Thursday, February 18, 2010

Who's Side is the Arbitrator on?

Thanks to Dave Fehling of KHOU for this story concerning arbitration. It is much worse. The arbitrator in the story ruled against a homeowner, but did not disclose he was the general counsel for the Greater Homebuilders Association. His arbitration was overturned. Later he did it again, ruling against a homeowner while representing the builders. this time getting away with it after the Texas Supreme Court refused to hear the case.
This year Steve Paxson once again ruled against a homeowner for over $97,000 and once again, did not disclose he was the general council of the Greater Houston Builders Association. The homeowner sued Paxson and the AAA, but unfortunately, like the Falbaum's case, the Appeals Court claimed the AAA and arbitrators are immune from lawsuits even for not disclosing blatant conflicts of interest. Twice!
He has since been removed from the American Arbitration Association.



0 comments: