The third issue the Armstrong Panel addressed was: “What jurisdiction, if any, does this Tribunal have to award sanctions?” This was a question of the Panel’s remedial authority — assuming the Panel had the authority to decide the dispute, what remedies were the arbitrators authorized to award?
The Panel determined that Armstrong had committed fraud and testified falsely, and had by those unlawful means procured the Settlement Agreement and Consent Award. All else equal, had the Armstrong...
Arbitration is under attack. Whether we are talking about the evolution of employment and consumer arbitration, imposed on the unknowing and unwilling through pre-dispute contracts of adhesion, or “business to business” arbitration a/k/a “The New Litigation”, controversy abounds. For years our dysfunctional and overcrowded civil justice system seemed like no place to be for employers, banks, insurance companies and product manufacturers, and so arbitration rose in popularity as a solution....
Probably most of the Federal Arbitration Act Section 10(a)(4) outcome-review challenges that parties file are disposed of pretty easily because the applicable highly-deferential standard of review forecloses relief as long as the arbitrators were at least arguably interpreting the parties’ agreement, the applicable law or both. The most challenging cases are those falling either on or close to that imaginary, blurry line dividing arguable interpretation from clear disregard of the contract. Cf. Chicago...
In Andermann v. Sprint Spectrum L.P., the Seventh Circuit reversed and remanded with instructions to order arbitration. Judge Posner an found intimate relation between the contract and the calls. The case was an easy one according to Posner because the claims here clearly arose out of or related to the agreement. Sprint was attempting to offer consumers a way to continue their services. This case was thus easily distinguishable from other cases, more favorable to plaintiffs, in which the plaintiffs...
Its first attempt having been stricken by the Third Circuit, the Delaware General Assembly recently enacted the Delaware Rapid Arbitration Act that seems ideally suited to a broad range of business disputes, and is a welcome contribution to rational, reasonable and responsive arbitration law.
Among its features, the Act requires that the entire proceeding be completed within 120 days of the appointment of the arbitrator (upon pain of a reduction of the arbitrator’s fee) and limitations on judicial...
The Fifth Circuit un-vacated an arbitration award last week, holding the district court had wrongly concluded that the court was the proper decision-maker on contract formation. Although courts are presumptively authorized to decide whether an arbitration agreement exists, the Fifth Circuit found the parties altered that presumption by “submitting, briefing, and generally disputing that issue throughout the arbitration proceedings.” OMG, L.P. v. Heritage Auctions, Inc., 2015 WL 2151779 (5th...
In KNJ Enterprises, Inc. v. Wilbanks & Wilbanks, PC, the Fourteenth Court of Appeals held that a trial court did not err when it confirmed an arbitration award when one of the parties did not appear at the arbitration.
Wilbanks initiated an arbitration proceeding against KNJ. According to the opinion, despite receiving notice of the proceeding, KNJ did not appear. KNJ initiated its own arbitration proceeding against Wilbanks, which was enjoined from proceeding by the trial court because of Wilbanks'...