Arbitration
Patent-Holding Company Asks SCOTUS to Vacate Texas Arbitrator’s Award in Legal Fees Dispute
July 3, 2017
A patent-holding company has asked the Supreme Court of the United States to consider its request to vacate an arbitrator’s award in a legal fees dispute. In Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-1271, a law firm, Jenner & Block, represented a patent-holding company, Parallel Networks, on a contingency fee basis in an intellectual property lawsuit. The representation agreement that was signed by Parallel Networks stated all disputes related to legal fees would be arbitrated. ...
July 3, 2017
A patent-holding company has asked the Supreme Court of the United States to consider its request to vacate an arbitrator’s award in a legal fees dispute. In Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-1271, a law firm, Jenner & Block, represented a patent-holding company, Parallel Networks, on a contingency fee basis in an intellectual property lawsuit. The representation agreement that was signed by Parallel Networks stated all disputes related to legal fees would be arbitrated. ...
Trump Administration Gives First Peek Into Its Arbitration Strategy
June 30, 2017
In a first indication of the Trump Administration’s stance on consumer arbitration, the Centers for Medicare & Medicaid Services (CMS) this week issued a new proposed rule that rolls back the Obama Administration’s regulation, which precluded pre-dispute arbitration agreements in nursing homes. (Too many negatives in that sentence… in other words, the Trump Administration wants to ensure that nursing homes can have arbitration agreements in their admission documents.) For context,...
June 30, 2017
In a first indication of the Trump Administration’s stance on consumer arbitration, the Centers for Medicare & Medicaid Services (CMS) this week issued a new proposed rule that rolls back the Obama Administration’s regulation, which precluded pre-dispute arbitration agreements in nursing homes. (Too many negatives in that sentence… in other words, the Trump Administration wants to ensure that nursing homes can have arbitration agreements in their admission documents.) For context,...
SCOTUS Overturns Kentucky Supreme Court in Nursing Home Arbitration Case
June 29, 2017
The Supreme Court of the United States has reversed the Kentucky Supreme Court’s decision in a nursing home arbitration dispute. Kindred Nursing Centers Limited Partnership v. Clark, No. 16-32, (May 15, 2017), initially consisted of three separate cases where a family member who held the power of attorney for an individual who was being admitted to a Kentucky nursing home signed a pre-dispute binding arbitration agreement as part of the admission documents. In each case, the family member later...
June 29, 2017
The Supreme Court of the United States has reversed the Kentucky Supreme Court’s decision in a nursing home arbitration dispute. Kindred Nursing Centers Limited Partnership v. Clark, No. 16-32, (May 15, 2017), initially consisted of three separate cases where a family member who held the power of attorney for an individual who was being admitted to a Kentucky nursing home signed a pre-dispute binding arbitration agreement as part of the admission documents. In each case, the family member later...
Parties Agreed to Arbitration Despite Allegations of a “Frankenstein” Contract
June 28, 2017
In Kreit and Kreit v. Brewer & Pritchard, PC, the Fourteenth Court of Appeals held that the trial court properly ruled that the Kreit brothers agreed to arbitration in their engagement agreement with the law firm of Brewer & Pritchard. In dispute is whether the firm represented the brothers (who are medical doctors) in their individual capacities or Cleveland Imaging and Surgical Hospital, LLC. According to the court's opinion, the Kreit brothers contend they only intended to obtain...
June 28, 2017
In Kreit and Kreit v. Brewer & Pritchard, PC, the Fourteenth Court of Appeals held that the trial court properly ruled that the Kreit brothers agreed to arbitration in their engagement agreement with the law firm of Brewer & Pritchard. In dispute is whether the firm represented the brothers (who are medical doctors) in their individual capacities or Cleveland Imaging and Surgical Hospital, LLC. According to the court's opinion, the Kreit brothers contend they only intended to obtain...
The Uberization of Arbitration Clauses
June 26, 2017
Professor Jill I. Gross, Elisabeth Haub School of Law at Pace University, has published “The Uberization of Arbitration Clauses,” Penn State Yearbook on Arbitration and Mediation, Forthcoming. In her scholarly paper, Professor Gross examines federal court opinions related to challenges over the pre-dispute arbitration clause used by mobile transportation application company Uber Technologies, Inc. Here is the abstract: In the early part of this decade, the Supreme Court’s decisions interpreting...
June 26, 2017
Professor Jill I. Gross, Elisabeth Haub School of Law at Pace University, has published “The Uberization of Arbitration Clauses,” Penn State Yearbook on Arbitration and Mediation, Forthcoming. In her scholarly paper, Professor Gross examines federal court opinions related to challenges over the pre-dispute arbitration clause used by mobile transportation application company Uber Technologies, Inc. Here is the abstract: In the early part of this decade, the Supreme Court’s decisions interpreting...
Trial Court Properly Set Aside Arbitrator’s Sanctions Orders Based on Evident Partiality
June 26, 2017
In Builders First Source-South Texas, LP v. Ortiz, the Fourteenth Court of Appeals held, in an interlocutory appeal, that the trial court had jurisdiction to set aside an arbitrator's sanctions orders on the basis of evident partiality. The trial court also had jurisdiction to require arbitration before a new arbitrator, but the parties had to go through the AAA process for the appointment. The trial court erred to stay the proceedings pending completion of arbitration. According to the court's...
June 26, 2017
In Builders First Source-South Texas, LP v. Ortiz, the Fourteenth Court of Appeals held, in an interlocutory appeal, that the trial court had jurisdiction to set aside an arbitrator's sanctions orders on the basis of evident partiality. The trial court also had jurisdiction to require arbitration before a new arbitrator, but the parties had to go through the AAA process for the appointment. The trial court erred to stay the proceedings pending completion of arbitration. According to the court's...
Fifth Circuit Holds Payday Lender Waived Right to Arbitration
June 23, 2017
In a 2-1 decision, the nation’s Fifth Circuit Court of Appeals has ruled a payday loan lending company that sought criminal charges against customers who failed to repay their loans waived its right to arbitration by substantially invoking the judicial process. In Lucinda Vine, et al. v. PLS Financial Services, Inc., No. 16-50847 (5th Cir., May 19, 2017), a Texas payday lender, PLS, provided short-term loans to two customers, Vine and Pond, in exchange for a fee. Before the loan was provided,...
June 23, 2017
In a 2-1 decision, the nation’s Fifth Circuit Court of Appeals has ruled a payday loan lending company that sought criminal charges against customers who failed to repay their loans waived its right to arbitration by substantially invoking the judicial process. In Lucinda Vine, et al. v. PLS Financial Services, Inc., No. 16-50847 (5th Cir., May 19, 2017), a Texas payday lender, PLS, provided short-term loans to two customers, Vine and Pond, in exchange for a fee. Before the loan was provided,...
SCOTUS Denies Certiorari in Texas Arbitration Case
June 22, 2017
On Monday, the United States Supreme Court denied certiorari in Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-1271. The case involved a patent-holding company’s request to vacate a $3 million arbitration award following a legal fees dispute. The high court’s decision to deny certiorari is not surprising as a Dallas County, Texas district court’s order denying the patent holding company’s motion to vacate the award was previously affirmed by both the Fifth District Court of Appeals...
June 22, 2017
On Monday, the United States Supreme Court denied certiorari in Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-1271. The case involved a patent-holding company’s request to vacate a $3 million arbitration award following a legal fees dispute. The high court’s decision to deny certiorari is not surprising as a Dallas County, Texas district court’s order denying the patent holding company’s motion to vacate the award was previously affirmed by both the Fifth District Court of Appeals...
First Circuit Finds Class of Independent Truckers Excluded From Federal Arbitration Act
June 22, 2017
The Federal Arbitration Act has been in effect for nearly 100 years (92, to be precise). Nevertheless, the First Circuit found two issues of first impression to address this month. In Oliveira v. New Prime, Inc., 2017 WL 1963461 (1st Cir. May 12, 2017), the court refused to compel arbitration of a class action complaint, because it interpreted Section One of the FAA to exempt contracts for independent transportation contractors. Mr. Oliveira brought a putative class action suit against...
June 22, 2017
The Federal Arbitration Act has been in effect for nearly 100 years (92, to be precise). Nevertheless, the First Circuit found two issues of first impression to address this month. In Oliveira v. New Prime, Inc., 2017 WL 1963461 (1st Cir. May 12, 2017), the court refused to compel arbitration of a class action complaint, because it interpreted Section One of the FAA to exempt contracts for independent transportation contractors. Mr. Oliveira brought a putative class action suit against...
Law Firm Failed to Provide Sufficient Notice of its Arbitration Agreement
June 22, 2017
In Alexander Dubose Jefferson & Townsend, LLP v. Vance, the United States District Court (Western District, Austin) held that a law firm did "fairly suggest to employees that the firm was implementing a mandatory, binding arbitration policy" and denied the firm's motion to compel arbitration. According to the decision, ADJT terminated Vance's employement with the firm. The firm sued Vance on causes of action including the Computer Fraud and Abuse Act, the Texas Uniform Trade Secrets Act,...
June 22, 2017
In Alexander Dubose Jefferson & Townsend, LLP v. Vance, the United States District Court (Western District, Austin) held that a law firm did "fairly suggest to employees that the firm was implementing a mandatory, binding arbitration policy" and denied the firm's motion to compel arbitration. According to the decision, ADJT terminated Vance's employement with the firm. The firm sued Vance on causes of action including the Computer Fraud and Abuse Act, the Texas Uniform Trade Secrets Act,...
