Karl Bayer's Disputing Blog » Court Decisions about Arbitration

Law Review Article | The Litigation-Arbitration Dichotomy Meets the Class Action

By Beth Graham - November 1, 2010

A forthcoming article entitled “The Litigation-Arbitration Dichotomy Meets the Class Action” by Vanderbilt Law Professor and Director of the Cecil D. Branstetter Litigation & Dispute Resolution Program Richard A. Nagareda makes some interesting and compelling arguments related to AT&T Mobility, LLC v. Concepcion, 09-893, a case set for argument before the U.S. Supreme Court on November 9th. The article examines two cases from

Fifth Circuit Holds Arbitration Provision Illusory and Unenforceable

By Beth Graham - October 29, 2010

The Fifth Circuit Court of Appeals has held in an unpublished opinion that an arbitration provision in a multilevel marketing program contract which could be amended at the sole discretion of one party and bound the other party “upon notice” was illusory and unenforceable. In Juan Torres v. S.G.E. Management, L.L.C., No. 09-20778, (5th Cir., October 5, 2010), Ignite operated as a subsidiary of a retail provider of electricity in Texas. Ignite rel

Dallas Appeals Court Holds Arbitration Agreement Not Altered

By Beth Graham - October 28, 2010

The Dallas Court of Appeals has held that a letter which sought clarification regarding whether the other party to a contract wished to proceed with arbitration as provided for in the contract or whether a claim should be filed before a state district court did not alter the arbitration agreement. In Minkoff v. Hicks, No. 05-10-00606-CV (Tex. App. — Dallas, Oct. 21, 2010), Peter Minkoff entered into a contract to build a residence for Jeffrey Hic

El Paso Court Adopts De Novo Standard for Review of Arbitration Awards

By Beth Graham - October 26, 2010

In Las Palmas Medical Center v. Moore, No. 08-09-00226-CV (October 6, 2010), the El Paso Court of Appeals reversed a lower court’s decision to overturn an arbitration award and adopted a de novo standard of review for vacation, modification, or confirmation of an arbitration award. In 2004, the Las Palmas Medical Center (Las Palmas) recruited urologists Robert Moore and Deborah Moore to relocate from Houston to El Paso by offering the Moores a gu

Texas Supreme Court Holds Arbitration Agreement Does Not Require Savings Clause

By Beth Graham - October 25, 2010

The Texas Supreme Court has held that an arbitration agreement signed as a condition of continued employment was not illusory and did not require a savings clause. In In re 24R, Inc., D/B/A The Boot Jack, No. 09-1025 (Tex. Oct. 22, 2010), Frances Cabrera was an at-will employee for 24R, Inc. d/b/a “The Boot Jack” for approximately 15 years. In 2003, 2004 and 2005 she signed an arbitration agreement as a condition of continued employment. In 2007,

Manifest Disregard Round-Up

By Beth Graham - October 20, 2010

Mike Wolgin of the Miami office of Jorden Burt, LLP has compiled a list of recent cases which address “manifest disregard” of the law in an arbitral context. They include: Paul Green School of Rock Music Franchising, LLC v. Smith, No. 09-2718 (3d Cir., Aug 2, 2010), affirmed a district court’s confirmation of an arbitration award and held that the award did not constitute a “manifest disregard” of the law. The Third Circui

Supreme Court Issues Orders on Special Master Interim Report

By Beth Graham - October 19, 2010

On October 12, 2010, the United States Supreme Court issued orders in Montana v. Wyoming (No. 137, Original). The original jurisdiction water rights case was filed before the Court in early 2007 and subsequently transferred to a Special Master prior to the Court’s review. The October 12th orders resulted from Montana’s objections to an interim report issued by the Special Master in February. First, the Court ordered oral argument regarding whethe

Second Circuit Eyes On Supreme Court, AT&T Mobility

By Beth Graham - October 14, 2010

A recent news story published in The AM Law Daily highlights an interesting arbitration case from the Second Circuit. The case involves a young attorney named Joshua Fensterstock who, after graduating with over $100,000 in student loans in 2003, consolidated his student loans in 2006 with Education Finance Partners (EFP), a student loan company serviced by Affiliated Computer Services (ACS). By August 2007, Fensterstock noticed that his loan bala

Beaumont Court of Appeals Holds Arbitration Agreement Enforceable Despite “Biblical Scripture” Aspects

By Beth Graham - October 12, 2010

The Beaumont Court of Appeals has held that an arbitration agreement in an employment contract was valid and enforceable despite that the agreement included biblical scripture aspects and the parties failed to seek biblically based meditation prior to submitting their dispute to arbitration. In The Woodlands Christian Academy v. Weibust, 09-10-00010-CV, (Tex. App. – Beaumont, October 7, 2010), Monica Weibust brought claims against her former empl

Eastern District of Texas Rules on Arbitration of Credit Accounts

By Beth Graham - October 11, 2010

According to the Eastern District of Texas, a change-of-terms provision in a credit card agreement does not defeat the parties’ mutual obligation to arbitrate. In Wynne v. American Express Co., 2:09-CV-00260-TJW, (5th Cir. Sept. 30, 2010), Todd Wynne brought deceptive trade practices, negligent misrepresentation and fraud claims against American Express (Amex), which alleged Amex’s representations regarding its “no pre-set spending limits”