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Arbitration
Federal Arbitration Act Reigns Supreme
April 18, 2013
In Nitro-Lift Technologies, L.L.C. v. Howard, 133 S. Ct. 500 (2012), the U.S. Supreme Court recently overturned a decision by the Oklahoma Supreme Court that enjoined an arbitration proceeding on the ground that the relevant provision of the underlying employment contract was flatly prohibited by Oklahoma law. According to the U.S. Supreme Court, the Oklahoma Supreme Court had no business interpreting the enforceability of the employment contract under Oklahoma law, at least not before the arbitrator...
April 18, 2013
In Nitro-Lift Technologies, L.L.C. v. Howard, 133 S. Ct. 500 (2012), the U.S. Supreme Court recently overturned a decision by the Oklahoma Supreme Court that enjoined an arbitration proceeding on the ground that the relevant provision of the underlying employment contract was flatly prohibited by Oklahoma law. According to the U.S. Supreme Court, the Oklahoma Supreme Court had no business interpreting the enforceability of the employment contract under Oklahoma law, at least not before the arbitrator...
What Constitutes Waiver of a Right to Arbitrate under the FAA?
April 17, 2013
It is well established that courts generally enforce the strong federal policy in favor of arbitration. That is not to say, however, that a court will automatically dismiss a case subject to an arbitration clause in favor of alternate dispute resolution. Before doing so, the court must first determine whether a party has relinquished its right to arbitrate and what standard to use in making that determination. Section 3 of the Federal Arbitration Act (FAA),9 U.S.C. § 3 , states that where there...
April 17, 2013
It is well established that courts generally enforce the strong federal policy in favor of arbitration. That is not to say, however, that a court will automatically dismiss a case subject to an arbitration clause in favor of alternate dispute resolution. Before doing so, the court must first determine whether a party has relinquished its right to arbitrate and what standard to use in making that determination. Section 3 of the Federal Arbitration Act (FAA),9 U.S.C. § 3 , states that where there...
Killing Them with Kindness: ‘Consumer-Friendly’ Arbitration Clauses after Concepcion
April 17, 2013
In AT&T v. Concepcion, the Supreme Court struck California’s so-called “Discover Bank rule” – a judge-made rule providing that arbitration agreements attended by class action waivers are unenforceable, if those agreements are contained in standard form consumer contracts. But, arguably, Concepcion leaves open and unresolved the viability of a state law challenge to a bilateral arbitration clause which is shown, in a particular case, to impose a forfeiture of the claimant’s ability to vindicate...
April 17, 2013
In AT&T v. Concepcion, the Supreme Court struck California’s so-called “Discover Bank rule” – a judge-made rule providing that arbitration agreements attended by class action waivers are unenforceable, if those agreements are contained in standard form consumer contracts. But, arguably, Concepcion leaves open and unresolved the viability of a state law challenge to a bilateral arbitration clause which is shown, in a particular case, to impose a forfeiture of the claimant’s ability to vindicate...
Applying Concepcion, Court Compels Arbitration Notwithstanding Cost Prohibitiveness
April 17, 2013
Current and former students filed a putative class action against an institution alleging that the institution misrepresented the quality of its education and the prospects for post-graduation employment. When the institution moved to compel arbitration, the students sought to challenge the enforceability of the arbitration clause in court, notwithstanding a delegation provision that provided for arbitrability to be decided by the arbitrators. The court initially refused to enforce the delegation...
April 17, 2013
Current and former students filed a putative class action against an institution alleging that the institution misrepresented the quality of its education and the prospects for post-graduation employment. When the institution moved to compel arbitration, the students sought to challenge the enforceability of the arbitration clause in court, notwithstanding a delegation provision that provided for arbitrability to be decided by the arbitrators. The court initially refused to enforce the delegation...
Equitable Estoppel Won’t Reach Non-Signatories in Statutory (Not Contract) Claims
April 16, 2013
In a putative class anti-trust action brought by retail grocers against wholesale grocers, a divided panel of the Eighth...
April 16, 2013
In a putative class anti-trust action brought by retail grocers against wholesale grocers, a divided panel of the Eighth...
Arbitration Award Round-Up
April 15, 2013
Manifest Disregard/Exceeding Powers Tivo, Inc. v. Goldwasser, Case No. 12-cv-07142 (USDC S.D.N.Y. Feb. 14, 2013) (denying...
April 15, 2013
Manifest Disregard/Exceeding Powers Tivo, Inc. v. Goldwasser, Case No. 12-cv-07142 (USDC S.D.N.Y. Feb. 14, 2013) (denying...
Seventh Circuit Is Sick Of Arbitration Appeals; Threatens “High Risk of Sanctions”
April 15, 2013
In an opinion released yesterday, the Seventh Circuit schooled appellant’s counsel first on the application of the New York Convention and Panama Convention, then on the high standard of review it applies to commercial arbitration awards, and finally expressed profound disappointment with the frequency of motions to vacate arbitration awards. “Attempts to obtain judicial review of an arbitrator’s decision undermine the integrity of the arbitral process.” Johnson Controls, Inc. v. Edman...
April 15, 2013
In an opinion released yesterday, the Seventh Circuit schooled appellant’s counsel first on the application of the New York Convention and Panama Convention, then on the high standard of review it applies to commercial arbitration awards, and finally expressed profound disappointment with the frequency of motions to vacate arbitration awards. “Attempts to obtain judicial review of an arbitrator’s decision undermine the integrity of the arbitral process.” Johnson Controls, Inc. v. Edman...
Hearing Held to Determine Whether NFL Concussion Litigation Should be Arbitrated
April 13, 2013
Yesterday, a hearing was reportedly held in a Philadelphia federal court to determine whether a lawsuit filed by approximately...
April 13, 2013
Yesterday, a hearing was reportedly held in a Philadelphia federal court to determine whether a lawsuit filed by approximately...
El Paso Appeals Court Refuses to Compel Arbitration Where Employee Cannot Read English
April 12, 2013
The Texas Appeals Court in El Paso had denied an employer’s motion to compel arbitration in an employment dispute that...
April 12, 2013
The Texas Appeals Court in El Paso had denied an employer’s motion to compel arbitration in an employment dispute that...
Contributions To Arbitrator’s Judicial Campaign Are Not Enough To Establish “Evident Partiality”
April 12, 2013
The Third Circuit refused to vacate an arbitrator’s award, despite allegations that she failed to disclose contributions the defendant’s parent company had made to her judicial campaign and failed to disclose that she co-taught a seminar with in-house counsel for the defendant’s parent company. Freeman v. Pittsburgh Glass Works, LLC, __ F.3d __, 2013 WL 811884 (3d Cir. March 6, 2013). In short, the court concluded that these contacts were not enough to make a reasonable person...
April 12, 2013
The Third Circuit refused to vacate an arbitrator’s award, despite allegations that she failed to disclose contributions the defendant’s parent company had made to her judicial campaign and failed to disclose that she co-taught a seminar with in-house counsel for the defendant’s parent company. Freeman v. Pittsburgh Glass Works, LLC, __ F.3d __, 2013 WL 811884 (3d Cir. March 6, 2013). In short, the court concluded that these contacts were not enough to make a reasonable person...
