Candace Owens (6:25)
We'll get into other examples of how corporations and private equity will go to ridiculous lengths to trap you into arbitration agreements that you never agreed to later. But every single one of these agreements is you signing away your rights to due process in a court of law. And it's becoming so popular these days among corporations in private equity who are buying up so many different parts of our world that now, more, more and more, as an American, you have rights only if you stay in your house and don't go out to do anything. Except all the things in your house tend to come with arbitration agreements too. And more and more arbitration agreements are being included in lease contracts themselves. So be sure that nothing goes wrong inside your house either, or you'll wind up in secret court anyways. And if you do happen to wind up in arbitration, just know that an American is more likely to be struck by lightning than win a monetary award in forced arbitration against a corporation. That's a real stat. More Americans are struck by lightning each year than win monetary awards and arbitration against corporations. So let me tell you a story and we'll check off our first crime from our list. Sexual assault. In 2017, BuzzFeed News ran a story about more than 180 women who had been sexually assaulted while receiving massages at the nation's largest massage chain, Massage Envy. They have more than 1200 locations across the US when you check in for your massage, you sign their terms and conditions. You don't actually read them, but if you did, you would see that they include a forced arbitration clause where you agree to settle any claims or disputes against Massage Envy in secret arbitration. Some of the stories that have eventually come out are horrible, and I'm not going to read them to you. You can pause and do so if you wish. And although Massage Envy makes great corporate PR statements like quote, massage Envy is committed to promoting a safe environment for members, guests and service providers at each of our 1200 franchise locations nationwide. We urge anyone that experiences anything other than a safe quality massage to report it immediately to the franchise location so that it can be investigated. Notice that they don't say police. In many of the cases, there are allegations therapists were allowed to remain employed or were shuffled to another Massage Envy location. Fortunately, tragically, there were eventually so many individual cases of sexual assault that some of the women started to break their silence and the news started to pick up the story. But despite all that breaking in 2017, Massage Envy continues to face this same problem. Or maybe we should call it a feature. In 2022, one of these instances actually led to an arrest and a trial in court after a woman was raped and contracted herpes. Once she came forward, they found out other women had been assaulted by the same therapist and he had continued to work at Massage Envy. So it may seem like the justice system prevailed and they got the guy. No. In one instance in one specific county, a couple women were lucky enough to find some amount of legal recourse. The other 180 or quite likely more cases, not so much. And we don't even have any understanding of how many the total number might be because of forced arbitration agreements that everyone's signing when they check in for their massage. Not to mention that 90% of women never even report sexual assault because they think for whatever reason, that no one will believe them. This is just one example. Now take into account that more than half of women in the workplace are subject to forced arbitration clauses in their employment contract, and you start to get a sense of how much sexual assault is hidden in secret courts. And every year. That's not to mention the staggering number of cases that are silenced before they're even brought, because plaintiffs rightly realize that they have virtually no chance of winning and will be bankrupted in the process of fighting. And you have virtually no chance of winning because arbitration is not like regular court. It's a for profit racket where the rules are explicitly written so that there are no rules. I think it's pertinent at the outset here to show you where this secret court system comes from in the first place. This is directly from the US Code and this is just the first page of many that define arbitration, but I'm just going to read some of this text so you can get a sense for what we're working with here. Quote Maritime transactions as herein defined means charter parties, bills of lading of water carriers, agreements relating to wharfage, supplies, furnished vessels or repairs to vessels, collisions or any other matters in foreign commerce which, if the subject of controversy, would be embraced with an Admiralty jurisdiction, etc. Yes, if that language sounds outdated, that's because it is. The FAA Federal Arbitration act was first enacted in 1925. Don't even get me started on the commerce clause in the Constitution, which is the basis for the government allowing themselves all up in your business all over the place. The ACLU said arbitration also lacks critical procedural safeguards, for example permitting access to evidence from the other side. That can be the key to proving your claims, particularly in discrimination cases, which often hinge on how the employer has treated other employees. The arbitrators may or may not be lawyers and may or may not be trained in resolving discrimination cases. Results are secret, helping companies evade public accountability. The outcome is binding and and there is generally no right to an appeal. Note how it says the arbitrators may or may not be lawyers, as in the judges in these secret courts may or may not even be familiar with the law, let alone required to enforce them. You will find lots of propaganda and glowing descriptions on arbitration that claim arbitrators are totally upright and follow the law. But that is patently untrue. Hence why you have on average about a 5050 chance of winning in court and more like a 6% chance of winning in arbit. This is how Duke law put arbitration tribunals set their own rules, and they are typically not bound by the procedural formalities employed by courts, nor are they always bound to follow the substantive laws that govern traditional court systems. Nonetheless, primary law and decisions handed down by other arbitrators deciding similar issues can be important sources of persuasive authority in resolving issues sent to arbitration. Here's an example of a source that looks authoritative, representing arbitration as quick and painless. But that's a lie. That's how they want it to look from the outside. So it seems like it's no big deal to sign these contracts. Tiffany Cianci's arbitrations lasted a total of 11 days of hearings, but the proceedings took two years. The big guys know that they can drag arbitrations out for months and months to bleed you dry while you pay your attorneys and arbitrators tens of thousands of dollars per week. Tiffany's arbitrator was $27,000 per week, give or take. So I wouldn't imagine that these arbitrators are all that sad when a case drags out because that's their paycheck. Plus you have to pay a lawyer to be there. No record is made of the hearing, and arbitrators make a legally binding decision for which they are required to give zero legal reasoning. And whether they followed the law or not, whether they saw substantive or even any evidence or not, whether you were treated fairly or not, no one will ever know because there is usually little or no documentation and you are barred from talking about it. But wait, it gets better. When you go to arbitration, you and your opponent go through a process of selecting an arbitrator from those available in your jurisdiction. The big guys know how to game this selection process to land you with the most expensive arbitrator available. Usually, this often tends to be the one they are familiar with and have a good relationship with because they've usually worked with that arbitrator many times before. Then you have to pay them to rule in favor of the corporation or private equity firm you're up against 94% of the time. Yes, you heard that right. You are required to pay your judge, who is not a judge, an hourly rate for the privilege of a secret court where there are no laws and you have no rights. This is an example of the resume sheet of one of the arbitrators Tiffany Cianci got stuck with. Scroll down to the bottom of the sheet and you see the part that matters. Compensation. This woman cost Tiffany $500 per hour of arbitration. Oh, yeah. Plus an hourly rate for pre and post arbitration services. Plus any travel expenses, calls, reviews, filings, everything costs you more money. That totaled out to about 27,000 per week. And this went on for years. Doesn't matter if Tiffany is innocent. Doesn't matter if the other side obviously does not have merit. Doesn't matter if the other side blatantly lies in court. Doesn't matter if the entire scheme is obviously Orwellian. If those women who were assaulted in massage envy want the privilege of the right to some form of pretend justice, they have to pay an hourly fee to receive it. And the costs add up. But remember, even after you pay all that, your chances of winning, regardless of the merit of your case, are minuscule. In five years from 2014 to 2018, only 6% of cases arbitrated with the two biggest arbitration services in America ruled in favor of the Little guy, even though in general the little guy is only there because they were clearly wronged by the big guy. In those five years, nearly 1,000 AT&T customers attempted to arbitrate against AT&T for more than $440 million in damages. Just 17 were successful, and they were only awarded a total of $376,000. That's less than 2%. The other 983 or so people just had the privilege of lining the pockets of their arbitrators and the corporate lawyers they work with to defend the rich and powerful. But it gets worse still, because the arbitration industry, and it is an industry, is a monopoly. A new lawsuit was just filed last week claiming that approximately 94% of the market share is owned by just 1. The American Arbitration association, the next biggest company, owns just 6%. And all other competitors combined represent 0.0003% of the market. It's a giant monopoly ruled by just one company. So it's no wonder the industry is so corrupt. There are entire industries like telecoms and credit reporting agencies that work exclusively with, with the American Arbitration association, this juggernaut in charge of this monopoly. So it's essentially this one company, aaa, a cartel running the entire arbitration industry. And so to Stephanie Stevens, who filed this lawsuit, Godspeed. We'll be behind you every step of the way as you do your best to bust this cartel. And because the industry is so monopolized, the corruption is baked in from the bottom. Typically, these arbitrators will only see you a regular person once. They'll see the big boys, these private equity firms and mega corporations and big law firms that represent all of them over and over and over again. And they form quite cozy relationships. That's because these arbitrators tend to make significantly more as arbitrators than they ever did as judges. At least they do if they get picked for all these arbitrations, right? I mean, $500 an hour is not bad. And if the private equity firms and corporations don't like them, they can strike them. So the paychecks of these arbitrators over time become directly reliant on being favorable to their repeat clients. And their repeat clients are private equity and corporations. You're just there to chip into their next paycheck briefly while you're bankrupted for the illusion of having rights. That's also not to mention that they all have conflicts of interest in every direction. For example, Tiffany Cianci just got served another lawsuit last week based on a different woman's case. Against Unleashed Brands and Michael Browning Jr. In another state, which she is not a party to. That's blatantly illegal. But it's a story for another time. This is the disclosure of conflicts made in that case for her arbitrator, Allen Harris. Allen Harris, who used to work at the same law firm and with the lawyers used by Unleashed Brands in the same law office as Norman Leon, the lawyer that she is fighting against. So imagine sitting down in secret court against Michael Browning Jr. And your judge is the former co worker of his lawyers and is paid to be there by him and by you. And he regularly takes cases for Unleashed Brands against people just like you. And he will continue to take them in the future. Don't worry. Everything's fine, guys. Patty, the woman being attacked by Unleashed Brands in this case, filed an objection, but that's really just a formality. She's forced to go before a judge, an arbitrator who is former colleague of the people taking her down, who also sees other cases and thereby relies on his salary from the people taking her down. But don't worry because as Harris says, that quote will not affect my ability to serve as a neutral, unbiased, impartial and fair arbitrator. So anyways, back to our list. We already spoke last week about children suffering broken bones, broken spines, fractured skulls, traumatic brain injuries. One toddler was scalped at Urban Air theme parks. Most of these cases were forced into arbitration. The only ones that weren't were lucky enough to be attending Urban Air with someone other than a parent. And thus their arbitration agreement was a lot harder to enforce. But now let's talk about nursing homes and hospitals. In 2011, the Carlyle Group, one of the nation's largest private equity firms, bought HCR Manor Care, one of the biggest nursing home chains. And in 2018, the Washington Post published this bombshell about what that meant for residents. A disabled man who had long, dirty fingernails told them he was tended to once in a blue moon. The bedside call buttons were so poorly staffed that some residents regularly soiled themselves while waiting for help to the bathroom. A woman dying of uterine cancer was left on a bedpan for so long that she bruised. One man had been dosed with so many opioids that he had to be rushed to a hospital. According to the inspection reports, during an undersupervised bus trip to church, one staff member was escorting six patients who could not walk without help. A resident flipped backwards on a wheelchair ramp and suffered a brain hemorrhage when a nurse's aide who should have had a helper was trying to lift a paraplegic woman. The woman fell and fractured her hip hop, her head landing on the floor beneath her roommate's bed. Over that period, the yearly numbers of health code violations at company nursing homes rose from 1584 to almost 2000. The number of citations increased for, among other things, neither preventing nor treating bed sores, medication errors, not providing proper care for people who need special services such as injections, colostomies and prostheses and not assisting patients with eating and personal hygiene. The rise in health code violations at the chain began after Carlisle and investors completed a 2011 financial deal that extracted $1.3 billion from the company for investors, but also saddled the chain with what proved to be untenable financial obligations, according to interviews and financial documents. Under the terms of the deal, HCR Manor Care sold nearly all of the real estate in its nursing home empire and then agreed to pay rent to the new owners. The National Bureau of Economic Research calculated that over the 12 years of their study, private equity ownership of nursing homes were responsible for 22,500 additional deaths due to cost cutting and mismanagement. Health affairs released a study this year that found that surgery patients in private equity owned hospitals are 42% more likely to die. 42% those admitted to hospitals owned by private equity were an astonishing 25% more likely to get hospital acquired conditions mainly due to falls or central line associated bloodstream infections. This is what happens when businesses that are explicitly and only profit driven move into sectors like healthcare, elder care and children's services. It's one thing to focus on the bottom line in banking. It's an entirely different thing to focus on the bottom line at the toddler gym or the hospital. And in case you were wondering, yes, hospitals and nursing homes do have arbitration clauses that force you to sign away, often without knowing it, your right to sue for medical malpractice when these things happen, the trend that private equity is always at the forefront of. But it's not just medical malpractice in hospitals and nursing homes because private equity is also buying up the veterinary clinics. Quote, with too few employees to transport animals that died in stores, carcasses allegedly piled up in PetSmart freezers across the country. One employee shared a photo that she said was filled with two months worth of dead animals. Another employee said their store had a freezer with 10 months. A third said that for lack of time she would simply throw bodies away. Sometimes I was doing it weekly because we didn't have staff to take a vet trip to properly dispose of them. So I was instructed to dispose of them myself. Since 2017, private equity firms have spent $45 billion on the industry. KKR bought Pet Vet and JAB acquired National Veterinary Associates, while Shore Capital and Warburg Pincus invested in Mission Veterinary Partners and BO Non Vet, respectively. Some of these practices names may be familiar to you, but most may not be. When individual offices are sold to private equity firms, they often retain their old names. It can be nearly impossible to know which vets are private equity owned, but don't let the obscure names confuse you. About a quarter of general veterinary practices are now owned by large corporations, including private equity firms, while about 3/4 of specialty practices like emergency and surgery care are. Finally, firms are tremendously successful at avoiding legal consequences for their actions, a problem compounded in the veterinary industry, where clients can recover little, if anything, for the deaths of their pets. This encourages a certain callousness towards workers and customers, as firms know that little will happen to them if something goes wrong. Private equity firms can profit even when their companies decline, their customers suffer and your pet dies. And they didn't go into it in this article. But if you're not reading between the lines there yet, the ways those firms avoid legal consequences that the nation isn't elaborating on here, arbitration is a huge part of that because you'd better believe that you've got arbitration clauses at the vet now. These days some corporations are even trying to make an arbitration agreement transfer over to other parts of their business, as was attempted by Disney when a parent died in their park and they tried to enforce the arbitration agreement their child had agreed to on their home TVs Disney plus account. Our opening segment about Uber was another example. In this example here, Wells Fargo was caught opening sham accounts in their customers names, often forging signatures to do so, then claimed that they forced arbitration agreements from the real accounts covered these fake accounts. That's not justice, that's insane. The American association for justice really summed it up best when they said forced arbitration has never been about efficiency or or justice. Its one true goal is always has been and always will be corporate immunity. And now it's time to get a little deeper into all the crazy things that Michael Browning Jr. Has used arbitration to do. But first I want to take a break to tell you about one of our sponsors.