Enacted in 1925, the Federal Arbitration Act established an alternative dispute resolution system through which private parties could resolve both federal and state law issues without appearing in court. Arbitration is intended to be a more efficient and less costly alternative to litigation. Over the years, the U.S. Supreme Court has issued several opinions strengthening the legitimacy and authority of arbitration since 1925.
Recently, however, arbitration has come under attack by the plaintiffs’ bar and its allies. Legislatures and courts in Judicial Hellholes® like California have tried to limit the use of arbitration, specifically in the employment law context. The plaintiffs’ bar has even been able to get Congress to consider limiting arbitration through the so-called Forced Arbitration Injustice Repeal Act (FAIR) Act. This bill would prohibit enforcement of pre-dispute arbitration agreements in the context of employment, consumer, antitrust or civil rights disputes.