Karl Bayer's Disputing Blog » 2013

FINRA Hearing Panel States FAA Preempts Rules Permitting Class Action Claims

By Beth Graham - March 6, 2013

A Financial Industry Regulatory Authority (FINRA) panel has stated broker-dealer Charles Schwab may enforce a class action waiver included in its customer arbitration agreement despite the existence of a FINRA rule that prohibits such waivers. According to the panel, the FINRA rule is preempted by the Federal Arbitration Act (FAA). In Department of Enforcement v. Charles Schwab & Company, Inc., No. 2011029760201, FINRA’s Enforcement Departmen

Oral Argument Transcripts Now Available for Amex v. Italian Colors Restaurant

By Beth Graham - March 5, 2013

Last week, the United States Supreme Court heard oral arguments in American Express Corp. v. Italian Colors Restaurant, et al. (No. 12-133). The appeal from the Second Circuit addresses whether an arbitration clause that prohibits class action lawsuits is enforceable under the Federal Arbitration Act despite that it would compel arbitration of federal antitrust claims. It is the third time in three years the Supreme Court has considered the scope

Landmark Survey Reveals Trends in Evolution of ADR

By Karl Bayer - March 4, 2013

Disputing is pleased to announce a seven part series exploring the findings of Thomas Stipanowich and Ryan Lamare in their notably significant research paper, “Living with ADR: Evolving Perceptions and Use of Mediation. Arbitration and Conflict Management in Fortune 1,000 Companies.“ Following the format of Stipanowich and Lamare’s paper, Part One will background the history of ADR and it’s emergence as an alternati

Mandatory Predispute Consumer Arbitration, Structural Bias, and Incentivizing Procedural Safeguards

By Beth Graham - March 4, 2013

Pennsylvania State University’s William Trickett Faculty Scholar and Professor of Law Nancy Welsh has published a thoughtful paper entitled Mandatory Predispute Consumer Arbitration, Structural Bias, and Incentivizing Procedural Safeguards, 42 Southwestern University Law Review 187, 2012; Penn State Legal Series Research Paper No. 1-2013. In her paper, Professor Welsh discusses the increasing use of mandatory consumer arbitration clauses that inc

Fort Worth Appeals Court Holds Insurance Company is Estopped from Forcing Arbitration

By Beth Graham - March 1, 2013

In an interlocutory appeal, Texas’ 2nd District Appeals Court has affirmed a trial court’s order denying arbitration. In New Hampshire Insurance Co. v. Magellan Reinsurance Company Ltd., No. 02-12-00196-CV (Tex.App.–Fort Worth, 2013), New Hampshire Insurance and Magellan Reinsurance Company entered into a reinsurance agreement where a trust account was set up to perfect payment. As part of the reinsurance agreement, the two companies agreed to ar