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The Easiest Arbitration Agreement to Avoid May Be the One Between Attorney and Client
January 7, 2014
The First and Ninth Circuits recently issued opinions concerning the validity of state laws requiring “informed consent” to, or “full disclosure” of, arbitration clauses in attorney retainer agreements. Although the First Circuit found its way around the issue, the Ninth Circuit took it squarely on, holding that such requirements, at least as set forth by Washington state law, are not preempted by the FAA. In Bezio v. Draeger, __ F.3d __, No. 13-1910, 2013 WL 6570920 (1st Cir. Dec....
January 7, 2014
The First and Ninth Circuits recently issued opinions concerning the validity of state laws requiring “informed consent” to, or “full disclosure” of, arbitration clauses in attorney retainer agreements. Although the First Circuit found its way around the issue, the Ninth Circuit took it squarely on, holding that such requirements, at least as set forth by Washington state law, are not preempted by the FAA. In Bezio v. Draeger, __ F.3d __, No. 13-1910, 2013 WL 6570920 (1st Cir. Dec....
Ninth Circuit Says Arbitration Agreements Cannot Restrict Grounds for Vacating Award
January 6, 2014
In the Hall Street decision in 2008, SCOTUS held that parties could not contractuallyenlarge Section 10 of the Federal Arbitration Act by agreeing that a court could vacate the arbitration award for reasons not found in that section. This week, the Ninth Circuit held that parties also cannot contractually restrict Section 10 by providing for “binding, non-appealable arbitration.” In re Wal-Mart Wage and Hour Employment Practices Litig., __ F.3d __, 2013 WL 6605350 (9th Cir. Dec....
January 6, 2014
In the Hall Street decision in 2008, SCOTUS held that parties could not contractuallyenlarge Section 10 of the Federal Arbitration Act by agreeing that a court could vacate the arbitration award for reasons not found in that section. This week, the Ninth Circuit held that parties also cannot contractually restrict Section 10 by providing for “binding, non-appealable arbitration.” In re Wal-Mart Wage and Hour Employment Practices Litig., __ F.3d __, 2013 WL 6605350 (9th Cir. Dec....
Applebee’s Squelches Class Action Through Arbitration Clause
December 30, 2013
Despite expressing serious reservations, a federal judge in Philadelphia has enforced an arbitration clause between an employee and Applebee's, foreclosing the waiter from bringing his claim as a class action. U.S. District Senior Judge Berle Schiller of the Eastern District of Pennsylvania said he is bound by precedent to enforce the arbitration agreement. In his opinion, however, Schiller agreed with the plaintiff that the contract requiring him to resolve any claims he has against Applebee's...
December 30, 2013
Despite expressing serious reservations, a federal judge in Philadelphia has enforced an arbitration clause between an employee and Applebee's, foreclosing the waiter from bringing his claim as a class action. U.S. District Senior Judge Berle Schiller of the Eastern District of Pennsylvania said he is bound by precedent to enforce the arbitration agreement. In his opinion, however, Schiller agreed with the plaintiff that the contract requiring him to resolve any claims he has against Applebee's...
Fifth Circuit Overrules NLRB, Finds D.R. Horton May Preclude Class Arbitration
December 16, 2013
After three federal circuits had already refused to defer to the NLRB’s decision in D.R. Horton, it is not surprising that the Fifth Circuit yesterday overruled the NLRB’s critical holding: that precluding class arbitrations is a violation of federal labor law. D.R. Horton, Inc. v. Nat’l Labor Relations Bd., __ F.3d __, 2013 WL 6231617 (5th Cir. Dec. 4, 2013). D.R. Horton builds homes in many states. Starting in 2006, its employees had to sign a Mutual Arbitration Agreement. The MAA called...
December 16, 2013
After three federal circuits had already refused to defer to the NLRB’s decision in D.R. Horton, it is not surprising that the Fifth Circuit yesterday overruled the NLRB’s critical holding: that precluding class arbitrations is a violation of federal labor law. D.R. Horton, Inc. v. Nat’l Labor Relations Bd., __ F.3d __, 2013 WL 6231617 (5th Cir. Dec. 4, 2013). D.R. Horton builds homes in many states. Starting in 2006, its employees had to sign a Mutual Arbitration Agreement. The MAA called...
D.C. Avoids Arbitration in $117 Million Lawsuit Against Bank of America
December 10, 2013
The District of Columbia can move forward with a $117 million lawsuit against Bank of America N.A. in connection with an embezzlement scheme carried out by a former city employee, the D.C. Court of Appeals ruled last week. Harriette Walters, a former manager in the city's tax office, is serving more than 17 years in jail after pleading guilty to issuing $48 million in fraudulent property tax refunds. The District sued Bank of America in 2008, accusing it of failing to take steps to protect the city's...
December 10, 2013
The District of Columbia can move forward with a $117 million lawsuit against Bank of America N.A. in connection with an embezzlement scheme carried out by a former city employee, the D.C. Court of Appeals ruled last week. Harriette Walters, a former manager in the city's tax office, is serving more than 17 years in jail after pleading guilty to issuing $48 million in fraudulent property tax refunds. The District sued Bank of America in 2008, accusing it of failing to take steps to protect the city's...
Fifth Circuit Invalidates NLRB Order Prohibiting Clauses In Covered Employment Agreement Waiving Class/Collective Claims and Requiring Individual Arbitration
December 4, 2013
In the controversial case of D.R. Horton v. National Labor Relations Board (No. 12-60031, Dec. 3, 2013), the US Court of Appeals for the Fifth Circuit today vacated, in a 2-1 decision, orders of the National Labor Relations Board (NLRB) invalidating an employee arbitration agreement that waived class and collective procedures and compelled individual arbitration. This case, along with sister cases in other Circuits, is likely to come before the US Supreme Court in due course. In the meantime,...
December 4, 2013
In the controversial case of D.R. Horton v. National Labor Relations Board (No. 12-60031, Dec. 3, 2013), the US Court of Appeals for the Fifth Circuit today vacated, in a 2-1 decision, orders of the National Labor Relations Board (NLRB) invalidating an employee arbitration agreement that waived class and collective procedures and compelled individual arbitration. This case, along with sister cases in other Circuits, is likely to come before the US Supreme Court in due course. In the meantime,...
Unsurprising Sixth Circuit Decision that Propriety of Class Arbitration is a Gateway Question and that Silent Clause Doesn’t Permit Class Arbitration
November 29, 2013
From the Employer Law Report (Caroline Gentry): The Sixth Circuit held that courts, not arbitrators, must decide the “gateway”...
November 29, 2013
From the Employer Law Report (Caroline Gentry): The Sixth Circuit held that courts, not arbitrators, must decide the “gateway”...
The Changing State of Employment Arbitration
November 18, 2013
AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011), set substantial restrictions on state laws limiting the enforceability of arbitration agreements governed by the Federal Arbitration Act. Since then, the U.S. Supreme Court has carried on removing obstacles to arbitration imposed by lower courts, and California courts have begun addressing whether judicially-created impediments to arbitration survive Concepcion. This year in California, arbitration law saw the continuing consequences ofConcepcion,...
November 18, 2013
AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011), set substantial restrictions on state laws limiting the enforceability of arbitration agreements governed by the Federal Arbitration Act. Since then, the U.S. Supreme Court has carried on removing obstacles to arbitration imposed by lower courts, and California courts have begun addressing whether judicially-created impediments to arbitration survive Concepcion. This year in California, arbitration law saw the continuing consequences ofConcepcion,...
New York Gets Specialist Judge for International Arbitration Matters
November 10, 2013
In an Administrative Order dated September 16 , 2013, the Chief Administrative Judge of the Courts of New York State, Hon. A. Gail Prudenti, designated Hon. Charles E. Ramos, Justice of the Supreme Court, New York County, to handle all international arbitration cases before the Commercial Division, New York County, including those brought under CPLR Article75 or under the Federal Arbitration Act, 9 U.S.C. § 1 et seq. There is an exception for matters with no transnational component arising entirely...
November 10, 2013
In an Administrative Order dated September 16 , 2013, the Chief Administrative Judge of the Courts of New York State, Hon. A. Gail Prudenti, designated Hon. Charles E. Ramos, Justice of the Supreme Court, New York County, to handle all international arbitration cases before the Commercial Division, New York County, including those brought under CPLR Article75 or under the Federal Arbitration Act, 9 U.S.C. § 1 et seq. There is an exception for matters with no transnational component arising entirely...
Venue is Proper in the County Where Arbitration is Held Despite Arbitration Agreement to the Contrary
November 6, 2013
The Texas Supreme Court recently held that, pursuant to § 171.096(c) Tex. Civ. Prac. & Rem. Code, once an arbitration...
November 6, 2013
The Texas Supreme Court recently held that, pursuant to § 171.096(c) Tex. Civ. Prac. & Rem. Code, once an arbitration...
