The Texas Supreme Court has reversed course, deciding it will hear an energy company’s challenge to a $16 million arbitration award over drilling waste pollution on a South Texas ranch.
The neutrality of an arbitrator and the panel’s jurisdiction over the dispute are among the issues raised by Forest Oil, which is now part of Houston’s Sabine Oil & Gas Corporation. The company sought a rehearing after the Supreme Court in May declined to review the arbitration.
It’s the latest twist...
A partner in a major law firm tells me that for the next five years, we can expect much litigation and controversy over issues like mediation and arbitration and locations for such proceedings. In a recent article, Professor John M. Newman identifies the issues that these provisions should consider. The article remains neutral on the pros and cons. Here is an introductory passage:
This is a brief guide to drafting dispute-resolution provisions. Such provisions have gained national attention in recent...
An arbitration award that found no "meeting of the minds" and contract cancellation as to unperformed contract obligations was vacated by a federal district court for the Northern District of Texas on "exceeded powers" ground of 9 U.S.C. §20(a)(4). The Fifth Circuit reversed the trial court and instructed the court to confirm the award.
The Fifth Circuit noted that if OMG did not believe the arbitrator had the authority to decide the meeting of the minds and contract formation issues, it should...
Arbitration agreements are commonplace today. It is difficult to obtain a credit card, sign up for cellular phone service, or purchase goods online without agreeing to arbitrate all disputes that arise from such transactions. Consumer advocates bemoan this development whereby citizens are required to abandon their right to go to court in favor of a system of “private justice.” Mandatory arbitration, they argue, deprives plaintiffs alleging common injury from pursuing their claims through more...
Apropos of our recent focus on arbitrators, a new article recently appreared on SSRN, Inside the Arbitrator’s Mind. The piece, authored by FOI Susan Franck (American), Anna van Aaken (Max Planck Institute), James Freda (United Nations), Chris Guthrie (Vanderbilt) and Jeffery Rachlinksi (Cornell) builds on Guthrie’s and Rachlinkski’s piece Inside the Judicial Mind (with Judge Andrew Weistrich) from the early aughts. The abstract is below.
Arbitrators are lead actors in global dispute...
The Texas Supreme Court has agreed to hear Forest Oil’s challenge to a $16 million arbitration award over drilling waste pollution on the 27,000-acre McAllen Ranch in Hidalgo County. The neutrality of an arbitrator and the panel’s jurisdiction over the dispute are among the issues raised in a long-running dispute that has been before the Supreme Court previously, producing a 2008 decision that allowed the arbitration to proceed.
The Fifth Circuit’s analysis of arbitration issues is significantly influenced by the standard of review. A challenge to arbitrability involves careful scrutiny of the parties’ agreements. A challenge to the arbitration process or the ultimate award, however, faces a much more difficult standard of review.
Arbitrability
In Kubala v. Supreme Production Services, the parties disputed whether an arbitration agreement reached an employment claim that arose before entry into the agreement. The district...