What is a class action arbitration?

A class action arbitration is a type of arbitration procedure in Delaware in which a group of people, often referred to as a class, can bring a claim against another party in a single proceeding. This type of arbitration allows individuals to join together to pursue a claim that would be too small for each one to pursue individually. In order for a dispute to be eligible for a class action arbitration, the dispute must involve similar facts and legal issues and involve a large enough group of people that it would be impractical to pursue the claim individually. The arbitration is usually conducted by a neutral third-party, such as a lawyer or a judge, and the group of people involved in the class action is represented by a single attorney. For instance, if a group of consumers bought a product from the same company but each had a different issue, they could join together and pursue a class action arbitration against the company. The decision of the arbitration is binding on all members of the group, even those who did not participate in the process. Although a class action arbitration is a more efficient and cost-effective way to pursue a claim, it can also be more complicated and time consuming. Therefore, it is important to make sure that it is the right option for the specific situation before going down the route of a class action arbitration.

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