Karl Bayer's Disputing Blog

GUEST-POST | Rectifying a Critical Flaw in the Arbitration Fairness Act of 2009

By Victoria VanBuren - April 27, 2009

By Philip Loree, Jr. Introduction The Loree Reinsurance and Arbitration Law Forum is pleased and honored that Victoria VanBuren of Disputing has invited us to guest blog on the Arbitration Fairness Act of 2009 (the “Arbitration Fairness Act”). Our blog shall likewise be featuring Victoria as a guest blogger from time-to-time. Victoria suggested that the Arbitration Fairness Act would be a particularly pertinent topic in light of the “Arbitration

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

Texas S.B. 1650

By Victoria VanBuren - March 16, 2009

A new bill related to arbitration was filed last week by the 81st Texas Legislature. S.B. 1650, authored by Senator Duncan (R-Lubbock), would grant Texas appellate courts jurisdiction over certain interlocutory appeals arising under the FAA. Status: Filed on 03/10/2009. Technorati Tags: arbitration, ADR, law, Texas S.B. 1650, FAA

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

Federal Legislation on Arbitration

By Victoria VanBuren - February 24, 2009

The following bills are currently being floated around the U.S. House: H.R. 991. To treat arbitration clauses which are unilaterally imposed on consumers as an unfair and deceptive trade practice and prohibit their use in consumer transactions. Status: Referred to the House Committee on Financial Services on 02/11/2009. H.R. 1020. To amend Chapter 1 of title 9 of the U.S. Code with respect to arbitration. This is the “Arbitration Fairness A

Third Circuit: Nonsignatories Plantiffs Not Bound by Arbitration Agreement

By Victoria VanBuren - February 16, 2009

In contrast to the Texas case of last week, the U.S. Court of Appeals for the Third Circuit held, in an employment discrimination and retaliation case, that forty-one plaintiffs who were not signatories to the arbitration agreement were not required to arbitrate. Mendez v. Puerto Rican Int’l Cos., No. 07-4053, (3rd Cir. 2009). The eight signatories plaintiffs, however, were compelled to arbitrate their claims. The court stated that section

Class Action Arbitration Waiver Found Unenforceable

By Victoria VanBuren - February 12, 2009

On January 30th, 2009, the Second Circuit refused to enforce an arbitration clause contained in American Express Co. merchants’ agreement. In Re: American Express Merchants’ Litigation, No. 06-1871 (2d Cir. 2009). The clause would prevent merchants who accept the card from bringing class-action antitrust claims against American Express. Like the Texas Supreme Court in In re Poly-America, L.P., the Second Circuit cited section 2 of the

Unconscionable Arbitration Agreement: A First for Texas

By Victoria VanBuren - February 2, 2009

In a surprising decision (that almost went unnoticed because of the Holidays and warm Texas weather) arbitration provisions in an employment agreement were found unconscionable by the Texas Supreme Court. In re Poly-America, L.P., 262 S.W.3d 337 (Tex. 2008) involves a retaliatory-discharge claim under the Texas Worker’s Compensation Act (the “Act”) . Justice Brister filed a dissenting opinion. The facts of the case are as follows. In

Dead? Alive? Matter of Opinion?

By Karl Bayer - December 4, 2008

Hall Street and its progeny may have killed “manifest disregard” but the Second Circuit could have just resuscitated it; well, if you consider zombies as resuscitated beings. In Stolt-Nielsen SA v. Animalfeeds Int’l Corp., the Second Circuit held a court may still review whether an arbitrator manifestly disregarded the law, within Section 10 of the FAA. So is manifest disregard still a standard to be followed by the courts? It appears that if you