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Arbitration
New York Court Denies Petition to Appoint Arbitration Umpire in Retrocession Dispute
September 30, 2014
Odyssey Reinsurance Co. petitioned the court to appoint an umpire to serve in arbitration with its retrocessionaries, certain Lloyd’s underwriters and Reliastar Reinsurance Group, over a disputed reinsurance claim. Odyssey argued that arbitration had been unduly delayed due to what it contended were poorly qualified candidates proposed by the retrocessionaires. The court held that Odyssey’s arguments were insufficient to obtain relief from the court at that time, and that in its view, there had “not...
September 30, 2014
Odyssey Reinsurance Co. petitioned the court to appoint an umpire to serve in arbitration with its retrocessionaries, certain Lloyd’s underwriters and Reliastar Reinsurance Group, over a disputed reinsurance claim. Odyssey argued that arbitration had been unduly delayed due to what it contended were poorly qualified candidates proposed by the retrocessionaires. The court held that Odyssey’s arguments were insufficient to obtain relief from the court at that time, and that in its view, there had “not...
Judge Finds Argentina in Contempt in Bond Payment Case [Arising From Arbitration Award]
September 29, 2014
For more than a year, Judge Thomas P. Griesa of Federal District Court in Manhattan has warned that Argentina would suffer repercussions if it defied his orders regarding payments to bondholders. On Monday, the judge put some teeth behind those warnings when he ruled that the nation was in contempt of the court. He stopped short of issuing sanctions, saying he would make a decision about them in the future. Speaking firmly, Judge Griesa indicated that the Republic of Argentina had gone a step...
September 29, 2014
For more than a year, Judge Thomas P. Griesa of Federal District Court in Manhattan has warned that Argentina would suffer repercussions if it defied his orders regarding payments to bondholders. On Monday, the judge put some teeth behind those warnings when he ruled that the nation was in contempt of the court. He stopped short of issuing sanctions, saying he would make a decision about them in the future. Speaking firmly, Judge Griesa indicated that the Republic of Argentina had gone a step...
The Problem of Repeat Arbitrators in Investment Arbitration
September 29, 2014
The very nature of an arbitrator requires that she or he be imbued with the principles of independence and impartiality, qualities that should never be doubted. Nonetheless, there has recently been an increased number of challenges to arbitrators in Investment Arbitrations subject to the procedures of the International Centre for Settlement of Investment Disputes (the “ICSID”). There is a strong view that the ICSID arbitrators appear to be earning an unfortunate reputation as lacking in the aforementioned...
September 29, 2014
The very nature of an arbitrator requires that she or he be imbued with the principles of independence and impartiality, qualities that should never be doubted. Nonetheless, there has recently been an increased number of challenges to arbitrators in Investment Arbitrations subject to the procedures of the International Centre for Settlement of Investment Disputes (the “ICSID”). There is a strong view that the ICSID arbitrators appear to be earning an unfortunate reputation as lacking in the aforementioned...
Fifth Circuit Holds Remand to Arbitration Non-Appealable
September 29, 2014
The appeal arose from a lawsuit to clarify an arbitration award concerning an alleged breach of a corporate merger agreement containing a binding arbitration clause. The federal district court found the arbitration panel had exceeded its authority under that arbitration clause by failing to provide sufficient findings of fact and conclusions of law regarding a damages claim. The district court therefore remanded the case back to the panel for consideration of that issue and clarification of the award....
September 29, 2014
The appeal arose from a lawsuit to clarify an arbitration award concerning an alleged breach of a corporate merger agreement containing a binding arbitration clause. The federal district court found the arbitration panel had exceeded its authority under that arbitration clause by failing to provide sufficient findings of fact and conclusions of law regarding a damages claim. The district court therefore remanded the case back to the panel for consideration of that issue and clarification of the award....
Another Problem with Arbitration: Panel Bias
September 29, 2014
Sunday's New York Times has a story by Gretchen Morgenson on the front page of its Business Section that illustrates an additional...
September 29, 2014
Sunday's New York Times has a story by Gretchen Morgenson on the front page of its Business Section that illustrates an additional...
Combating Structural Bias in Dispute System Designs That Use Arbitration: Transparency, the Universal Sanitizer
September 26, 2014
Employers and businesses adopt adhesive arbitration clauses as a means to manage the risk of litigation and perceived “runaway” jury awards. Mandatory or adhesive arbitration describes the power of an economically stronger repeat player to impose an adhesive binding arbitration clause on the weaker, usually one-shot, player. In this brave new world, how can we combat structural bias built into dispute system designs (“DSDs”) that include mandatory or adhesive arbitration clauses? This essay...
September 26, 2014
Employers and businesses adopt adhesive arbitration clauses as a means to manage the risk of litigation and perceived “runaway” jury awards. Mandatory or adhesive arbitration describes the power of an economically stronger repeat player to impose an adhesive binding arbitration clause on the weaker, usually one-shot, player. In this brave new world, how can we combat structural bias built into dispute system designs (“DSDs”) that include mandatory or adhesive arbitration clauses? This essay...
New York Court Rejects Arbitration of Reinsurance Dispute
September 26, 2014
A New York federal district court denied Transatlantic Reinsurance Company’s petition to compel National Indemnity Company (“NICO”) to submit to arbitration. While the court’s order does not provide the basis for its ruling and only refers to the reasons set forth on the record, the issues were extensively analyzed in the parties’ briefing. The core issue was whether NICO, which was not a signatory to the reinsurance agreements between Transatlantic and AIG, should be compelled to arbitrate...
September 26, 2014
A New York federal district court denied Transatlantic Reinsurance Company’s petition to compel National Indemnity Company (“NICO”) to submit to arbitration. While the court’s order does not provide the basis for its ruling and only refers to the reasons set forth on the record, the issues were extensively analyzed in the parties’ briefing. The core issue was whether NICO, which was not a signatory to the reinsurance agreements between Transatlantic and AIG, should be compelled to arbitrate...
New JAMS Arbitration Rules Offer Emergency Relief Procedures
September 25, 2014
Parties choose arbitration because it provides for a controlled process. Within that process, there is one relatively rare situation when a party requires immediate relief to get a certain aspect of the case resolved quickly and cannot wait until an arbitrator is appointed. Included in the updated JAMS Comprehensive Arbitration Rules that JAMS recently announced, are new emergency relief procedures that provide for such situations. Under the new Rule 2(c), a party seeking emergency relief may now apply...
September 25, 2014
Parties choose arbitration because it provides for a controlled process. Within that process, there is one relatively rare situation when a party requires immediate relief to get a certain aspect of the case resolved quickly and cannot wait until an arbitrator is appointed. Included in the updated JAMS Comprehensive Arbitration Rules that JAMS recently announced, are new emergency relief procedures that provide for such situations. Under the new Rule 2(c), a party seeking emergency relief may now apply...
California Court Upholds Delegation Clause in Arbitration Agreement
September 25, 2014
The issue before the California Appellate Court was whether the trial court erred in enforcing a delegation clause in an arbitration agreement governed by the Federal Arbitration Act (“FAA”), and granting the defendant’s motion to compel arbitration. Plaintiff/Petitioner brought a wage and hour action against her former employer. The defendant former employer moved to compel arbitration, pursuant to a clause contained in its employee handbook. The delegation clause provided, “The arbitrator...
September 25, 2014
The issue before the California Appellate Court was whether the trial court erred in enforcing a delegation clause in an arbitration agreement governed by the Federal Arbitration Act (“FAA”), and granting the defendant’s motion to compel arbitration. Plaintiff/Petitioner brought a wage and hour action against her former employer. The defendant former employer moved to compel arbitration, pursuant to a clause contained in its employee handbook. The delegation clause provided, “The arbitrator...
Summary of Managing Construction Conflict: Unfinished Revolution, Continuing Evolution (Part I)
September 23, 2014
Professor Stipanowich has recently completed another article for The Construction Lawyer titled Managing Construction Conflict: Unfinished Revolution, Continuing Evolution which discusses the evolution of different dispute resolution methods in the construction industry. While his paper focuses on the evolution of these methods in the construction industry, several of his findings are also indicative of trends in ADR evolution more generally. In the following days we will be highlighting the different...
September 23, 2014
Professor Stipanowich has recently completed another article for The Construction Lawyer titled Managing Construction Conflict: Unfinished Revolution, Continuing Evolution which discusses the evolution of different dispute resolution methods in the construction industry. While his paper focuses on the evolution of these methods in the construction industry, several of his findings are also indicative of trends in ADR evolution more generally. In the following days we will be highlighting the different...
