Karl Bayer's Disputing Blog

Fifth Circuit Decides on Arbitrability of Claims

By Victoria VanBuren - September 10, 2012

by Jeremy Clare The United States Court of Appeals for the Fifth Circuit affirmed the district court’s ruling confirming an arbitration award. In Petrofac, Inc., v. DynMcDermott Petroleum Operations Company, No. 1-20141 (5th Cir. July 17, 2012), DynMcDermott Petroleum Operations Company (“DM”), which operates the Strategic Petroleum Reserve for the Department of Energy, contracted with Petrofac to design and install a transportable degas plant to

Fifth Circuit Rules on Arbitrator Appointment Process

By Victoria VanBuren - September 6, 2012

by Jeremy Clare The United States Court of Appeals for the Fifth Circuit ruled that the district court exceeded its authority under 9 U.S.C. § 5 by not limiting the number of arbitrators appointed to the number agreed to by the parties in the arbitration agreement. Background In BP Exploration Libya Ltd., v. ExxonMobil Libya Ltd., v. Noble North Africa Ltd. No. 11-20547 (5th Cir. July 30, 2012), ExxonMobil Libya (“Exxon”) and N

Fifth Circuit Rules that Arbitrator Bias Issue Must be Raised Before the Arbitration Award Is Rendered

By Victoria VanBuren - August 27, 2012

In Dealer Computer Servs. v. Michael Motor Co., No. 11-20053 (5th Cir. Aug. 14, 2012) Dealer Computer Services (“DCS”) provides hardware maintenance, software support, and computer hardware to automobile dealer Michael Motor Company (“MMC”). Their hardware and service contract contained an arbitration clause requiring the parties to resolve disputes in accordance with the Commercial Rules of the American Arbitration Association (“AAA”). A dispute

Fifth Circuit Vacates Arbitral Award Because Arbitrator Ordered Class Arbitration Without a Sufficient Contractual or Legal Basis

By Victoria VanBuren - May 29, 2012

The United States Court of Appeals for the Fifth Circuit ruled that an arbitrator exceeded his powers by ordering class arbitration without a sufficient contractual or legal basis for doing so. Background In Reed v. Florida Metropolitan University, Inc. No. 11-50509 (5th Cir. May 18, 2012) Plaintiff Jeffrey Reed obtained a bachelor’s degree in paralegal studies at Everest University Online’s (“Everest”) distance learning p

Fifth Circuit Interprets the Meaning of a Reasoned Arbitral Award

By Victoria VanBuren - March 14, 2012

In Rain CII Carbon, LLC v. ConocoPhillips Co. No. 11-30669 (5th Cir. March 9, 2012) ConocoPhillips Company (“Conoco”) appeals the district court’s judgment confirming an arbitration award favorable to Rain CII Carbon, LLC (“Rain”). Since 2005, Conoco and Rain were parties to a long-term supply contract which includes a complex formula for capturing the market price of green coke. The contract provides that if a party believed the formula no longe

Fifth Circuit Rules on Jurisdiction Under the Railway Labor Act

By Victoria VanBuren - March 1, 2012

The United States Court of Appeals for the Fifth Circuit held that an employee pension plan falls within the scope of the Railway Labor Act (“RLA”) and is subject to its mandatory arbitration procedures. In Ballew v. Cont’l Airlines, Inc., No. 11-20279, (5th Cir. Jan. 31, 2012) plaintiffs are former Continental Airlines pilots (“Retirees”) who filed a class action against Continental Airlines under ERISA § 502(a)(1)(

Fifth Circuit Finds Arbitration Clause Illusory

By Victoria VanBuren - February 20, 2012

The United States Court of Appeals for the Fifth Circuit held that an agreement was illusory because the defendant retained the unilateral right to modify or terminate the arbitration provision at any time. In Carey v. 24 Hour Fitness, USA, Inc. No. 10-20845 (5th Cir. Jan. 25, 2012) John Carey (“Carey”) is a former sales representative for 24 Hour Fitness, USA, Inc. (“24 Hour Fitness”). During Carey’s period of emplo

Fifth Circuit Rules on Jurisdiction for a Petition to Compel Arbitration

By Victoria VanBuren - January 30, 2012

The United States Court of Appeals for the Fifth Circuit held that a district court lacked subject matter jurisdiction to hear a petition to compel arbitration pursuant to Section 4 of the Federal Arbitration Act (“FAA”). In Volvo Trucks N. America, Inc. v. Crescent Ford Truck Sales, Inc. No. 09-30782, (5th Cir. Jan. 5, 2012) Crescent Ford Truck Sales, Inc. (“Crescent”) operated a Volvo dealership pursuant to a Dealer Sale

Employment Arbitration | Jones v. Halliburton

By Victoria VanBuren - January 5, 2012

Jamie Leigh Jones’ saga concluded in 2011. Initially, the issue in her case was a motion to compel arbitration of her tort claims filed by Halliburton. Jones was successful in resisting arbitration in the Fifth Circuit (September 2009). At trial, however, a Houston jury ruled in Halliburton’s favor (July, 2011). In 2009, Jones’ case prompted the U.S. Senate to pass the “Franken Amendment” to H.R. 3326, which bars fun

2011 Arbitration Case Law | Fifth Circuit

By Victoria VanBuren - December 21, 2011

During this year, the U.S. Court of Appeals for the Fifth Circuit decided the following arbitration cases: On July 22, 2011, the Fifth Circuit denied a motion to compel arbitration in multi-billion-dollar ponzi scheme case. In Janvey v. Alguirre, No. 10-10617 (5th Cir. July 22, 2011) the Securities and Exchange Commission (“SEC”) brought suit against the investment company Standford Group Company (“SGC”) and related entities for allegedly perpetr