Top Reasons Why You Should NEVER EVER Sign an Arbitration Agreement

It’s happened to all of us; we walk into a doctor’s office, talk to the receptionist, get out our insurance card and fill out some paper work, then she asks: “do you want to sign an arbitration agreement?” She may even pressure you or try to persuade you to do it. It is really easy to just say yes and scribble your signature on the paper and not have to deal with it ever again, but your answer should always be NO.

Now, for those of you who do not know what an arbitration agreement is, here is a brief explanation: it is when you agree in advance that, if something goes wrong with your treatment, your case does not go to court or in front of a jury. In arbitration, your case is heard and decided by a panel of one to three attorneys, who act in the place of a Judge and a jury. Arbitration is promoted as being faster, cheaper and more convenient than going through standard legal procedures. This can sometimes be true. However, it is NEVER in your best interest to sign an arbitration agreement. The only people that arbitration benefits are larger entities like businesses and doctor’s offices. Here’s why:

1. You Can Enter into Arbitration at Any Time. Once you sign an arbitration agreement, you are bound to litigate your case through arbitration. However, parties can enter into an arbitration agreement at any time, even after a lawsuit is filed. Binding yourself to an arbitration agreement before any malpractice has occurred just limits your options.

2. Arbitration Is Binding and Almost Impossible to Overturn. This is one of the biggest reasons that you should not sign an arbitration agreement. If you get a result from your case that is unfavorable, you generally cannot appeal it to the Courts. Arbitration decisions are mandatory and binding, and it is next to impossible to get them overturned

3. The Notion That Arbitration Is Cheaper than Litigating in Court Is A Myth. You are required to pay for your own arbitrator, as well as for half of the bill of the “neutral” presiding arbitrator. These are experienced lawyers, who often charge upwards of $300/hour. Although you do have to pay a small filing fee to proceed in a Court action, you do not have to pay for the Judge’s time or for the jury.

4. Arbitration Is Not Necessarily Faster. There can be backlog in the Courts that can cause delay in getting a trial date. However, most federal judges and many state judges will give you a trial date when you first file the case. Also in Court you always have a scheduling order in place that is overseen by the Judge, which lays out deadlines for completing each stage of the case. Arbitration is often more casual, and it can be difficult to get the defense to stick to a schedule and keep the case moving.

5. There Is Always A Chance for Bias to Affect Arbitration. Arbitrators, while they try to remain neutral, can be subject to pressure from stronger and wealthier parties who have the representation of a larger, stronger law firm. When the Arbitrator is dependent on a corporation or big firm for repeat business, they may be influenced to rule in favor of them.

Now, you might be really worried if you have already signed and arbitration agreement. Or maybe you aren’t sure if one of the papers you signed at the doctor’s office binds you to arbitration. If so, all is not lost; you can always send a notice in writing to your medical provider or doctor’s office and have any existing arbitration agreements revoked.

Remember: no one can refuse you medical treatment because you have not signed an arbitration agreement.