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Court Decisions about Arbitration
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
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
U.S. Fifth Circuit Sends Age Discrimination Case to Arbitration
By Beth Graham - February 28, 2013
The United States Fifth Circuit Court of Appeals has held that an age discrimination claim must be arbitrated. In Klein v. Nabors, No. 11-30824 (5th Cir. 2013), an oil rig worker, Gary Klein, sued his former employer, Nabors Drilling USA, for age discrimination in the Western District of Louisiana after he was terminated from the company. Prior to his employment, Klein reportedly signed a company form that acknowledged all employment disputes wou
Fort Worth Appeals Court Holds Ruling on Motion to Compel Arbitration is a Ministerial Duty
By Beth Graham - February 27, 2013
The 2nd District Appeals Court in Fort Worth has held that a trial court has a ministerial duty to rule on a party’s motion to compel arbitration. In Kelly v. Hinson, No. 02–12–00058–CV, (Tex.App.–Fort Worth, 2012), two investors, Phillip Hinson and Don Siratt, filed a lawsuit against Technotree International, LLC and two of the company’s officers, William J. Kelly and Ariel I. Quiros, (“LLC”) to recover a refund of certain investments made in th
SCOTUS to Consider Enforceability of Class Action Waivers in Arbitration Agreements
By Beth Graham - February 26, 2013
Tomorrow, the United States Supreme Court will hear oral arguments in American Express Corp. v. Italian Colors Restaurant, et al. (No. 12-133). The appeal from the United States Court of Appeals for the Second Circuit addresses whether the Federal Arbitration Act allows a court to invalidate an arbitration agreement that does not permit class arbitration of a federal law claim. In the case, a number of small businesses, including Italian Colors R
Houston Appeals Court Opens Door for Single-Party Arbitration Agreements
By Beth Graham - February 21, 2013
Houston’s 14th District Appeals Court has reversed a district court’s order denying a company’s motion to compel arbitration. In Cotton Commercial USA, Inc. v. Clear Creek Independent School Dist. (Tex.App.–Houston [14 Dist.], 2012), the Clear Creek Independent School District (“School District”) contracted with Cotton Commercial USA, LP (“Contractor”) for debris removal following Hurricane Ike. A restoration services agreement signed by the part
Fifth Circuit Reverses Order Compelling Non-Signatory to Arbitrate
By Beth Graham - February 19, 2013
In an unpublished opinion, the Fifth Circuit has reversed a United States District Court’s order compelling a ship builder and a propulsion system manufacturer to arbitrate a dispute between them. In VT Halter Marine, Inc. v. Wartsila North America, Inc., No. 12-60051, (5th Cir. Feb. 8, 2013), a ship operator, Vessel Management Services, Inc. (“Vessel Management”) contracted with a ship manufacturer, VT Halter Marine, Inc. (“VTHM”), to build a nu
Arbitrating Antitrust Claims, Class Action Waivers and the ‘Effective Vindication’ Rule
By Beth Graham - February 18, 2013
Professor Linda S. Mullenix, Morris & Rita Atlas Chair in Advocacy at the University of Texas School of Law, has published a research paper entitled “Arbitrating Federal Antitrust Claims, Class Action Waivers, and the ‘Effective Vindication’ Rule,” Univ. of Texas Law, Public Law Research Paper No. 349. The paper is a preview of the issues before the United States Supreme Court in American Express Corp. v. Italian Colors Rest
Fifth Circuit Refuses to Confirm Foreign Arbitral Award Due to Lack of Jurisdiction
By Beth Graham - February 14, 2013
In a case of first impression, the United States Fifth Circuit Court of Appeals affirmed a district court’s refusal to confirm a foreign arbitral award due to lack of personal jurisdiction. In First Investment Corporation of the Marshall Islands v. Fujian Mawei Shipbuilding, Limited, No. 12-30377 (5th Cir. revised Jan. 17, 2013), First Investment Corporation of the Marshall Islands (“First Investment”) entered into a series of contracts to purcha
Fifth Circuit Affirms Arbitration Decision on Collective Bargaining Agreement
By Beth Graham - February 13, 2013
In January, the United States Fifth Circuit Court of Appeals upheld an arbitrator’s decision in a case that arose pursuant to a collective bargaining agreement. In Albemarle Corporation v. United Steel Workers AOWU Local 103, No. 11-31185 (5th Cir. Jan. 3, 2013), two Albemarle Corporation (“Albemarle“) employees were terminated for alleged safety violations. Their union, United Steel Workers (“USW”), represented the men in arbitration under the p
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