Montana Investors Reject Alternative Dispute Resolution Arbitration
Tuesday, September, 6, 2011
Alternative Dispute Resolution Arbitration Controversial in Real Estate Case
Alternative dispute resolution arbitration is not the preferred choice of a group of Montana investors including a former congressman. These real estate speculators are requesting that the Montana Supreme Court allow them to have their case heard in a court of law rather than be decided by an arbitration panel. Another member of the group is a potential candidate for governor of the state.
In dispute are millions of dollars related to a real estate investment scheme. Projected profits for the deal evaporated several years ago when the sub-prime mortgage bubble burst, precipitating a crisis that plunged real estate values across the nation. The company involved in the Montana dispute has since filed for bankruptcy. A spokesman for the company characterized the allegations of misuse groundless.
Alternative Dispute Resolution Arbitration Agreed to in Advance
Investors in the company agreed to arbitration when the deal was first made but now wish to change their minds and pursue the company in court. The company vehemently disagrees. Attorney spokesmen announced that "the arbitration provisions [in the contracts] were prominent, easy to read, and Plaintiffs conceded that their ability to read and comprehend the arbitration agreements was not in question. Accordingly, Plaintiffs should be bound to their arbitration agreements, and the district court's order compelling this dispute to arbitration should be upheld."
Real estate arbitration is a common means of resolving land disputes.