Re: construction Arbitration Services

More | Report Post

**************
I forgot to add that the regulation they are referring to in the FTC
article on VA and FHA loans is 24 CFR 203.204(g)which states that
court must be an option. These companies will NOT acknowledge that
rule. You have to enforce it yourself.
*****************

On 6/28/06, China Doll wrote:
> Yes, the rules are set up to favor the companies they do the
> arbitration for, and the only way I know of personally to get out
> of their arbitration clause is if your mortgage is VA or FHA:
> http://www.ftc.gov/bcp/conline/pubs/homes/homewarranty.htm
> Otherwise you are presented with proving an almost insurmountable
> hurdle of severe bias or other violations. If THEY refuse to
> arbitrate they may be waiving THEIR right to later compel
> arbitration though. This case was not a builder case but might be
> helpful:
>
> From ADRWorld.com: http://www.adrworld.com
>
> "(12.12.2005) A federal appeals court last week dealt a blow to
> companies that require employees to arbitrate disputes when it
> ruled that they cannot initially refuse to participate in the
> process and expect to compel arbitration later.
> Ruling against a major retailer, the U.S. Court of Appeals for the
> Ninth Circuit said the case "displays a dark side of our nation's
> policy in favor of arbitration" in highlighting the fact that an
> arbitration provider cannot enter a default judgment against a
> party that refuses to participate in arbitration proceedings.
> "We have the occasion to make clear that when an employer enters
> into an agreement requiring its employees to arbitrate, it must
> participate in the process or lose its right to arbitrate," the
> Ninth Circuit said in its Dec. 6 ruling in Brown v. Dillard's,
> Inc. (No. 03-56719)."
>
>
>