The Arbitration Fairness Act of 2007 Considered by Congress

Mike Simon — Thu, 26 Jul 2007 16:39:12 GMT

On July 12th, the Arbitration Fairness Act was introduced to the House and the Senate to amend the Federal Arbitration Act, which was passed in the 1920's. The proposed bill would make clauses in contracts that mandate arbitration and prohibit joining class action lawsuits unenforceable. The bill aims to prevent mandatory arbitration in employment, consumer, franchise, or civil disputes.

Leo Bueno, a Florida debt and consumer attorney highlighted the downsides of such clauses by pointing out that the idea behind arbitration is sound, but that "the mandatory nature of it is offensive...because it takes out the right to sue." Paul Bland, a staff attorney with a D.C. based public-interest law firm, adds that arbitrators who rule against companies too often get blackballed. Bland's comments reveal a harsh reality for consumers, in that companies are typically repeat arbitration customers, and therefore pressure the private arbitration companies to rule in their favor.

Speaking in terms of arbitration legislation, Bland added that "this is, by far, the most comprehensive bill that has been introduced." Proponents of the bill hope to protect Americans' seventh amendment right to a trial by jury.

Originally posted at InjuryBoard by Mike Simon

Coal Company Ordered to Pay Wheeling-Pitt $219 Million

Mike Simon — Fri, 06 Jul 2007 08:10:01 GMT

After a month-long trial, a Brooke County Circuit Court jury has ordered Massey Energy and a subsidiary to pay more than $219 million in damages to Wheeling-Pittsburgh Steel Corporation. Wheeling-Pitt sued Massey subsidiary Central West Virginia Energy Co. in April 2005, claiming it failed to deliver 104,000 tons of metallurgical grade coal per month as required under a contract signed in 2002 that runs until 2010.

Wheeling-Pitt's lawsuit alleged that Central West Virginia Energy blamed production problems for its failure to deliver as required by the contract. However, Wheeling-Pitt claims that the Massey subsidiary started diverting coal from its contract to the spot market in an effort to make more money.

The jury ordered Massey and Central West Virginia Energy to pay Wheeling-Pitt $119.8 million in compensatory damages, as well as $50 million each in punitive damages from both parties. Wheeling-Pitt's attorney stated that, "When the price of coal went up, Massey started cheating Wheeling-Pitt by shorting it and sending its coal abroad and making millions of dollars." Massey's executive vice president, Baxter Phillips, claimed that the company "will most certainly appeal."

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Originally posted at InjuryBoard by Mike Simon

West Virginia Personal Injury Lawyer - Commercial Litigation

The Arbitration Fairness Act of 2007 Considered by Congress

Coal Company Ordered to Pay Wheeling-Pitt $219 Million