Disney's Black Eye Over Arbitration Gambit Likely to Linger, Underscoring PR Risks of Spurning Courts
"What resonates longer is the way that people will feel about Disney, not the recollection of why they feel that way," said Aaron Davis, a partner at Davis Goldman.
September 04, 2024 at 10:23 AM
6 minute read
The original version of this story was published on Corporate Counsel
The public relations drubbing that beset The Walt Disney Co. recently after the entertainment giant tried to force a wrongful-death lawsuit into arbitration for the quirkiest of reasons—in signing up for a Disney+ trial in 2019, the plaintiff had agreed to settle all disputes with the company out of court—should serve as a cautionary tale for other companies, legal observers say.
Companies often prefer to resolve disputes through binding arbitration, rather than in court, in part because of the efficiency and confidentiality of the process. But in this matter, Disney found itself a social media punching bag because of the legal tactics it used in a dispute that otherwise might have garnered little or no public attention.
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