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Mass Arbitration

Bellwether Provision (Arbitration)

A clause under which a small sample of arbitrations is resolved first, with results shaping or binding the remainder.

Borrowed from MDL practice but structurally different: in an MDL, bellwether trials inform settlement valuation without binding absent parties, whereas contractual arbitration bellwethers frequently purport to bind claimants who neither participated in nor knew of the sample proceedings. That preclusive effect is where the doctrine has bitten. Courts have found protocols unconscionable where a handful of confidential bellwether outcomes would determine thousands of claims, and have made clear that they will assess how a protocol actually operates rather than how it reads.

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