Arbitration is a creature of contract. So is the law concerning contracts with an arbitration clause the same as the law concerning any other contract? Almost. One must always bear in mind the “separability” or “independence” of the arbitration agreement — the autonomy principle.

For example, should a plaintiff be compelled to arbitrate a dispute if the contract containing the ADR clause has expired? What if the contract containing the arbitration clause is unconscionable as a matter of public policy? A plaintiff may nonetheless be compelled to arbitrate in order to resolve his dispute, as illustrated recently in a decision by the U.S. District Court for the Northern District of Texas. And that court also provided a helpful reminder regarding the crucial question of who decides such issues. But the Court took a while before arriving at the critical points.

In Athas Health, LLC v. Giuffre, No. 3:17-CV-300-L-BN (N.D. Tex. Feb. 23, 2018), an aggrieved surgery patient initiated a lawsuit in New Jersey state court against several parties, including Athas Health. Athas in turn removed the case to the federal court for the District of New Jersey, and then moved to stay that case, while also commencing a proceeding in the Northern District of Texas, seeking to compel arbitration (see 9 U.S.C. § 4) in accordance with an arbitration clause in a Financial Agreement between the parties.

Read original article


Tags: