Yesterday, the U.S. Supreme Court granted certiorari to Affiliated Computer Services, Inc. v. Fensterstock, No. 09-1562-cv. In Fensterstock v. Education Finance Partners, Inc., No. 08-CV-3622, 2009 U.S. Dist. LEXIS 30457 (S.D.N.Y. 2009) the U.S. District Court for the Southern District of New York had held that an arbitration agreement containing a class action waiver within a student loan promissory note is unconscionable and unenforceable as a matter of California law. (read more here) The U.S. Court of Appeals for the Second Circuit affirmed the lower court judgment in Fensterstock v. Education Finance Partners, Inc., 611 F.3d 124 (2d Cir. 2010). (read more here) Now, the U.S. Supreme Court vacated the judgment and remanded the case to the Second Circuit for further consideration in light of AT&T Mobility LLC v. Concepcion, 563 U.S. ___ (2011). (read about AT&T Mobility LLC here, here, and here) Stay tuned … Technorati Tags: law, ADR, arbitration
Continue reading...By Brett Goodman Now more than ever, arbitration may have the potential to affect millions of lives, even if that means encouraging Americans to enjoy chips and dip and play Monday morning quarterback. With approximately a month left until NFL preseason games should begin, the NFL owners and the NFL players’ association (NFLPA) remain in a lockout. Though a so-called deadline has passed on more than one occasion without effect, at the very least, the players and teams would need probably no less than three weeks to prepare for a full season that is scheduled to begin at the beginning of September. So if things are not settled within the next two months, this may mean a year without Super Bowl parties, Chad Ochocinco/Johnson end zone celebrations, and Dallas Cowboys cheerleaders. The litigation is currently ongoing in the Eighth Circuit, wherein oral arguments over the lockout fiasco ended on Friday June 3rd. At the same time, owners and players are having sets of “secret meetings” with the goal of peacefully resolving the issues before any sort of court-ordered alternative dispute resolution measure is enacted. Although conduct of the judges thus far indicates a potential siding with the owners, more than anything, the judges are encouraging a self-imposed settlement between the two sides independently. If the owners do end up winning, the lockout could continue for as long as the owners please. “The players could appeal the decision to the U.S. Supreme Court. It is doubtful it would accept the case, and even if it did, it wouldn’t be heard for some time.” Whether or not one agrees with the vast resources and time that were pumped-in to the investigations of steroids in baseball with the famous testimonies of Roger Clemens and Rafael Palmeiro, it seems even less arguable that the Supreme Court would be spending its time wisely dealing with the NFL labor arbitration. Regardless, Judge Kermit Bye warned that, in the absence of an independent settlement, the court will offer a ruling that is “probably something both sides aren’t going to like.” Within the next few months, the arbitration attempts of the owners and players will act as a relatable, real-world example of how alternative dispute resolutions can either be an effective way of avoiding litigation and saving resources, or how the stubbornness of both sides leads to court orders and undesirable results. It will also either act as a small bump on the road to 6-hour couch-ridden Sundays, or doing the same just on a different channel. Technorati Tags: law, ADR, arbitration Brett Goodman is a summer intern at Karl Bayer, Dispute Resolution Expert. Brett is a J.D. candidate at The University of Texas School of Law. He holds degrees in Finance, Mathematics, and Spanish from Southern Methodist University.
Continue reading...The following bills relating to alternative dispute resolution were introduced by the 112nd U.S. Congress. The session convened in Washington, D.C. on January 3, 2011 and will end on January 3, 2013. Click on the bill number to read its text and on the status link to find the bill’s most recent legislative action. Arbitration Fairness Act of 2011. Declares that no predispute arbitration agreement shall be valid or enforceable if it requires arbitration of an employment, consumer, or civil rights dispute. S.987; Status. H.R.1873; Status. Labor Relations First Contract Negotiations Act of 2011. Amends the National Labor Relations Act to require mediation and, if necessary, binding arbitration of initial contract negotiation disputes. H.R.129; Status. Surface Transportation Board Reauthorization Act of 2011. Certain appropriations for the Surface Transportation Board, including requiring the Board to establish a binding arbitration process to resolve rail rate, practice, and common carrier service disputes. S.158; Status. Endocrine Disruptor Screening Enhancement Act of 2011. “In the event of any dispute about an appropriate share or a fair method of determining an appropriate share of applicable costs of the testing requirements in a test order, any person involved in the dispute may initiate binding arbitration proceedings by requesting the Federal Mediation and Conciliation Service to appoint an arbitrator from the roster of arbitrators maintained by such Service or a hearing with a regional office of the American Arbitration Association.” H.R.553; Status. Non-Federal Employee Whistleblower Protection Act of 2011. It includes provisions on the nonenforceability of waivers and arbitration of disputes. S.241; Status. National Guard Technician Equity Act. Provides for a technician’s rights of grievance, arbitration, appeal, and review beyond the current stage of the adjutant general of the jurisdiction concerned. H.R.1169; Status. Postal Operations Sustainment and Transformation Act of 2011. Section 401 of the Act includes arbitration and labor dispute guidelines. S.1010; Status. Soledad Canyon High Desert, California Public Lands Conservation and Management Act of 2011. Advises the use of arbitration under Subchapter IV of chapter 5 of section 5 of the USC. S.759; Status. FAA Air Transportation Modernization and Safety Improvement Act of 2011. Requires the FAA Administrator and employee bargaining representatives, if their own negotiations and the services of the Federal Mediation and Conciliation Service (FMCS) have failed to lead to an agreement, to submit their controversy to the Federal Service Impasses Panel, subject to specified procedures, for binding arbitration. H.R.658; Status. Medical Care Access Protection Act of 2011 (MCAP Act). The limitations within the act apply to arbitration, and nothing in the act is meant to supersede arbitration. S.197; Status. Patent Reform Act of 2011 (a.k.a. America Invents Act). A patent holder with an invention in dispute can use arbitration to settle. S.23; Status. Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2011. Provides that, “whether by arbitration or other means, in any health care lawsuit, the court shall supervise the arrangements for payment of damages to protect against conflicts of interest that may have the effect of reducing the amount of damages awarded that are actually paid to claimants.” S.1099; Status. S.218; Status. H.R.5; Status. U.S. Postal Service Improvements Act of 2011. Authorizes arbitration boards to consider the financial condition of the USPS in rendering decisions. S.353; Status. Preventing Homeowners from Foreclosure Act of 2011. Directs the Secretary of Housing and Urban Development (HUD) to implement a competitive grants program for states and local governmental entities to establish mediation programs to assist mortgagors under home mortgages facing foreclosure on such mortgages. H.R. 1131; Status. Preserving Homes and Communities Act of 2011. Directs the Secretary of HUD to: (1) establish a grant program to make competitive grants to state and local governments to establish mediation programs that assist mortgagors facing foreclosure, and (2) develop and implement a plan to monitor conditions and trends in home ownership and the mortgage industry and the effectiveness of public and private efforts to reduce mortgage defaults and foreclosures. S.489; Status. H.R.1477; Status. Restoring Democracy in the Workplace Act. Declares that a specified rule prescribed by the National Mediation Board relating to representation election procedures shall have no force or effect. H.R. 548; Status. Community Access Preservation Act (CAP). Amends the Communications Act of 1934. Sets forth provisions regarding: (1) LGS or state enforcement, (2) nonbinding mediation and court proceedings concerning disputed support amounts, and (3) prerequisites for an LGS to impose additional PEG use requirements. H.R.1746; Status. Department of Peace Act 2011. Establishes a Department of Peace. Sets forth the mission of the Department, including: (1) cultivation of peace as a national policy objective; and (2) development of policies that promote national and international conflict prevention, nonviolent intervention, mediation, peaceful conflict resolution, and structured conflict mediation. H.R.808; Status. Stay tuned to Disputing for more legislative updates! Technorati Tags: arbitration, ADR, law
Continue reading...In Texas, a party has to object in writing to the mediation referral within ten days after receiving notice. The court, in its discretion, may or may not refer the dispute to mediation. Section 154.022 of the Texas ADR Act provides the basis for objection to referral pending litigation: (a) If a court determines that a pending dispute is appropriate for referral under Section 154.021, the court shall notify the parties of its determination. (b) Any party may, within 10 days after receiving the notice under Subsection (a), file a written objection to the referral. (c) If the court finds that there is a reasonable basis for an objection filed under Subsection (b), the court may not refer the dispute under Section 154.021. In Texas Dept. of Trans. v. Pirtle, the Fort Worth Court of Appeals addressed the consequences for not filing an objection under the Texas ADR Act. See Texas Dept. of Transp. v. Pirtle, 977 S.W.2d 657, 658 (Tex. App. — Fort Worth 1998, pet. denied). There, the defendant, the Texas Department of Transportation, failed to object to the mediation then, it refused to participate in the mediation. The trial court subsequently sanctioned the defendant. The defendant argued that the defendant never settles cases as a matter of policy. The court distinguished Pirtle from other cases where the duty to mediate in good faith did not apply. Gleason v. Lawson, 850 S.W.2d 714 (Tex. App. – Corpus Christi 1993, no writ) (Court did not order the mediation); Hansen v. Sullivan, 886 S.W.2d 467 (Tex. App. – Houston [1st Dist.] 1994, no writ) (The parties mediated in good faith but the matter could not be resolved); Decker v. Lindsay, 824 S.W.2d 247 (Tex. App.–Houston [1st Dist.] 1992, no writ) (Party objected to the mediation order but the court overruled the objection). Finally, the court of appeals, in upholding the sanctions award, found that the duty to mediate attaches when a party is served with a mediation order and fails to object. Technorati Tags: law, ADR, arbitration
Continue reading...Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.
To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.
Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.
To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.