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When Iowans hire a lawyer after a serious accident, most assume their case will be decided in a courtroom if there’s a dispute. But some legal retainers include a different path: binding arbitration.
Peter Riley, an attorney with Tom Riley Law Firm in Cedar Rapids, urges injury clients to think carefully before signing those clauses.
In fact, Riley says people should “never, never sign something with a binding arbitration clause if you can avoid doing so” in a personal injury case. While many everyday agreements, like cable contracts or car rentals, come with non‑negotiable arbitration provisions, he draws a sharp line when it comes to choosing your own lawyer.
Supporters of arbitration often describe it as faster and cheaper than going to court. Riley disagrees.
“That’s simply not true,” he said. In his experience, arbitration is far more expensive. Filing a lawsuit in Iowa state court currently costs just over $200. For clients working with a lawyer on a contingency fee, those court costs stay relatively low.
Arbitration, by contrast, starts with a “large initial fee.” On top of that, both sides pay the arbitrator, or even a panel of arbitrators, by the hour. Those charges can quickly add up, creating a financial hurdle many ordinary Iowans can’t clear.
“That’s why big business likes it,” Riley said, “because it’s too expensive for average individuals to pay the costs of arbitration.”
For people already facing medical bills, lost wages and the stress of recovery, those extra expenses can make it harder to pursue a fair result. Riley’s view: if you are hiring a lawyer for a personal injury claim and see a binding arbitration clause in the retainer, ask questions and consider your options before you sign.
Residents with questions about their own contracts or injury claims can reach out to the Tom Riley Law Firm for more information.