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Online Arbitration by Email

Judicial Equity Can Be Imperfect

Judges Can Only Decide What's Presented to Them

W

hen someone files a lawsuit in the United States, they file a "complaint" that describes the alleged facts of the dispute and lists claims, or "causes of action" for the judge or jury to decide. The lawsuit also asks the court to award a certain amount of money damages, or some other sort of relief, such as an injunction or attorney's fees. The person filing the lawsuit is called the "plaintiff."

The lawsuit is served on the "defendant," who then files an answer that lists certain affirmative defenses that the defendant plans to rely upon.

Once the complaint and answer have been filed, the parties are limited to the legal theories and defenses included in those pleadings, and they must obtain permission from the judge to add new ones. The judge can only decide the claims and defenses presented – he or she can't add new ones to make the outcome more fair.

In the example of the unpaid graphic designer, suppose the designer's lawsuit only claimed a breach of contract, and the judge ruled that the contract was invalid because it was not signed. The designer could not then claim that he should be paid anyway because he did the work and it is unfair for his client to receive a benefit without paying for it. And the judge cannot ignore the contract and legal precedents and decide the case based only on fairness.

This means that deserving people can lose cases based on technicalities in a contract or because they did not bring the correct cause of action or ask for the proper remedy in their lawsuit.

Global Disputes are Expensive to Litigate

The legal and court system was designed at a time when people mostly did business with others in their community. If there was a dispute, it could be decided in local courts, using the laws that applied in that locality.

Globalization and the internet have dramatically changed the way people do business. Today it's common for companies and individuals to have contracts and business dealings with people around the globe. Every country has its own set of laws, and courts in one country may not have authority, or jurisdiction, over a person or business located in another country.

So pursuing an international lawsuit is not as simple as filing papers at the local courthouse. It's common for the parties to disagree about which country's court has the authority to hear the case, whether the defendant can be forced to defend a lawsuit in a distant land, and which country's laws should apply. These issues can lead to costly legal battles that must be decided before a judge can even begin to consider the claims made in the lawsuit.

To navigate these issues, you'll likely need a lawyer in your home country and a lawyer in the country where your opponent is located. It's easy to see how the cost of an international lawsuit can easily be greater than the value of the dispute. And that means that deserving people walk away with nothing because they can't afford to go to court.

Continue reading (page 6 of 7) …Traditional Arbitration Can Also Lead to Unfair ResultsStandard Arbitration Can Be Unfair      
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