Normally, when a party involved in a lawsuit appeals the decision, it’s because that party lost their case in the lower courts and are hoping the higher court will be more favorable to their side of the argument. The winning party does not usually encourage the higher court to reopen their case case, but that’s exactly what Murphy Oil USA Inc. is doing after the Fifth Circuit Court ruled in its favor in a lawsuit against the National Labor Relations Board (NLRB).
The NLRB sued Murphy Oil, saying the mandatory arbitration agreements included in its employment contracts illegally denied workers their right to file a class action lawsuit against the oil company. The Fifth Circuit ruled in Murphy Oil’s favor, saying the Federal Arbitration Act gave businesses the right to settle disputes in arbitration, rather than in the courts.
The problem is the Federal Arbitration Act was designed to allow businesses to settle disputes with other businesses in arbitration, not for businesses to settle disputes with individuals. Furthermore, arbitration does not allow plaintiffs to combine their claims into class actions, which means many small claims never get the chance to be resolved through either arbitration or trial because they’re too small to justify the costs of bringing the suit. Continue reading