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Court Decisions about Arbitration
Supreme Court News
By Beth Graham - October 7, 2010
The U.S. Supreme Court term is in full swing. Class-wide arbitration agreements have been a hot topic in the courts recently and the trend is continuing with the high court this fall. ADR news to note: Scheduled for November 9, 2010 Oral Argument AT&T Mobility LLC v. Concepcion, 09-893: A class-wide arbitration case from the 9th Circuit asking the Court to consider whether the Federal Arbitration Act (FAA) preempts states from conditioning en
California Court Holds Class Action Waiver Unenforceable
By Beth Graham - October 6, 2010
The Eastern District Court of California has held a class action arbitration agreement waiver unenforceable and refused to compel arbitration against a former employee seeking class action status. In Mathias v. Rent-A-Center, Inc., No. S-10-1476 (E.D. Cal. Sept. 15, 2010), Ryan Mathias, a former Assistant Manager of a Rent-A-Center (RAC) located in California filed a class action lawsuit in California state court which alleged eight claims relate
Fort Worth Appeals Court Holds Arbitration Clause Not a Jury Waiver
By Beth Graham - October 4, 2010
The Fort Worth Appeals Court has held in a memorandum opinion that an arbitration clause does not constitute a jury waiver. In In re Professional Pharmacy II, No. 2-10-163-CV, (Tex. App. – Fort Worth, September 23, 2010) the relator (Professional Pharmacy) sought a writ of mandamus from a district court’s March 8, 2010 order granting JP Morgan Chase Bank, NA’s (JP Morgan’s) motion to strike Professional Pharmacy’s jury demand and enforce a contra
Fifth Circuit Denies Compelled Arbitration Under Theory of Direct Benefits Estoppel
By Beth Graham - September 27, 2010
The 5th Circuit Court of Appeals has held that a court may not compel arbitration under the theory of direct benefits estoppel where there was no evidence a party had actual knowledge a contract containing an arbitration clause existed and no attempt was made by the party to enforce the specific provision which contained the arbitration clause. In Noble Drilling Services, Inc. v. Certex USA, Inc., No. 10-20083 (5th Cir., September 15, 2010), Nobl
Tyler Court of Appeals Holds Routine Employment Practice Insufficient to Prove Arbitration Agreement Exists
By Beth Graham - September 23, 2010
The Twelfth District Court of Appeals of Texas has held that evidence of a routine employment practice was insufficient to prove an arbitration agreement existed. In In re Astro Air, L.P., No. 12-10-00108-CV (Tex. App. – Tyler September 15, 2010), Sharron Hall was hired by Astro Air, L.P. in December 2005 and remained an employee of Astro until she suffered an on the job injury in July 2007. Hall sued Astro, alleging that her injury was result of
Fifth Circuit Rules Courts Lack Inherent Authority to Impose Sanctions for Arbitral Conduct
By Beth Graham - September 15, 2010
The Fifth Circuit has held that it lacks inherent authority to impose sanctions for conduct which occurred during arbitration. In Positive Software Solutions, Inc. v. New Century Mortgage Corp., No. 09-10355, (5th Cir., September 13, 2010), Positive Software Solutions sued New Century for allegedly infringing telemarketing software licensed to New Century. The case was subsequently ordered to arbitration under the terms of the parties’ contract.
First Court of Appeals of Texas Holds a Cooperative Law Agreement in a Divorce Proceeding Does Not Violate Public Policy
By Beth Graham - September 14, 2010
The First Court of Appeals of Texas held in a case of first impression that a cooperative law agreement in a divorce proceeding does not violate public policy. In In re Mary Lynn Mabray, No. 01-09-01099-CV (Tex. App.-Hous. (1 Dist.) August 31, 2010) the relator, Mary Lynn Mabray, challenged a trial court’s order denying her motion to disqualify counsel from representing her husband, Gary Allen Mabray, and her motion to revoke consent to arb
Fifth Circuit Rules Arbitrability Question is for Arbitrator to Decide Where Parties Clearly Intended So
By Beth Graham - September 9, 2010
The Fifth Circuit has held that the question of arbitrability is for an arbitrator to decide where an arbitration agreement exists between the parties and they clearly intended for the issue to be arbitrated based on the wording of the arbitration provision. In Allen v. Regions Bank, No. 09-60705, (5th Cir., August 11, 2010), plaintiffs (the Allens) obtained a home equity loan from First American National Bank in October 1999. The bank withheld f
Texas Bar Journal Article: “What You Always Wanted to Know About Arbitration”
By Beth Graham - September 8, 2010
Texas Bar Journal September 2010 | Volume 73, 8 This issue features an interesting article entitled “What You Always Wanted to Know About Arbitration” written by Scott D. Marrs and Sean P. Milligan. The article seeks to answer five key arbitration questions recently decided by the courts: 1. Can the parties agree that an arbitration award is appealable? In Hall Street Associates, Inc. v. Mattel, Inc., No. 06-989, 552 U.S. 576 (2008), the U.S. Sup
Law Review Article | Still Litigating Arbitration in the Fifth Circuit, But Less Often
By Victoria VanBuren - September 2, 2010
We invite you to read Donald R. Philbin, Jr. and Audrey Lynn Maness‘ latest Fifth Circuit law review article, Still Litigating Arbitration in the Fifth Circuit, But Less Often, 42 Tex. Tech L. Rev. 551 (2010). Here is an excerpt: Arbitration remains under national klieg lights. It has “become a wide-ranging surrogate for civil litigation” in a wider variety of contracts than at any time in our nation?s history. This increased use has reveal
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