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Arbitration
Classwide Arbitration Is Gateway Issue for the Courts
October 9, 2014
On July 30, 2014, the United States Court of Appeals for the Third Circuit decided that whether an arbitration agreement authorizes arbitration of a class action is a “gateway” issue for the court to decide rather than a procedural question for the arbitrator. In Opalinski v. Robert Half International, Inc., No. 12-4444 (3d Cir. July 30, 2014), the court of appeals became the second federal appeals court to decide that the issue of bilateral vs. classwide arbitration is so important that it should...
October 9, 2014
On July 30, 2014, the United States Court of Appeals for the Third Circuit decided that whether an arbitration agreement authorizes arbitration of a class action is a “gateway” issue for the court to decide rather than a procedural question for the arbitrator. In Opalinski v. Robert Half International, Inc., No. 12-4444 (3d Cir. July 30, 2014), the court of appeals became the second federal appeals court to decide that the issue of bilateral vs. classwide arbitration is so important that it should...
Suit For Legal Fees Subject To Mandatory Arbitration In D.C.
October 8, 2014
The District of Columbia Court of Appeals has held that a suit initiated by a law firm for unpaid fees must be sent to the Bar's arbitration program on the former client's demand. Judge Fisher noted that BTP, a biotechnology firm, retained [Ludwig & Robinson] as counsel in March 2011 to help resolve a trade secret dispute. The dispute was settled in May 2012, L&R having billed BTP on a monthly basis during the course of its representation. By June 2012 L&R claimed that BTP owed approximately...
October 8, 2014
The District of Columbia Court of Appeals has held that a suit initiated by a law firm for unpaid fees must be sent to the Bar's arbitration program on the former client's demand. Judge Fisher noted that BTP, a biotechnology firm, retained [Ludwig & Robinson] as counsel in March 2011 to help resolve a trade secret dispute. The dispute was settled in May 2012, L&R having billed BTP on a monthly basis during the course of its representation. By June 2012 L&R claimed that BTP owed approximately...
AAA Training: Advanced Training in Health Care Mediation (Nov. 12 -13; Dallas)
October 8, 2014
The field of health care, with its myriad interconnected “players” and complexity of transactions, has long been fertile ground for many types of disputes and conflicts, ranging from general contract matters to medical malpractice issues. With the advent of the Affordable Care Act, it is especially incumbent upon experienced mediators interested in mediating health care-related matters to become well-educated in the nuances and uniqueness of disputes and conflicts within the field. This two-day,...
October 8, 2014
The field of health care, with its myriad interconnected “players” and complexity of transactions, has long been fertile ground for many types of disputes and conflicts, ranging from general contract matters to medical malpractice issues. With the advent of the Affordable Care Act, it is especially incumbent upon experienced mediators interested in mediating health care-related matters to become well-educated in the nuances and uniqueness of disputes and conflicts within the field. This two-day,...
Appealing Arbitration Decisions
October 7, 2014
Lawyers new to arbitration practice quickly learn that the Federal Arbitration Act (FAA) provides very few grounds for appealing arbitration awards, primarily serious misconduct or fraud by the arbitrators (see 9 U.S.C. § 10(a)), and that the courts disfavor such appeals, particularly preaward appeals. Thus, appeals of arbitration awards should be rare; successful appeals are rare. However, legitimate grounds for appeal occasionally appear, so counsel must keep in mind from the beginning of the case...
October 7, 2014
Lawyers new to arbitration practice quickly learn that the Federal Arbitration Act (FAA) provides very few grounds for appealing arbitration awards, primarily serious misconduct or fraud by the arbitrators (see 9 U.S.C. § 10(a)), and that the courts disfavor such appeals, particularly preaward appeals. Thus, appeals of arbitration awards should be rare; successful appeals are rare. However, legitimate grounds for appeal occasionally appear, so counsel must keep in mind from the beginning of the case...
Do Arbitration Clauses Survive Termination of the Contract?
October 6, 2014
In October 2011, Hilltop hired Cynthia Huffman and a number of other employees to review the files of mortgage loans originated...
October 6, 2014
In October 2011, Hilltop hired Cynthia Huffman and a number of other employees to review the files of mortgage loans originated...
Settlement Agreement Isn’t an Arbitration Award
October 6, 2014
The plaintiffs’ employment lawsuit in Arce v. Austin Industries was stayed in favor of arbitration. No. 14-20098 (Aug. 28, 2014, unpublished). While the parties then reached a settlement agreement, the district court would not dismiss the lawsuit without review and approval of the settlement. The district court found the attorneys fees excessive and only dismissed the case after modifying that aspect of the settlement. The plaintiffs appealed, noting the deference given to arbitration awards,...
October 6, 2014
The plaintiffs’ employment lawsuit in Arce v. Austin Industries was stayed in favor of arbitration. No. 14-20098 (Aug. 28, 2014, unpublished). While the parties then reached a settlement agreement, the district court would not dismiss the lawsuit without review and approval of the settlement. The district court found the attorneys fees excessive and only dismissed the case after modifying that aspect of the settlement. The plaintiffs appealed, noting the deference given to arbitration awards,...
Arbitrability of Preclusive Effect of Prior Confirmed Award
October 3, 2014
In a commercial arbitration dispute, the United States Court of Appeals for the First Circuit affirmed the district court’s decision concerning the authority of an arbitral tribunal to determine the preclusive effect of a prior award, even though the award was confirmed by the federal court. Emp’rs Ins. Co. of Wausau v. OneBeacon Am. Ins. Co., 744 F.3d 25 (1st Cir. 2014). Background and Procedural History Two insurance companies, Employers Insurance Company of Wausau and National Casualty...
October 3, 2014
In a commercial arbitration dispute, the United States Court of Appeals for the First Circuit affirmed the district court’s decision concerning the authority of an arbitral tribunal to determine the preclusive effect of a prior award, even though the award was confirmed by the federal court. Emp’rs Ins. Co. of Wausau v. OneBeacon Am. Ins. Co., 744 F.3d 25 (1st Cir. 2014). Background and Procedural History Two insurance companies, Employers Insurance Company of Wausau and National Casualty...
Pre-Award Removal of an Arbitrator
October 2, 2014
Court’s Authority to Remove an Arbitrator Courts have very limited authority to intervene in arbitral matters prior to a final arbitration award. Essentially they may determine the validity and scope (arbitrability of particular issues) of an arbitration agreement and enforce it. See Gulf Guar. Life Ins. Co. v. Conn. Gen. Life Ins. Co., 304 F.3d 476 (5th Cir. 2002). Section 4 of the Federal Arbitration Act (FAA), 9 U.S.C. § 4, provides an expedited procedure to accomplish these duties. It is unusual...
October 2, 2014
Court’s Authority to Remove an Arbitrator Courts have very limited authority to intervene in arbitral matters prior to a final arbitration award. Essentially they may determine the validity and scope (arbitrability of particular issues) of an arbitration agreement and enforce it. See Gulf Guar. Life Ins. Co. v. Conn. Gen. Life Ins. Co., 304 F.3d 476 (5th Cir. 2002). Section 4 of the Federal Arbitration Act (FAA), 9 U.S.C. § 4, provides an expedited procedure to accomplish these duties. It is unusual...
Court Can’t Hear Motion to Vacate Award That Denied Withdrawl of Arbitration Claim
October 1, 2014
A federal district court has dismissed a motion to vacate an arbitration decision denying a party’s request to unilaterally withdraw a claim that was subject to a pending arbitration. Finding the arbitration decision was not final, and did not fall within any exception to the finality requirement, the court held it lacked jurisdiction to consider the motion to vacate it. The court also rejected application of the collateral order doctrine which, if applicable, would justify the court’s jurisdiction...
October 1, 2014
A federal district court has dismissed a motion to vacate an arbitration decision denying a party’s request to unilaterally withdraw a claim that was subject to a pending arbitration. Finding the arbitration decision was not final, and did not fall within any exception to the finality requirement, the court held it lacked jurisdiction to consider the motion to vacate it. The court also rejected application of the collateral order doctrine which, if applicable, would justify the court’s jurisdiction...
Arbitration Agreement Entered into during Pendency of FLSA Claim Ruled Enforceable
September 30, 2014
The named plaintiffs in Stevenson v. The Great American Dream, Inc. are former employees of Pin Ups Nightclub. They brought suit claiming entitlement to minimum wage and overtime compensation under the Fair Labor Standards Act (FLSA). They sought class certification in December 2012, which was granted in August 2013. Kwanza Edwards attempted to join the class on October 2013. Unfortunately for her, she had signed an arbitration agreement in February 2013. On July 15, 2014, the District Court...
September 30, 2014
The named plaintiffs in Stevenson v. The Great American Dream, Inc. are former employees of Pin Ups Nightclub. They brought suit claiming entitlement to minimum wage and overtime compensation under the Fair Labor Standards Act (FLSA). They sought class certification in December 2012, which was granted in August 2013. Kwanza Edwards attempted to join the class on October 2013. Unfortunately for her, she had signed an arbitration agreement in February 2013. On July 15, 2014, the District Court...
