Professional Documents
Culture Documents
July 1, 2016
Ms. Marilyn Hamilton
Texas Dept. oflnsurance
Property and Casualty Lines Office
Mail Code 104-PC
P.O. Box 149104
Austin, Texas 78714-9104
consumers nationwide seek relief through arbitration despite the presence of arbitration clauses in
millions of consumer contracts. The reason is that arbitration is not a practical remedy for a
consumer. On the other hand, millions of consumers are eligible for relief each year through class
settlements.
The fact that the arbitration clause is offered with a small reduction in premium does not
justify its inclusion. Because consumers do not have information about the problems associated
with arbitration or the likelihood that a dispute will arise, they cannot possibly estimate the value
of the rights they are waiving. As an economist would say, they cannot price arbitration.
Sincerely,
Angela K. Littwin
Professor of Law
alittwin@law.texas.edu
(512)-232-5561
Thomas 0. McGarity
Joe R. & Teresa Lozano Long Endowed Chair in
Administrative Law
tmcgarity@law. utexas .edu
512-232-1384
Charles M. Silver
Roy W. & Eugenia C. McDonald Endowed Chair in
Civil Procedure
csil ver@law. utexas. edu
512-232-1337
Jay L. Westbrook
Benno C. Schmidt Chair of Business Law
jwestbrook@law.utexas.edu
512-232-1303
A. Mechele Dickerson
Arthur L. Moller Chair in Bankruptcy Law
and Practice
University Distinguished Teaching Professor
512-232-1311
mdickerson@law.utexas.edu