ARBITRATION IS A DEFENSE WEAPON
Why do businesses and corporations want arbitration and not trials? There are a number of reasons, which include some of the following:
- Lower damage awards No jury & arbitrators are statistically more conservative
- Elimination of class actions. Most arbitration clauses require individual claims & bar class or collective actions. This converts one systemic wrong → hundreds of small, uneconomic claims, avoiding massive exposure → scattered, manageable costs.
- Repeat-player advantage Corporations appear in arbitration repeatedly, are familiar to arbitration providers, and indirectly influence arbitrator selection through frequency. Plaintiffs are one-time participants. Even neutral arbitrators know that large awards reduce future appointments.
- Restricted discovery Arbitration typically limits depositions, internal documents, corporate emails, financials, and risk analyses. This weakens liability proof, cripples damage narratives and prevents “smoking gun” evidence
- Speed favors defendants. Plaintiffs need time to develop harm and damages & corporations already control the evidence.
- Confidentiality Arbitration is private: No public filings, no precedent & no media scrutiny
- Minimal appellate review: Arbitration decisions are extremely hard to appeal and Almost never reversed
- Forum control Corporations draft the arbitration clause, venue rules, governing law & damage limitations
Arbitration replaces community judgment with professional risk aversion. Limits on discovery weaken damages proof. Repeat-player bias favors institutional defendants. Secrecy suppresses precedent and leverage. Corporations insist on arbitration because it converts unpredictable jury justice into controlled, private, and repeat-player decision-making—with sharply reduced damage risk. Mandatory arbitration does not merely change the forum. It re-engineers the damage model—removing juries, suppressing evidence, and substituting private decision-makers whose incentives are misaligned with full compensation. Arbitration converts public justice into private cost control