News
November 16, 2020

Fairer, Faster, Better II: An Empirical Assessment of Consumer Arbitration

Though COVID-19 has dominated headlines and legislative priorities for the better part of a year, 2021 will likely see the reemergence of a different political flashpoint: arbitration. Frequently the target of attacks from the plaintiffs’ bar, arbitration is a near-century-old method for efficiently resolving legal disputes without resorting to lengthy and expensive trials.

The latest research from ndp | analytics demonstrates that in disputes initiated by a consumer, consumers fare much better in arbitration than they do in litigation. Specifically:

  • Consumers are more likely to win in arbi­tration than in court. Consumers initiated and prevailed in 44% of all consumer arbi­trations that were terminated with awards during January 2014 – June 2020. During the same period, consumers initiated and prevailed in 30% of all consumer litigation cases that were terminated with judgments. 
  • Consumers receive higher awards in arbitration than in litigation. The mean award in arbitrations that consumers initiat­ed and won was $68,198, compared to $57,285 in litigation. The median award in consumer-initiated arbitrations was $20,019, compared to just $6,565 in litigation they initiated.
  • Consumer arbitration is faster than litigation. It took a mean time of 299 days for consumers to initiate and termi­nate a dispute with an award in arbitra­tion compared to 429 days in litigation. The median number of days for consum­ers to initiate and complete a dispute with an award was 251 days in arbitra­tion compared to 311 days in litigation.

These results reinforce similar findings from ndp’s 2019 research on employment arbitration: resolving disputes through arbitration is clearly more effective than filing lawsuits.

Blog Oral Arguments Heard In Key ATS Case Transnational Mobile phone with money News In The News Today- December 2, 2020 Class Action Litigation, State Attorneys General Telephones News ILR Asks FCC To Exclude Follow-Up Texts From TCPA Telephone Consumer Protection Act (TCPA) Letters, Comments, Petitions FCC Comments on Text Message Transmitted Through An ATDS Telephone Consumer Protection Act (TCPA) News EU Lawmakers Pass Union-Wide Class Action Directive International Initiatives

What do we use cookies for?

We use cookies and similar technologies to recognize your repeat visits and preferences, as well as to measure the effectiveness of campaigns and analyze traffic. To learn more about cookies, including how to disable them, view our Cookie Policy. By clicking "I Accept" or "X" on this banner, or using our site, you consent to the use of cookies unless you have disabled them.