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Court Decisions about Arbitration
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
GUEST-POST | Professor Alan Scott Rau Comments on BP v ExxonMobil
By Victoria VanBuren - August 6, 2012
by Alan Scott Rau BP Exploration Libya Limited v. ExxonMobil Libya Limited, et al, No. 11-20547 (5th Cir. July 30, 2012) is a little case that illustrates perfectly the muddle that frequently arises when linked agreements bind multiple parties to resolve through arbitration disputes arising out of related transactions. It is at least clear here, unlike some cases, that there has to be “one arbitration”—this is in fact what the agreements se
Texas Supreme Court Grants Petition for Review in Trust Arbitration Case
By Victoria VanBuren - June 25, 2012
On June 8, 2012, the Texas Supreme Court granted petition for review to Rachal v. Reitz, 347 S.W.3d 305 (Tex.App.—Dallas 2011, pet. granted). The issue is whether a provision stating the settlor’s intent that disputes involving the trust be resolved by arbitration is enforceable under the Texas Arbitration Act . The appellate court had declined to compel arbitration on the grounds that a valid agreement to arbitrate did not exist. Here are
California Court Affirms Class Action Waivers in Employment Arbitration Contracts
By Victoria VanBuren - June 19, 2012
The California Court of Appeal held that class action waivers are enforceable in California employment arbitration agreements. In Iskanian v. CLS Transportation Los Angeles, LLC, Arshavir Iskanian worked as a driver for defendant CLS Transportation Los Angeles, LLC (“CLS”) from March 2004 to August 2005. In December 2004, Iskanian signed a “Proprietary Information and Arbitration Policy/Agreement” (arbitration agreement) that contains
Eleventh Circuit Rules that Delegation Provision is Valid under the Federal Arbitration Act
By Victoria VanBuren - June 14, 2012
In In re Checking Account Overdraft Litigation, No. 11-14282 (11th Cir. March 21, 2012). Maxine Given filed a class action against Manufacturers and Traders Trust Company (M&T Bank), alleging that M&T Bank improperly charged its checking account customers overdraft fees. The customer agreement included an arbitration clause obligating customers to arbitrate disputes arising out of the checking account; it also stated that whether a disput
Second Circuit Denies Rehearing to American Express Merchants’ Litigation
By Victoria VanBuren - June 12, 2012
On May 29, 2012, the Second Circuit denied rehearing to Nat’l Supermarkets Ass’n v. Am. Express Travel Servs. Co. (In re Am. Express Merchants’ Litig.), No. 06-1871 cv (2d Cir. May 29, 2012). The underlying case (“Amex III“) had concluded that AT&T Mobility LLC v. Concepcion , 131 S.Ct. 1740 (2011) addresses state contract rights and does not apply to Amex III since Amex III deals with federal statutory rights. (
Arbitrator Sues AAA to Recover Unpaid Fees
By Victoria VanBuren - June 6, 2012
In Zaremski v. Am. Arbitration Ass’n, No. 11C5221 (N.D. Ill. May 9, 2012) Plaintiff Miles J. Zaremski worked as an arbitrator on a series of arbitrations pursuant to an agreement with Defendant American Arbitration Association (“AAA”). When the parties to the arbitrations failed to pay Zaremski’s monthly invoices, Zaremski refused to proceed with the arbitrations. AAA removed him as an arbitrator, and Zaremski sued AAA, se
Texas Lawyer | Arbitrator and JAMS Added to Suit Against Fish & Richardson
By Victoria VanBuren - May 31, 2012
On May 23, 2012, the plaintiffs in Ashley Brigham Patten, et al. v. M. Brett Johnson, et al., (read more about the underlying case here) added JAMS and arbitrator Robert W. Faulkner as defendants. The plaintiffs allege that JAMs and the arbitrator breached their contract by failing to provide a neutral arbitrator. Read the Texas Lawyer article here.
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
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