Karl Bayer's Disputing Blog » Court Decisions about Arbitration

The CareFlite v. AFL-CIO Saga Continues

By Beth Graham - March 15, 2011

The Northern District of Texas has held the mandatory arbitration mechanism of the Railway Labor Act (RLA) preempted a grievance which required interpretation of a collective bargaining agreement (CBA), but did not preclude claims which were independent of the CBA. In CareFlite v. AFL-CIO, No. 4:07-CV-334-Y, (N.D. Tex., February 11, 2011), CareFlite, a medical transportation company, sought summary judgment on two counts of the Office and Profess

Texas Supreme Court Holds Arbitration Agreement May Grant Non-Signatories the Right to Compel Arbitration

By Beth Graham - March 14, 2011

The Supreme Court of Texas has held “parties to an arbitration agreement may grant non-signatories the right to compel arbitration.” In In re Rubiola, No. 09-0309, (Tex., March 11, 2011), Brian and Christina Salmon agreed to purchase a home from Greg and Catherine Rubiola with J.C. Rubiola acting as listing broker for the transaction. Brothers Greg and J.C. Rubiola jointly operate a number of real estate and mortgage companies in San Antonio, inc

Houston COA Holds Challenge to Applicability of FAA Was Waived

By Beth Graham - March 8, 2011

The Houston [1st] Court of Appeals has held a party to a transportation worker employment contract waived any challenges to the application of the Federal Arbitration Act (FAA) “by invoking it in the trial court.” In Morris v. Thomas Petroleum, No. 01-09-01065-CV, (Tex. App. – Houston [1st], March 3, 2011), Thomas Petroleum, Inc. and Thomas Fuels, Lubricants and Chemicals (collectively, “Thomas”) appealed a trial court’s confirmation of an arbitr

N.D. of Texas Issues Temporary Restraining Order Enjoining FINRA Arbitrations

By Beth Graham - March 7, 2011

The Northern District of Texas has issued a Temporary Restraining Order enjoining multiple arbitration proceedings before the Financial Industry Regulatory Authority (FINRA). In Billitteri v. Securities America Inc., et al., No. 3:09-CV-01568-F and related cases, (N.D. Tex., February 18, 2011), a group of representative plaintiffs in a class action lawsuit jointly filed a Motion for Preliminary Approval of a partial class action settlement with s

U.S. Supreme Court Grants Cert in Arbitration Case, Denies Another

By Beth Graham - February 25, 2011

On Tuesday, the United States Supreme Court granted certiorari in Stok & Associates PA v. Citibank NA, No. 10-514, a case on appeal from the 11th Circuit Court of Appeals. The question presented in the case is: Under the Federal Arbitration Act, should a party be required to demonstrate prejudice after the opposing party waived its contractual right to arbitrate by participating in litigation, in order for such waiver to be binding and irrevo

S. D. of Texas Finds Arbitration Award Not Final Before Motion for Clarification Was Denied

By Beth Graham - February 21, 2011

The Southern District of Texas has held that an arbitration award was not final before a party’s Motion for Clarification was denied. In Alvarado v. Wells Fargo Advisors, No. 10-0362, (S.D. Tex., February 15, 2011), Lisa Alvarado was employed as a financial advisor registered with Wachovia Securities. After Alvarado’s employment ceased, she entered into arbitration with Wells Fargo Advisors (“Wells Fargo”) over a promissory note and before a Fina

W. D. of Texas Holds Dell Arbitration Agreement Illusory and Unenforceable

By Beth Graham - February 15, 2011

The Western District of Texas has dismissed a case for lack of personal jurisdiction after holding an arbitration clause in a reseller agreement was illusory and unenforceable. In Dell Mktg., L.P. v. Incompass IT, Inc., No. A-10-CA-590-SS, (W.D. Tex., February 9, 2011), Incompass IT, Inc., a reseller of Dell Marketing, L.P. products, purchased items from Dell totaling more than $75,000 and allegedly failed to pay for the products. Dell sued Incom

N. D. of Texas Compels Arbitration in an Age and Race Employment Dispute

By Beth Graham - February 14, 2011

The Northern District of Texas has ordered binding arbitration in an age and race dispute with an at-will employee where an arbitration policy was implemented several years after employment began and the employee continued working after receiving notice of the policy. In Robertson v. U-Haul Co. of Texas, No. 3:10-CV-2058-D, (N. D. Tex., February 7, 2011), John Robertson sued U-Haul Co. of Texas (“U-Haul”) “for age and race discrimination under th

Article | Are Arbitrators Above the Law? The ‘Manifest Disregard of the Law’ Standard

By Beth Graham - February 8, 2011

Michael H. LeRoy, Professor of Labor and Industrial Relations and Law at the University of Illinois College of Law, recently published a law review article entitled Are Arbitrators Above the Law? The ‘Manifest Disregard of the Law’ Standard, Boston College Law Review, Vol. 52, No. 1, p. 137, 2011; Illinois Program in Law, Behavior and Social Science Paper. In his article, Professor LeRoy examines the effect Hall Street Associates v. M

Texas Supreme Court Hears Interlocutory Appeal of an Arbitral Order

By Beth Graham - February 7, 2011

Last Thursday, the Texas Supreme Court heard oral argument in CMH Homes, Inc. et al. v. Perez, No. 10-0688. At issue in this case of first impression is an interlocutory appeal from an arbitration order filed pursuant to Section 51.016 of the Texas Civil Practice and Remedies Code. Section 51.016 is a recent addition to Code and became effective on September 1, 2009. Section 51.016 states: Sec. 51.016. APPEAL ARISING UNDER FEDERAL ARBITRATION ACT