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12.05.2024 You May Have Already Agreed to Arbitrate Your Claim With LG


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12.05.2024

Welcome once again to Leto's law here's. Steve lato got an email yesterday uh. from a viewer says hey Steve love your. channel we recently purchased a new LG. washing machine and found this. notification on it uh he says uh so see. attached and uh his name is Jake and by. the way uh because he says just in case. you're wondering it's pronounced jakeen. and I think him giving me a pronouncer. on his name implies that he wants me or. says it's okay for me to use his name. but attached here is a. photograph of an arbitration notice that. he says was uh attached to the washing. machine he just bought arbitration. notice by using this product you agree. that all disputes between you and LG are. rising out of or relating in any way. this product including but not limited. to warranty disputes shall be resolved. exclusively through binding arbitration.

On an individual basis the terms the. arbitration agreement including details. of the procedure for resolving disputes. is available at and it gives a website. and it says also your owner's manual or. warranty so if you buy an LG washing. machine and I suspect this applies to. other big things they sell also that if. you use the washing machine you agree to. be bound by disputes and you might. notice what Steve use the machine or you. buy the machine because it should. actually say by purchasing this product. I would think but I think they wanted to. broaden that so like let's suppose a. guest is in your house and they use the. LG machine they get hurt I think they're. wanting to say that that person also. needs to arbitrate their claims which is. another story altogether but you might. ask yourself well is this a big deal or.

Not well the first thing you need to do. is go to their website and you go to. lg.com and you find in there the. arbitration notice and again the one. that's attached to the washing machine. is actually quite short it's three four. sentences long but it's saying if you. have a problem with them you must go to. arbitration you cannot sue them so if. you go to their website or their owner's. manuals it says things like arbitration. notice this limited warranty contains an. arbitration it requires you and LG to. resolve disputes by binding arbitration. instead of in court unless you choose to. opt out in arbitration class actions and. jury trials are not permitted please see. the section titled procedure for. resolving disputes below so in theory. if everyone is bound by this right here. algae can't get hit with a class action.

Regarding these machines that's their. thinking of course what happens if. somebody opts out of this which they can. do they opt out of this and they bring. the class action have you know the story. altogether says here procedure for. resolving disputes all disputes between. you and LG arising out of or relating in. any way to this limited warranty or the. product shall be resolved exclusively. through binding arbitration and not in. court of General jurisdiction binding. arbitration means that you and LG are. each waving the right to a jury trial. and to bring or participate in a class. action but notice it says arising out of. or relating in any way so personal. injury claims for instance if you bought. a product from them and it injured you. because it was defective according to. this you have to arbitrate unless you'd.

Opted out we'll get there in a second so. it talks about. all the definitions in here and then it. does say that if you want to go after. them in the event you intend to commence. an arbitration proceeding you must first. notify LG in writing at least 30 days in. advance of initiating the arbitration so. if you want to arbitrate the first thing. you got to do is send them a notice. saying I want to arbitrate but here's. your 30day notice so you burn up 30. days waiting for them to respond to see. if they want to resolve it or take you. on with respect to arbitration. now agreement to binding arbitration and. classy action waiver says upon failure. to resolve the dispute during a 30day. period after sending the written notice. unlg agreed to resolve any claims. between us only by binding arbitration. on an individual basis unless you opt.

Out as provided below we'll get there. any dispute between unlg shall not be. combined or Consolidated with a dispute. involving any other persons or entities. product or claim more specifically. without limitation of the foregoing any. dispute between unlg shall not under any. circumstances proceed as part of a class. or representative action instead of. arbitration either party may bring an. individual action in small claims court. but that small claims court action may. not be brought on a class or. representative basis now here are the. rules for arbitration to begin. arbitration of a claim either you or LG. must make a written demand for. arbitration administered by the American. Arbitration Association and so the AAA. as they are also known in this industry. uh have their own rules they have their. own arbitrators and they are somebody.

That you can contract with and say we. might want to have arbitrations in the. future can we tell people they've got to. use you and they say yes there's a cost. for arbitration and there's rules for. iteration and so you want to see what. the rules are you can go to the American. Arbitration association's website and. find their rules but they've got. different sets of rules for different. categories of claims but the one thing. you've got to know. is that the arbitration uh is binding. it's governed by the federal arbitration. at and a judgment may be answered on the. arbitrator's finding but there are no. appeals from it it's it's one and done. okay the important thing to remember. though is that the Triple A arbitration. has a cost associated with it that cost. will be paid by LG so you might say well. Steve that's good that's good it won't.

Cost the consumer anything until you. realize well sometimes some people like. to be nice to the people who are paying. them that's just one consideration. uh the law of the state of your. residence shall govern the limited. warranty so if you bought this thing in. Michigan uh it'll be arbitrated under. the laws of Michigan uh if you bought it. in Louisiana the big arbitrated under. the laws of Louisiana it does say you do. not need to pay any fee to begin an. arbitration. uh upon receipt of your written demand. for arbitration algae will promptly pay. all arbitration fees unless you seek. more than twenty five thousand dollars. in Damages in which case you'll be. governed by the AAA rules and I believe. that says the person bringing the. arbitration must pay those fees and they. are exorbitants so most consumers.

Wouldn't be happy with that. if your claim is for 25 000 or less you. may choose to have the arbitration. conducted solely on the basis of. documents submitted to the arbitrator or. through a telephonic hearing or by an. inperson hearing as established by AAA. rules if your claim exceeds twenty five. thousand dollars the right to a hearing. will be determined by the AAA rules uh. and so on now here's the interesting. part you can opt out of all of this but. you've got to do it shortly after you. buy the product. so it says you may opt out of this. dispute resolution procedure if you opt. out neither you nor LG can require the. other to participate in an arbitration. proceeding. to opt out you must send notice to LG no. later than 30 calendar days on the date. of the first consumer purchaser's. purchase of the product by either.

Sending an email to optout lge.com with. the subject line arbitration optout or. by calling an 800 number you must. include in the optout email or provide. by telephone your name and address the. date on which you purchase the product. the product model name or model number. and the serial number which can be found. in the product or online. and then it has a a website you can go. to called find my model number you may. only opt out of the dispute resolution. procedure and the manner described above. that is by email or telephone. no other forms of notice will be. effective to opt out of this dispute. resolution procedure which is amazing. because they will not accept a Written. Letter which is what most people would. think would be the best evidence. opting out of this dispute resolution. procedure will not affect the coverage.

Of the limited warranty in any way and. you'll continue to enjoy the full. benefits of the limited warranty if you. keep the product and do not opt out then. you accept all terms and conditions of. the arbitration provision described. above so what this basically means is. that you have 30 days and the date you. purchased this machine to opt out if you. don't you're in okay. so when do most people read the warranty. terms of their product. well they read them when they first have. a problem most people when they're. shopping at your Home Depot or your. Lowe's or what have you most people will. say oh does this thing come with a. warranty yes oh what kind of warranty. one year 90 days two years whatever it. might be and most people simply ask for. the time limitations of the warrant and. go oh okay and they think about that.

The sales person is not going to go oh. it's one year but you're bounded by. arbitration unless you opt out in 30. days I I can't imagine a salesperson. saying that I can barely imagine a. salesperson knowing that so what happens. is you buy the thing uh you're using it. for a little while it breaks down on you. you go pull the warranty booklet and it. says that you've got this warranty in. place so you call to get service and you. call and call and call and let's assume. for a moment that your thing does not. get fixed you start getting near your. Wit's End and as you're digging through. you go oh there's an arbitration notice. here. and if I wanted to opt out I had to do. that a few months ago. very few people will notice this optout. provision until it's way too late to do. anything about it so what you actually.

Need to do and this is the upshot of the. entire video is that if you buy a large. Appliance or a large thing big screen TV. washing machine microwave oven whatever. it might be something that actually cost. you substantial sum of money. if you bought it and it came with a. warranty dig through the warranty. booklet and look to see if it's got a. binding arbitration provision and if it. does look to see if you can opt out of. it and look to see a time frame on. opting out and if you could sitting down. and writing an email won't take you much. time it's just that most people aren't. going to notice that's there until long. after it's expired and that is a problem. so number one most people won't notice. this until it's too late so you might. say Steve I'm curious about one thing. what have you got against arbitration.

Are are you against it because you're an. attorney and this is cutting you out of. the picture no Believe It or Not The. American Arbitration Association of. rules allow you to bring an attorney and. if there's a way to claim attorney fees. under the law the arbitrator can award. them meaning that you can go through the. arbitration with an attorney and if you. win your attorney gets paid by LG so. there you go boom that's not my. objection my objection is that the. average arbitration. is not as good as going to court and. that's why manufacturers push people. towards arbitration and. one of the things I alluded to earlier. is that arbitrators theoretically are. neutral okay so you grab somebody random. and go here you sit as judge and jury on. this matter and resolve this dispute. you're the arbitrator and by the way.

Your ruling is final people cannot. appeal your ruling okay go that sounds. like a great way to do it why not do. that well let's suppose instead that. you're going up against a big corporate. Behemoth who has a lot of claims that. are all being handled this way and oh by. the way all the claims are being handled. by this one group that gets paid to. handle the claims. and they're being paid by the. manufacturer now if you had to guess. if if the arbitrator were to be biased. one way or the other I'm not saying they. all are but let's let's ask that. question if they were to be biased which. way would they be biased. are they aware of who's paying their. bills. of course they are that's my number one. concern when when a large corporate. entity hires an arbitration organization. and says we're gonna be arbitrating a.

Bunch of claims with you guys. you can bet that the arbitration group. wants to keep that client happy because. there are other arbitration groups out. there there's actually a whole bunch of. them out there and so if this. arbitration group starts handing down. big Awards guess what happens. they can lose this client there's no. question about that the other thing I. can tell you is that I have seen. personally in cases of mine where my. clients were forced to arbitrate but. also I've heard other stories. anecdotally from other attorneys who I. trust where arbitrators have done things. that were not just. a question of judgment wrong but. actually wrong wrong so the parties. agreed that the arbitrator will either. find like I've been in a situation. before. where an arbitrator was told by both. parties. if the plaintiff wins he gets this.

If he loses. he gets zero. it's a binary proposition and there was. there was a case that I was involved in. where that was the only. choice and and both parties agreed to. that. we even went to a settlement conference. where everyone told to judge that and. the judge said well you know we could. have a trial we'll let a jury pick which. of those two it is but you know juries. don't have to follow that if they don't. want to but an arbitrator should. an arbitrator absolutely should and now. I know what you're gonna think you're. saying Steve let me guess arbitrary. split the difference no he didn't. that would be the third possibility so. he could go over here he could go over. here he could cut it in half he did. something else entirely different that. no one anticipated. and I called up my opponent said did you.

See this and he goes yeah what. he swore he goes what the heck is this. I said I don't know and we actually. thought the arbitrator may have mistaken. our case with another case and we. conference called him. and said. we told you that you had two choices but. this and this and you agreed to that. when we hired you in other words this. was not an arbitration through an. organization this is when we hired an. independent arbitrator we told him your. only job is to choose between this or. this. and you did this. and he goes I'm an arbitrator I can do. that. so an arbitrator actually told us he was. allowed to break the rules that we set. for him. by the way neither of us is happy with. the result. and I know some people say but Steve. I've heard that if neither side is happy. with the result not always not always. does not mean that it's a fair fair.

Settlement uh and I'll tell you that I. actually filed a motion with the courts. to have that arbitration set aside and I. said as the court will remember we. agreed that the arbitrator would simply. decide between these two propositions. which one is it. and the judge looked at it he goes well. is there any evidence that he was being. corrupt or that he'd been bribed or. because there are some reasons that you. can obviously get an arbitrator set. aside if you find out he took a bribe. from the other side for instance and and. we both said no but we hired him to do a. job and he didn't do it. and the judge goes you know. I'm gonna have to let that stand. so I gotta go back to my client now and. go do we take this up on appeal I think. we'll win but I'm not sure. and that's the weird part is that you. enter into this Zone where rules and.

Laws don't necessarily apply and now the. same thing can happen with a jury don't. get me wrong you put a bunch of people. in a jury room close the door tell them. that their proceedings are secret and. say come up with an answer sometimes. they come up with an answer nobody. anticipated. but that's also something you expect. with a jury and an arbitrator who is. told you either pick a or b tell us. which one it is he comes back and goes d. you know that wasn't even a choice well. that's it and unfortunately we'd already. paid the guy so that's what I don't like. about arbitrations is that they can be. wildly unpredictable but they're also. like I said being paid by the other side. which on the one hand means you don't. have to pay it but do they take that. into account when they keep getting. repeat business from One customer over.

and over again who pays them so my. advice to you is if you buy an LG. product or any other big product these. days look at the warranty booklet. received as an arbitration provision and. see if it has an optout and if it does. I would consider opting out of it. because among other things keep in mind. that personal injuries for instance. as they get arbitrated as well so who. knows who knows but I think your chances. are better with an attorney than with an. arbitrator paid for and chosen by the. people you bought it from so there you. go Jake and thanks for sending it. questions or comments put them below. let's talk to you later byebye thank. you for watching lato's Law. what after all is a Halo it's only one. more thing to keep clean

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