The Court Arbitration Authorization Act Hearing Before the Subcommittee On Cou

Cover The Court Arbitration Authorization Act Hearing Before the Subcommittee On Cou
The Court Arbitration Authorization Act Hearing Before the Subcommittee On Cou
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The study produced no evidence indicating that these disincentives are seen as a significant barrier to going to trial. Indeed, districts with higher fees had propor- tionally more cases arbitrated and more de novo demands than those with lower fees. Given the insignificance of these financial disincentives compared to the cost of going to trial, it is unlikely that they would dissuade a litigant who would other- wise have pursued the case to trial from making a de novo demand. The authority to
... impose these costs now contained in the statute is therefore not essential to the program.
In any event, as previously noted, trial may not have been a realistic option to begin with for many of the small-stake cases that are referred to these programs; cases with a prayer of $100, 000, the statutory limit (except in grandfathered dis- tricts) can rarely be litigated economically in federal court. Rather than imposing a barrier to trial, arbitration may in practice actually afford a cost-effective adju- dicative alternative to litigants who could not afford conventional adjudication.


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