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Arbitration
Advising Clients of Arbitration Awards and Vacatur of an Award
June 11, 2014
A significant dispute has arisen in connection with your client’s work on a construction project and, pursuant to the contract documents, the dispute has proceeded to arbitration under the Federal Arbitration Act (FAA). Several days into the arbitration hearing, your client surmises that the arbitration is not going well and there is a high probability of an adverse award. Your client turns to you and says, “This arbitration panel is misinterpreting the facts and not applying the law; we can always...
June 11, 2014
A significant dispute has arisen in connection with your client’s work on a construction project and, pursuant to the contract documents, the dispute has proceeded to arbitration under the Federal Arbitration Act (FAA). Several days into the arbitration hearing, your client surmises that the arbitration is not going well and there is a high probability of an adverse award. Your client turns to you and says, “This arbitration panel is misinterpreting the facts and not applying the law; we can always...
Labor Arbitrator Authorized to Void Agreement Based on Mutual Mistake
June 10, 2014
This week the Eighth Circuit confronted an interesting question: if a union member believed he failed a drug test, and therefore...
June 10, 2014
This week the Eighth Circuit confronted an interesting question: if a union member believed he failed a drug test, and therefore...
Tenth Circuit Holds Arbitration Agreement Unconscionable
June 10, 2014
A nursing home resident entered into an agreement with THI, a nursing home operator, that required arbitrations of all claims...
June 10, 2014
A nursing home resident entered into an agreement with THI, a nursing home operator, that required arbitrations of all claims...
Court Vacates $125M Award Due To Arbitrator’s Misleading Disclosures
June 9, 2014
Today we take a close look at that rare creature: an opinion finding sufficient basis under the FAA to vacate an arbitration award. In Tenaska Energy Inc. v. Ponderosa Pine Energy, LLC, __S.W.3d __, 2014 WL 2139215 (Tex. May 23, 2014), the Supreme Court of Texas found an arbitrator had shown “evident partiality” due to his misleading “partial” disclosures of his contacts with the law firm representing the claimant. * * * Legally, I find it interesting that even though the Texas Supreme...
June 9, 2014
Today we take a close look at that rare creature: an opinion finding sufficient basis under the FAA to vacate an arbitration award. In Tenaska Energy Inc. v. Ponderosa Pine Energy, LLC, __S.W.3d __, 2014 WL 2139215 (Tex. May 23, 2014), the Supreme Court of Texas found an arbitrator had shown “evident partiality” due to his misleading “partial” disclosures of his contacts with the law firm representing the claimant. * * * Legally, I find it interesting that even though the Texas Supreme...
Weak Language Skills No Bar to Enforcement of Arbtiration Agreement
June 9, 2014
Nicolas Molina (Molina), a warehouse workder for Sandinavian Designs, Inc. (Scandinavian) sought to sue after his employment was terminated. Scandinavian sought to compel arbiration. Molina opposed the motion, contending that he speaks very little English and thus had no idea that he had signed an arbitration agreement. Last month, in Molina v. Scandinavian Designs, Inc., the Northern District of California rejected the argument. In part, Mr. Molina's problem is evidentiary. Scandinavian claims...
June 9, 2014
Nicolas Molina (Molina), a warehouse workder for Sandinavian Designs, Inc. (Scandinavian) sought to sue after his employment was terminated. Scandinavian sought to compel arbiration. Molina opposed the motion, contending that he speaks very little English and thus had no idea that he had signed an arbitration agreement. Last month, in Molina v. Scandinavian Designs, Inc., the Northern District of California rejected the argument. In part, Mr. Molina's problem is evidentiary. Scandinavian claims...
Fourth Circuit: Dodd-Frank Does Not Invalidate Arbitration Agreement
June 6, 2014
Dr. Armand Santoro (Dr. Santoro) was employed as a Senior Manager by Accenture Federal Services (Accenture) from 1999-2011. He was dismissed at age 66 and replaced by a younger man. In 2005, he signed an employment agreement that was subsequently renewed annually. The agreement included a broad arbitration provision. He filed a claim alleging age discrimination in violation of the District of Columbia Human Rights Act. He later added claims alleging violations of the Age Discrimination in Employment...
June 6, 2014
Dr. Armand Santoro (Dr. Santoro) was employed as a Senior Manager by Accenture Federal Services (Accenture) from 1999-2011. He was dismissed at age 66 and replaced by a younger man. In 2005, he signed an employment agreement that was subsequently renewed annually. The agreement included a broad arbitration provision. He filed a claim alleging age discrimination in violation of the District of Columbia Human Rights Act. He later added claims alleging violations of the Age Discrimination in Employment...
Third Circuit Rejects Insurer’s Motion to Compel Arbitration of Medical Device Suppliers’ Claims
June 5, 2014
Plaintiffs in Cardionet, Inc. v. CIGNA Health Corp supply medical devices that permit patients to monitor heart function...
June 5, 2014
Plaintiffs in Cardionet, Inc. v. CIGNA Health Corp supply medical devices that permit patients to monitor heart function...
“Entry of Judgment” Language in Arbitration Clauses
June 5, 2014
Attorneys routinely seek court enforcement of awards and judgments made in private arbitrations. A court judgment is required to collect on any arbitration award where the party against whom the award is made does not voluntarily submit payment. Given the liberal standard on enforcement of awards under the Federal Arbitration Act (FAA), courts typically enter such judgments without delay. Confusion can arise where the underlying contract contains a “final and binding” arbitration clause but does...
June 5, 2014
Attorneys routinely seek court enforcement of awards and judgments made in private arbitrations. A court judgment is required to collect on any arbitration award where the party against whom the award is made does not voluntarily submit payment. Given the liberal standard on enforcement of awards under the Federal Arbitration Act (FAA), courts typically enter such judgments without delay. Confusion can arise where the underlying contract contains a “final and binding” arbitration clause but does...
SDNY Enforces Hyperlinked Arbitration Clause and Class Action Waiver
June 4, 2014
Last month, the District Court for the Southern District of New York granted a motion to dismiss brought by defendant Gilt Groupe, Inc. (Gilt) in Starke v. Gilt Groupe, Inc. Adam Starke (Starke) sought to bring a class action claim against Gilt for allegedly misrepresenting on its website that its textiles were made from bamboo fibers when they are in fact made from bamboo derivatives (rayon). Gilt is an online shopping website that specializes in "flash sales" of short duration. In order to purchase...
June 4, 2014
Last month, the District Court for the Southern District of New York granted a motion to dismiss brought by defendant Gilt Groupe, Inc. (Gilt) in Starke v. Gilt Groupe, Inc. Adam Starke (Starke) sought to bring a class action claim against Gilt for allegedly misrepresenting on its website that its textiles were made from bamboo fibers when they are in fact made from bamboo derivatives (rayon). Gilt is an online shopping website that specializes in "flash sales" of short duration. In order to purchase...
Third Circuit Rejects Delaware Court of Chancery’s Confidential Arbitration Program
June 3, 2014
In a case that has attracted the attention of legal experts from across the country, the U.S. Court of Appeals for the Third Circuit affirmed the U.S. District Court of Delaware’s decision that found the confidentiality provisions of the Delaware Court of Chancery’s arbitration program unconstitutional. Applying the well-known experience and logic test, the 2–1 majority concluded that the tradition and importance of public access to proceedings like Delaware’s government-sponsored arbitration...
June 3, 2014
In a case that has attracted the attention of legal experts from across the country, the U.S. Court of Appeals for the Third Circuit affirmed the U.S. District Court of Delaware’s decision that found the confidentiality provisions of the Delaware Court of Chancery’s arbitration program unconstitutional. Applying the well-known experience and logic test, the 2–1 majority concluded that the tradition and importance of public access to proceedings like Delaware’s government-sponsored arbitration...
