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Arbitration
N. D. Texas Holds Prior Arbitration Precludes Fraud Claim in Merger
November 20, 2013
The Northern District of Texas has reportedly dismissed a lawsuit after determining that an arbitration panel’s decision precluded the plaintiffs’ fraud claim. In Murchison Capital Partners LP et al. v. Nuance Communications Inc., No. 3:12-CV-04746, Nuance Communications Inc. (“Nuance”) acquired all of the shares in Dallas, Texas-based Vocada for a lump sum payment and a portion of the three-year earnings of one of the company’s products above a certain revenue level. After...
November 20, 2013
The Northern District of Texas has reportedly dismissed a lawsuit after determining that an arbitration panel’s decision precluded the plaintiffs’ fraud claim. In Murchison Capital Partners LP et al. v. Nuance Communications Inc., No. 3:12-CV-04746, Nuance Communications Inc. (“Nuance”) acquired all of the shares in Dallas, Texas-based Vocada for a lump sum payment and a portion of the three-year earnings of one of the company’s products above a certain revenue level. After...
Failure to Provide AAA Arbitration Rules to Employee Does Not Render Arbitration Policy Unconscionable
November 19, 2013
In Peng v. First Republic Bank (8/29/13, pub. 9/26/13), --- Cal.App.4th ---, the trial court denied an employer defendant's petition to compel arbitration in an action alleging discrimination and related claims. The Court of Appeal reversed, holding: Failure to attach the AAA arbitration rules to the arbitration policy, by itself, did not render the policy procedurally unconscionable. Slip op. at 6-9.
November 19, 2013
In Peng v. First Republic Bank (8/29/13, pub. 9/26/13), --- Cal.App.4th ---, the trial court denied an employer defendant's petition to compel arbitration in an action alleging discrimination and related claims. The Court of Appeal reversed, holding: Failure to attach the AAA arbitration rules to the arbitration policy, by itself, did not render the policy procedurally unconscionable. Slip op. at 6-9.
Scary Results if Employers Overreach in Arbitration Clauses
November 19, 2013
No haunted house can scare general counsel as much as an opinion invalidating their company’s arbitration clause and thereby...
November 19, 2013
No haunted house can scare general counsel as much as an opinion invalidating their company’s arbitration clause and thereby...
Fifth Circuit Holds Arbitration Provision Included in Employee Handbook is Illusory and Unenforceable Under Texas Law
November 19, 2013
In an unpublished opinion, the Fifth Circuit has affirmed a Texas federal court’s decision to deny a company’s motion to compel arbitration in an employment discrimination and retaliation lawsuit. In Scudiero v. Radio One of Texas II, L.L.C., No. 13-20114, (5th Cir., October 24, 2013), Vince Scudiero and Christel Thornton filed a lawsuit in federal court against their employer, Radio One of Texas II, L.L.C. (“Radio One”), alleging race discrimination and retaliation against Scudiero...
November 19, 2013
In an unpublished opinion, the Fifth Circuit has affirmed a Texas federal court’s decision to deny a company’s motion to compel arbitration in an employment discrimination and retaliation lawsuit. In Scudiero v. Radio One of Texas II, L.L.C., No. 13-20114, (5th Cir., October 24, 2013), Vince Scudiero and Christel Thornton filed a lawsuit in federal court against their employer, Radio One of Texas II, L.L.C. (“Radio One”), alleging race discrimination and retaliation against Scudiero...
Third Circuit Says Delaware Can’t Have Secret Arbitrations By Judges
November 18, 2013
The Third Circuit ruled last week that Delaware’s Chancery Court could not offer its judges’ services as neutral arbitrators in its courtrooms, unless those arbitrations were open to the public. In 2009, the Delaware courts decided to provide arbitration. The state amended its laws to create an arbitration process that was only open to disputes worth more than a million dollars with at least one party being a business incorporated in Delaware (and no party being a consumer). The parties...
November 18, 2013
The Third Circuit ruled last week that Delaware’s Chancery Court could not offer its judges’ services as neutral arbitrators in its courtrooms, unless those arbitrations were open to the public. In 2009, the Delaware courts decided to provide arbitration. The state amended its laws to create an arbitration process that was only open to disputes worth more than a million dollars with at least one party being a business incorporated in Delaware (and no party being a consumer). The parties...
In Practice: Harsh Class Arbitration Waivers Still Unconscionable
November 18, 2013
Since the U.S. Supreme Court handed down its decision in AT&T Mobility, LLC v. Concepcion, holding that the Federal Arbitration Act preempts California's rule that invalidates arbitration agreements in which the parties waive the right to class-wide proceedings, courts in California have wrestled with applying Concepcion in the employment context, with confusing and often conflicting results for employers. It's not too surprising, then, that the California Supreme Court granted review last...
November 18, 2013
Since the U.S. Supreme Court handed down its decision in AT&T Mobility, LLC v. Concepcion, holding that the Federal Arbitration Act preempts California's rule that invalidates arbitration agreements in which the parties waive the right to class-wide proceedings, courts in California have wrestled with applying Concepcion in the employment context, with confusing and often conflicting results for employers. It's not too surprising, then, that the California Supreme Court granted review last...
Manifest Disregard
November 18, 2013
Thanks to Jon Harkavy for sending us the unpublished Fourth Circuit case of Dewan v. Walia. It's one of the extraordinarily rare cases in which a court has overturned an arbitration award for manifest disregard of the law. * * * Objectively viewed, the language of the Release could not be more expansive, clear, or unambiguous. The plain language of the Release fatally undermines the suggestion that Walia retained the right to bring any of his counterclaims in arbitration. The Release waived...
November 18, 2013
Thanks to Jon Harkavy for sending us the unpublished Fourth Circuit case of Dewan v. Walia. It's one of the extraordinarily rare cases in which a court has overturned an arbitration award for manifest disregard of the law. * * * Objectively viewed, the language of the Release could not be more expansive, clear, or unambiguous. The plain language of the Release fatally undermines the suggestion that Walia retained the right to bring any of his counterclaims in arbitration. The Release waived...
The Changing State of Employment Arbitration
November 18, 2013
AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011), set substantial restrictions on state laws limiting the enforceability of arbitration agreements governed by the Federal Arbitration Act. Since then, the U.S. Supreme Court has carried on removing obstacles to arbitration imposed by lower courts, and California courts have begun addressing whether judicially-created impediments to arbitration survive Concepcion. This year in California, arbitration law saw the continuing consequences ofConcepcion,...
November 18, 2013
AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011), set substantial restrictions on state laws limiting the enforceability of arbitration agreements governed by the Federal Arbitration Act. Since then, the U.S. Supreme Court has carried on removing obstacles to arbitration imposed by lower courts, and California courts have begun addressing whether judicially-created impediments to arbitration survive Concepcion. This year in California, arbitration law saw the continuing consequences ofConcepcion,...
National Labor Relations Board Increases Its Focus on Issues Impacting Nonunionized Employers (Arbitration)
November 14, 2013
II. The Board Attacks Arbitration Policies and Agreements in Two Key Ways. The Board, and its General Counsel, in recent...
November 14, 2013
II. The Board Attacks Arbitration Policies and Agreements in Two Key Ways. The Board, and its General Counsel, in recent...
New Optional Rules Created for Appellate Arbitration
November 13, 2013
The American Arbitration Association (AAA) and the International Centre for Dispute Resolution (ICDR) announced Friday that parties wanting further review of an arbitrator’s award decision will now have a specific and streamlined procedure to follow. The new “Optional Appellate Arbitration Rules” from the AAA, one of the top organizations administering alternative dispute resolution (ADR) cases, will add a new dimension to existing appellate arbitration options. Before the introduction...
November 13, 2013
The American Arbitration Association (AAA) and the International Centre for Dispute Resolution (ICDR) announced Friday that parties wanting further review of an arbitrator’s award decision will now have a specific and streamlined procedure to follow. The new “Optional Appellate Arbitration Rules” from the AAA, one of the top organizations administering alternative dispute resolution (ADR) cases, will add a new dimension to existing appellate arbitration options. Before the introduction...
