In a case between an on-line customer and Barnes & Noble, the Ninth Circuit recently refused to enforce the arbitration agreement found in the website’s “Terms of Use.” Nguyen v. Barnes & Noble Inc., __ F.3d__, 2014 WL 4056549 (9th Cir. Aug. 18, 2014). The decision further calls into question the validity of “browsewrap” agreements, which the consumer does not have to assent to or acknowledge before making a purchase.
The plaintiff’s case against B&N stemmed from his attempt to buy a Touchpad...
Cue the R.E.M folks, because the Supreme Court of Missouri issued a 4-3 opinion recently that appears to upend many employment arbitration agreements in that state. Baker v. Bristol Care, Inc., __ S.W.3d__, 2014 WL 4086378 (Mo. Aug. 19, 2014). However, the situation is not as dire as it may seem.
The high court in Missouri agreed with the lower court that the arbitration agreement in the parties’ employment contract was invalid (and therefore the employer could not compel arbitration of the putative...
Contributing Awards
The Arbitrator Intelligence site has been designed to make finding and submitting Awards easy and, yes, fun! There are two ways to contribute awards.
The first way is simply to upload any award you may have collecting dust on your office shelves, cluttering your office drawers, or taking up space on your computer.
The second way more closely resembles a global treasure hunt. The site includes an interactive, color-coded Map. For each jurisdiction that is shaded, we have...
In a recent paper, Jeffrey Manns (GW Law) and I use a new empirical technique to estimate the value of Delaware corporate law relative to that of other states. We find that the capital markets place little, if any, value on Delaware corporate law, suggesting that Delaware's dominance is instead the result of herding effects and network externalities. You can read the paper here, and the abstract is pasted below:
Delaware dominates the market for company incorporations, which places one of America’s...
A New York federal court recently was presented with a motion to compel arbitration in Georgia. The district court first concluded that the arbitration provision was enforceable and then proceeded to the question of whether it had the authority to compel arbitration in a district other than its own. The court described what it deemed an “internal conflict” within the Federal Arbitration Act because the Act provides both that (1) courts must enforce an arbitration agreement in accordance with...
There are a lot of pros to alternative dispute resolution, but “sometimes it is in a party’s interest to have a dispute resolution mechanism that is long, onerous and expensive,” says Shep Davidson of Burns & Levinson. So although arbitration clauses in contracts are all the rage, sometimes they should be drafted with an eye to the fact that some claims are more strategically solved through the litigation process.
To do this, Davidson suggests drawing on a recent case out of the U.S. Court...
Businesses wanting to bind consumers to arbitration clauses should not hide them in website terms of use agreements, according to a recent post on the Socially Aware blog by Morrison Foerster partner John Delaney and Sherman Kahn of Mauriel Kapouytian Woods.
The case revolved around Touchpads, which the plaintiff tried to buy online from Barnes & Noble. After ordering two, he was notified the next day by the company that they were essentially out of stock due to high demand, The plaintiff sued...
In his address to the annual meeting of the American Arbitration Association in 2010, the Association’s then-president, William Slate, raised eyebrows when in his keynote address he challenged AAA neutrals and corporate counsel attending the conference to be more aggressive in taking charge of the arbitration process, which many believed had become too cumbersome, expensive and lengthy—in short, too much like federal litigation. Slate promised that the AAA would enact new rules to combat these...