Arbitration = Private Adjudication
Have a right to ask for a judge to make a legal decision
Private adjudication - arbitration
o Rules set by the disputants themselves
o Case controlled by agreement of disputants
How do you agree in a middle of a conflict?
Always exists before the conflict
Shows up in labour management and business disputes
o “rent a judge”
Public adjudication - legal system
o Rules set by society legislator
o Case controlled by “the system”
• There are a set of rules that talks about the functions of arbitration
• Everything is governed by contract
• A process agreed to by the disputants
• Disputant present proofs and arguments
• To a third party
• Chosen by disputants
• Given power by disputants
• Binding decision
• Contract would say that there will be no appeal from an arbitration decision
• Based on objective standards
• The case alleged contamination of drinking water with exavalentchromium, also known as chromium(VI), in the
southern California town of Hinkley. At the center of the case is a facility called the Hinkley Compressor Station, part
of a natural gas pipeline connecting to the San Francisco Bay Area constructed in 1952. The case was settled in 1996
for $333 million, the largest settlement ever paid in a direct action lawsuit in US history.
• Erin Brockovich together with a small law firm for whom she worked successfully brought this issue to light.
• There was plenty of evidence to indicate the company had acted in bad faith.
• The company agreed to arbitration over a judicial hearing, so long as 90% of the comp