David Rosenbloom Comments on Baseball-Style Mandatory Binding Arbitration
Excerpt taken from the article "News Analysis: The Case for Optimism About Mandatory Arbitration" by Marie Sapirie for Tax Notes Today.
The EU and U.S. Models
The experiment in different styles of arbitration has been going on long enough that it is reasonable to want to assess the results, but that is hard because arbitrations are not public. However, it seems that baseball-style mandatory binding arbitration is chugging along fairly efficiently while the European model has essentially stalled.
"Baseball arbitration is infinitely preferable to the alternative," said H. David Rosenbloom of Caplin & Drysdale Chtd. "In baseball arbitration, the power of the arbitration panel is circumscribed, so the process addresses many of the objections to arbitration." In particular, baseball arbitration is less intrusive upon domestic tax policy because the arbitration panel cannot act as a judicial body, express its own views about the case, or tell either country how to apply tax laws.