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Whwn Will the American Arbitration Association Decline to Hear a Case?

Whwn Will the American Arbitration Association Decline to Hear a Case?

Q: What cannot be solved by arbitration?

Arbitration cannot resolve certain legal issues, such as those involving criminal charges, family law matters like divorce and child custody, or disputes that require public policy considerations. Additionally, statutory rights that necessitate court adjudication typically cannot be settled through arbitration.

Full question:

In what situation would the American arbitration Association not take a case.

Category: Arbitration and Mediation
Date: 04/07/2025
State: Texas

Answer:

The answer will depend on the circumstances in each case. Fot example, in employment disputes, the ADA may decline to hear disputes arising out of collective bargaining agreements or independent contractor agreements.

The American Arbitration Association requires that:

An employer intending to eefer to the dispute resolution services of the AAA in an employment ADR plan, shall, at least thirty (30) days prior to the planned effective date of the program:

i) notify the Association of its intention to do so; and,
ii) provide the Association with a copy of the employment dispute resolution plan.
Compliance with this requirement shall not preclude an arbitrator from entertaining challenges as provided in Section 1. If an employer does not comply with this requirement, the Association reserves the right to decline its administrative services.

Please see the information at the following link for further discussion:

http://www.adr.org/sp.asp?id=32904

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What matters are not allowed in arbitration?

Certain matters are typically not allowed in arbitration, including cases involving criminal law, family law issues like divorce and child custody, and disputes that require public policy considerations. Additionally, arbitration may not be suitable for disputes that arise from collective bargaining agreements or independent contractor agreements in employment contexts. Each arbitration agreement may also specify exclusions.

Why should we avoid arbitration?

Some may choose to avoid arbitration due to its limited discovery options, which can restrict the ability to gather evidence. Additionally, arbitration decisions are generally final and not subject to appeal, which may limit recourse in case of an unfavorable outcome. Parties may also prefer the public nature of court proceedings for transparency.

What cases cannot be arbitrated?

Cases that cannot be arbitrated typically include those involving statutory rights that require court intervention, such as certain employment discrimination claims. Additionally, disputes related to family law, like child custody or divorce, are generally not suitable for arbitration. Each arbitration agreement may also outline specific exclusions.

What are the limitations of arbitration?

Arbitration has several limitations, including limited rights to appeal, restricted discovery processes, and potential biases if one party has more influence over the arbitration process. Moreover, certain disputes, such as those involving public policy or statutory rights, may not be eligible for arbitration, which can limit its applicability.

When should arbitration not be used?

Arbitration should not be used when parties seek a public forum for their disputes, such as in cases involving significant public interest. It may also be inappropriate for complex cases requiring extensive discovery or when parties desire the ability to appeal a decision. Additionally, disputes involving statutory rights often necessitate court intervention.