Binding Arbitration and Right-to-Cure, Is Your State Next?

We are up against a powerful industry that has already successfully lobbied at least 31 states to pass "Right to Cure" laws, and they are intent on pilfering even more of our consumer rights.

The NAHB Research Center is a subsidiary of the National Association of Home Builders (NAHB).  In their report titled:  "Making the Quality Connection: Improving the Building Industry Insurance Situation Through Quality Assurance Programs" the Research Center lists one of their objectives as:  To reform limits of liability, to limit the frequency of litigation, and reduce excessive punitive damage judgments while still providing consumer protection.
"Action steps recommended:

• Establish laws providing for the right to repair, or the right to cure construction defect claims in each state.
• Include binding arbitration clauses in all builder / trade contractor contracts.
• Provide written warranty that waives implied warranty laws (where allowed) in lieu of building industry adherence to strong performance standards."

In 1994, NAHB and the American Arbitration Association (AAA) were instrumental in helping builders to put arbitration clauses in their contracts to the extent that you can no-longer build a new home in Texas without an arbitration clause.  Binding Mandatory Arbitration is a private, for-profit system that strips tax-paying Americans of their rights to use the American court system to solve a disagreement, no matter how important the issue.  The judges, called arbitrators, do not have to make a determination based on our country's laws, or even justify their decisions.  Incredibly, the arbitrator's decision can then be filed as a final judgment in a court, even if that verdict is contrary to consumer law.  In the end, you must abide by the decision and have no right to appeal because Binding Mandatory Arbitration (BMA) clauses are "binding."

• Arbitration normally costs much more than using the courts, favors contractors rather than you, and can prevent you from being part of most class action lawsuits.
• Generally speaking, legal discovery (the right to obtain information from each other about the case in preparation for arbitration) is not permitted in arbitration proceedings.
• The outcomes may be sealed, meaning the public can't learn about serious issues; and
• Some arbitration clauses even strip consumers of their freedom of speech, basically placing a 'gag order' on anyone who has a complaint.

From Consumer Reports:  "Governments have little incentive to make consumer protection a priority.  "Construction defects are a very political thing, and everyone wants to dance around that," says Elizabeth Owen, executive director of the National Association of Consumer Agency Administrators, whose members are consumer-agency officials across the United States. Builders, developers, and real-estate companies are among the most influential political constituencies, and are often heavy campaign contributors.  And, new housing helps swell tax rolls."

As I said, we are up against a powerful force; it will take many, many of us to join this "Campaign for Change."  This is your call to action; please take a stand.  See how YOU can help - at no cost, and tell your friends!

                                Our Nation Needs Your Help.