When Companies Run the Courts: How Forced Arbitration Became America’s Secret Justice System

by Brendan Ballou

The definitive exposé of forced arbitration, the secret justice system that protects abusers, employers, and powerful corporations

“Ballou is one of our most insightful analysts of the modern American legal system. This careful study should be required reading.” —Simon Johnson, Nobel laureate and coauthor of Power and Progress

America has a hidden justice system. There, decisions are made in secret, and “judges” are paid for by the companies and abusers who are being sued. Victims usually lose. But when they do, they cannot appeal, and they cannot turn to real courts for help.

They are trapped in this system, and quite likely, so are you. You joined it when you accepted the Terms and Conditions on a website, opened a new credit card, or started a new job. When you did, you agreed to be trapped in this secret justice system called “forced arbitration.” Through its secrecy and corruption, forced arbitration helps companies cheat their workers, helps banks deceive their customers, and helps predators act with impunity. If companies and the very powerful often seem beyond the reach of the law, it’s because they are, and forced arbitration is the reason.

Yet despite the fact that forced arbitration profoundly shapes our lives, almost nothing has been written about it. Brendan Ballou’s When Companies Run the Courts changes that. It shows how forced arbitration came to be, how it makes your life worse, and how we might escape it.

256 pages, Hardcover

Published May 12, 2026

About the author

Brendan Ballou is a federal prosecutor and served as Special Counsel for Private Equity in the Justice Department's Antitrust Division. Previously, he worked in private practice, and before that, in the National Security Division of the Justice Department, where he advised the White House on counterterrorism and other policies. He graduated from Columbia University and Stanford Law School.

Reviews

[Cami l · Rating 5 out of 5]

It’s my first time learning about the far-reaching influence of forced arbitration and just how easily bought/ manipulated the judicial process can be through this. I feel like most American laypeople have an idea that corporations control all branches of government, but I first picked up this book because I wanted to learn more about the specifics. Presenting multiple case studies, including some that have made their way into popular culture like the McDonald’s hot coffee lady oR the family that unknowingly signed away their rights to sue Disney via streaming service subscription, Ballou explains how large companies have forced all American consumers into waiving off their rights to resolve legal disputes in court and participate in class actions (and even scarier is how corporate PR has twisted the significance of both of those cases to convince the public that what they’re doing is nOt incredibly predatory). This is one of those issues where over 80% of both Democrats and Republicans can agree that they want to bring an end to forced arbitration- but clearly since it’s controlled by the 1% and poorly understood/ overlooked by the people, we’re still prey to this system. Boycotts are unfortunately nearly impossible, due to the widespread nature of this phenomenon. However,the author not only paints an accessible picture of the bleak legal panorama for the average person, backed by sources, but then goes on to give the reader hope that change is possible, citing instances where forced arbitration has been banned for certain kinds of cases, like sexual violence via the #MeToo movement. I encourage everyone to read up on this issue and potentially start taking our rights back from our employers and the companies we consume products and services from.

[Jerry Edward Stephens · Rating 5 out of 5]

Arbitration is conventionally defined as a form of alternative dispute resolution. It works, at least in theory, because of the great expense incurred in filing a traditional lawsuit in state or federal court. An arbitration award resulting from the arbitration process is usually legally binding on both sides and is enforceable by the courts. The process may be mandatory or consensual in consumer, employment, and commercial disputes. The author of this new book on business arbitration is a former federal prosecutor who has extensive private litigation experience. He has previously addressed the threat of private equity financing to our modern economic system. In this new book, he demonstrates the role played by arbitration and the differences between such arbitration and the judicial litigation route. The author identifies the basic problem with arbitration by labelling it “a secret justice system.” There is little transparency; decisions can not be appealed to any other judicial body; and judges are often paid by the very businesses seeking the arbitration. There are ways, however, of avoiding the system of forced arbitration. Part III of the book explores way in which the role of arbitration can be fixed. Other policy options seek ways of avoiding arbitration entirely. The author does note, however, that many reform efforts over the years have failed. Highly recommended for the reader concerned about the justice matters are often handled in the nation today.

[Shawnee · Rating 3 out of 5]

"When Companies Run the Courts" centers around the topic of forced arbitration - something that all of us have probably agreed to in a terms & conditions contract we didn't read. The book gives a sobering and startling look into a system that I for one didn't have much knowledge about. One of my favorite things about the book is that the author not only outlines the pitfalls and travesty of forced arbitration, but also spends time in the 3rd section outlining how we can make a difference and fight back.

While it is an informative book, I felt that the first two sections of the book were disjointed and jumped around a lot as far at topics and in chronology. I personally would have preferred a more streamlined approach to discussing the evolution of forced arbitration and where it is today. I also felt that the author was very repetitive in his words and phrasing, making some chapters feel longer than necessary. I prefer to see these type of books to have less of the author's political ideology and interpretations - these are meant to be informative and objective, not told through a subjective lens.

Overall, a good book to pick up if you are interested in learning more about forced arbitration and what you can do if you ever find yourself in that situation!

[Shishene · Rating 5 out of 5]

This book was even better than his PE book!