The Northern District of Texas has dismissed a worker’s Fair Labor Standards Act (“FLSA”) claim because it should have been submitted to arbitration. In Gay v. Manchester Mgmt., LLC, No. 3:18-CV-1378-D., (ND Texas, October 22, 2018), a woman, Gay, signed an agreement to arbitrate all future claims against her employer, Manchester, when she began working for the company. The binding arbitration agreement specifically included FLSA wage and hour claims. In addition, the agreement...
José E. Alvarez, Herbert and Rose Rubin Professor of International Law at New York University School of Law, has written “Reviewing the Use of ‘Soft Law’ in Investment Arbitration,” Vol. 7.2 European International Arbitration Review; NYU School of Law, Public Law Research Paper No. 18-46. In his article, Professor Alvarez examines the extent and consistency of use related to so-called “informal” or “soft” laws in investor-state arbitral proceedings.
Here...
The Seventh Circuit issued an opinion last week that sounded like it would be a big deal. The case, Herrington v. Waterstone Mortgage Corp., 2018 WL 5116905 (7th Cir. Oct. 22, 2018), dealt with the fallout from SCOTUS’s Epic Systems, and addressed a class arbitrability issue of first impression, which meant it could have been epic indeed. But instead, the decision is a fizzle that punts all the truly exciting issues back to the district court.
Herrington began in court as a collective...
In theory, an introduction of a liability on firms, related to the difference between consumers’ beliefs and the effective terms of purchase/contract, can improve both social welfare and consumer surplus, depending on the relative magnitudes of: (1) decrease in the gap between the beliefs and the effective terms of the contract due to the introduction of the liability, (2) output decrease or price increase, and (3) efficiency of administering the liability (and the amount transferred). I do not find...
Every time I think the spate of state supreme court opinions about nursing home arbitration surely must be over, another one comes out to prove me wrong. Last week, it was one from Alabama, finding an arbitration agreement was never formed, because the resident lacked capacity and the daughter who signed on his behalf lacked power of attorney.
In Stephan v. Millennium Nursing & Rehab Ctr., 2018 WL 4846501 (Ala. Oct. 5, 2018), the decedent’s estate sued the nursing home for wrongful death. ...
Party-appointed arbitrators have recently been the subject of much debate in the arbitration community. There are those who see the ability to ‘choose’ an arbitrator as one of the fundamental pillars of arbitration. For others, it is a time- and cost-consuming exercise leading to potential conflicts and an increased likelihood of arbitrator challenges, both of which undermine the arbitral process and its reputation.
One arbitration textbook (which shall remain nameless) contains the comment...
This post is aimed at drafters of arbitration clauses. Because if you don’t insert an administrator for your arbitration, and don’t anticipate that the administrator may just stop providing services, your arbitration clause is dead in the water. At least, that’s the holding of two new state court cases.