerce's Institute for Legal Reform, maintains that arbitration has proven to be a fair venue for consumers and businesses to resolve disputes. "The downside obviously to eliminating arbitration is that because so many of these claims are small-dollar claims, (so) claimants would find themselves in a situation where they would be hard pressed to find an attorney to take their case."


Please discuss this


 6 Replies

Kiran Kumar (Lawyer)     07 July 2010

well, its a good moot point but I am not in agreement with an opinion that the arbitration shall replace the normal litigation.  there are few basic reasons like:

1. lack of proper education, though we are making progress in terms of imparting education but the level which is being maintained is not enough to conclude that an average Indian would be in a position to deal with the technicalities of may be observed that India is not just confined to metros, India lives in villages.


2. lack of legal education, one could even find highly educated individuals finding tough to deal with law.


3. our socio-economic structure is such that generally we lack tolerance may it be a rural level or big commercial level, u can c the recent dispute between the Ambanis, Birlas and the on going one between descendants of Maharani Gaytri Devi.


4. lack of litigation policy, neither the center nor the states are maintaining appropriate litigation policy.


5. lack of infrastructure, the lower courts in India are still struggling to find a decent atmosphere and work culture.


its my view point, a few may find favour and a few may have different opinion, let see what other friends think.


And hopefully the discussion will not go astray with personal remarks against each other.......but u know lack of tolerance :P

4 Like

mahendrakumar (marketing)     08 July 2010

i highly appreciate the decent  way of presenting your opinion in this regard Mr.Kiran.

However, I feel there could be an option for arbitration,so that,one has a choice

1 Like

Venkatnarayanan (M.A)     08 July 2010

Thank you very much Mr.BASAVARAJ.R you have brought us wonderful massage.


Let all our learned members disc ussed this.

CS Pooja (Company Secretary)     10 July 2010

In my opinion, Arbitration is a 'substitute' to the the judiciary...  But, not other way round.

(We go for LLM by correspondence only because we don't have time for the regular LLM :P )

1 Like

rajasekaran (director)     17 April 2012

what is discussed above is until arbitration. The enormous delay in deciding post award sec 34 application and sec 37 appeal , with no relief to the awardee would reflect the agonisng delay in legal process.  

1 Like

Srinivasan (Contracts Mgr)     24 July 2012

All learned members agree to the point to have Arbitration prior to legal proceedings,..

Well said by Mr. Kiran that India lives in villages, but matter of fact is that the literacy % has changed enormously and the people in Metros are nothing but the people moved from Villages.

Having said that still I agree to the point of Mr. Kiran that highly educated individuals are finding it tough to deal with Law. With due regard and respect, i wish to put forward a common phenomena that holds within every individual is "keep yourself away from the LAW", which is absolutely pathetic and that needs to be changed, which could only be changed at fundamental education level.

Not deviating from the subject, Indian Laws were nothing but complete Extract of Basic English Common Law and has every provision to follow what the orginator has shared, and what said by Mr. Rajasekaran is absolutely true is what concerns the most when the Arbitral award is set aside u/s 34 of IACA 1996.

The flaw is not on initiating the Arbitration process but it relies on the fundamental issues such as the qualities, competeness and qualifications of an Arbitrator, which needs to be checked by the Indian Council of Arbitration before enrolling them as a Panel Arbitrator, and this is being a weary issue till date. Therefore, an Arbitartor nominated should posses sound knowledge in the Subject in dispute as primary and Law the secondary.

Moreover, "Unfair Conditions in Contracts" as recommended by the Law Commission vide 103rd report in the year of 1984 and susequently raised again in the year of 2006 vide 199th Report should be introdcued by the Cabinet either in Arbitration Act 1996 or in Indian Contract Act 1872 in order to minimize the disputes and/or award favoring the weaker and inevitably would solve the entire purpose. Again the FLAW is fundamental and not in the currency.

I sincerely applogise if any one feels otherwise and sincerely wish our nation to succeed by minimizing the disputes heading to legal proceedings, having done that we shall concentrate on other issues on which we are MILES and MILES behind US and UK.

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