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Arbitration
Houston Appeals Court Finds Arbitrator Exceeded His Authority in Case Against Non-Signatory
April 23, 2013
Houston’s First Appellate District has stated an arbitrator exceeded his authority when he determined that a non-signatory to an arbitration agreement was bound to arbitrate under the agreement. In Elgohary v. Herrera, No. 01-11-00550-CV (Tex. App. 1st March 5, 2013), Victor S. Elgohary entered into a written employment agreement with Herrera Partners, L.P., a Texas Limited Partnership with Gilbert A. Herrera as the limited partner. The employment agreement contained a clause that required...
April 23, 2013
Houston’s First Appellate District has stated an arbitrator exceeded his authority when he determined that a non-signatory to an arbitration agreement was bound to arbitrate under the agreement. In Elgohary v. Herrera, No. 01-11-00550-CV (Tex. App. 1st March 5, 2013), Victor S. Elgohary entered into a written employment agreement with Herrera Partners, L.P., a Texas Limited Partnership with Gilbert A. Herrera as the limited partner. The employment agreement contained a clause that required...
SCOTUS Struggles With Standard Of Review For Arbitrator’s Decision To Allow Class Arbitration
April 23, 2013
While the oral argument before the United States Supreme Court in Sutter today was ostensibly about whether to affirm an arbitrator’s decision that the parties’ contract authorized class arbitration, the decision really turns on how the Court will review all arbitration decisions. (Transcript here.) Multiple Justices expressed an unwillingness to create a special standard for reviewing arbitrator decisions involving class arbitration. (Info on the underlying case here.) Appellant’s...
April 23, 2013
While the oral argument before the United States Supreme Court in Sutter today was ostensibly about whether to affirm an arbitrator’s decision that the parties’ contract authorized class arbitration, the decision really turns on how the Court will review all arbitration decisions. (Transcript here.) Multiple Justices expressed an unwillingness to create a special standard for reviewing arbitrator decisions involving class arbitration. (Info on the underlying case here.) Appellant’s...
Arbitration Update
April 22, 2013
In this edition, we cover new arbitration issues recently decided by the United States Court of Appeals for the Fifth Circuit,...
April 22, 2013
In this edition, we cover new arbitration issues recently decided by the United States Court of Appeals for the Fifth Circuit,...
The 2013 Texas Legislative Session “Half-Time” Report
April 22, 2013
Every two years, the Texas Legislature convenes for approximately five months. The 83rd legislative general session was gaveled to a start at noon on Tuesday, January 8, 2013, and the 140 day clock is now running. The last day to file legislation was March 8, 2013. It has been estimated that about 6,000 bills were introduced during the current session — some 4,000 in the House and 2,000 in the Senate. The enactment rate for new legislation is generally under 10 percent. The Texas Attorney-Mediators...
April 22, 2013
Every two years, the Texas Legislature convenes for approximately five months. The 83rd legislative general session was gaveled to a start at noon on Tuesday, January 8, 2013, and the 140 day clock is now running. The last day to file legislation was March 8, 2013. It has been estimated that about 6,000 bills were introduced during the current session — some 4,000 in the House and 2,000 in the Senate. The enactment rate for new legislation is generally under 10 percent. The Texas Attorney-Mediators...
Class Arbitration on the Ropes Again
April 22, 2013
Last week, Professor Linda S. Mullenix, Morris & Rita Atlas Chair in Advocacy at the University of Texas School of Law, published a timely article entitled, Round Five and Down for the Count? Class Arbitration on the Ropes – Again, 6 Preview of Supreme Court Cases 270 (March 18, 2013). In her article, Professor Mullenix examines the upcoming United States Supreme Court decision in Oxford Health Plans LLC v. Sutter (No. 12-135). Oral argument regarding the case was held on Monday, March...
April 22, 2013
Last week, Professor Linda S. Mullenix, Morris & Rita Atlas Chair in Advocacy at the University of Texas School of Law, published a timely article entitled, Round Five and Down for the Count? Class Arbitration on the Ropes – Again, 6 Preview of Supreme Court Cases 270 (March 18, 2013). In her article, Professor Mullenix examines the upcoming United States Supreme Court decision in Oxford Health Plans LLC v. Sutter (No. 12-135). Oral argument regarding the case was held on Monday, March...
Constitutional Conundrums in Arbitration
April 19, 2013
S.I. Strong, Associate Professor of Law and Senior Fellow at the University of Missouri School of Law‘sCenter for the Study...
April 19, 2013
S.I. Strong, Associate Professor of Law and Senior Fellow at the University of Missouri School of Law‘sCenter for the Study...
Arbitral Immunity and Judicial Review of Arbitral Awards Create Ethical Loopholes in Arbitration
April 19, 2013
Arbitration’s interesting status as quasi-independent of the court system has created perplexing ethical dilemmas. On the one hand, arbitration has been considered separate from the legal system in many important regards, allowing parties the opportunity to receive adjudication in a confidential forum by an expert decision-maker. On the other hand, the rules and expectations of litigation are slowly creeping into arbitration, including discovery and motion practice. Recently, courts have (rightly)...
April 19, 2013
Arbitration’s interesting status as quasi-independent of the court system has created perplexing ethical dilemmas. On the one hand, arbitration has been considered separate from the legal system in many important regards, allowing parties the opportunity to receive adjudication in a confidential forum by an expert decision-maker. On the other hand, the rules and expectations of litigation are slowly creeping into arbitration, including discovery and motion practice. Recently, courts have (rightly)...
September 11 Attacks Constituted Two Occurrences According to Affirmed Arbitration Award
April 19, 2013
Plaintiff cedent and defendant reinsurers were parties to certain reinsurance treaties providing cover for aviation-related risks, with threshold triggers of $200 million and $500 million, respectively. A coverage dispute arose regarding whether the terrorist attacks in New York City on September 11, 2011 constituted one, or two separate occurrences, as the term was defined in the underlying policies. Defendants contended there were two occurrences, and thus twice as much of the $1.2 billion in underlying...
April 19, 2013
Plaintiff cedent and defendant reinsurers were parties to certain reinsurance treaties providing cover for aviation-related risks, with threshold triggers of $200 million and $500 million, respectively. A coverage dispute arose regarding whether the terrorist attacks in New York City on September 11, 2011 constituted one, or two separate occurrences, as the term was defined in the underlying policies. Defendants contended there were two occurrences, and thus twice as much of the $1.2 billion in underlying...
Court Intervention When the Parties’ Arbitrator Appointment Process Fails
April 19, 2013
Most arbitration clauses are explicit about the number of arbitrators to hear a dispute. The process by which the arbitrators will be selected is usually spelled out or will be governed by the rules of the administering tribunal. But no clause can fully anticipate and address every future dispute or arbitrator selection problem that may be presented. When a dispute involves satisfaction of arbitrator qualifications or multiple parties selecting a panel, the arbitrator selection process may reach...
April 19, 2013
Most arbitration clauses are explicit about the number of arbitrators to hear a dispute. The process by which the arbitrators will be selected is usually spelled out or will be governed by the rules of the administering tribunal. But no clause can fully anticipate and address every future dispute or arbitrator selection problem that may be presented. When a dispute involves satisfaction of arbitrator qualifications or multiple parties selecting a panel, the arbitrator selection process may reach...
Insurer Estopped to Compel Arbitration After It Opposing Same Motion Earlier
April 18, 2013
The Texas Court of Appeals affirmed a trial court order denying New Hampshire Insurance Company’s motion to compel arbitration of Magellan Reinsurance Company’s nine common law and statutory claims. New Hampshire and Magellan entered into a reinsurance agreement whereby Magellan agreed to accept 100% of New Hampshire’s obligations under automobile dealer insurance policies. Pursuant to the agreement, Magellan established a trust account from which New Hampshire was authorized to withdraw funds...
April 18, 2013
The Texas Court of Appeals affirmed a trial court order denying New Hampshire Insurance Company’s motion to compel arbitration of Magellan Reinsurance Company’s nine common law and statutory claims. New Hampshire and Magellan entered into a reinsurance agreement whereby Magellan agreed to accept 100% of New Hampshire’s obligations under automobile dealer insurance policies. Pursuant to the agreement, Magellan established a trust account from which New Hampshire was authorized to withdraw funds...
