A new study of dispute resolution practices in Fortune 1,000 corporations shows that many large companies are using binding arbitration less often and relying more on mediated negotiation and other approaches aimed at resolving disputes informally, quickly and inexpensively. The 2011 survey of corporate counsel developed by researchers at Cornell University’s Scheinman Institute on Conflict Resolution, the Straus Institute for Dispute Resolution at Pepperdine University School of Law, and the International...
Small businesses (including sole proprietors) frequently must negotiate arms-length commercial transactions with their more economically powerful counterparts and, not infrequently, must decide whether to accept an offer to make an arbitration agreement part of the deal. Whether or not to accept that invitation, and, if so, under what terms, may seem like a straightforward question susceptible to an easy answer, and it can be tempting to think that the risks associated with making the wrong choice...
Sending text messages or short electronic messages from one cellular phone to another is a very popular form of communication. “Text messaging users send or receive an average of 41.5 messages on a typical day,” concluded the Pew Research Center’s Internet & American Life Project. This number is even greater for cellular phone owners between the ages of 18 and 24. They “exchange an average of 109.5 messages on a normal day.”
Given the volume of text messages, it is important that...
One of the very few ways to show evident partiality by an arbitrator is to show the arbitrator had financial ties to a party or witness in the proceeding, another is to show the arbitrator prejudiced a party by reversing a procedural or evidentiary ruling during the hearing. The Sixth Circuit found a Michigan arbitrator committed both transgressions, and affirmed the district court’s decision to vacate the resulting arbitration award. Thomas Kinkade Co. v. White, __ F.3d __, 2013 WL 1296238...
All the cool kids are talking about class arbitration lately. . . There are the two casespending before SCOTUS, and now the Second Circuit confirms its place in the “in crowd” with a decision forcing a class of employees into arbitration in Parisi v. Goldman, Sachs & Co., __ F.3d __, 2013 WL 1149751 (2d Cir. Mar. 21, 2013).
In Parisi, three female former employees alleged gender discrimination by Goldman, Sachs and sought to proceed as a class action in court. The plaintiffs acknowledged...
Following is a summary of five recent opinions of note concerning the interpretation of arbitration agreements and arbitration procedure:
Klein v. Nabors Drilling USA L.P., Case No. 11-30824 (5th Cir. Feb. 26, 2013) (reversing denial of motion to compel arbitration; option in contract to agree to non-binding alternative dispute resolution proceedings did not render mandatory arbitration clause unenforceable).
Noohi v. Toll Bros., Inc., Case No. 12-1261 (4th Cir. Feb. 26, 2013) (affirming denial...
Settlement negotiations rarely proceed in a smooth forward motion; in fact, most feel more like a ride in a bumper car with a jerky stop and start motion. A good negotiator learns to move past the inevitable impasses.
Here are 8 tips for negotiating past an impasse:
Use Your Leverage.
Use Objective Standards.
Use Objective Procedures.
Name the Dynamic.
Exchange More Information.
Take a Break.
Carve Out Issues.
Reexamine Your Position.
Last week, author Dan Solin, a long-time critic of FINRA, published a column in U.S. News & World Report attacking the FINRA arbitration forum as biased, unfair to investors and shrouded in secrecy. Presumably, the column was motivated by a federal judge’s recent decision to deny a FOIA request that PIABA (Public Investors Arbitration Bar Association) filed with the SEC to obtain what Solin describes as “very basic information about the way FINRA administers the arbitration process,...
In another example of how difficult it is to overturn an arbitration award in federal court, the 5th U.S. Circuit Court of Appeals has reversed and remanded a vacatur.