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Arbitration
Judge Deems Reed Smith Arbitration Clause Unenforceable
December 28, 2015
A mandatory arbitration clause in Reed Smith’s client engagement letters is unenforceable because it was not specifically signed by the client and did not inform the client of the rights he was giving up, a Philadelphia judge has ruled in an issue of first impression in the state. Philadelphia Court of Common Pleas Judge John M. Younge rejected Reed Smith and partner Douglas Widin’s additional argument that the arbitration clause should be enforced in this legal malpractice action because...
December 28, 2015
A mandatory arbitration clause in Reed Smith’s client engagement letters is unenforceable because it was not specifically signed by the client and did not inform the client of the rights he was giving up, a Philadelphia judge has ruled in an issue of first impression in the state. Philadelphia Court of Common Pleas Judge John M. Younge rejected Reed Smith and partner Douglas Widin’s additional argument that the arbitration clause should be enforced in this legal malpractice action because...
CA Gov Vetoes Bill Outlawing Mandatory Arbitration in Employment
December 28, 2015
To the Members of the California State Assembly: Assembly Bill 465 would outlaw the use of mandatory arbitration agreements as a condition of employment, making California the only state in the country to have this particular prohibition. I have reviewed in depth the arguments from both sides about the fairness and utility of mandatory arbitration agreements. While most evidence shows that arbitration is quicker and more cost-effective than litigation, there is significant debate about...
December 28, 2015
To the Members of the California State Assembly: Assembly Bill 465 would outlaw the use of mandatory arbitration agreements as a condition of employment, making California the only state in the country to have this particular prohibition. I have reviewed in depth the arguments from both sides about the fairness and utility of mandatory arbitration agreements. While most evidence shows that arbitration is quicker and more cost-effective than litigation, there is significant debate about...
A “Reasoned Award” Requires That the Reasoning Be Expressed
December 22, 2015
In 2009, Tully Construction Co. filed a demand for arbitration against Canam Steel Corp., concerning a dispute over a contract to supply steel. Tully sought over $20 million in damages for breach of contract and intentional and negligent misrepresentation. Canam counterclaimed for approximately $5 million. Tully Constr. Co. v. Canam Steel Corp., No. 13 Civ. 3037, 2015 U.S. Dist. LEXIS 25690 (S.D.N.Y. Mar. 2, 2015). After a full hearing, the selected arbitrator, John Krol, issued an award granting...
December 22, 2015
In 2009, Tully Construction Co. filed a demand for arbitration against Canam Steel Corp., concerning a dispute over a contract to supply steel. Tully sought over $20 million in damages for breach of contract and intentional and negligent misrepresentation. Canam counterclaimed for approximately $5 million. Tully Constr. Co. v. Canam Steel Corp., No. 13 Civ. 3037, 2015 U.S. Dist. LEXIS 25690 (S.D.N.Y. Mar. 2, 2015). After a full hearing, the selected arbitrator, John Krol, issued an award granting...
Uber Rewrites Driver Contract to Force Arbitration
December 21, 2015
Uber is taking a new approach in its fight to keep its drivers out of court and classified as independent contractors. The company appears undeterred by a federal court ruling earlier this week that rejected its arbitration agreement and expanded a class of drivers seeking employee status and benefits. On Friday, Uber Technologies Inc. released a new driver contract that purports to fix problems that U.S. District Judge Edward Chen of the Northern District of California said made arbitration requirements...
December 21, 2015
Uber is taking a new approach in its fight to keep its drivers out of court and classified as independent contractors. The company appears undeterred by a federal court ruling earlier this week that rejected its arbitration agreement and expanded a class of drivers seeking employee status and benefits. On Friday, Uber Technologies Inc. released a new driver contract that purports to fix problems that U.S. District Judge Edward Chen of the Northern District of California said made arbitration requirements...
The Delaware Rapid Arbitration Act: Cost-Efficient Resolution of Business Disputes
December 17, 2015
Legal practitioners and businesses once viewed arbitration as a faster, less expensive alternative to litigation. But this method of alternative dispute resolution has become protracted and costly as arbitration rules (and arbitrators) more readily permit broad discovery, dispositive motions, and other procedures that prolong resolution of a dispute. The Delaware Rapid Arbitration Act, Del. Code Ann. tit. 10, §§ 5801 et seq. (DRAA or the Act), effective since May 2015, creates an arbitration regime...
December 17, 2015
Legal practitioners and businesses once viewed arbitration as a faster, less expensive alternative to litigation. But this method of alternative dispute resolution has become protracted and costly as arbitration rules (and arbitrators) more readily permit broad discovery, dispositive motions, and other procedures that prolong resolution of a dispute. The Delaware Rapid Arbitration Act, Del. Code Ann. tit. 10, §§ 5801 et seq. (DRAA or the Act), effective since May 2015, creates an arbitration regime...
Recent Trends Impacting Enforcement of Arbitration Agreements
December 16, 2015
In Atalese v. U.S. Legal Services Group, L.P., 99 A.3d 306 (N.J. 2014), cert. denied, 135 S. Ct. 2804 (2015), the plaintiff,...
December 16, 2015
In Atalese v. U.S. Legal Services Group, L.P., 99 A.3d 306 (N.J. 2014), cert. denied, 135 S. Ct. 2804 (2015), the plaintiff,...
Justices Rebuke California Courts (Again) For Refusal To Enforce Arbitration Agreement
December 15, 2015
With its last opinion of 2015, the Justices added DIRECTV v. Imburgia to the ever-growing line of decisions reversing state court refusals to enforce arbitration agreements. The particular topic here is classwide arbitration. Three years ago, after California courts refused to enforce provisions in arbitration agreements that barred class arbitration (on the ground that the provisions were unconscionable), a closely divided court in AT&T Mobility v. Concepcion disagreed, holding that the Federal...
December 15, 2015
With its last opinion of 2015, the Justices added DIRECTV v. Imburgia to the ever-growing line of decisions reversing state court refusals to enforce arbitration agreements. The particular topic here is classwide arbitration. Three years ago, after California courts refused to enforce provisions in arbitration agreements that barred class arbitration (on the ground that the provisions were unconscionable), a closely divided court in AT&T Mobility v. Concepcion disagreed, holding that the Federal...
Clawback Suits Are Not Categorically Exempt from Arbitration under FAA
December 14, 2015
On February 10, 2015, the U.S. Court of Appeals for the Eleventh Circuit held that clawback claims brought by court-appointed...
December 14, 2015
On February 10, 2015, the U.S. Court of Appeals for the Eleventh Circuit held that clawback claims brought by court-appointed...
An Arbitrator’s Duty to Be On Time
December 10, 2015
The failure to issue an arbitration award within the prescribed time period is not a common occurrence. It certainly was not in Texas when the Sims case arose. When it does happen, the purpose and intent of arbitration—party-driven, expedient, and cost-effective means of dispute resolution—is thwarted. Despite the potential for undermining expediency in the arbitration process, courts are willing to defer to the arbitrator’s late decision unless the act of the arbitrator is so egregious as to create...
December 10, 2015
The failure to issue an arbitration award within the prescribed time period is not a common occurrence. It certainly was not in Texas when the Sims case arose. When it does happen, the purpose and intent of arbitration—party-driven, expedient, and cost-effective means of dispute resolution—is thwarted. Despite the potential for undermining expediency in the arbitration process, courts are willing to defer to the arbitrator’s late decision unless the act of the arbitrator is so egregious as to create...
Federal Arbitration Case Update
December 8, 2015
Arbitrator Has Authority to Rule on Whether He Can Change His Mind United Brotherhood of Carpenters and Joiners v. Tappan Zee Constructors When the general contractor for the rebuilding of the Tappan Zee Bridge gave a portion of the job to the carpenters (at $70/hr.) rather than the dock builders (at $94/hr.), a jurisdictional dispute arose between two unions. The two unions agreed that the dock builders would get the work, but the GC disagreed and brought the case to arbitration pursuant to the plan...
December 8, 2015
Arbitrator Has Authority to Rule on Whether He Can Change His Mind United Brotherhood of Carpenters and Joiners v. Tappan Zee Constructors When the general contractor for the rebuilding of the Tappan Zee Bridge gave a portion of the job to the carpenters (at $70/hr.) rather than the dock builders (at $94/hr.), a jurisdictional dispute arose between two unions. The two unions agreed that the dock builders would get the work, but the GC disagreed and brought the case to arbitration pursuant to the plan...
