How Corporations Awarded Themselves Legal Immunity

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GUARDIAN– Worried about the influence of money in American politics, the huge cash payouts that the US supreme court waved through by its Citizens United decision – the decision that lifted most limits on election campaign spending? Corporations are having their way with American elections just as they’ve already had their way with our media.

But at least we have the courts, right?

Wrong. The third branch of government’s in trouble, too. In fact, access to justice – like access to elected office, let alone a pundit’s perch – is becoming a perk just for the rich and powerful.

Take the young woman now testifying in court in Texas. Jamie Leigh Jones claims she was drugged and gang-raped while working for military contractor KBR in Iraq (at the time, a division of Halliburton). Jones, now 26, was on her fourth day in post in Baghdad in 2005 when she says she was assaulted by seven contractors and held captive, under armed guard by two KBR police, in a shipping container.

When the criminal courts failed to act, her lawyers filed a civil suit, only to be met with Halliburton’s response that all her claims were to be decided in arbitration – because she’d signed away her rights to bring the company to court when she signed her employment contract. As Leigh testified before Congress, in October 2009, “I had signed away my right to a jury trial at the age of 20 and without the advice of counsel.” It was a matter of sign or resign. “I had no idea that the clause was part of the contract, what the clause actually meant,” testified Jones.

You’ve probably done the very same thing without even knowing it. When it comes to consumer claims, mandatory arbitration is the new normal. According to research by Public Citizen and others, corporations are inserting “forced arbitration” clauses into the fine print of contracts for work, for cell phone service, for credit cards, even nursing home contracts, requiring clients to give up their right to sue if they are harmed. Arbitration is a no-judge, no-jury, no-appeal world, where arbitrators are (often by contract) selected by the company and all decisions are private – and final. 

They don’t pay fair wages; they don’t pay their fare share of taxes. They evade liability. What gives? Says Saladoff: “When corporations harm, there should be some way to hold them accountable.”

Read more about How Corporations Award Themselves Legal Immunity

Written by Laura Flanders

© 2011 Guardian

Photo by Flickr user tommyajohansson

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