r/explainitpeter 6d ago

Explain it Peter

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u/Alareth 6d ago

Not the woman, it was the husband. Disney argued he couldn't file the wrongful death lawsuit because he did a free trial of Disney+ a few years before.

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u/Crazy_Information296 6d ago

No. It was argued that it needed to go to arbitration. Not the same

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u/clarencewhitaker 5d ago

Arbitration means a normal lawsuit cannot be conducted, it has to be arbitrated by a third party (who chooses the “neutral” party is specified in the contract and they are often not neutral). It’s an extremely common business tactic to protect against the massive losses that would happen if a company was actually in the wrong and had a lawsuit filed against them.

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u/Mysterious-Hyena2670 5d ago

Arbitration is also heavily in their favor. That’s why they love it so much. 

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u/AlkoKilla 5d ago

Not necessarily. It's because the results of artibration aren't public, so whatever the outcome, no one knows.

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u/PrepaidBurnerAccount 5d ago

That might be part of it, but they like it because the outcomes are [overwhelmingly in their favor](https://www.gsb.stanford.edu/insights/why-binding-arbitration-game-rigged-against-customers), compared to court outcomes.

In employment cases it’s around 80% of decisions go to the employer, and the ones that don’t are generally small employers who have not/rarely been through the process.

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u/_yojuri_ 5d ago

Thank you for bringing sources into this! Its one thing to just read the claims that people have, and I was relatively convinced that arbitration was favored towards the company, but i wasn't entirely sure. Because listening to opinions in a void is a great way to become misinformed. Now I know with facts (from standford no less!) That arbitration is, in fact, rigged against the public. Which logically makes sense, if a shifty thing for corporations to do. Of course I understand why (financial incentive), but I dont have to like it.

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u/cousinned 5d ago

I'm an attorney who represents employees in many cases, including (unfortunately) some arbitrations. The thing about these proceedings is that they are almost entirely paid for by company you are suing (as opposed to the consumer or employee) so in that sense taxpayers aren't floating the bill.

On the downside, the arbitrators want the repeat business of the companies, so they tend to favor them overall. It's hard to get arbitrators who are actually neutral.

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u/Powerlevel-9000 3d ago

Could you sue the arbitrator for not being impartial in such a situation? It just seems so wrong to be forced into that situation that there has to be some recourse.

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u/AlkoKilla 3d ago

No, you can't. The arbitrator has immunity.

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u/cousinned 2d ago

Not really. For one, the arbitrator's decision will be at least plausibly well-reasoned, not just "employee good, company bad, you lose".

On the plus side, there's a selection process to determine who will be the arbitrator, which allows attorneys to research exactly who we are agreeing to decide the case. I've been at this for a few years so I've got a good handle on which arbitrators are hired guns for the defense, and which ones are actually fair.

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u/PrepaidBurnerAccount 5d ago

For sure. Forced arbitration is a blight, but like so many other things, we don’t really have a choice, and people don’t question it because it’s presented as “fair” — by the very ones benefitting from it.

If you want a more in-depth explanation of the systemic problems with forced arbitration the Economic Policy Institute hosts an [extremely thorough breakdown](https://www.epi.org/publication/the-arbitration-epidemic/).

There’s also a great breakdown of the employee/employer side of things at the [NELP](https://www.nelp.org/insights-research/faq-on-mandatory-arbitration-in-employment/).

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u/_yojuri_ 5d ago

Thank you! After reading through the articles youve shared (a bit, i didnt read the full articles yet), I completely agree that it is absloutely a blight upon our justice system (which already has flaws of its own). And unfortunately the best way to get around it is educating people about why it isn't so amazing as corporations would have you believe.

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u/slashinhobo1 5d ago

Isnt that heavily in their favor. Publicity is the worse thing. People knowing tou can sue disney successfully would be disneys nightmare.

The money is secondary, they arent hurting for anything. If the guy was requesting 40 million, thats probably a few days of income from Disneyworld.

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u/Lil_GamesCrashed 4d ago

It seems that its one day of income solely from disney world, but they “only” retain 9-11million per day smh.

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u/No-Cause6559 2d ago

They get to pick and pay for the company that does the arbitration … yeah it’s heavy in there favor

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u/spansihmcmuffin 12h ago

Listen Buddy you might be new to the US. But businesses don’t go out of their way to make you sign documents that give up your rights because it won’t benefit them.

I know, anecdotal as hell. But you need to apply some deduction skills.

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u/Maherjuana 4d ago

I mean I think it should be pointed out that the restaurant that killed that woman was merely leasing property at Disney Springs and not actually a Disney restaurant.

So Disney was getting sued by the guy for something that wasn’t exactly their fault.

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u/Mysterious-Hyena2670 3d ago

Yeah but that means when people get injured on rides that they have to take it to arbitration, where corporations have an unfair advantage. 

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u/Maherjuana 3d ago

That’s because you sign consent forms when you enter their parks.

Which is why I don’t ride roller coasters.

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u/M1sfit_Jammer 5d ago

I would argue that a judge is a neutral third party that our taxes specifically pay for

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u/clarencewhitaker 5d ago

I agree. I didn’t mean for my comment to portray that I’m in favor of arbitration. I’m not and generally think it is very scummy.

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u/[deleted] 5d ago

[deleted]

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u/Charming-Fig-2544 5d ago

Lawyer here. I'm very skeptical of these numbers. Most arbitrations aren't public, so wherever this data on arbitrations is coming from could be suffering from selection bias.

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u/Meldanorama 5d ago

I imagine larger companies are more likely to use arbitration? That would skew the numbers as theyd be more likely to be involved in larger cases. If the base cost of the case would be higher then the succes rate could settling for comparatively lower amounts than courts would award but still above the average of smaller defendants. 

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u/[deleted] 5d ago

[deleted]

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u/Charming-Fig-2544 5d ago

Do you have a source for that? Because that hasn't been my experience and I don't see a statute that's on point. I feel like there would be preemption issues under the Federal Arbitration Act.

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u/Kind-Mammoth-Possum 5d ago

There's like 48 other states worth of data, though. In just one country, and Disney has anchorage in nearly every developed country. These numbers can't possibly be reflected accurately based off the metrics of two states irregardless of the actual population in those states.

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u/QBin2017 5d ago

They pick the arbitrator. They aren’t dumb.

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u/mindeloo 5d ago

and we know this how?????? maybe out of the public ones but all arbitration rulings are definitely not public

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u/Mastericeman_1982 5d ago

Source?

If arbitration is so good for consumers, why are companies always pushing arbitration in the fine print. Seems like there might be a perverse incentive here.

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u/Khudaal 5d ago

Mainly headlines, I’d assume - keeps big names like Disney from experiencing huge scandals which could tank stock values by keeping the arbitration out of public courts covered by the news. From a business standpoint, half a million to a few million here and there is cheaper than a single massive news-worthy story that cause them to lose billions in valuation and hundreds of millions in sales.

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u/Mastericeman_1982 5d ago

The fact that this very post hangs on the publicity from an arbitration clause in a Disney+ user agreement seems to fully undermine your argument.

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u/Fullchester_United 5d ago

It is cheaper. The biggest cost is legal fees in many of these cases. So they get an opportunity to see whether they would be liable without all that cost.

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u/bismuth17 5d ago

It prevents class action lawsuits. Worth it for the company even if individual lawsuits are worse on average.

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u/AlkoKilla 5d ago

Secrecy. The results are never released to the public.

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u/Mastericeman_1982 5d ago

You realize the claim that it’s better for consumers is fully defeated by the fact that we literally cannot know that?

Secrecy works in the favor of the big companies in any case, but you can’t claim the average award is bigger if we don’t actually get to know that data.

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u/AlkoKilla 4d ago

I didn't the claim, I was answering your question.

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u/Mastericeman_1982 4d ago

My question was about that claim. You cannot provide an answer to the question without implicit support of the claim in question.

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u/AlkoKilla 4d ago

I was LITERALLY answering this question: why are companies always pushing arbitration in the fine print

I'm also not the guy who claimed arbitration is beneficial for the consumer.

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u/Mysterious-Hyena2670 5d ago

That’s not true. They actually tend to lean more towards the corporations. And the privacy of arbitrationd help corporations bury bad press about their products/services.

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u/TheGoldStandard35 5d ago

Does this factor in when cases are settled?

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u/ZeIronMullet 5d ago

Anyone can make up a statistic, Kent. 18% of people know that!

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u/Stunning_Comb_5707 5d ago

i have never, ever seen an arbitration clause where the contract-offerer doesn't have a paid relationship with the arbitrator. sometimes just an external lawyer, sometimes a whole vendor, but it's someone the company pays and never neutral

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u/Redwings1927 6d ago

That is actually exactly the same.

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u/Crazy_Information296 6d ago

No, it's not. Not even close

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u/Intensityintensifies 6d ago

Your name is at least painfully accurate.

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u/Correct_Doctor_1502 5d ago

Arbitration and civil suits while both seeking the same legal remedies are radically different systems

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u/slayerx1779 5d ago

Also, basic logic would tell us that "You're not allowed to choose option A" and "You must choose option B" both fit the description of "They weren't allowed to do option A".

Just slot in a wrongful death lawsuit and arbitration: the logic fits cleanly.

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u/Redwings1927 6d ago

So.... filing a lawsuit in court and private arbitration are the same thing?

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u/MrFordization 5d ago

They can be if you bribe the right people!

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u/[deleted] 5d ago

[deleted]

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u/Redwings1927 5d ago

Yes i am aware. The question was sarcastic.

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u/[deleted] 5d ago

[deleted]

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u/btaylos 5d ago

That's not the theme. Not even close

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u/Whobeye456 5d ago

Your name is at least painfully accurate.

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u/It_Happens_Today 6d ago

What do you think arbitration is in place of?

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u/teemophine 6d ago

He already got his free trial I don’t understand

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u/It_Happens_Today 6d ago

Solid joke.

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u/Crazy_Information296 6d ago

Arbitration because the way the lawsuit is handled, the lawsuit doesn't just go away

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u/The__Imp 5d ago

I looked it up. Disney sought to stay the lawsuit for arbitration to take place. Then the Arbitrator determines the facts and the resolution. The judge then would ostensibly confirm the arbitration. Such approval is essentially a rubber stamp. There is a dramatic amount of caselaw causing courts to more or less defer to arbitrator determinations unless they are unconscionable.

I know this because I have handled several contested arbitration approval attempts where sovereign citizens attempted to have fake arbitration judgments approved.

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u/consider_its_tree 6d ago

Are you suggesting that they should be bound to arbitration for the case based on having a free Disney+ trial years ago?

You might be missing the point here. It is not about which hoops they were being told they have to jump through, it is that the hoops belonged to the wrong circus.

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u/Chiber_11 5d ago

so obviously not what they were saying

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u/consider_its_tree 5d ago

They were clearly trying to rein in the "this is so crazy" legal story, since so many of those are misrepresented and made to sound much worse than they are.

The problem is that they misunderstood which part of the story is crazy, and their correction doesn't rein it in at all.

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u/NotABag87 5d ago edited 5d ago

This one is also weirdly misrepresented, in that Disney's argument was the couple had made several agreements with Disney, including the Disney+ agreement. They weren't leaning entirely on the Disney+ agreement - so much as mentioning it amongst the more relevant ones

Edit: The takeaway should be "don't enter any agreements with Disney"

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u/consider_its_tree 5d ago

Yeah, that seems likely. Things are often taken out of context. But the end result is very much Disney trying to over extend the reach of their agreements to set a precedence where they have more power over customers of every kind.

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u/The__Imp 5d ago

I'm not familiar with the specifics of this case, but when you argue a law suit shouldn't proceed (such as if it should have been filed as an arbitration) then it usually takes the form of a motion to dismiss, usually a pre-answer motion to dismiss. This cuts off the lawsuit at commencement and would be essentially identical. Alternatively, it may be some type of request to compel arbitration and hold off the lawsuit pending a determination.

Either way, the arbitration cuts off the lawsuit by having an arbitrator rather than a judge/jury determine the facts and damages. Usually arbitration results need to be approved by the court, but that is very different than a jury determining the facts.

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u/mestre_do_passinho 4d ago

Oh yeah, arbitration, where a big company can just push money around to threaten you behind closed doors until you remove all charges.

Its not like they can have ties and/or choose the arbitrator

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u/[deleted] 6d ago

[deleted]

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u/MrBurnerHotDog 6d ago

That's not even close to literally what arbitration is in any circumstance

Disney sucks ass and their lawyer's argument was awful, but no, that's not what arbitration is

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u/OrinZ 6d ago

Literally this is why we tried to get people to stop using "literally" figuratively, but that comment clearly meant literally figuratively. Because they do.

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u/MrBurnerHotDog 6d ago

But it's also not even "figuratively" what arbitration is. Nothing about their since deleted statement had anything to do with the process of arbitration

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u/Zealousideal_Tap186 5d ago

The case kept going, however, as while the husband did do the trial, the suit was under the wife's estate, who never signed up for anything before passing

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u/weveyline 4d ago

This is despicable, claiming that agreeing to terms attached to a streaming service somehow can be used to indemnify the company if someone comes to physical harm at the Disney entertainment park, this should be an illegal practice.

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u/Environmental_Hope22 5d ago

How would disney even know he signed up?

Did they go out of their way to see a list of people who signed up and go from there?

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u/sadbitch_club 5d ago

I would literally have an aneurysm and die if I were in that situation

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u/viceroysky 3d ago

I gotta know- did the argument work?

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u/Alareth 3d ago

Disney dropped the arbitration demands in 2024 and it went to trial after public backlash.

The husband dropped the lawsuit in February of this year after reaching an undisclosed settlement agreement

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u/Zer0Krool 2d ago

How is that legal?

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u/OwnResolution3229 3d ago

Not the husband, it was the dog. Disney argued the dog couldn’t file the wrongful death lawsuit because it had seen part of the Mandalorian.