The parties in IQ Products Co. v. WD-40 Co. disputed whether an arbitration agreement was limited to “propane/butane-propelled products” or also “carbon dioxide-propelled products.” The party who prevailed in the arbitration relied mainly on the parties’ subsequent conduct to justify the broader reading, and the Fifth Circuit agreed (applying California law): “Considering . . . ‘the words used . . . as well as extrinsic evidence of such objective matters and the surrounding circumstances...
Last week, the Eastern District of Texas issued a preliminary injunction over a National Football League (“NFL”) player’s six-game suspension. In the case, the NFL commissioner, Roger Goodell, suspended a Dallas Cowboys player, Ezekiel Elliott, after Elliott was accused of committing domestic violence against his former partner despite that Elliott was not arrested or charged with a crime by police. Instead, Goodell relied on an independent NFL investigation when he issued the suspension.
In...
Two recently released survey reports measure the pervasive use of arbitration to resolve workplace disputes.
Alexander J.S. Colvin of the Economic Policy Institute in Washington, D.C., has concluded that, “since the early 2000, the share of workers subject to mandatory arbitration has more than doubled and now exceeds 55 percent.” Key findings of Colvin’s study include:
53.9% of nonunion private-sector employers have mandatory arbitration procedures, and 65.1% of employers with 1,000...
Arbitration is a better solution for tech companies than litigation but it needs to be faster.
Technology companies would prefer arbitration over litigation when dealing with disputes. Respondents identified the top three problems with litigation as cost (64 per cent), time to resolution (57 per cent), and inexperienced or unqualified judges (46 per cent). More than 20 per cent of tech companies said that their main concerns included overly intrusive discovery practice, random jury verdicts,...
The “Summer of Arbitration” draws to a close tomorrow, if you can believe it. (On the first day of fall, it is supposed to be 91 degrees in Minnesota. Yikes.) But before I close that chapter, let’s take a look at a theme that emerged in these last weeks: non-signatories losing their attempts to compel arbitration (see last post).
In one case, Google’s self-driving car project, Waymo, sued Uber (and others) for misappropriating trade secrets. Waymo LLC v. Uber Technologies, Inc.,...
Consistent with Imre's post below, Alex Colvin (Cornell ILR) provides this news of his own study:
In a nice conjunction with the D.R. Horton cases arguments coming up, I also have a report out today on the use of mandatory employment arbitration clauses, as well as the incidence of class action waivers. The study was sponsored by the Economic Policy Institute (EPI).
This is a nationally representative, establishment-level survey of 628 employers. It allows me to get a measure of the percentage...
Imre Szalai (Loyola New Orleans) provides this update on matters related to D.R. Horton (see also Alex Colvin's study in the post above):
In anticipation of the D.R. Horton cases to be argued next week, I am publishing a report about the use of arbitration clauses for workplace-related disputes. The key finding from my study, which is based solely on publicly-available data, shows that 80 of the Fortune 100 companies, the largest companies in America by revenue, have used arbitration agreements...
Teresa J. Verges, Lecturer in Law and Director of the University of Miami School of Law Investor Rights Clinic, has published “Evolution of the Arbitration Forum as a Response to Mandatory Arbitration,” Nevada Law Journal, Forthcoming. In her journal article, Ms. Verges discusses potential changes to the arbitration process that may be merited due to the ongoing expansion of mandatory arbitration agreements.
Here is the abstract:
Decades of Supreme Court decisions elevating the Federal Arbitration Act...