Recently, Uber Technologies Inc . sued the American Arbitration Association toblock $100 million in arbitration fees and costs; Amazon.com Inc . removedthe mandatory arbitration clause from its terms of service, thus allowingcustomers to sue it in court, including as part of a class action; and, in U.S.Chamber of Commerce v. Bonta, the U.S. Court of Appeals for the Ninth Circuit upheld California’s new law banning mandatory arbitration as a condition ofemployment.
Yet not long ago, arbitration was all the rage, as an efficient dispute resolutionalternative that promised expert arbitrators, less costly information exchangeand a streamlined timeline. Consequently, most American companies routinelyincluded arbitration clauses in their contracts.
So, what changed for the star alternative to litigation? In short, the players, the numbers and theclauses.