In today's digital world, it's hard to avoid the fine print in user agreements, service contracts, and even hospital consent forms. One important, yet often overlooked, detail is the inclusion of arbitration clauses. These clauses can have a major, negative impact on your legal rights, and it's essential to understand what they mean for you.

What is an Arbitration Clause?

An arbitration clause is a part of many contracts that requires you to litigate, resolve and settle any disputes through arbitration rather than going to court. This process involves a private, out-of-court resolution, usually decided by an arbitrator. While it may seem like an easy way to avoid a drawn-out legal battle, mandatory arbitration is not in your best interest.

Why You Should Be Concerned

- Limited Legal Options: When you agree to arbitration, you're often giving up your right to take the issue to court. This means no judge, no jury, and often no right to appeal if you're unhappy with the decision.

- Imbalanced Power: Arbitration usually favors companies or large institutions, like hospitals or big corporations, since they often select the arbitrator, or the assigned arbitrator is someone who lacks the critical empathy necessary to fully evaluate case facts and come to common sense conclusions regarding liability and the full value of damages suffered by the injured party. This can lead to biased decisions, especially when dealing with organizations that frequently use the same arbitrators.

- Hidden Costs: While arbitration is promoted as a cheaper alternative to litigation, there are still fees involved that you might not expect, and these can add up quickly.

- Confidentiality: Unlike a court case, arbitration is a private process. This means any issues you raise are kept confidential, and the company's behavior is shielded from public scrutiny. In contrast, public court cases can pressure companies to change their practices.

Where Are You Likely to See These Clauses?

1. User Agreements: When you sign up for online services or make purchases, you might unknowingly agree to arbitration. Companies like credit card providers, streaming services, ride share companies, and online retailers often include arbitration clauses in their lengthy "terms of service" and "user agreements" that you must click on and agree to in order to use the service or app.

2. Hospital Consent Forms and Registration Forms: When checking into a hospital or visiting a doctor's office, some facilities ask you to sign consent forms or registration forms. Be careful! They often include arbitration agreements. If something goes wrong during treatment, this could limit your ability to hold the hospital or doctor accountable in court.

What Can You Do?

- Read the Fine Print: Take a moment to carefully read any agreement before signing, especially the sections about dispute resolution.

- Opt-Out if Possible: Some agreements give you the option to opt out of arbitration, but you must do so within a certain time frame. It’s worth checking if this is an option.

- Reject Arbitration: If you must place your signature or initials on the document or on the electronic signature pad that is often provided in hospitals or doctors' offices, write "reject arbitration" or "no arbitration" next to your signature.

- Seek Legal Advice: If you feel unsure about a contract or suspect an arbitration clause may affect your rights, consult with a legal professional. Understanding what you're agreeing to can save you from unexpected consequences later.

At Messa & Associates, P.C., we strongly believe that it's crucial for our clients to stay informed about how common legal provisions can negatively and unfairly affect their rights. Arbitration clauses might seem harmless, but they are actually quite harmful: they take away your right to a fair and open legal process, and your right to a trial in front of jury of your peers. If you have any questions about arbitration clauses, don't hesitate to reach out to us.

About Messa & Associates, P.C

Messa & Associates, P.C. represents individuals and their families in complex personal injury matters, including product liability, catastrophic injury, medical malpractice, motor vehicle accidents, fires and explosions. Our attorneys serve Pennsylvania clients throughout the state, including in Philadelphia and other surrounding communities in Montgomery County, Chester County, Delaware County, Bucks County, and Luzerne County. Additionally, Messa & Associates are proud to serve New Jersey clients throughout that state, and also litigate selected cases throughout the country.