American Arbitration Association Press Statement on Circuit City Stores, Inc. v. Saint Clair Adams.Business Editors/Legal Writers NEW YORK--(BUSINESS WIRE)--March 21, 2001 The United States Supreme Court United States Supreme Court: see Supreme Court, United States. today handed down a 5-4 decision in Circuit City Stores, Inc. v. Saint Clair Saint Clair, Lake A lake between southwest Ontario, Canada, and southeast Michigan. It is connected with Lake Huron by the Saint Clair River, about 64 km (40 mi) long. Adams, reversing the Ninth Circuit and holding that pre-dispute arbitration clauses in most employment agreements are enforceable under the Federal Arbitration Act In United States law, the Federal Arbitration Act is a statute that provides for judicial facilitation of private dispute resolution through arbitration. It appears that the Federal Arbitration Act was intended to apply only in federal courts, but following a controversial Supreme (FAA). This holding, in accordance with the law in every other Circuit, narrows the exception to workers directly involved in interstate transportation. Both the majority and dissenting opinions limited virtually all of their discussion to the interpretation of this statutory language in the FAA, although the majority also reinforced the Court's strong pro-arbitration position, noting the advantages of arbitration in resolving disputes, including employment disputes. Based on a Supreme Court case in 1991, Gilmer v. Interstate/Johnson Lane Corp., millions of workers have been covered by pre-dispute arbitration agreements. The average employee never actually gets to exercise the right to a jury trial, as the majority of lawsuits are dismissed on summary judgment, most of which favor employers. Even with pre-dispute arbitration clauses, employees continue to have the right to file complaints with the Equal Employment Opportunity Commission, the National Labor Relations Board National Labor Relations Board (NLRB), independent agency of the U.S. government created under the National Labor Relations Act of 1935 (Wagner Act), and amended by the acts of 1947 (Taft-Hartley Labor Act) and 1959 (Landrum-Griffin Act), which affirmed labor's right or any other government agency. And many employment arbitration programs have expanded the scope of arbitrable ar·bi·tra·ble adj. 1. Subject to arbitration: an arbitrable wage and health benefits policy. 2. Appropriate for referral to an arbitrator: an arbitrable dispute. disputes to cover complaints that have no legal remedy and could therefore never have gone to trial. The American Arbitration Association The American Arbitration Association (AAA) is a private enterprise in the business of arbitration, and one of several arbitration organizations that administers arbitration proceedings. The AAA also administers mediation and other forms of alternative dispute resolution. , the nation's leading dispute resolution provider, welcomes this clarification in arbitration law. The AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. filed an amicus brief in the case, supporting the use of the Employment Due Process Protocol, which provides guidelines for fairly designed arbitration processes. Although this issue was not discussed by the Supreme Court, some federal and state courts, such as the California Supreme Court in Armendariz v. Foundation Health, have set forth fairness guidelines to govern employment arbitration. The Association continues to strongly urge the inclusion of due process principles in employment arbitration agreements in order to preserve the integrity of the arbitration process. |
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