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Arbitration
Arbitration Cases a Growing Revenue Stream for Law Firms
June 25, 2013
The old refrain, “See you in court!” is so last century. The latest trend in resolving contractual disputes is the less expensive, out-of-court process of arbitration. Even the Kardashians include an arbitration clause in their contracts, and you can’t get any trendier than that. Though arbitration is intended to be cheaper and speedier than a legal trial, for South Florida law firms it also has become an important and growing revenue stream. Twenty years ago, arbitration was considered...
June 25, 2013
The old refrain, “See you in court!” is so last century. The latest trend in resolving contractual disputes is the less expensive, out-of-court process of arbitration. Even the Kardashians include an arbitration clause in their contracts, and you can’t get any trendier than that. Though arbitration is intended to be cheaper and speedier than a legal trial, for South Florida law firms it also has become an important and growing revenue stream. Twenty years ago, arbitration was considered...
In Quest of the Arbitration Trifecta, or Closed Door Litigation?: The Delaware Arbitration Program
June 24, 2013
Recently, a minor tempest has been raging over the Delaware Arbitration Program, which attempts to marry one of America’s premier business courts to the fundamentally more private consensual adjudicative alternative, binding arbitration. At a time when commercial parties face potentially long delays in underfunded courts, but harbor mixed views about arbitration, Delaware’s unique concoction ostensibly offers a veritable trifecta of procedural advantages. These include: (1) a first-rate adjudicator...
June 24, 2013
Recently, a minor tempest has been raging over the Delaware Arbitration Program, which attempts to marry one of America’s premier business courts to the fundamentally more private consensual adjudicative alternative, binding arbitration. At a time when commercial parties face potentially long delays in underfunded courts, but harbor mixed views about arbitration, Delaware’s unique concoction ostensibly offers a veritable trifecta of procedural advantages. These include: (1) a first-rate adjudicator...
IBA Adopts New Guidelines on Party Representation in International Arbitration
June 24, 2013
Last week, the International Bar Association adopted new “IBA Guidelines on Party Representation in International Arbitration.” The guidelines were reportedly designed to create a more uniform and equitable experience for both attorneys and arbitrators engaged in international arbitral disputes. According to the International Bar Association: The committee and its Task Force on Counsel Conduct have produced guidelines for party representation and counsel conduct in international arbitration. The...
June 24, 2013
Last week, the International Bar Association adopted new “IBA Guidelines on Party Representation in International Arbitration.” The guidelines were reportedly designed to create a more uniform and equitable experience for both attorneys and arbitrators engaged in international arbitral disputes. According to the International Bar Association: The committee and its Task Force on Counsel Conduct have produced guidelines for party representation and counsel conduct in international arbitration. The...
Enforcement of Interim and Partial Awards: Emerging Coherence in US Law?
June 24, 2013
Modern institutional arbitration rules encourage international arbitrators to address complex disputes surgically, by issuing partial and interim awards to prioritize solving the most difficult and contentious issues. But American arbitration law offers arbitrators little helpful guidance about when their non-final awards may be confirmed or vacated. And counsel in arbitrations seated in the US must do some educated guesswork as they try to fashion effective arbitration strategies with an eye toward...
June 24, 2013
Modern institutional arbitration rules encourage international arbitrators to address complex disputes surgically, by issuing partial and interim awards to prioritize solving the most difficult and contentious issues. But American arbitration law offers arbitrators little helpful guidance about when their non-final awards may be confirmed or vacated. And counsel in arbitrations seated in the US must do some educated guesswork as they try to fashion effective arbitration strategies with an eye toward...
SCOTUS Backs Amex Class Arb Waiver
June 20, 2013
Is it too expensive to arbitrate without others in a formal class? It doesn't matter. You and your company will arbitrate. The U.S. Supreme Court this morning said that a class waiver in an arbitration contract between businesses can't be defeated by evidence that it is too costly to put on the case in American Express Co. v. Italian Colors Restaurant, No. 12–133 (June 20, 2012)(available here). The 10-page, 5-3 opinion by Associate Justice Antonin Scalia held, “The...
June 20, 2013
Is it too expensive to arbitrate without others in a formal class? It doesn't matter. You and your company will arbitrate. The U.S. Supreme Court this morning said that a class waiver in an arbitration contract between businesses can't be defeated by evidence that it is too costly to put on the case in American Express Co. v. Italian Colors Restaurant, No. 12–133 (June 20, 2012)(available here). The 10-page, 5-3 opinion by Associate Justice Antonin Scalia held, “The...
Mandatory Predispute Consumer Arbitration, Structural Bias, and Incentivizing Procedural Safeguards
June 18, 2013
Within the past several decades, there has been an explosion in the creation, institutionalization and use of “alternative”...
June 18, 2013
Within the past several decades, there has been an explosion in the creation, institutionalization and use of “alternative”...
Invalid Attorney’s Fee Provision Severed and Arbitration Compelled
June 17, 2013
An arbitration provision in an employment agreement provided that the “costs and expenses of the arbitration, including the arbitrator’s fees, shall be borne equally by the parties.” The court held the provision invalid because it would have prevented the plaintiff, if successful, from recovering attorneys fees as provided for in Title VII. However, the court severed the invalid provision and compelled arbitration. Adams v. Republic Parking System, Inc., Case No. 12-1310 (USDC W.D. Okla. April...
June 17, 2013
An arbitration provision in an employment agreement provided that the “costs and expenses of the arbitration, including the arbitrator’s fees, shall be borne equally by the parties.” The court held the provision invalid because it would have prevented the plaintiff, if successful, from recovering attorneys fees as provided for in Title VII. However, the court severed the invalid provision and compelled arbitration. Adams v. Republic Parking System, Inc., Case No. 12-1310 (USDC W.D. Okla. April...
Appellate Arbitration Decisions
June 14, 2013
Confirming Award Mandell v. Reeve, No. 11-5238 (2d. Cir. Feb. 4, 2013) (affirming district court’s confirmation of arbitration...
June 14, 2013
Confirming Award Mandell v. Reeve, No. 11-5238 (2d. Cir. Feb. 4, 2013) (affirming district court’s confirmation of arbitration...
SEC Won’t Have Time to Tackle Issue of Mandatory Securities Arbitration
June 13, 2013
Despite increasing pressure on the SEC to exercise its Dodd-Frank-granted explicit authority to ban mandatory securities arbitration, SEC Commissioner Elisse Walter stated earlier this week, according to a report in Reuters, that the Commission won’t have time to address the issue until 2014, in light of the other mandates of Dodd-Frank. It’s a shame that the issue won’t get the regulatory attention it deserves due to lack of resources.
June 13, 2013
Despite increasing pressure on the SEC to exercise its Dodd-Frank-granted explicit authority to ban mandatory securities arbitration, SEC Commissioner Elisse Walter stated earlier this week, according to a report in Reuters, that the Commission won’t have time to address the issue until 2014, in light of the other mandates of Dodd-Frank. It’s a shame that the issue won’t get the regulatory attention it deserves due to lack of resources.
Fifth Circuit Affirms Arbitral Award for Breach of Unsigned Contract
June 13, 2013
The United States Fifth Circuit Court of Appeals has affirmed an arbitral award based upon breach of an unsigned contract. In Tricon Energy Limited v. Vinmar International, Ltd., No. 12-20100 (5th Cir. May 3, 2013), Vinmar agreed to purchase an industrial petrochemical from Tricon through the services of a broker. The parties entered into a binding agreement through the broker using three memoranda to confirm the terms of the deal. The following day, a representative for Tricon sent a Vinmar...
June 13, 2013
The United States Fifth Circuit Court of Appeals has affirmed an arbitral award based upon breach of an unsigned contract. In Tricon Energy Limited v. Vinmar International, Ltd., No. 12-20100 (5th Cir. May 3, 2013), Vinmar agreed to purchase an industrial petrochemical from Tricon through the services of a broker. The parties entered into a binding agreement through the broker using three memoranda to confirm the terms of the deal. The following day, a representative for Tricon sent a Vinmar...
