In an article for The American Bar Association (ABA), Partner Mike Daly discusses two trends — requests for public injunctive relief and mass arbitration — that may cause a quantum evolution. He also emphasizes the importance of businesses stress-testing arbitration agreements.
Daly described best practices for arbitration agreements and recommended that companies regularly review and refresh customer-facing contracts to ensure their enforcement. He further noted the need to stress-test arbitration agreements as consumers increasingly pursue public injunctive relief to avoid arbitration and mass arbitration to pressure business.
In conclusion, Daly asserted that if properly drafted and deployed, arbitration agreements can benefit both businesses and consumers by creating a viable alternative to the judicial system’s two traditional methods of resolving consumer disputes: inefficient class actions and impractical individual actions.