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Arbitration
Does Adoption of the AAA Rules Grant an Arbitrator the Authority to Decide Whether Class-Wide Arbitration Is Authorized?
June 20, 2016
Prior to 2013, most federal appellate courts agreed that whether the parties authorized class-wide arbitration is normally a question for the arbitrator where the parties adopt American Arbitration Association (AAA) rules. Recent decisions by the Sixth and the Third Circuits found that adoption of the AAA rules does not constitute “clear and unmistakable” evidence that the parties delegated to an arbitrator the right to make that determination. Supreme Court Establishes the “Clear and Unmistakable”...
June 20, 2016
Prior to 2013, most federal appellate courts agreed that whether the parties authorized class-wide arbitration is normally a question for the arbitrator where the parties adopt American Arbitration Association (AAA) rules. Recent decisions by the Sixth and the Third Circuits found that adoption of the AAA rules does not constitute “clear and unmistakable” evidence that the parties delegated to an arbitrator the right to make that determination. Supreme Court Establishes the “Clear and Unmistakable”...
Article On Trust Arbitration In The United States
June 15, 2016
Lee-ford Tritt (Professor of Law, University of Florida - Levin College of Law) recently published an article entitled, Legislative...
June 15, 2016
Lee-ford Tritt (Professor of Law, University of Florida - Levin College of Law) recently published an article entitled, Legislative...
CFPB Proposal Would Ban Mandatory Arbitration Provisions in Most Financial Contracts
June 14, 2016
The Consumer Financial Protection Bureau (“CFPB”) has proposed a plan to ban mandatory arbitration provisions in most...
June 14, 2016
The Consumer Financial Protection Bureau (“CFPB”) has proposed a plan to ban mandatory arbitration provisions in most...
Manifest Disregard of Manifest Disregard
June 10, 2016
After Hall Street Associates LLC v. Mattel, Inc., 552 U.S. 576 (2008), the Fifth Circuit concluded that “manifest disregard of the law” was no longer available as a nonstatutory ground for vacatur of an arbitration award under the FAA. Since then, other circuits have considered whether “manifest disregard” can be a statutory basis for vacatur. In McKool Smith PC v. Curtis Int’l, the losing party in an attorneys fee dispute mounted such a challenge to the arbitrator’s award in favor...
June 10, 2016
After Hall Street Associates LLC v. Mattel, Inc., 552 U.S. 576 (2008), the Fifth Circuit concluded that “manifest disregard of the law” was no longer available as a nonstatutory ground for vacatur of an arbitration award under the FAA. Since then, other circuits have considered whether “manifest disregard” can be a statutory basis for vacatur. In McKool Smith PC v. Curtis Int’l, the losing party in an attorneys fee dispute mounted such a challenge to the arbitrator’s award in favor...
What is an Arbitration Worth?
June 7, 2016
Appellants, investors who lost money in their dealings with Allen Stanford, began a FINRA arbitration against Pershing LLC, a clearing broker. The panel rejected appellants’ $80 million claim, awarding only $10,000 in arbitration-related expenses. Pershing sought confirmation in federal court and encountered a split in authority about the amount-in-controversy requirement — the “demand” approach, which would allow jurisdiction, and the “award” approach, which would not. The Fifth Circuit...
June 7, 2016
Appellants, investors who lost money in their dealings with Allen Stanford, began a FINRA arbitration against Pershing LLC, a clearing broker. The panel rejected appellants’ $80 million claim, awarding only $10,000 in arbitration-related expenses. Pershing sought confirmation in federal court and encountered a split in authority about the amount-in-controversy requirement — the “demand” approach, which would allow jurisdiction, and the “award” approach, which would not. The Fifth Circuit...
Fishermen Avoid Being Caught In Arbitration’s Net
June 7, 2016
What are the defining characteristics of an arbitration agreement? The dissent in a new 9th Circuit case took on that vexing issue, while the majority sidestepped it altogether while refusing to compel arbitration. In Boardman v. Pacific Seafood Group, __ F.3d __, 2016 WL 1743350 (9th Cir. May 3, 2016), a group of fishermen brought antitrust claims against seafood processors in 2010. They settled in 2012, and Paragraph 3(a) of the settlement agreement provided: In the event that [] Pacific...
June 7, 2016
What are the defining characteristics of an arbitration agreement? The dissent in a new 9th Circuit case took on that vexing issue, while the majority sidestepped it altogether while refusing to compel arbitration. In Boardman v. Pacific Seafood Group, __ F.3d __, 2016 WL 1743350 (9th Cir. May 3, 2016), a group of fishermen brought antitrust claims against seafood processors in 2010. They settled in 2012, and Paragraph 3(a) of the settlement agreement provided: In the event that [] Pacific...
University of Phoenix Nixes Mandatory Arbitration Clause for Students
June 6, 2016
Apollo Education Group, the parent company of the University of Phoenix and Western International University, announced Thursday that it would eliminate the use of mandatory arbitration clauses in students’ enrollment agreements. “We have worked hard to further improve the student experience at all of our institutions and it’s clear that eliminating mandatory arbitration is the right choice for all of our students,” said Greg Cappelli, chief executive officer of Apollo, in a written statement....
June 6, 2016
Apollo Education Group, the parent company of the University of Phoenix and Western International University, announced Thursday that it would eliminate the use of mandatory arbitration clauses in students’ enrollment agreements. “We have worked hard to further improve the student experience at all of our institutions and it’s clear that eliminating mandatory arbitration is the right choice for all of our students,” said Greg Cappelli, chief executive officer of Apollo, in a written statement....
Arbitration Clauses in Legal Fee Agreements
June 2, 2016
We all know about arbitration clauses but a recent case out of California, East Coast Foods v. Kelly, Lowry & Kelley, LLP, No. B262679, had something to say about arbitration specifically in the case of legal fee disputes. Is the arbitration clause in an engagement agreement between lawyer and client enforceable? In this case, yes. East Coast Foods is perhaps best known through one of its businesses, Roscoe's House of Chicken 'N Waffles. There was a copyright dispute raised by ASCAP over allegedly...
June 2, 2016
We all know about arbitration clauses but a recent case out of California, East Coast Foods v. Kelly, Lowry & Kelley, LLP, No. B262679, had something to say about arbitration specifically in the case of legal fee disputes. Is the arbitration clause in an engagement agreement between lawyer and client enforceable? In this case, yes. East Coast Foods is perhaps best known through one of its businesses, Roscoe's House of Chicken 'N Waffles. There was a copyright dispute raised by ASCAP over allegedly...
Fifth Circuit Holds Diversity Jurisdiction Exists After FINRA Issues $10K Arbitration Award
May 27, 2016
The United States Court of Appeals for the Fifth Circuit has ruled that federal diversity jurisdiction existed after the Financial Industry Regulatory Authority (“FINRA”) issued a $10,000 arbitration award. In Pershing, LLC v. Kiebach, No. 15-30396 (5th Cir. April 6, 2016), several investors filed an $80 million arbitration complaint with FINRA against a clearing broker, Pershing, after the investors suffered a financial loss due to a Ponzi scheme. In their complaint, the investors accused...
May 27, 2016
The United States Court of Appeals for the Fifth Circuit has ruled that federal diversity jurisdiction existed after the Financial Industry Regulatory Authority (“FINRA”) issued a $10,000 arbitration award. In Pershing, LLC v. Kiebach, No. 15-30396 (5th Cir. April 6, 2016), several investors filed an $80 million arbitration complaint with FINRA against a clearing broker, Pershing, after the investors suffered a financial loss due to a Ponzi scheme. In their complaint, the investors accused...
WDTX Refuses to Stay Arbitration Proceedings in Wind Energy Dispute
May 26, 2016
The Western District of Texas has refused to stay arbitration proceedings in a dispute between a wind energy company, Papalote...
May 26, 2016
The Western District of Texas has refused to stay arbitration proceedings in a dispute between a wind energy company, Papalote...
