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- Title
Taking ADR to the Bank: Arbitration and Mediation in Financial Services Disputes.
- Authors
Golann, Dwight
- Abstract
The article studies alternative dispute resolution (ADR) in the financial services industry in the United States. As the frequency and size of damage awards have grown, bankers nationwide have looked for ways to resolve their disputes without going to court. Plaintiffs too have been frustrated by the cost and delay associated with complex litigation. Whether arbitration or mediation is an attractive alternative lo litigation depends on the nature of the lending dispute. Mediators facilitate settlement negotiations, but they have no power to force disputants to the bargaining table or to impose a binding decision on them. Arbitrators are usually selected for their expertise in the subject matter of a dispute; a retired bank or industrial executive, for example, may be nominated to arbitrate a commercial lending claim. Another important legal issue involves the explanations that must be given to persons before they sign an arbitration clause. Arbitration and mediation have advantages and disadvantages in the context of financial services disputes. In order to be worth using, however, ADR need not be perfect. It need only be better than the alternative--traditional litigation, A number of banks and consumer advocates have concluded that ADR meets this test, and experiments with these processes in banking are likely to expand in the future.
- Subjects
UNITED States; DISPUTE resolution; ARBITRATORS; FINANCIAL services industry; ARBITRATION &; award; DISCRIMINATION in financial services
- Publication
Arbitration Journal, 1989, Vol 44, Issue 4, p3
- ISSN
0003-7893
- Publication type
Article