Karl Bayer's Disputing Blog » Court Decisions about Arbitration

U.S. Supreme Court Enforces Agreement to Arbitrate Discrimination Claims in 14 Penn Plaza v. Pyett

By Victoria VanBuren - April 3, 2009

This week, the U.S. Supreme Court decided (5-4) 14 Penn Plaza v. Pyett, No. 07-581, (U.S. Apr. 1, 2009). Justice Thomas delivered the opinion of the Court, joined by Chief Justice Roberts and Justices Scalia, Kennedy, and Alito. Justice Stevens filed a dissenting opinion. Justice Souter filed a dissenting opinion as well, joined by Justices Ginsburg and Breyer. Respondents are employed as night lobby watchmen and are members of the Service Employ

Second Circuit Denies Oracle’s Motion to Compel Arbitration

By Victoria VanBuren - April 1, 2009

The Second Circuit ruled recently on the case Arbercheski v. Oracle Corp., No. 06-3472, 2009 U.S. App. LEXIS 5723 (2nd Cir. Mar. 18, 2009) that Oracle has waived its right to arbitration. The court concluded that the plaintiff showed sufficient prejudice from Oracle’s attempt to initiate arbitration proceedings. Some of the facts the court cited were: Oracle’s eleven-month delay between the commencement of litigation and the filing of

Ninth Circuit Finds Class Action Waiver Unconscionable

By Victoria VanBuren - March 31, 2009

In Chalk v. T-Mobile USA, Inc., No. 06-35909 (9th Cir. Mar. 27, 2009), the issue before the Ninth Circuit is whether a class action waiver in an agreement between T-Mobile and its customers is unconscionable under Oregon law. Steward and Chalk (plaintiffs) bought from T-Mobile a PC card manufactured by Sony. The card enables computers to connect wirelessly to the Internet. By signing the one-year service agreement with T-Mobile, the plaintiffs ac

Fifth Circuit Compels Arbitration of Tort Claims

By Victoria VanBuren - March 25, 2009

This week, the Fifth Circuit decided Woodmen of the World Life Insurance Society/ Omaha Woodmen Life Insurance Society v. JRY, No. 08-30405 (5th Cir. Mar. 23, 2009). The defendant-appellees (“JRY” and “TSY”) are parents suing on behalf of the Estate of their minor son (“BMY”) and the plaintiff-appellant Woodmen of the World (the “Society”) is a non-profit fraternal society that provides life insuran

U.S. Supreme Court Rules on Vaden v. Discover Bank

By Victoria VanBuren - March 19, 2009

Last week we blogged about the U.S. Supreme Court ruling on Vaden V. Discover Bank, No. 07-773, (U.S. Mar. 9, 2009). Justice Ginsburg delivered the opinion of the Court, joined by Scalia, Kennedy, Souter, and Thomas. Chief Justice Roberts concurred in part and dissented in part and was joined by Stevens, Breyer, and Alito. Here is a summary of the case. Discover Bank sued cardholder Vaden in Maryland state court to recover past due charges ($10,6

Texas Court of Appeals Declined to Confirm Arbitral Award

By Victoria VanBuren - March 18, 2009

In Credigy Receivables, Inc., v. Holt, No. 05-07-01577-CV, (Tex. App.–Dallas March 17, 2009), a Texas appellate court did not confirm an arbitral award because of invalid service of process. In July 2007, Credigy sued Barbara Holt to recover the balance due on Holt’s credit card account, after an arbitrator awarded Credigy $10,558.36. However, Credigy’s petition served to Holt was not verified and Holt did not answer the lawsuit

Fifth Circuit: Life After Hall Street

By Victoria VanBuren - March 17, 2009

Last week, the Fifth Circuit decided whether manifest disregard of the law remains a valid ground for vacating an arbitration award in light of last year’s U.S. Supreme Court case Hall Street Associates, L.L.C. v. Mattel, Inc., 128 S.Ct. 1396 (2008). For background and commentary on that case, visit our previous posts: Dead? Alive? Matter of Opinion? Dec. 4, 2008 Rau Responds Jun. 9, 2008 Rau Gives Souter a C-minus Jun. 5, 2008 Glen Wilkers

U.S. District Court Denies Nokia’s Request to Compel Arbitration

By Victoria VanBuren - March 11, 2009

Last week, the U.S. District Court for the Southern District of New York refused to compel arbitration on the grounds that Nokia had waived its rights to arbitrate through its conduct in prior proceedings. The case, Nokia Corp. v. InterDigital, Inc. (2009 U.S. Dist. LEXIS 17376) relates to patent infringement and was heard by the Second Circuit on July 31, 2008 (2008 U.S. App. LEXIS 16328). Back then, the Second Circuit concluded that Nokia waive

U.S. Supreme Court Rules on Federal Courts’ Arbitration Jurisdiction

By Victoria VanBuren - March 10, 2009

Yesterday, the U.S. Supreme Court decided Vaden v. Discover Bank (No. 07-773) 556 U.S. __ (2009). Interpreting section 4 of the FAA, the Court held that the federal court had no jurisdiction to compel arbitration because the underlying dispute arose under state law and the whole controversy did not qualify for federal-court adjudication. Special thanks to our friend Ross Runkel for bringing this important case to our attention. Visit here profess

Fifth Circuit: Arbitrator Should Determine Arbitrability

By Victoria VanBuren - March 5, 2009

In Agere Systems Inc. v. Samsung Electronics Co., Ltd., (No. 07-40984), the Fifth Circuit held that the question of arbitrability should be decided by an arbitrator. The dispute between Agere Systems and Samsung Electronics arouse out of five patent cross-licensing agreements (dated 1990, 1995, 1999, 2000, and 2006). In 2006, Agere sued Samsung for breach of the licensing agreement and Samsung responded by invoking a mediation clause contained in