Quinn Emanuel Business Litigation Report - November 2011

In This Issue:

The Case Against Arbitration: Do the Doubters Have a Point?; Federal Circuit Holds That the ITC Has Jurisdiction over Foreign Trade Secret Theft in Section 337 Investigations; Litigation Update - White Collar Litigation; and Seventh Circuit Victory for Ortho McNeil and Other Victories.

Excerpt from The Case Against Arbitration

Recently, the American Arbitration Association (AAA) obtained feedback from a number of its primary users throughout the United States that have traditionally used arbitration extensively as a dispute resolution mechanism. Although the AAA received many compliments and accolades, the results also reflected concerns about arbitration that have become more widespread. These can be distilled into three general perceptions: (1) arbitration is becoming more and more like ordinary litigation; (2) it is becoming as expensive as—if not more expensive than—litigation, in large part because of the high fees that arbitrators charge to conduct a case; and (3) in some circles, there is a lack of trust that arbitrators will be willing to make hard, albeit legally justified, decisions, particularly in complex cases. These results are also reflected in a recent survey concerning international arbitration, reported in the January 2011 edition of “Inside Counsel” magazine. Over 50% of in-house counsel interviewed in that survey said they have been “disappointed with arbitrator performance.”

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