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Court Decisions about Arbitration
GUEST-POST | Professor Alan Scott Rau Comments on Flattery Ltd. v. Titan Maritime LLC
By Victoria VanBuren - November 21, 2011
by Alan Scott Rau Some of the readers of this blog may have missed the Ninth Circuit’s recent decision in Cape Flattery Ltd. v. Titan Maritime LLC, 647 F.3d 914 (9th Cir. 2011)—in which the court addressed the critical question of how a court is to determine whether a dispute is “arbitrable” for purposes of a motion to compel—and then proceeds to make a complete hash of it. The M/ V Cape Flattery had run aground on a submerged coral r
Seventh Circuit Rules that ‘Manifest Disregard of the Law’ Is Not Independent Basis for Vacating Arbitral Awards
By Victoria VanBuren - November 18, 2011
The Seventh Circuit held that “manifest disregard of the law” is not an independent ground for vacatur in a patent case under the Federal Arbitration Act (“FAA”). See Affymax, Inc. v. Ortho-McNeil-Janssen Pharmaceuticals, Inc. , No. 11-2070 (7th Cir. Oct. 3, 2011). Citing Hall Street Associates, L.L.C. v. Mattel, Inc., 552 U.S. 576 (2008), the court stated that the grounds to vacate arbitral awards listed in the FAA are &#
Fifth Circuit Holds that a District Court Is Not Required to Stay Proceedings on Merits Pending Appeal of Denial of a Motion to Compel Arbitration
By Victoria VanBuren - November 16, 2011
In Weingarten Realty Investors v. Miller, No. 11-20676 (5th Cir. Nov. 1, 2011), Weingarten Realty Investors (“WRI”) and Miller Sheriden, LLC (“Miller”), created a joint venture. WRI loaned that joint venture $75,000,000 under the Loan Agreement between WRI and the joint venture. Miller did not sign the Loan Agreement individually but did sign a third-party guarantee (“Limited Guarantee”) for the loan, on the same day the Loan Agreement was execut
KPMG LLP v Cocchi | U.S. Supreme Court Holds that a Court May Not Deny Arbitration When Some of the Claims Are Nonarbitrable
By Victoria VanBuren - November 14, 2011
Last week, the U.S. Supreme Court held that courts must enforce arbitration agreements even if the plaintiff’s Complaint contains nonarbitrable claims. In KPMG LLP v. Cocchi, 565 U.S. ___ ( 2011) the Fourth District Court of Appeal of the State of Florida upheld a trial court’s refusal to compel arbitration in a lawsuit involving claims brought against the auditing firm KPMG LLP (“KPMG”) by investors owners of a limited pa
El Paso Court of Appeals Denies Motion to Compel Arbitration in Employment Case
By Victoria VanBuren - November 10, 2011
In Young Mens Christian Assoc. of Greater El Paso, Texas et al. v. Garcia, No. 08-11-00096-CV (Tex. App. – El Paso Oct. 26, 2011) Jose G. Garcia brought discrimination and retaliatory discharge action against Young Mens Christian Association of Greater El Paso, Texas and Rio Grande Valley, YMCA of Greater El Paso, YMCA of El Paso, and Fred & Maria Loya YMCA (collectively referred to as the “YMCA“), Garcia’s former empl
U.S. Supreme Court Rules on KPMG LLP v. Cocchi
By Victoria VanBuren - November 7, 2011
Today, the U.S. Supreme Court issued its opinion on KPMG, LLP v. Cocchi et al., 565 U. S. ____ (2011). Background and holding are as follows: In this case the Fourth District Court of Appeal of the State of Florida upheld a trial court’s refusal to compel arbitration of respondents’ claims after determining that two of the four claims in a complaint were nonarbitrable.Though the matter is not altogether free from doubt, a fair reading of the opin
Texas Court of Appeals Rules on Interlocutory Appeal of Motion to Compel Arbitration
By Victoria VanBuren - November 7, 2011
In Schlumberger Technology Corp. v. Baker Hughes Inc., No. 01-11-00562 (Tex.App. – Houston [1st Dist.] Oct. 13, 2011) Schlumberger Technology Corp. (“Schlumberger” ) and Baker Hughes Inc. (“Baker Hughes”) are in an arbitration proceeding to resolve a patent infringement dispute. During the arbitration, a disagreement arose about whether the presiding panel of arbitrators has jurisdiction to determine an issue raised
California Court of Appeals Rules that Lack of Consent Voids Arbitration in Toyota Online Prank
By Victoria VanBuren - November 2, 2011
Via the ABA Journal, we learned of a bizarre case involving an internet advertising campaign by Toyota Motor Sales USA, Inc. (“Toyota”) and Saatchi & Saatchi North America, Inc. (“Saatchi”) See Duick v Toyota Motor Sales, U.S.A., Inc. Case No. B224839 (CA Dist. 2 Ct. App., Aug. 31, 2011) Here is some background: The campaign, which was targeted at young men, encouraged them to provide Toyota with the name of a friend o
U.S. Supreme Court Denies Cert to Nafta Traders v. Quinn
By Victoria VanBuren - October 24, 2011
Last week, the U.S. Supreme Court denied cert to Nafta Traders, Inc. v. Quinn, 339 S.W.3d 84 (Tex. 2011). In Nafta Traders, the Texas Supreme Court had held that the Federal Arbitration Act (“FAA”) did not preempt enforcement of an agreement for expanded judicial review of an arbitration award enforceable under the Texas Arbitration Act (“TAA”). Such enforcement was consistent with the FAA’s purpose of ensuring that
Fifth Circuit Finds Information Contained in Arbitration Award Insufficient to Determine Insurance Coverage
By Victoria VanBuren - October 21, 2011
In American Home Assurance Company v. Cat Tech, L.L.C., No. 10-20499 (5th Cir. Oct. 5, 2011) Ergon Refining, Inc. (“Ergon”) hired Cat Tech, L.L.C. (“Cat Tech”) to service a hydrotreating reactor at its Mississippi refinery. In the course of servicing the reactor, Cat Tech damaged several of the reactor’s components. The matter was submitted to arbitration and the arbitrators awarded Ergon almost $2 million, including
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