Disputing is pleased to announce its 2011 Year-End Highlights series. During the upcoming weeks, we will discuss 2011 developments in case law and legislation regarding arbitration and mediation as well as other interesting topics. Stay tuned!  

In November, consumer advocate group Public Citizen petitioned Starbucks to revise its Gift Cards Terms of Service. Public Citizen’s letter to Starbucks says that terms of service on Starbucks gift cards make customers settle any legal claims that may arise when using the cards in a private arbitration rather than a court of law. The terms also ban class actions. Public Citizen is asking Starbucks to amend the terms of use on the gift cards immediately. You may read the letter here. Stay tuned. Technorati Tags: law, ADR, arbitration

The New York Court of Appeals affirmed an arbitration award arising out of a breach of contract dispute. See U.S. Electronics, Inc. v. Sirius Satellite Radio, Inc. 2011 NY Slip Op 8179 (N.Y. Nov. 15, 2011). In the present case, United States Electronics, Inc. (“USE”) sought to vacate an arbitration award in favor of Sirius Satellite Radio, Inc. (“Sirius”). USE claimed that the chairman of the arbitration panel’s son, a member of Congress, had publicly advocated a merger between Sirius and XM Satellite Radio, Inc. and was a close political ally of Congressman Darrell Issa, the founder and director of a competitor of U.S. Electronics in radio receiver distribution. The Court adopted the Second Circuit’s reasonable person standard and applied it to consider the federal evident partiality standard of the Federal Arbitration Act 9 USC § 10. The Court concluded that evident partiality is not shown “premised on attenuated matters and relationships” and stated that, “Chairman Sessions’ son publicly endorsed the Sirius-XM merger had no impact on the merits of the separate and distinct breach of contract matter. Moreover, the purported connection between Chairman Sessions and Congressman Issa through his son’s political relationship is too tenuous to impute partiality to the chairman…” The Court also noted that “This would be a far different case if USE could allude to a personal or business relationship between Chairman Sessions and Congressman Issa; or if his son had a prominent role at Sirius or DEI.” Accordingly, the Court affirmed confirmation of the arbitral award, with costs. Technorati Tags: law, ADR, arbitration

In November, TI Pneumotive, Inc., filed a petition for certiorari in the case TI Pneumotive, Inc. a/k/a Thomas Industries v. Ecological Tanks, 2011-1159 (La. 9/2/11), 68 So.3d 519, 2011. The questions presented are: Whether the Louisiana Supreme Court and lower courts have erred in interpreting Howsam v. Dean Witter Reynolds, Inc ., 536 U.S. 985 (U.S. 2002) to find that it is the province of the arbitrator to decide whether a party has waived its right to arbitration by participating in litigation; and Whether it should be presumed that a party has waived arbitration when it elects to proceed with litigation in lieu of arbitration or if the party raising the issue of waiver has to make a showing of prejudice. Stay tuned. Technorati Tags: law, ADR, arbitration