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Arbitration
Regulating Against Forced Arbitration in Consumer Cases
May 3, 2016
As Stacey writes just below this post, much is happening in the arbitration arena currently. In December, the United States Supreme Court ruled that the 1925 Federal Arbitration Act pre-empts state law. Thus, when parties have executed agreements calling for arbitration rather than court resolutions, the arbiration clause will be upheld. The case was DirectTV, Inc. v. Imburgia, No. 14-462. In the case, Imburgia’s contract stated that “[i]f ... the law of your state would find this agreement...
May 3, 2016
As Stacey writes just below this post, much is happening in the arbitration arena currently. In December, the United States Supreme Court ruled that the 1925 Federal Arbitration Act pre-empts state law. Thus, when parties have executed agreements calling for arbitration rather than court resolutions, the arbiration clause will be upheld. The case was DirectTV, Inc. v. Imburgia, No. 14-462. In the case, Imburgia’s contract stated that “[i]f ... the law of your state would find this agreement...
Browsewrap Unenforceable and Motion to Compel Arbitration Denied
April 28, 2016
A recent California appellate court case, Long v. Provide Commerce, Inc., found that a browsewrap agreement containing an arbitration...
April 28, 2016
A recent California appellate court case, Long v. Provide Commerce, Inc., found that a browsewrap agreement containing an arbitration...
Uber Deal Signals Open Season on Gig Economy
April 26, 2016
The war may be over for Uber Technologies Inc. But by cutting a check for tens of millions of dollars to settle a slew of threatening labor class actions, it may have just bought the gig economy a whole new set of legal battles. Lawyers say the $84 million settlement that Uber reached—which can rise to as much as $100 million if the company goes public or is acquired and increases in value—is like a flashing neon invitation for the plaintiffs bar to keep waging the fight. * * * "It does...
April 26, 2016
The war may be over for Uber Technologies Inc. But by cutting a check for tens of millions of dollars to settle a slew of threatening labor class actions, it may have just bought the gig economy a whole new set of legal battles. Lawyers say the $84 million settlement that Uber reached—which can rise to as much as $100 million if the company goes public or is acquired and increases in value—is like a flashing neon invitation for the plaintiffs bar to keep waging the fight. * * * "It does...
Fifth Circuit Holds Class Arbitration is Issue for Arbitrator in Texas Employment Dispute
April 26, 2016
A Fifth Circuit Court of Appeals panel has held whether a group of workers may engage in class arbitrationunder the terms of a broadly worded arbitration agreement should be decided by an arbitrator. In Robinson, et al. v. J & K Administrative Management Services, Inc., et al., No. 15-10360 (5th Cir., March 17, 2016), a Texas-based management company, J & K, entered into an agreement to arbitrate with each of the company’s workers as a condition of employment. Under the agreement, J &...
April 26, 2016
A Fifth Circuit Court of Appeals panel has held whether a group of workers may engage in class arbitrationunder the terms of a broadly worded arbitration agreement should be decided by an arbitrator. In Robinson, et al. v. J & K Administrative Management Services, Inc., et al., No. 15-10360 (5th Cir., March 17, 2016), a Texas-based management company, J & K, entered into an agreement to arbitrate with each of the company’s workers as a condition of employment. Under the agreement, J &...
Fifth Circuit COA Holds Dallas Employer’s Arbitration Plan Was Illusory and Unenforceable
April 25, 2016
The United States Court of Appeals for the Fifth Circuit has ruled that an arbitration agreement included in an employment contract was unenforceable because the “savings clause” failed to expressly require that advance notice regarding any amendments or termination of the arbitral agreement be provided to workers. In Nelson v. Watch House Int’l, L.L.C., No. 15-10531 (5th Cir., Mar. 2, 2016), a man, Nelson, secured a position as a training instructor with Watch House International in Dallas,...
April 25, 2016
The United States Court of Appeals for the Fifth Circuit has ruled that an arbitration agreement included in an employment contract was unenforceable because the “savings clause” failed to expressly require that advance notice regarding any amendments or termination of the arbitral agreement be provided to workers. In Nelson v. Watch House Int’l, L.L.C., No. 15-10531 (5th Cir., Mar. 2, 2016), a man, Nelson, secured a position as a training instructor with Watch House International in Dallas,...
Ninth Circuit Refuses To Enforce Arbitration Clause In Sham Franchise Agreement
April 21, 2016
A short new opinion from the Ninth Circuit may run counter to long-standing Supreme Court precedent. In Casa Del Caffe Vergnano v. Italflavors, 2016 WL 1016779 (9th Cir. Mar. 15, 2016), the court refused to enforce an arbitration agreement in a contract that the parties admitted signing, because the parties simultaneously signed a second agreement declaring the first one a sham. The story is that two undocumented immigrants chose to become a franchisee of an Italian corporation, Caffe Vergnano,...
April 21, 2016
A short new opinion from the Ninth Circuit may run counter to long-standing Supreme Court precedent. In Casa Del Caffe Vergnano v. Italflavors, 2016 WL 1016779 (9th Cir. Mar. 15, 2016), the court refused to enforce an arbitration agreement in a contract that the parties admitted signing, because the parties simultaneously signed a second agreement declaring the first one a sham. The story is that two undocumented immigrants chose to become a franchisee of an Italian corporation, Caffe Vergnano,...
2016 Arbitration Clause Thoughts
April 20, 2016
I spent most of last week in a construction arbitration. It got me to thinking about drafting arbitration clauses, be it in the employment or any context. A few years ago I wrote an article on what I would consider in preparing an agreement. The suggestions included: A requirement that the case be disposed of within a certain time period. (i.e. 6 months from filing); A limitation on the number of witnesses that can be called, the amount of time each side has to put on their case, basically...
April 20, 2016
I spent most of last week in a construction arbitration. It got me to thinking about drafting arbitration clauses, be it in the employment or any context. A few years ago I wrote an article on what I would consider in preparing an agreement. The suggestions included: A requirement that the case be disposed of within a certain time period. (i.e. 6 months from filing); A limitation on the number of witnesses that can be called, the amount of time each side has to put on their case, basically...
In 3 Recent Decisions, Supreme Court of Arkansas Deeply Divided on Arbitration
April 20, 2016
The Supreme Court of Arkansas has issued three opinions within the span of four weeks, all on the topic of whether defendants can compel arbitration. Each of the opinions came with a vigorous dissent. The cases offer an interesting look at a state high court that appears to be struggling to deal with FAA case law from SCOTUS; on one hand the court cites recent federal arbitration jurisprudence, but on the other it displays real skepticism about arbitration (at least of consumer disputes) and uses...
April 20, 2016
The Supreme Court of Arkansas has issued three opinions within the span of four weeks, all on the topic of whether defendants can compel arbitration. Each of the opinions came with a vigorous dissent. The cases offer an interesting look at a state high court that appears to be struggling to deal with FAA case law from SCOTUS; on one hand the court cites recent federal arbitration jurisprudence, but on the other it displays real skepticism about arbitration (at least of consumer disputes) and uses...
US Department of Education & Mandatory Arbitration
April 18, 2016
Story this morning in Inside Higher Education (here) indicating that DOE is considering rules that would ban universities from including mandatory arbitration clauses as part of students’ enrollment packets. Still in the negotiated rule making process, and it’s not clear to me if this relates to all matters, or just in actions involving alleged consumer loan fraud.
April 18, 2016
Story this morning in Inside Higher Education (here) indicating that DOE is considering rules that would ban universities from including mandatory arbitration clauses as part of students’ enrollment packets. Still in the negotiated rule making process, and it’s not clear to me if this relates to all matters, or just in actions involving alleged consumer loan fraud.
Historical Basis of Securities Arbitration as an Investor Protection Mechanism
April 15, 2016
Jill Gross, Professor of Law at Pace Law School, has published “The Historical Basis of Securities Arbitration as an Investor Protection Mechanism,” Journal of Dispute Resolution, Forthcoming. In her scholarly work,Professor Gross examines securities arbitration from an historical perspective. Here is the abstract: This article explores the history of arbitration in the securities industry, focusing on the right of customers to demand arbitration of broker-dealer disputes. The article argues...
April 15, 2016
Jill Gross, Professor of Law at Pace Law School, has published “The Historical Basis of Securities Arbitration as an Investor Protection Mechanism,” Journal of Dispute Resolution, Forthcoming. In her scholarly work,Professor Gross examines securities arbitration from an historical perspective. Here is the abstract: This article explores the history of arbitration in the securities industry, focusing on the right of customers to demand arbitration of broker-dealer disputes. The article argues...
