FlyerTalk Forums - View Single Post - Hertz arbitration to avoid rental car scams
Old Jul 3, 2020 | 1:41 pm
  #4  
garykung
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Originally Posted by RocketGoBoom
The key is to make a settlement offer at the beginning of the process.
Your premise of arbitration is not about having a merit case. Instead, you attempt to waste a sizeable amount of money of the business in attempt of pushing for a settlement offer. It is a dangerous proposition.

I can see that many companies may compromise as your so-called settlement does not seem to have any actual monetary value (for example, you pushed binding arbitration against Hertz in order to force Hertz dropping the bogus charge). The danger of binding arbitration is if you have a merit case, your damages will be significantly lower. That happened to me once (the case was forced to settle before arbitration as the Court compelled arbitration). Also - in some states, small claims cases can be appealed. But binding arbitration is binding. So if you actually lose, you will be forced to pay.

Last but not the least - the arbitrator has the authority to award costs against the losing party, despite what you have claimed. Because it is a binding arbitration, fair or not, you will be forced to pay.

You are simply lucky. It does not mean binding arbitration is a good option.
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