Earlier this month, the Supreme Court of Texas was asked to consider whether the Beaumont Court of Appeals committed error when it refused to vacate an arbitrator’s $460,000 legal malpractice award. In Midani and Midani, Hinkle & Cole, LLP v. Smith, No. 09-18-00009-CV (Tex. App. – Beaumont, November 1, 2018), a woman, Smith, hired a Houston law firm, Midani, Hinkle & Cole (“MHC”), to represent her in a dental malpractice case. Smith signed...
The Supreme Court just released its decision in New Prime v. Oliveira (click here for a copy of the decision), and as I predicted after oral argument, this case is a win for workers. I believe this is the first time in decades that the Supreme Court has cut back on its expansive readings of the Federal Arbitration Act. Under this new decision, a court should decide for itself whether §1’s “contracts of employment” exclusion applies before ordering arbitration, even...
Section 1 of the Federal Arbitration Act exempts from the FAA’s scope disputes involving “contracts of employment of . . . workers engaged in . . . interstate commerce.” 9 U. S. C. § 1. If parties to an arbitration agreement clearly and unmistakably delegate arbitrability questions to an arbitrator, who decides whether a contract containing the arbitration agreement is such a “contract of employment?”
In New Prime Inc. v. Oliveira, 586 ___ U.S. ___, slip op. (Jan....
Late last year, hotel giant Marriott International disclosed a data breach that began in 2014 and affected approximately 500 million Marriott and Starwood Preferred guest accounts. A variety of hotel guest information including names, birth dates, passport numbers, encrypted credit card information, and other sensitive data was reportedly obtained by hackers. In response, Marriott has offered those guests affected by the data breach a free one-year subscription to fraud...
This is an introduction to the so-called “Final Offer Arbitration” (FOA), sometimes also referred to as pendulum or baseball arbitration. FOA is a model of arbitration that originated in the late 1940s and consolidated in the 1970s in the USA to resolve labour disputes in the public sector and the baseball league, hence the name. FOA differentiates itself from conventional arbitration owing to the incentives it sparks in parties’ conduct to reach a mutually agreeable settlement, its celerity...
The Northern District of California has ordered a proposed class action lawsuit that was filed against ride-sharing app Lyft and based on purported violations of the Fair Credit Reporting Act (“FCRA”) to arbitration. In Peterson v. Lyft, Inc., No. 16-CV-07343-LB (N.D. Cal., November 19, 2018), a California man, Peterson, downloaded and installed the Lyft app on his mobile phone in order to create an account with the company on two separate occasions....
Arbitrability questions are ordinarily for courts to decide, but parties may, by way of a “delegation provision,” clearly and unmistakably agree to submit them to arbitration. See, e.g., First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 942-46 (1995); Rent-A-Center, West, Inc. v. Jackson, 130 S. Ct. 2772, 2777 (2010). (See, e.g., Loree Reinsurance and Arbitration Law Forum posts here, here, and here.)
But suppose parties to a delegation provision disagree...
Rafael Gely (Missouri) has collected a series of essays on yesterday's New Prime decision and posted them over at Arbitration Info. As of this afternoon those essays include:
New Prime and the Gig Economy, Rick Bales (ONU).New Prime and the Viability of State Arbitration Acts, Lise Gelernter (Buffalo, & NAA Member).New Prime and Old Faults, Imre S. Szalai (Loyola New Orleans)