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Arbitration
Ninth Circuit Revives California Law That Allows Plaintiffs Seeking Injunctive Relief To Avoid Arbitration
May 21, 2013
More than one year ago, a three-judge panel of the Ninth Circuit determined that California case law, which precluded arbitration of claims asking for public injunctive relief, was preempted by the Federal Arbitration Act. Upon rehearing the case en banc, the Court backpedaled. Kilgore v. KeyBank Nat’l Assoc., __ F.3d __, 2013 WL 1458876 (9th Cir. April 11, 2013). Ten judges of that Circuit concluded that the California case law simply did not apply to the plaintiffs’ claims, so there...
May 21, 2013
More than one year ago, a three-judge panel of the Ninth Circuit determined that California case law, which precluded arbitration of claims asking for public injunctive relief, was preempted by the Federal Arbitration Act. Upon rehearing the case en banc, the Court backpedaled. Kilgore v. KeyBank Nat’l Assoc., __ F.3d __, 2013 WL 1458876 (9th Cir. April 11, 2013). Ten judges of that Circuit concluded that the California case law simply did not apply to the plaintiffs’ claims, so there...
WIPO Arbitrations Over Domain Name Disputes Reach Record High
May 20, 2013
Since 2000, the World intellectual Property Organization (WIPO) has provided arbitration services for alleged cybersquatting disputes. Cybersquatting is the abusive registering and trafficking in internet domain names to drive up profits using the goodwill created by another company or entity. WIPO reportedly began empowering arbitrators from its Arbitration and Mediation Center to award domain names to others in situations where an entity acquired or registered the website abusively. The...
May 20, 2013
Since 2000, the World intellectual Property Organization (WIPO) has provided arbitration services for alleged cybersquatting disputes. Cybersquatting is the abusive registering and trafficking in internet domain names to drive up profits using the goodwill created by another company or entity. WIPO reportedly began empowering arbitrators from its Arbitration and Mediation Center to award domain names to others in situations where an entity acquired or registered the website abusively. The...
The Kinkade Case, Or How Not to Conduct an Arbitration
May 20, 2013
While all arbitrators aim for the highest level of quality control, errors occur. Sometimes these errors are pretty egregious, which is why we always recommend using a trusted and well-respected ADR provider and arbitrator. In a recent case coming out of Michigan, the Thomas Kinkade art company alleged that one of its dealers failed to pay for art it received. The dealer counterclaimed that Kinkade had fraudulently induced it to enter the dealership agreement. The matter went to arbitration...
May 20, 2013
While all arbitrators aim for the highest level of quality control, errors occur. Sometimes these errors are pretty egregious, which is why we always recommend using a trusted and well-respected ADR provider and arbitrator. In a recent case coming out of Michigan, the Thomas Kinkade art company alleged that one of its dealers failed to pay for art it received. The dealer counterclaimed that Kinkade had fraudulently induced it to enter the dealership agreement. The matter went to arbitration...
Arbitral Power to Rewrite the Contract: Has the Fifth Circuit Overextended Judicial Deference?
May 18, 2013
Does an arbitrator exceed her powers when, as a remedy for fraud in the inducement of a limited-duration intellectual property license, she modifies the contract “as a matter of law” to provide the licensor with a perpetual royalty-free license? The U.S. Fifth Circuit Court of Appeals, reversing a Texas district court’s vacatur order, held that the arbitrator’s award should stand. (Timegate Studios, Inc. v. Southpeak Interactive, L.L.C., 2013 WL 1437710 (5th Cir. April 9, 2013)). Even...
May 18, 2013
Does an arbitrator exceed her powers when, as a remedy for fraud in the inducement of a limited-duration intellectual property license, she modifies the contract “as a matter of law” to provide the licensor with a perpetual royalty-free license? The U.S. Fifth Circuit Court of Appeals, reversing a Texas district court’s vacatur order, held that the arbitrator’s award should stand. (Timegate Studios, Inc. v. Southpeak Interactive, L.L.C., 2013 WL 1437710 (5th Cir. April 9, 2013)). Even...
Dallas Appeals Court Compels Arbitration in Interlocutory Appeal
May 17, 2013
The Fifth District Court of Appeals in Dallas has ruled in an interlocutory appeal that a lower court committed error when...
May 17, 2013
The Fifth District Court of Appeals in Dallas has ruled in an interlocutory appeal that a lower court committed error when...
Tennessee Court Invalidates Brokerage Firm’s Arbitration Clause as Unconscionable
May 15, 2013
Yesterday I blogged about stepped-up political pressures on the Securities and Exchange Commission to outlaw mandatory...
May 15, 2013
Yesterday I blogged about stepped-up political pressures on the Securities and Exchange Commission to outlaw mandatory...
Second Circuit Sends Employment Discrimination Case to Arbitration
May 15, 2013
The United States Court of Appeals for the Second Circuit has ruled that Goldman Sachs Group, Inc. may compel a former employee who sued the company for gender discrimination to arbitrate her claim. In Parisi v. Goldman Sachs & Co., No. 11-5229-CV, (2d Cir. March 21, 2013) the appellate court stated Lisa Parisi, a former managing director at Goldman Sachs who claims she was the victim of pay and promotion discrimination, may not pursue her claim in a courtroom due to an arbitration clause...
May 15, 2013
The United States Court of Appeals for the Second Circuit has ruled that Goldman Sachs Group, Inc. may compel a former employee who sued the company for gender discrimination to arbitrate her claim. In Parisi v. Goldman Sachs & Co., No. 11-5229-CV, (2d Cir. March 21, 2013) the appellate court stated Lisa Parisi, a former managing director at Goldman Sachs who claims she was the victim of pay and promotion discrimination, may not pursue her claim in a courtroom due to an arbitration clause...
Wage-and-Hour Lawsuits Surge in New York Federal Courts
May 14, 2013
The number of wage-and-hour lawsuits has skyrocketed in New York federal courts, exceeding already-accelerating national trends. The lawsuits, brought by workers under the Fair Labor Standards Act, generally claim employers did not pay sufficient wages or overtime, often contending they misclassified workers as exempt from overtime payments. Among New York's four federal district courts, the largest increases are found in Southern and Eastern districts, according to Federal Judicial Center...
May 14, 2013
The number of wage-and-hour lawsuits has skyrocketed in New York federal courts, exceeding already-accelerating national trends. The lawsuits, brought by workers under the Fair Labor Standards Act, generally claim employers did not pay sufficient wages or overtime, often contending they misclassified workers as exempt from overtime payments. Among New York's four federal district courts, the largest increases are found in Southern and Eastern districts, according to Federal Judicial Center...
Added Pressure on SEC to Eliminate Mandatory Securities Arbitration
May 14, 2013
In the wake of a FINRA disciplinary hearing panel decision not to enforce its own rules against broker-dealer Charles Schwab barring class action waivers in customer-broker account agreements because of the Federal Arbitration Act (see my previous blog posts about that decision here and here), investor rights advocates have stepped up their efforts to press the Securities and Exchange Commission to exercise its powers under Dodd-Frank to ban mandatory arbitration. First, a few weeks ago, SEC...
May 14, 2013
In the wake of a FINRA disciplinary hearing panel decision not to enforce its own rules against broker-dealer Charles Schwab barring class action waivers in customer-broker account agreements because of the Federal Arbitration Act (see my previous blog posts about that decision here and here), investor rights advocates have stepped up their efforts to press the Securities and Exchange Commission to exercise its powers under Dodd-Frank to ban mandatory arbitration. First, a few weeks ago, SEC...
Fifth Circuit Reinstates Arbitral Award in Video Game Dispute
May 13, 2013
The United States Fifth Circuit Court of Appeals has reversed a district court’s order vacating an arbitral award in a dispute between a video game publisher and developer. In Timegate Studios, Inc. v. Southpeak Interactive, L.L.C., No. 12-20256 (5th Cir. Apr. 9, 2013), a video game developer, Timegate Studios, Inc. (“Timegate”), entered into an agreement with a video game publisher, Gamecock Media Group (“Gamecock”) to create a high quality, futuristic military game named “Section...
May 13, 2013
The United States Fifth Circuit Court of Appeals has reversed a district court’s order vacating an arbitral award in a dispute between a video game publisher and developer. In Timegate Studios, Inc. v. Southpeak Interactive, L.L.C., No. 12-20256 (5th Cir. Apr. 9, 2013), a video game developer, Timegate Studios, Inc. (“Timegate”), entered into an agreement with a video game publisher, Gamecock Media Group (“Gamecock”) to create a high quality, futuristic military game named “Section...
