Last week, the PA Chamber joined a national coalition of other associations to oppose the Forced Arbitration Injustice Repeal Act, H.R. 963, effectively banning arbitration provisions in private contracts.
In its letter to U.S. House members, the coalition stated that arbitration is an essential tool and provides a fair process that does not provide an advantage to any party.
Federal law has protected arbitration to resolve disputes between businesses, consumers, and employees since 1925. It is an effective and less expensive means of resolving disputes than going to Court.
The letter stressed that H.R. 963 would only benefit attorneys who file class-action lawsuits if enacted. The legislation threatens the validity and enforceability of millions of contracts while imposing new, intolerable burdens on already overcrowded courts. Meanwhile, studies have shown that class action settlements provide a very low return to class action members, while attorneys take in millions in profit.