Can You Sue If You Signed an Arbitration Clause?

Arbitration agreements are showing up in more and more contracts today. You might see them when you sign up for a gym, use a rideshare app, or agree to the terms of a website. When you accept these terms, you may be agreeing to settle any disagreements through arbitration instead of going to court, even if the issue involves a personal injury.

If you live in Texas and are hurt in an accident, it’s important to talk to an experienced Texas personal injury lawyer about how an arbitration agreement could affect your right to sue and get money for your injuries. 

What Are Arbitration Agreements?

Arbitration is a method of settling conflicts without having to go to court. Rather than a judge, a disinterested party known as an “arbitrator” will hear each side and make a decision. Arbitration agreements usually state that disputes have to be addressed via arbitration instead of in court. By signing, both sides waive their right to bring a lawsuit. These clauses are often included in contracts and go unnoticed during signing. 

Non-Binding vs. Binding Arbitration

There are two kinds of arbitration: non-binding and binding. In non-binding arbitration, either side can say they don’t accept the arbitrator’s decision and still take the case to court. But most arbitration agreements use binding arbitration instead.

In binding arbitration, the arbitrator’s decision is absolute. A court can order you to follow it, and the decision typically cannot be appealed or challenged, with very limited exceptions. Simply put, once the arbitrator makes a ruling on your case, you cannot then take the issue to court, even if you are displeased with the results. 

Where Will I Encounter Arbitration Agreements?

Arbitration agreements are commonly found in multiple forms of contracts, such as: 

• Lyft, Uber, and other rideshare services: When you use a rideshare service, you usually agree to terms that include an arbitration clause. This means most accident or injury claims have to be handled through arbitration instead of going to court. But in some situations, injury claims from rideshare accidents can still be taken to court.
• Work contracts: A lot of employers place arbitration agreements into their employment contracts. These are intended to prevent workers from filing lawsuits against the company for workplace accidents or other disagreements.
• Healthcare services: Some doctors and their offices include arbitration agreements in the documents they ask you to sign before you can be treated. These clauses restrict your ability to sue for medical malpractice down the road, should such a thing be necessary.
• Recreational facilities and gyms: Fitness center agreements and gym waivers typically include arbitration clauses, which can stop you suing in the event of an injury.

How Does Arbitration Impact My Ability to Sue for a Personal Injury?

Arbitration agreements can greatly limit what you can legally do. Here’s how they can affect your ability to bring a personal injury claim:

• Your right to a jury trial is waived: When you agree to arbitration, you give up the right to have a judge or jury hear your case. This can hurt you, especially if you would rather explain your situation to a judge and jury instead of an arbitrator.
• Discovery is limited: Arbitration typically offers fewer opportunities for gathering evidence. In a standard personal injury lawsuit, both parties have the chance to collect lots of information about the case via documents, depositions, and other kinds of evidence. This helps build a compelling case. In arbitration, these steps are usually restricted, meaning it will be quite challenging for you to effectively make your case.
• Arbitrators can be biased: Arbitrators are, unsurprisingly, often chosen by, or from a list penned by, the very company that authored the arbitration agreement. This can raise questions about whether or not the arbitration process is really fair. In some scenarios, the arbitrator might rule in favor of the company that mandated the agreement, which can leave victims feeling cheated.
• Fees and costs: People like to say that arbitration is a cheaper option than going to court, but that’s not always the case in personal injury. Arbitration can be pricey due to the fact that you might have to pay for the arbitrator’s time, along with additional fees. In court, you don’t pay expenses up front, and your Texas personal injury lawyer only gets paid if your case is resolved in your favor.
• Limits on Damages: Some arbitration agreements limit how much money you can get if you’re injured. For example, they might only let you recover medical costs but not money for pain and suffering or punitive damages.
• Difficulty of Appeal: Where binding arbitration is concerned, the arbitrator’s decision is final, and seldom is the chance for an appeal granted. Even if you feel the arbitrator was unfair or incorrect, a court will almost never change the result. This is wildly dissimilar to court cases, where plaintiffs are entitled to appeal decisions they do not agree with.

I’ve Already Signed an Arbitration Agreement. What Should I Do?

If you signed an arbitration agreement and now have a personal injury issue, don’t assume you have no options. A skilled personal injury lawyer can look at the agreement and explain what you can still do. In some situations, the arbitration agreement might not legally hold up, or there may be smart ways to handle arbitration that improve your chances of getting a better result.

Talk to a Texas Personal Injury Lawyer 

Arbitration agreements can have a major impact on your ability to sue for a personal injury and limit how much financial compensation you are able to recover. Before signing any contract, especially one involving activities where you could conceivably be injured, it’s important to understand which rights you might be signing away.

If you were hurt and an arbitration agreement applies to your case, you can reach out to the experienced Texas personal injury lawyers at the Law Office of Sandy McCorquodale, P.C. Call (833) 712-4472 or fill out the easy contact form on our website to learn about your options and make sure your rights are protected.