AN ANALYSIS OF COMPLIANCE WITH CALIFORNIA CODE OF

UC HASTINGS COLLEGE OF THE LAW
PUBLIC LAW RESEARCH INSTITUTE
AN ANALYSIS OF COMPLIANCE WITH CALIFORNIA
CODE OF CIVIL PROCEDURE §1281.96
David J. Jung, Professor of Law & Director
Jamie Horowitz, Graduate Research Fellow
Methodology: Step One
Identify private arbitration companies.
 Section 1281.96 requires “any private arbitration
company that administers or is otherwise involved in,
a consumer arbitration” to collect and publish data.
Resolution Remedies
Reporting Company- Areas of Arbitration and Mediation
Arbitration and Mediation Center (AMC)
Non-Reporting Company- Areas of Arbitration
We identified 26 private companies apparently involved
in consumer arbitrations:
 11 companies publishing data, including 2 individual
BBB offices
 3 companies with non-functioning links to consumer
arbitration disclosures
 12 companies not providing data, including 6
individual BBB offices
Methodology: Step Two
Step Two: Assessment of reports
 Reviewed sample of 100 cases.
 Did the reports contain all statutorily mandated
fields?
 Were the responses in each field consistent and
complete?
Methodology: Step Three
Format and accessibility
 Form of the report
 Location of the report on the website
Findings
 Many firms do not comply.
Table 1 (page 7): Private Companies Administering Consumer Arbitrations
Disclosure Data Published
Links on Website but No Data
No Disclosure Data
American Arbitration Association
(AAA)
ADR Services Inc.
Advantage ADR
Arbitration and Mediation Center
ARC Consumer Arbitrations
Better Business Bureau (NE
California)
Better Business Bureau (Los
Angeles)
JAMS
Judicate West
National Arbitration Forum (NAF)
National Arbitration and
Mediation (NAM)
Office of the Independent
Administrator (Kaiser)
Resolution Remedies
Agency for Dispute Resolution
First Resolution Services
Arbitration Mediation
Conciliation Center
DMA Dispute Management &
Avoidance
Inland Valley Arbitration and
Mediation Services
PMA Dispute Resolution
United States Arbitration &
Mediation, Inc.
Better Business Bureau (Central
California)
Better Business Bureau
(Bakersfield)
Better Business Bureau (San
Diego)
Better Business Bureau (Silicon
Valley)
Better Business Bureau (Golden
Gate and Northern California)
Better Business Bureau (TriCounties)
Findings
 Among the firms that publish reports, important
information is often missing:
 Amount of claim – only 2 of 10 companies report.
 Employee’s salary range - Only one company reports
more than 5% of the time.
 Repeat players – 3 of 10 report it clearly.
 It is often difficult to understand the outcome of cases
from the reports.
Amount of the Dispute and Employee Wages are Rarely Reported
AAA
ADR Services Inc.
ARC Consumer Arbitrations
BBB (Los Angeles)
BBB (NE Ca)
JAMS
Judicate West
NAF
NAM
Type of Dispute
Amount of Claim
Employee Wages
(employment cases only)
100%
41%
27% (18/66)
99%
0%
100%
100%
5%
0.03% (1/29)

 (no employment cases)

100%
0.04%
 (no employment cases)
97%
0%

100%
100%
0%
0.07% (4/56)
100%
 (no employment cases)
58%
 (no employment cases)
100%
12.% (1/8)
97%

0%





First Resolution Services



Arbitration and Mediation Center



Arbitration Mediation Conciliation Center



DMA Dispute Management & Avoidance



Inland Valley Arbitration and Mediation
Services
PMA Dispute Resolution






United States Arbitration & Mediation,
Inc.
Better Business Bureau (Central
California)
Better Business Bureau (Bakersfield)









Better Business Bureau (San Diego)



Better Business Bureau (Silicon Valley)



Better Business Bureau (Golden Gate and
Northern California)
Better Business Bureau (Tri-Counties)






OIA (Kaiser)
Resolution Remedies
Advantage ADR
Agency for Dispute Resolution
100%
0% (0/6)

[1]
Table 3
TYPE OF DISPUTE / AMOUNT OF CLAIM / WAGES
(percentage of sample of 100 cases)
AAA
ADR Services Inc.
ARC Consumer
Arbitrations
BBB (Los Angeles)
BBB (NE CA)
JAMS
Judicate West
NAF
NAM
OIA (Kaiser)
Resolution Remedies
Type of Dispute
Amount of Claim
Employee Wages
(employment cases only)
100%
41%
27% (18/66)
99%
0%
100%
0.04%
97%
0%
100%
100%
100%
100%
5%

0%
100%
100%
12% (1/8)
97%
0%
100%
58%
0.03% (1/29)


(no employment cases)

(no employment cases)
.07% (4/56)


(no employment cases)
0% (0/6)
 (no employment cases)

Findings
 Among the firms that publish reports, important
information is often missing:
 Amount of claim – only 2 of 10 companies report.
 Employee’s salary range - Only one company reports
more than 5% of the time.
 Repeat players – 3 of 10 report it clearly.
 It is often difficult to understand the outcome of cases
from the reports.
Table 4: page 13
AAA
ADR Services Inc.
ARC Consumer
Arbitrations
BBB (Los Angeles)
BBB (NE CA)
JAMS
Judicate West
NAF
NAM
OIA (Kaiser)
Resolution Remedies
Name of
Nonconsumer Party
Frequency of Provider
Use


















(Kaiser cases only)


(Kaiser only)


Findings
 Among the firms that publish reports, important
information is often missing:
 It is often difficult to understand the outcome of cases
from the reports.
§ 1281.96
Withdrawal
Abandonment
Settlement
Award after
hearing
Award without
hearing
Default
Dismissal
without hearing
Judicate West
N/A
Awarded
Settled
Not Settled
Canceled
AAA
TYPE OF DISPOSITION
Award
Consent Award
Limited
Mediation
Impasse
Mediation
Settled
Permanently
Stayed
Settled
Withdrawn
JAMS
Award Rendered
Worksheet Converted
Consolidated with another case
Canceled; Settled Prior
Canceled - Dismissed Prior to
Hearing
Heard award
Heard Settled after
Award Rendered
Awaiting response from submitting
party
Canceled
Canceled; Pending
Canceled - Dismissed Prior to
Hearing
Verdict
Resolution by mail
Case Heard - Project Completed
Canceled; Settled Prior
Case going to trial
Case Re-opened
Heard Under Submission
Heard - Dismissal Granted
Heard Settled After
Heard Settled at Hearing
Heard/Resolution Unknown
Heard/Award Coverage Affirmed
Heard Interim Award
Heard Award
Heard Pending
No Response from Adverse Party
Heard Settled After - Follow up by
Panelist
Objection to Panelist(s)
Consolidated with another case
Administrative Suspension
Waiting for strike list
Contacting other party to introduce
ADR
Pending Decision (View Notes)
Wants opposing party to pay fees
Claimant in Bankruptcy
Heard Settled/Defense
Excerpt from AAA Spreadsheet
Findings
 While reports are literally “searchable,” only two
companies report the data in a way that can be
searched or sorted in a way that permits meaningful
analysis.
Excerpt from AAA Spreadsheet
Non
Consumer
Party
Type of
Dispute
Prevailing
Party
Type of
Disposition
----
Awarded
----
Awarded
Claim
Amount
(Business)
Claim
Amount
(Consumer)
Award
Amount
(Business)
17392.56
17392.56
American
Express
Consumer
Disputes Other
Consumer
Debt
Collection
American
Express
Consumer
Disputes Other
----
Awarded
5631.78
American
Express
Consumer
Disputes Other
----
Awarded
2477.52
1978.34
American
Express
Consumer
Disputes Other
----
Awarded
2000
1041.83
American
Express
24756.15
1081.88
Award
Amount
(Consumer)
24756.15
5435.59
Conclusion
 More disclosures and more data are available than in
2004, but there is widespread non compliance.
 The data can’t be analyzed without significant
expense.
 Reporting needs to be standardized.
 Data should be published in open source or sortable
formats.