Ten reasons why banks have resisted arbitration, to date
1. Arbitration is unsuitable for "one-shot money disputes"
2. It is not possible to get a "summary judgment" in an arbitration
3. Preliminary disputes about the tribunal’s jurisdiction lead to unnecessary delays
4. Arbitrators tend to render equitable decisions more often than do state courts
5. The flexibility of the arbitration process creates legal uncertainty
6. Banks want decisions that can be appealed to the highest courts of the state judicial system
7. International arbitration involves US-style "discovery"
8. Arbitration is problematic in multi-party proceedings
9. The confidentiality of an arbitration prevents pressure through negative publicity
10. An arbitration clause completely precludes access to state courts
For an elaboration on these grounds and the counter-arguments, see Berger, LFMR 2009, 54 et seq.