Arbitration Complaints Could Shift Jurisdiction in Class Action Lawsuits
The article discusses how using arbitration agreements can help determine the amount of money involved in a legal dispute, which can affect whether the case is heard in federal court. By filing a complaint in federal court to compel arbitration, defendants can shift the focus on the amount in controversy and potentially secure a federal forum. This approach can be particularly useful in cases where damages are limited to less than $75,000 and state courts may not enforce arbitration agreements. Ultimately, this strategy can impact the burden of proof and jurisdictional issues in legal proceedings.