Stephanie Mencimer on Franchisee Arbitration

Stephanie Mencimer, who has tackled binding mandatory arbitration several times in the past, has a new article in this month’s Mother Jones detailing the heartbreaking story of Deborah Williams and Richard Welshans, the Maryland couple who was mislead by Coffee Beanery. When they tried to receive redress, a Michigan arbitrator (with serious conflict of interest problems) not only sided with Coffee Beanery but awarded the shady company $187,452.35 – including $504.25 to pay for lunch for Coffee Beanery’s attorneys.

Amazingly, the couple continued their legal battle, and last August the 6th Circuit Court of Appeals struck down the arbitrator’s award, the latest in a series of enheartening court decisions on the arbitration front. Until the Arbitration Fairness Act is passed, though, arbitration will continue to trap other people like Williams and Welshans.

Hat tip to the DMI Blog