Last Friday, the Supreme Court of Texas denied an investment company’s petition for review of an arbitration award. In Infinity Capital II LLC et al. v. Strasburger & Price LLP, No. 16-0947, the heirs of a member of a real estate investment company, Infinity Capital, sued the company for fraud and negligence. After the heirs entered into a confidential settlement agreement that contained an arbitration clause with Infinity Capital, the heirs assigned all related rights to their law firm,...
The Supreme Court of Texas has affirmed a court of appeals’ judgment regarding an arbitration panel’s damages award in an oil and gas exploration and production dispute. The background for Forest Oil Corp. v. El Rucio Land and Cattle Co., Inc., et al., No. 14-0979 (Tex., April 28, 2017), was previously published in a prior blog post:
In Forest Oil Corp. v. El Rucio Land and Cattle Co., Inc., et al., No. 01-13-00040-CV (Tex. App. – Houston [1st Dist.], July 24, 2014), a property owner,...
In Bobbie James v. Global TelLink Corp, No. 16-1555 (Mar. 29, 2017), the Third Circuit held that the defendant telecom company had failed to create a binding arbitration agreement (click here for a copy of the decision). As recognized by the Third Circuit, this case involves a unique fact pattern of “contract formation through an interactive voice-response telephone system.”
The defendant provides telecom services to inmates at correctional facilities so that the inmates can call their...
Demonstrating just how difficult it can be to separate questions about the “formation” of an arbitration agreement from the “validity” of that agreement, the Fifth Circuit found this month that when an argument was applied to two of the parties’ three agreements, it related to their formation, but when the same argument was applied to the third agreement, it related to its validity.
In Lefoldt v. Horne, 2017 WL 1326241 (5th Cir. April 11, 2017), the plaintiff, a community hospital,...
The California Supreme Court recently issued a decision following its tradition of finding creative ways to avoid FAA preemption. The court’s analysis provides an interesting blueprint for other states to develop consumer and employee protection statutes that can avoid the the steamroller of FAA preemption.
In McGill v. Citibank, No. S224086 (Cal. Apr. 6, 2017) (click here for a copy of the decision), the California Supreme Court held that “a provision in a predispute arbitration agreement...
A recent decision involving the Uber ride-sharing app demonstrates an important principle in arbitration law. A party may have a well-drafted arbitration agreement, and the terms of the agreement may be appropriate. However, if the agreement is not implemented properly, the agreement may not be enforceable. The drafters of the FAA, in section 4 of the statute, very wisely instructed courts to examine the circumstances surrounding “the making of the agreement.” If there is a problem with...
Last month, we described the split among Federal Circuit Courts regarding the question of whether the Federal Arbitration Act (“FAA”), 9 U.S.C. § 3, mandates a stay rather than dismissal of a judicial proceeding after a district court compels arbitration of all of the claims in an action before it ( LINK ). But what is the practical significance of the district court’s retaining jurisdiction? | Among other things, it may thus be able to grant interim relief in order to preserve the status...