Hip-hop musician Jay-Z has successfully convinced a New York judge to temporarily halt American Arbitration Association (“AAA”) arbitration proceedings based on a lack of arbitrator diversity. In the case, Jay-Z and Iconix Brand Group entered into a $200 million merchandising agreement that required all future disputes to be resolved using AAA arbitration rules and procedures. After a disagreement arose between the parties, arbitration proceedings...
The Ninth District Court of Appeals at Beaumont has upheld an arbitrator’s nearly $460,000 legal malpractice award despite claims the arbitrator exceeded his authority by failing to follow Texas law. 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 a representation agreement that included...
The United States Court of Appeals for the Seventh Circuit has issued an opinion stating the availability of class arbitration is a threshold question for the courts, not an arbitrator, to decide. In Herrington v. Waterstone Mortgage Corp., No. 17-3609 (7th Cir. Oct. 22, 2018), a woman, Herrington, filed a proposed class action lawsuit against her former employer, Waterstone Mortgage Corporation (“Waterstone”) in a Wisconsin federal court. According to Herrington,...
Professor Alan Scott Rau, Mark G. & Judy G. Yudof Chair in Law at the University of Texas at Austin School of Law, has published “Arbitrators and the Interpretation of Contacts,” American Review of International Arbitration, 2019 (Forthcoming). In his scholarly paper, Professor Rau expands upon a recent presentation regarding how international arbitrators perform contract interpretation.
Here is the abstract:
This paper is a revised and expanded version...
This week we highlight petitions pending before the Supreme Court that address, among other things, the reasonableness of an officer’s suspicion that the registered owner of a vehicle is the person driving the vehicle, a public school’s interest in authorizing students “who believe themselves to be members of the opposite sex” to use locker rooms and restrooms reserved exclusively for the opposite sex, and whether a federal court should abstain from resolving a request to compel arbitration...
In a recent decision, McCormick v. America Online, No. 17-1542 (4th Cir. Nov. 29, 2018) (click here for a copy of the decision), the Fourth Circuit addressed how district courts should assess subject matter jurisdiction in connection with a petition to vacate an arbitrator’s award. The Fourth Circuit, disagreeing with the Third and Seventh Circuits and agreeing with the First and Second Circuits, held that a federal court has jurisdiction over a motion to vacate an award if the court would...
In this continuing series of blog posts, we have been using Dispute Resolution Data (DRD)’s growing repository of international arbitration case data to analyze the extent to which such cases reach various outcomes, whether it be an award being rendered, administrative closure, dismissal, impasse, or settlement/withdrawal (which we treat as a single, distinct outcome). Our first blog post demonstrated that when looking at an aggregate of DRD’s international commercial arbitration case data...
Today’s post covers three new developments from this past week. The Fifth Circuit found a defendant waived its right to arbitrate a class action; the Second Circuit found arbitrators retain power to clarify ambiguous awards; and Jay-Z found his list of potential arbitrators sorely lacking in diversity.
In Forby v. One Technologies, 2018 WL 6191349 (5th Cir. Nov. 28, 2018), a class of plaintiffs filed an action for consumer fraud. The defendant waited two years before compelling arbitration....
In an opinion that coins new terms and uses the insouciant tone of a blogger, the 11th Circuit just shut down a putative class action brought by homeowners against a vendor of roof shingles. The Court found that the terms and conditions printed on the exterior of the shingle packaging formed an enforceable contract (with a class arbitration waiver), and when the roofing contractors opened the shingles, the roofers bound the homeowners who had hired them. Dye v. Tamko Building Products, Inc.,...