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Arbitration
Imre Szalai on Cert Grant in Arbitration Case
October 6, 2015
I'm cross-posting here Imre Szalai's email out to the ADR Listserv: Today, the Supreme Court granted cert in yet another FAA case. In this new case, MHN Government Services v. Zaborowski, the Supreme Court will have to deal with the broad scope of FAA preemption as set forth in Concepcion. Concepción is much more than a class action case. The preemption doctrine from Concepción is changing how lower courts treat unconscionability arguments in connection with individual, non-class disputes....
October 6, 2015
I'm cross-posting here Imre Szalai's email out to the ADR Listserv: Today, the Supreme Court granted cert in yet another FAA case. In this new case, MHN Government Services v. Zaborowski, the Supreme Court will have to deal with the broad scope of FAA preemption as set forth in Concepcion. Concepción is much more than a class action case. The preemption doctrine from Concepción is changing how lower courts treat unconscionability arguments in connection with individual, non-class disputes....
SCOTUS Grants Cert in Another FAA Preemption Case
October 6, 2015
On the first day of its new term, the Court granted certiorari in another FAA preemption case. In MHN Government Services v. Zaborowski, the Court agreed to decide whether, as SCOTUS Blog styled it, “California violates federal arbitration law when it treats arbitration contracts differently from other contracts, in determining whether all or only part of an arbitration agreement is void under state law.” Petitioners in that case alleged that California courts apply a different rule of severability...
October 6, 2015
On the first day of its new term, the Court granted certiorari in another FAA preemption case. In MHN Government Services v. Zaborowski, the Court agreed to decide whether, as SCOTUS Blog styled it, “California violates federal arbitration law when it treats arbitration contracts differently from other contracts, in determining whether all or only part of an arbitration agreement is void under state law.” Petitioners in that case alleged that California courts apply a different rule of severability...
More Class Action Litigation for Gig Workers
October 5, 2015
We have recently seen a flurry of class-action litigation brought against workers in the modern economy. The recent case brought against Uber has continued to make headlines over the last few months. This aggregate litigation trend has now found its way to the on-demand food sector. As reported by the LA Times, class-action litigation was recently brought against GrubHub and DoorDash on the issue of worker misclassification for delivery drivers. The worker classification issue continues to be a messy...
October 5, 2015
We have recently seen a flurry of class-action litigation brought against workers in the modern economy. The recent case brought against Uber has continued to make headlines over the last few months. This aggregate litigation trend has now found its way to the on-demand food sector. As reported by the LA Times, class-action litigation was recently brought against GrubHub and DoorDash on the issue of worker misclassification for delivery drivers. The worker classification issue continues to be a messy...
Former Morgan Stanley Broker Sues Over Arbitration Policy
October 5, 2015
A former broker at Morgan Stanley has filed a class-action race-discrimination complaint against the company, accusing it of making “an end-run around the civil rights laws” with a new policy that bars employee participation in class actions and forces civil rights claims into private arbitration. Kathy Frazier, who is currently a broker at UBS Financial Services in Honolulu, according to regulatory records, said in her complaint that African-Americans were underrepresented in the ranks of brokers...
October 5, 2015
A former broker at Morgan Stanley has filed a class-action race-discrimination complaint against the company, accusing it of making “an end-run around the civil rights laws” with a new policy that bars employee participation in class actions and forces civil rights claims into private arbitration. Kathy Frazier, who is currently a broker at UBS Financial Services in Honolulu, according to regulatory records, said in her complaint that African-Americans were underrepresented in the ranks of brokers...
Judge Finds Ride Sharing Company’s Arbitration Agreement With Network Drivers is Substantively Unconscionable
October 2, 2015
A California judge has reportedly declined to order a dispute between transportation network company Uber and a former driver to arbitration. In the case, a San Francisco Superior Court judge ruled that the arbitration clause between the parties was “substantively unconscionable” due to its contradictory language. According to Judge Ernest Goldsmith, one provision of the clause states a private arbitrator must determine whether any disputes between the company and its drivers should be resolved...
October 2, 2015
A California judge has reportedly declined to order a dispute between transportation network company Uber and a former driver to arbitration. In the case, a San Francisco Superior Court judge ruled that the arbitration clause between the parties was “substantively unconscionable” due to its contradictory language. According to Judge Ernest Goldsmith, one provision of the clause states a private arbitrator must determine whether any disputes between the company and its drivers should be resolved...
Dispute With Dallas Broker Must Be Arbitrated Under FINRA Rules
October 1, 2015
Texas’ Fifth District Court of Appeals has ruled that a dispute between a licensed securities broker and an investment company must be arbitrated before FINRA rather than the AAA. In Morford v. Esposito Securities, LLC, No. 05-14-01223-CV (Tex. App – Dallas, September 18, 2015), a securities broker and Financial Industry National Regulatory Authority (“FINRA”) member, Esposito, provided a group of customers, Nemaha Water Services, with assistance in locating investors. In exchange for his help,...
October 1, 2015
Texas’ Fifth District Court of Appeals has ruled that a dispute between a licensed securities broker and an investment company must be arbitrated before FINRA rather than the AAA. In Morford v. Esposito Securities, LLC, No. 05-14-01223-CV (Tex. App – Dallas, September 18, 2015), a securities broker and Financial Industry National Regulatory Authority (“FINRA”) member, Esposito, provided a group of customers, Nemaha Water Services, with assistance in locating investors. In exchange for his help,...
Houston Appeals Court Orders Arbitration in Non-Compete Case
September 30, 2015
In Parker v. Schlumberger Technology Corporation, No. 01-14-01018-CV (Tex. App – Houston [1st], September 17, 2015), Schlumberger Technology Corporation (“STC”) filed a lawsuit against two individuals in the 268th District Court of Fort Bend County, Texas. In its complaint, STC accused the former owner and a key employee of a recently purchased company of violating a non-compete agreement each entered into as part of the transaction. In response to the lawsuit, the two men filed a motion to compel...
September 30, 2015
In Parker v. Schlumberger Technology Corporation, No. 01-14-01018-CV (Tex. App – Houston [1st], September 17, 2015), Schlumberger Technology Corporation (“STC”) filed a lawsuit against two individuals in the 268th District Court of Fort Bend County, Texas. In its complaint, STC accused the former owner and a key employee of a recently purchased company of violating a non-compete agreement each entered into as part of the transaction. In response to the lawsuit, the two men filed a motion to compel...
Arbitrating Antitrust Claims: From Suspicion to Trust
September 29, 2015
Vera Korzun, Adjunct Professor at the Fordham University School of Law, has authored “Arbitrating Antitrust Claims: From...
September 29, 2015
Vera Korzun, Adjunct Professor at the Fordham University School of Law, has authored “Arbitrating Antitrust Claims: From...
Houston COA Orders Legal Malpractice Case to Arbitration
September 28, 2015
Houston’s 14th District Court of Appeals has ordered a legal malpractice case to arbitration. In Cedillo v. Immobiliere Jeuness Establissement, No. 14–15–00101–CV (Tex. App. – Houston [14th], August 27, 2015), a Lichtenstein-based limited partner, Immobiliere Jeuness Establissement (“IJE”), of two Texas limited partnerships (the “Original Partnerships”) initiated litigation against them in 2009. In response, the Original Partnerships secured the services of a San Antonio-based law firm...
September 28, 2015
Houston’s 14th District Court of Appeals has ordered a legal malpractice case to arbitration. In Cedillo v. Immobiliere Jeuness Establissement, No. 14–15–00101–CV (Tex. App. – Houston [14th], August 27, 2015), a Lichtenstein-based limited partner, Immobiliere Jeuness Establissement (“IJE”), of two Texas limited partnerships (the “Original Partnerships”) initiated litigation against them in 2009. In response, the Original Partnerships secured the services of a San Antonio-based law firm...
Musings on Tom Brady and Arbitrator Bias
September 25, 2015
Again this year, a famous athlete put the spotlight on the process of arbitration. Earlier this month, Tom Brady succeeded in convincing a federal judge to vacate the arbitration award against Brady. (The four-game “deflategate” suspension — a pdf of the decision is available through the link.) The decision vacating the award is 40 pages (and a good read), but here’s the summary: The Court is fully aware of the deference afforded to arbitral decisions, but, nevertheless, concludes that...
September 25, 2015
Again this year, a famous athlete put the spotlight on the process of arbitration. Earlier this month, Tom Brady succeeded in convincing a federal judge to vacate the arbitration award against Brady. (The four-game “deflategate” suspension — a pdf of the decision is available through the link.) The decision vacating the award is 40 pages (and a good read), but here’s the summary: The Court is fully aware of the deference afforded to arbitral decisions, but, nevertheless, concludes that...
