Secrecy of awards lets wrongdoers contain reputational damage from breach.

Evidence

There are a number of reasons why nonmembers might request that the DDC arbitrate a dispute with a member. First, if the nonmember knows he is in the wrong, yet the parties are unable to agree on a settlement, then having a neutral third party assess a penalty should enable him to minimize the reputation cost of his breach since arbitration awards are kept secret if the judgment is paid promptly. Although the arbitration’s results sometimes become known through gossip, as long as the individual is not frequently involved in such controversies, the damage to his reputation is likely to be contained. Second, if the nonmember thinks he is in the right, arbitration is preferable to litigation because it is cheaper, faster, and subjects the member to unqiue pressures to pay promptly. — Lisa Bernestein, Opting out of the Legal System, 81

Categorization

• XREF: connects to: Arbitration’s secrecy lets wrongdoers minimize reputation costs while right-holders gain speed and cheapness. — Lisa Bernestein, Opting out of the Legal System, 81; Secrecy of arbitral disputes preserves a party’s creditworthiness and reputation. — Lisa Bernestein, Opting out of the Legal System, 237; Settlement terms can be engineered to publicly obscure a defendant’s guilt — Jonathan Harr, A Civil Action, 2600 (+1 more)

Related

• Arbitration’s secrecy lets wrongdoers minimize reputation costs while right-holders gain speed and cheapness. (similarity 0.90)
• Secrecy of arbitral disputes preserves a party’s creditworthiness and reputation. (similarity 0.88)
• Private arbitration systems resolve disputes without public accountability. (similarity 0.84)
• Arbitration secrecy hides disputes from public view once judgments are paid (similarity 0.80)
• Private arbitration beats courts on speed, cost, and secrecy. (similarity 0.79)
• Private dispute resolution excels through speed, low cost, and secrecy. (similarity 0.78)

Broader Connections

• Arbitration’s secrecy lets wrongdoers minimize reputation costs while right-holders gain speed and cheapness. #expands (0.95) — Lisa Bernestein, Opting out of the Legal System, 81
• Secrecy of arbitral disputes preserves a party’s creditworthiness and reputation. #corroborates (0.92) — Lisa Bernestein, Opting out of the Legal System, 237
• Settlement terms can be engineered to publicly obscure a defendant’s guilt #exemplifies (0.85) — Jonathan Harr, A Civil Action, 2600