Preserving the Right to Trial by Jury

A recent concession by private equity giant Carlyle Group has called into question the ethics of other organizations. Carlyle Group has filed for an initial public offering (IPO), and as part of that filing, they included a stipulation that any future shareholders would have to resolve claims through arbitration rather than in a courtroom setting. The firm announced it was dropping the provision on Friday, after members of the U.S. Securities and Exchange Commission (SEC) noted they would not authorize the IPO as long as the provision was in play.

In the wake of Carlyle's reversal, Senator Richard Blumenthal said, "I'm enormously pleased that Carlyle has…sent a message to the financial community about the unfairness of arbitration." The Senator's feelings regarding arbitration are echoed by many consumer advocates, who believe that arbitration favors large companies by making it too costly for plaintiffs to bring cases and by making it harder for them to receive large awards. If this is the case, then, why are we seeing a trend toward large companies trying to force settlements and take away individual's rights to file suit?

One needs only examine the offered Costa Concordia settlements to see an example of forced abandonment of future claims. In that instance, cruise ship operators offered all passengers a blanket settlement of $14,000. If the passengers accepted, he or she would have to abandon any claims against the operator in the future (see earlier posts for an in-depth discussion of this issue.) When contrasted with Carlyle Group's implied admission that filing suit is a protected right, the actions of the Costa Concordia operators seem particularly underhanded.

One of the stalwarts of the American legal system is the ability of wronged parties to file law suits against those who have caused them harm. If you have been involved in a conflict or accident, and the defendant in your case is attempting to take away your legal right to file suit, you need to speak to a Houston trial attorney immediately. An experienced litigator from Arnold & Itkin can advise you on the most appropriate legal action to take during your free consultation. Contact a Houston injury attorney from Arnold & Itkin today. Any information you share with us remains completely confidential.