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Court Decisions about Arbitration
CompuCredit Corp. v. Greenwood | Supreme Court Hears Oral Arguments
By Victoria VanBuren - October 17, 2011
Last week, the U. S. Supreme Court heard arguments on CompuCredit Corp. v. Greenwood, 563 U.S. _ (2011). The question presented is whether claims arising under the Credit Repair Organizations Act, 15 U.S.C. § 1679 et seq., are subject to arbitration pursuant to a valid arbitration agreement. Find the transcript of the arguments here. Greenwood v. CompuCredit Corp., 615 F.3d 1204, 1205 (9th Cir. 2010) (opinion below) is here and Docket 10-948 is h
Ninth Circuit Rules that Pre-Dispute Mandatory Arbitration Clause Is Invalid Under the Magnuson-Moss Warranty Act
By Victoria VanBuren - October 13, 2011
In Kolev v. Euromotors West/The Auto Gallery, 2011 U.S. App. LEXIS 19254 (9th Cir. Cal. Sept. 20, 2011) a pre-owned car Diana Kolev (“Kolev”) purchased developed serious mechanical problems during the warranty period and the dealership refused to honor her warranty claims. Kolev sued for breach of warranties under the Magnuson-Moss Warranty Act (“MMWA”), 15 U.S.C. Section 2301 et seq., breach of contract, and unconscionabi
Fifth Circuit: Class Arbitration is not a Class Action under CAFA
By Victoria VanBuren - October 11, 2011
In Williams v. Homeland Ins. Co., No. 11-30646 (5th Cir. Sept. 19, 2011), George Raymond Williams brought a class action suit in Louisiana state court on behalf of Louisiana medical providers against operator of preferred provider organization (“PPO”) network and other defendants, alleging violation of PPO notice provisions of Louisiana law. One year later, Williams amended the petition and added three defendants: Corvel Corporation (
Second Circuit Clarifies FINRA Rule 12200
By Victoria VanBuren - October 6, 2011
As discussed at the ADR Prof Blog, the Second Circuit held that an issuer who purchases auction-facilitating services for its auction rate securities from a broker-dealer is a “customer” of that broker-dealer within the meaning of the Financial Industry Regulatory Authority (“FINRA”) Rule 12200. FINRA Rule 12200 governs whether FINRA members must submit to FINRA arbitration. In UBS Financial Services Inc. v. West Virginia University H
Eleventh Circuit Rules that the Plaintiff’s Act of Amending its Complaint May Allow a Defendant to Resurrect its Previously-Waived Right to Arbitrate
By Victoria VanBuren - September 29, 2011
In Krinsk v. Suntrust Banks, Inc., No. 10-11912 (11th Cir. Sept. 7, 2011) the defendant had participated in the case for nine months without enforcing its right to arbitrate the class action claims. In response to the court’s ruling on the motion to dismiss, the plaintiff amended the complaint and expanded the definition of the putative class from one that covered hundreds of members to one that potentially covered tens of thousands of members. I
Ninth Circuit Refuses to Compel Arbitration Because Arbitration Clause Was Not Broad Enough to Cover Dispute
By Victoria VanBuren - September 21, 2011
In Cape Flattery Limited v. Titan Maritime, LLC, No. 09-15682 (9th Cir. July 26, 2011) Cape Flattery, a shipowner had contracted with Titan, a salvage company, to remove a stranded vessel from a reef. The contract contained the following arbitration clause: Any dispute arising under this Agreement shall be settled by arbitration in London, England, in accordance with the English Arbitration Act 1996 and any amendments thereto, English law and pra
Fifth Circuit Denies Motion to Compel Arbitration in Multi-billion-dollar Ponzi Scheme Case
By Victoria VanBuren - September 19, 2011
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 perpetrating a massive Ponzi scheme. The U.S. District Court for the Northern District of Texas granted a motion for a preliminary injunction brought by the court appointed receiver for SGC (“Receiver&
Fifth Circuit Rules Non-Signatories Not Bound by Arbitration Agreement
By Victoria VanBuren - September 14, 2011
The U.S. Court of Appeals for the Fifth Circuit held that corporate officers did not personally agree to arbitrate and were not bound by an arbitration agreement. Covington v. Aban Offshore, No. 10-40449 (5th Cir. August 10, 2011) involves a dispute between Aban Offshore Limited (“Aban”), owner of an oil rig, and Guy Covington and Russell Covington, officers and employees of Beacon Maritime, Inc. (“Beacon”) a contractor hired to refurbish the rig
Fifth Circuit Finds Corporate Officers Not Personally Bound by Arbitration Agreement and Overturns Arbitral Award
By Victoria VanBuren - September 1, 2011
The United States Court of Appeals for the Fifth Circuit has held that corporate officers are not bound personally by an arbitration agreement and overturned an arbitral award. In DK Joint Venture 1 v. Weyand, No. 09-11000 (5th Cir. August 4, 2011) six business entities (the “plaintiffs”) filed an arbitration demand against Richard Weyand and Peter Theiessen and fifteen corporations controlled by them (the “defendants”). W
Jamie Leigh Jones v. Halliburton/KBR | Halliburton/KBR Sues Jones to Recover Attorneys’ Fees and Costs
By Victoria VanBuren - August 22, 2011
On August 17, 2011 the defendants in Jones v. Halliburton et al. filed two motions seeking to recover from Jamie Leigh Jones: (1) an undisclosed amount for attorneys’ fees [update: $2 million] and (2) the costs of the lawsuit [update: $140 K] brought by Jones. Jones had sued the defendants for negligence, negligent undertaking, sexual harassment and hostile environment under Title VII of the Civil rights Act of 1964, breach of contract, fra
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