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Arbitration
SCOTUS Finds California’s Contract Interpretation Skills Lacking In New Arbitration Decision
January 15, 2016
Just under the wire, SCOTUS released an arbitration opinion today, ensuring that 2015 would continue the string of years with cases interpreting the Federal Arbitration Act. In DIRECTV v. Imburgia, the Supreme Court found that California’s interpretation of an arbitration clause was preempted by the FAA. DIRECTV is a 6-3 decision, with Justice Kagan (who vociferously dissented in Italian Colors) joining the majority, and it appears to make it even harder for courts to apply state contract doctrines...
January 15, 2016
Just under the wire, SCOTUS released an arbitration opinion today, ensuring that 2015 would continue the string of years with cases interpreting the Federal Arbitration Act. In DIRECTV v. Imburgia, the Supreme Court found that California’s interpretation of an arbitration clause was preempted by the FAA. DIRECTV is a 6-3 decision, with Justice Kagan (who vociferously dissented in Italian Colors) joining the majority, and it appears to make it even harder for courts to apply state contract doctrines...
Class Action Challenges Fitbit’s Arbitration Policy
January 14, 2016
A lawsuit filed in federal court in San Francisco this week claims that the fitness-tracking pioneer is trying to insulate itself from class actions with sweeping and unenforceable arbitration clauses in its terms of service. The lawsuit, which seeks class-action status, alleges that the company is lying to customers about the accuracy of its heart-rate monitoring wristbands. The lawsuit doesn’t just target the company’s products. It also focuses on provisions in Fitbit’s consumer agreement...
January 14, 2016
A lawsuit filed in federal court in San Francisco this week claims that the fitness-tracking pioneer is trying to insulate itself from class actions with sweeping and unenforceable arbitration clauses in its terms of service. The lawsuit, which seeks class-action status, alleges that the company is lying to customers about the accuracy of its heart-rate monitoring wristbands. The lawsuit doesn’t just target the company’s products. It also focuses on provisions in Fitbit’s consumer agreement...
SCOTUS Declines to Review Texas Supreme Court’s Order in Nursing Home Arbitration Dispute
January 13, 2016
Yesterday, the Supreme Court of the United States declined to review a challenge to a 2015 Texas Supreme Court ruling which held that Section 74.451 of the Texas Civil Practices and Remedies Code was preempted by the Federal Arbitration Act (“FAA”). In the case, the relatives of a woman who died in a Texas nursing home after signing an arbitration agreement that failed to comply with the requirements of the Texas Medical Liability Act asked the nation’s high court to examine whether the State’s...
January 13, 2016
Yesterday, the Supreme Court of the United States declined to review a challenge to a 2015 Texas Supreme Court ruling which held that Section 74.451 of the Texas Civil Practices and Remedies Code was preempted by the Federal Arbitration Act (“FAA”). In the case, the relatives of a woman who died in a Texas nursing home after signing an arbitration agreement that failed to comply with the requirements of the Texas Medical Liability Act asked the nation’s high court to examine whether the State’s...
SCOTUS Summarily Vacates More Arbitration Decisions
January 11, 2016
The US Supreme Court this morning summarily granted certiorari, vacated and remanded for consideration several related Supreme Court of Hawaii arbitration decisions in The Ritz-Carlton Development Company, Inc. v. Narayan and The Ritz-Carlton Development Company v. Nath (Docket Nos. 14-378, -379 and -406) in light of the Court’s recent DirecTV v. Imburgia opinion (see today’s Order List at http://www.supremecourt.gov/orders/courtorders/011116zor_n7io.pdf). The Ritz-Carlton cases all involve...
January 11, 2016
The US Supreme Court this morning summarily granted certiorari, vacated and remanded for consideration several related Supreme Court of Hawaii arbitration decisions in The Ritz-Carlton Development Company, Inc. v. Narayan and The Ritz-Carlton Development Company v. Nath (Docket Nos. 14-378, -379 and -406) in light of the Court’s recent DirecTV v. Imburgia opinion (see today’s Order List at http://www.supremecourt.gov/orders/courtorders/011116zor_n7io.pdf). The Ritz-Carlton cases all involve...
New Materials on Labor Arbitration
January 8, 2016
Carolina Academic Press has published a new set of materials that can be used to teach an “experiential” course in the practice...
January 8, 2016
Carolina Academic Press has published a new set of materials that can be used to teach an “experiential” course in the practice...
February Argument Calendar Loses Arbitration Case to Settlement
January 8, 2016
The February argument calendar got a little thinner today, as the Court removed MHN Government Services, Inc. v. Zaborowski from the argument schedule in response to a notice from the parties that the case is in the process of settling. At first glance, this case looked like it might be another in the lengthening line of arbitration cases from the West Coast (the Ninth Circuit this time) refusing to enforce arbitration agreements. Perhaps the vigor of the Court’s resolution of DIRECTV, Inc. v. Imburgia...
January 8, 2016
The February argument calendar got a little thinner today, as the Court removed MHN Government Services, Inc. v. Zaborowski from the argument schedule in response to a notice from the parties that the case is in the process of settling. At first glance, this case looked like it might be another in the lengthening line of arbitration cases from the West Coast (the Ninth Circuit this time) refusing to enforce arbitration agreements. Perhaps the vigor of the Court’s resolution of DIRECTV, Inc. v. Imburgia...
A Litigator’s Guide to Arbitration
January 6, 2016
The Construction Litigation Committee presented a discussion panel at the April 2015 ABA Section of Litigation Annual Conference. The panel comprised committee members Jeanne Barnum, Neal Eiseman, Karen Layng, and Michael Powell. John Bulman served as the moderator/“referee.” Tom Dunn coordinated the program as chair with the assistance of liaison Alex Rothenberg. Modeled after ESPN’s show Pardon the Interruption, the format was fast-paced, interactive, and provocative as to the pros and cons...
January 6, 2016
The Construction Litigation Committee presented a discussion panel at the April 2015 ABA Section of Litigation Annual Conference. The panel comprised committee members Jeanne Barnum, Neal Eiseman, Karen Layng, and Michael Powell. John Bulman served as the moderator/“referee.” Tom Dunn coordinated the program as chair with the assistance of liaison Alex Rothenberg. Modeled after ESPN’s show Pardon the Interruption, the format was fast-paced, interactive, and provocative as to the pros and cons...
I Have to Arbitrate, You Have to Arbitrate
January 6, 2016
A general contractor began an arbitration against several subcontractors about problems with the Sea Breeze Condominiums and Resort in Biloxi, Mississippi. One of the subcontractors resisted the arbitration demand; while it won in district court, the Fifth Circuit reversed, based on this contract language: “If the Contractor has a claim or dispute involving the same general subject matter, either in whole or in part, with any third party if elected by the Contractor, the Subcontractor shall assert...
January 6, 2016
A general contractor began an arbitration against several subcontractors about problems with the Sea Breeze Condominiums and Resort in Biloxi, Mississippi. One of the subcontractors resisted the arbitration demand; while it won in district court, the Fifth Circuit reversed, based on this contract language: “If the Contractor has a claim or dispute involving the same general subject matter, either in whole or in part, with any third party if elected by the Contractor, the Subcontractor shall assert...
Beyond the Outer Bound of Arbitrability Theories . . .
January 5, 2016
In USHealth Group v. South, applying Texas law, the Fifth Circuit rejected the use of “concerted misconduct estoppel” to compel arbitration against a nonsignatory (citing In re: Merrill Lynch Trust Co. FSB, 235 S.W.3d 185 (Tex. 2007)), and also found no basis for “direct benefits estoppel” because the claims did not arise solely from the contracts with the arbitration clause, and the issues in dispute could be resolved without reference to those contracts (citing In re: Weekley Homes, L.P.,...
January 5, 2016
In USHealth Group v. South, applying Texas law, the Fifth Circuit rejected the use of “concerted misconduct estoppel” to compel arbitration against a nonsignatory (citing In re: Merrill Lynch Trust Co. FSB, 235 S.W.3d 185 (Tex. 2007)), and also found no basis for “direct benefits estoppel” because the claims did not arise solely from the contracts with the arbitration clause, and the issues in dispute could be resolved without reference to those contracts (citing In re: Weekley Homes, L.P.,...
Court Enforces Arbitration Clause in Amazon’s Terms of Service
January 3, 2016
This lawsuit alleges that Amazon overstated the extent of discounts it offered customers (in stating the extent of the discount customer achieved when shopping at Amazon versus competing retailers). Amazon moved to compel arbitration, and the court grants the motion. The efficacy of arbitration clauses in online terms of service agreements is an evergreen topic of interest, so although it was decided in late October I thought the case was worth noting. The court agrees with Amazon that Washington...
January 3, 2016
This lawsuit alleges that Amazon overstated the extent of discounts it offered customers (in stating the extent of the discount customer achieved when shopping at Amazon versus competing retailers). Amazon moved to compel arbitration, and the court grants the motion. The efficacy of arbitration clauses in online terms of service agreements is an evergreen topic of interest, so although it was decided in late October I thought the case was worth noting. The court agrees with Amazon that Washington...
