Menu
Arbitration
SCOTUS Finds Federal Arbitration Act Does Not Apply to Interstate Transportation Workers
January 23, 2019
The Supreme Court issued another arbitration decision today in New Prime v. Oliveira. And like last week’s decision in Henry Schein, it was unanimous (but Kavanaugh did not participate). Today’s New Prime decision has two key holdings: First, it is for courts, and not arbitrators (regardless of any delegation clause) to determine whether the Federal Arbitration Act applies. Second, the Federal Arbitration Act does not apply to interstate transportation...
January 23, 2019
The Supreme Court issued another arbitration decision today in New Prime v. Oliveira. And like last week’s decision in Henry Schein, it was unanimous (but Kavanaugh did not participate). Today’s New Prime decision has two key holdings: First, it is for courts, and not arbitrators (regardless of any delegation clause) to determine whether the Federal Arbitration Act applies. Second, the Federal Arbitration Act does not apply to interstate transportation...
Independent Contractors = Employees in FAA “Transportation Industry” Exclusion
January 22, 2019
Two increasingly rare events occurred today in the same case: [a subset of] workers got a win, and the Supreme Court narrowed (yes, you read that correctly) the scope of the Federal Arbitration Act. Though the case at first blush appears narrow, it may have much broader implications in the Uber litigation. The case is New Prime Inc. v. Oliveira. Dominic Oliveira was a truck driver for Prime under a contract calling him an independent contractor and containing an arbitration clause. Oliveira...
January 22, 2019
Two increasingly rare events occurred today in the same case: [a subset of] workers got a win, and the Supreme Court narrowed (yes, you read that correctly) the scope of the Federal Arbitration Act. Though the case at first blush appears narrow, it may have much broader implications in the Uber litigation. The case is New Prime Inc. v. Oliveira. Dominic Oliveira was a truck driver for Prime under a contract calling him an independent contractor and containing an arbitration clause. Oliveira...
Justices Uphold Arbitration Exemption for Transportation Workers in Rare Victory for Arbitration Opponents
January 22, 2019
Arbitration month at the Supreme Court continued this morning with the unanimous decision in New Prime Inc. v. Oliveira – following by a single week the unanimous decision in Henry Schein v. Archer & White Sales. New Prime, though, is anything but business as usual: Justice Neil Gorsuch’s opinion for a unanimous court rejects a claim for arbitration for the first time in a string of more than a dozen of the Supreme Court’s cases stretching back more than a decade. Indeed,...
January 22, 2019
Arbitration month at the Supreme Court continued this morning with the unanimous decision in New Prime Inc. v. Oliveira – following by a single week the unanimous decision in Henry Schein v. Archer & White Sales. New Prime, though, is anything but business as usual: Justice Neil Gorsuch’s opinion for a unanimous court rejects a claim for arbitration for the first time in a string of more than a dozen of the Supreme Court’s cases stretching back more than a decade. Indeed,...
Dispute Resolution Data Update
January 21, 2019
This has been a highly productive year for Dispute Resolution Data. Initiatives included: A growing caseload for the DRD database...
January 21, 2019
This has been a highly productive year for Dispute Resolution Data. Initiatives included: A growing caseload for the DRD database...
Opinion Rejects Vague Exception Limiting Enforcement of Arbitration Agreements
January 21, 2019
The justices’ first opinion day of 2019 brought the first opinion from Justice Brett Kavanaugh, writing for a unanimous court in Henry Schein Inc. v. Archer & White Sales Inc. The case is the most recent in a decade-long string of opinions under the Federal Arbitration Act, in which the Supreme Court consistently has reversed lower-court decisions refusing to enforce arbitration agreements. Many of those cases have been decided by narrow 5-4 majorities, which has raised the possibility...
January 21, 2019
The justices’ first opinion day of 2019 brought the first opinion from Justice Brett Kavanaugh, writing for a unanimous court in Henry Schein Inc. v. Archer & White Sales Inc. The case is the most recent in a decade-long string of opinions under the Federal Arbitration Act, in which the Supreme Court consistently has reversed lower-court decisions refusing to enforce arbitration agreements. Many of those cases have been decided by narrow 5-4 majorities, which has raised the possibility...
SCOTUS Holds Delegation Clause Must be Enforced Even if Trial Court Deems Arbitration Claim “Wholly Groundless”
January 18, 2019
Today, the United States Supreme Court delivered a unanimous opinion in Henry Schein, Inc. v. Archer and White Sales, Inc., No. 17-1272 (January 8, 2019). In the case, a district court vacated a magistrate judge’s order stating a valid delegation clause that is included in an agreement to arbitrate must be enforced even if a party’s claim of arbitrability is “wholly groundless.” As described in an earlier Disputing blog post: Following...
January 18, 2019
Today, the United States Supreme Court delivered a unanimous opinion in Henry Schein, Inc. v. Archer and White Sales, Inc., No. 17-1272 (January 8, 2019). In the case, a district court vacated a magistrate judge’s order stating a valid delegation clause that is included in an agreement to arbitrate must be enforced even if a party’s claim of arbitrability is “wholly groundless.” As described in an earlier Disputing blog post: Following...
Severability Doctrine Sends Two Disputes To Arbitration
January 17, 2019
One of the most confounding doctrines in federal arbitration jurisprudence is the severability doctrine. The U.S. Supreme Court has held, since Prima Paint in 1967, that courts must enforce arbitration clauses within contracts, even if the entire contract is invalid or unenforceable. (Most non-arbitration geeks don’t believe me when I tell them that’s the law.) The only time a court can address the argument for invalidity is if the litigant directs it specifically at the arbitration...
January 17, 2019
One of the most confounding doctrines in federal arbitration jurisprudence is the severability doctrine. The U.S. Supreme Court has held, since Prima Paint in 1967, that courts must enforce arbitration clauses within contracts, even if the entire contract is invalid or unenforceable. (Most non-arbitration geeks don’t believe me when I tell them that’s the law.) The only time a court can address the argument for invalidity is if the litigant directs it specifically at the arbitration...
Supreme Court’s Latest Arbitration Decision in Henry Schein v. Archer & White Sales
January 16, 2019
The Supreme Court just released its decision in Henry Schein, Inc. v. Archer & White Sales, Inc., No. 17-1272 (Jan. 8, 2018) (click here for a copy of the decision). As to the narrow, technical legal issue in this case, the Court held that the “wholly groundless” exception to the delegation doctrine does not exist and is inconsistent with the Federal Arbitration Act. Under the delegation doctrine, parties can send threshold arbitrability questions to the arbitrator. For example,...
January 16, 2019
The Supreme Court just released its decision in Henry Schein, Inc. v. Archer & White Sales, Inc., No. 17-1272 (Jan. 8, 2018) (click here for a copy of the decision). As to the narrow, technical legal issue in this case, the Court held that the “wholly groundless” exception to the delegation doctrine does not exist and is inconsistent with the Federal Arbitration Act. Under the delegation doctrine, parties can send threshold arbitrability questions to the arbitrator. For example,...
El Paso COA Affirms Order Denying Arbitration in Discrimination and Retaliation Case
January 16, 2019
The Eighth District Court of Appeals in El Paso has affirmed a trial court’s order denying arbitration in a discrimination and retaliation lawsuit. In Alorica v. Tovar, No. 08-18-00008-CV (Tex. App. – El Paso, November 26, 2018), a woman, Tovar, filed a lawsuit against her former employer, Alorica, claiming the company illegally committed disability discrimination and also retaliated against her for pursuing workers’ compensation claims. In response, Alorica filed...
January 16, 2019
The Eighth District Court of Appeals in El Paso has affirmed a trial court’s order denying arbitration in a discrimination and retaliation lawsuit. In Alorica v. Tovar, No. 08-18-00008-CV (Tex. App. – El Paso, November 26, 2018), a woman, Tovar, filed a lawsuit against her former employer, Alorica, claiming the company illegally committed disability discrimination and also retaliated against her for pursuing workers’ compensation claims. In response, Alorica filed...
Beaumont COA Overturns Jefferson County Order Denying Arbitration in Energy Dispute
January 15, 2019
The Beaumont Court of Appeals has reversed a Jefferson County district court’s order denying an energy company’s motion to compel arbitration. In Oxbow Calcining LLC v. Port Arthur Steam Energy, LP, Nos. 09-18-00359-CV and 09-18-00392-CV, (Tex. App. – Beaumont, December 13, 2018), a company that manufactures petroleum calcined coke from petroleum coke, Oxbow, entered into a Heat Energy Agreement (“HEA”) with Port Arthur Steam Energy, L.P. (“PASE”) to route...
January 15, 2019
The Beaumont Court of Appeals has reversed a Jefferson County district court’s order denying an energy company’s motion to compel arbitration. In Oxbow Calcining LLC v. Port Arthur Steam Energy, LP, Nos. 09-18-00359-CV and 09-18-00392-CV, (Tex. App. – Beaumont, December 13, 2018), a company that manufactures petroleum calcined coke from petroleum coke, Oxbow, entered into a Heat Energy Agreement (“HEA”) with Port Arthur Steam Energy, L.P. (“PASE”) to route...
