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Greenway Health, LLC, and Greenway EHS, Inc. (formerly EHS, Inc.) (collectively, "the Greenway defendants"), and Sunrise Technology Consultants, LLC, and Lee Investment Consultants, LLC (collectively, "the Sunrise defendants"), appealed separately a circuit court order denying their motion to compel the arbitration of certain claims asserted against them by Southeast Alabama Rural Health Associates ("SARHA"). Because the Alabama Supreme Court determined the Greenway defendants failed to establish the existence of a contract containing an arbitration provision, the Sunrise defendants' argument based on an intertwining-claims theory also failed. The Court therefore affirmed the trial court's denial of the Greenway defendants' and the Sunrise defendants' motions to stay proceedings and to compel arbitration. View "Greenway Health, LLC, and Greenway EHS, Inc. v. Southeast Alabama Rural Health Associates" on Justia Law

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Appellants, American Federation of State, County and Municipal Employees, Local 2875 (Union), and Robert Green (Green), sought certiorari relief from the Court of Civil Appeals' (COCA) opinion affirming the trial court's grant of summary judgment in favor of the City of Norman and reversing an arbitration award in favor of Green and Union. Green, a member of his local union, was discharged from his job with the City of Norman, Oklahoma (City). Green appealed the decision and the matter was ultimately presented to an arbitrator for a determination. The arbitrator determined there was no "just cause" for discipline and he ordered reinstatement of Green's employment. The union filed a petition in district court to enforce the arbitration award. City filed a cross petition asking the district court to vacate the arbitration award. Both parties sought summary relief from the district court. The district court denied relief to Green and granted summary judgment in favor of City. The district court held the arbitrator exceeded his authority under the collective bargaining agreement and vacated the arbitrator's opinion and award. Green and the union filed a Petition in Error; the Court of Civil Appeals affirmed the district court's grant of summary judgment to City but remanded the matter for the arbitrator to resolve the issue of progressive discipline. Green and the union sought certiorari relief from the Oklahoma Supreme Court. After review, the Supreme Court held the arbitrator acted within the scope of his authority under the terms of the CBA when determining whether the City had "just cause" to discipline Green. It vacated the Court of Civil Appeals' opinion, reversed the district court and remanded this matter for further proceedings. View "American Federation of State, County & Municipal Employees v. City of Norman" on Justia Law

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This appeal centered on a manufactured housing community owner’s attempt to raise the rent for its homeowner–tenants after installing a new water filtration system and commissioning a report on market rents for comparable manufactured housing communities. After the homeowners petitioned for an arbitration under the Rent Justification Act, the arbitrator concluded that the rent increase was justified. On appeal, however, the Superior Court reversed on the grounds that the community owner did not establish that the installation of the water filtration system “was an increase in its costs” or that the expenditure caused “its original expected return [to] decline[].” The community owner appealed the Superior Court’s decision. The Delaware Supreme Court found after its review of this matter that the Superior Court overruled the arbitrator’s order allowing the rent increase, finding that the community owner “would have had to offer evidence about its original costs and original expected return and how the expenditure . . . altered that relationship.” Because that reasoning grafted onto the Act a requirement that the statute did not contain, the Supreme Court reversed the Superior Court’s judgment and remanded the case for the entry of a judgment affirming the arbitrator’s order. View "Sandhill Acres MHC, LC v. Sandhill Acres Home Owners Association" on Justia Law

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After insurers denied McDonnel's claim, McDonnel initiated a declaratory and breach of contract action. The Fifth Circuit affirmed the district court's dismissal of the action in favor of arbitration and held that the insurance policy's conformity provision did not negate the agreement to arbitrate. The court held that the state statute, La. Rev. Stat. Ann. 22:868, was preempted by the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, and thus the statute did not and could not apply to McDonnel's policy. Consequently, there was no conflict between the policy and the state statute. Therefore, the court held that the conformity provision was not triggered, and its inapplicability leads only to the conclusion that the arbitration provision survives, undiminished by state law. View "McDonnel Group, LLC v. Great Lakes Insurance SE" on Justia Law

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The Louisiana Supreme Court accepted a certified question of Louisiana law presented by the U.S. District Court of Appeals for the Fifth Circuit. This case involves a dispute between two creditors, each of which attached the same pig iron owned by the common debtor, America Metals Trading L.L.P. (“AMT”). Daewoo International Corp. (“Daewoo”), a South Korean trading company, entered into a series of contracts with AMT in May 2012 for the purchase of pig iron, to be delivered in New Orleans. The sale contracts contained arbitration clauses. Although Daewoo made payments under the contracts, AMT never shipped the pig iron. Daewoo sued AMT in the United States District Court for the Eastern District of Louisiana seeking an order compelling AMT to arbitrate the dispute pursuant to the terms of the contract and also seeking a writ of attachment of AMT’s pig iron on board the M/V Clipper Kasashio under the Louisiana non-resident attachment statute, Louisiana Code of Civil Procedure article 3542. The writ was granted and served by the U.S. Marshals Service on December 22, 2012. Noting that La. C.C.P. art. 3542, Louisiana’s non-resident attachment statute, allows a party to obtain a writ of attachment in "any action for a money judgment, whether against a resident or a nonresident, regardless of the nature, character, or origin of the claim, whether it is for a certain or uncertain amount, and whether it is liquidated or unliquidated," the federal court stated the issue as "whether Daewoo’s suit to compel arbitration and obtain provisional relief is an 'action for a money judgment' to which Louisiana’s non-resident attachment statute applies." The Louisiana Supreme Court responded: "Louisiana Code of Civil Procedure article 3542 allows for attachment in aid of arbitration if the origin of the underlying arbitration claim is one pursuing money damages and the arbitral party has satisfied the statutory requirements necessary to obtain a writ of attachment." View "Stemcor USA Inc. v. CIA Siderurgica Do Para Cosipar" on Justia Law

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The Ninth Circuit denied a petition for writ of mandamus seeking to direct the district court to vacate its order compelling third parties to arbitration. The petition related to an arbitration clause in a software development and licensing agreement. Considering the factors in Bauman v. U.S. Dist. Court, 557 F.2d 650, 654-55 (9th Cir. 1977), the panel held that the district court applied incorrect legal tests, and did not provide sufficient jurisdictional analysis on the current record. Furthermore, the district court's ultimate finding of jurisdiction was not clear. Therefore, because the district court's finding of jurisdiction over the third parties could possibly prove correct, the highly deferential clear error standard was not satisfied and mandamus relief was improper. The panel also held that the other Bauman factors likewise support denying mandamus relief where the third parties have not shown they lack an adequate remedy at law or they will be damaged or prejudiced in a way not correctable on appeal and third parties have not shown that the district court's order was an oft-repeated error, or manifests a persistent disregard of the federal rules. View "In re Boon Global Limited" on Justia Law

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The Ninth Circuit reversed the district court's denial of the Bank's motion for a preliminary injunction against arbitration by FINRA. The panel held that the Bank was likely to succeed on the question of whether the Bank or its Corporate Trust Department (CTD) was a municipal securities dealer and therefore subject to compelled arbitration before FINRA under MSRB Rule G-35. The panel held that neither the CTD or the Bank was a "municipal securities dealer" as defined in the Securities and Exchange Act of 1934. Accordingly, the panel remanded for further proceedings. View "Bank of Oklahoma, NA v. Estes" on Justia Law

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Defendant Roy Miller Freight Lines, LLC (RMFL) appealed a trial court order granting in part and denying in part its motion to compel its former employee, plaintiff William Muller (Muller), to arbitrate his wage and hour claims under the arbitration provision in his employment agreement. The trial court granted RMFL’s motion on all but one cause of action: Muller’s claim for unpaid wages, and stayed the prosecution of that remaining claim pending the completion of the arbitration. The issue this case presented for the Court of Appeal's review centered on whether the Federal Arbitration Act (FAA) applied, and more specifically, whether Muller was a transportation worker engaged in interstate commerce under 9 U.S.C. 1 (section 1) and thus exempt from FAA coverage. If he was exempt from FAA coverage, as the trial court held, Muller did not have to arbitrate his cause of action for unpaid wages because Labor Code section 229 (section 229) authorized lawsuits for unpaid wages notwithstanding an agreement to arbitrate. If the FAA applied, as RMFL contended, the FAA preempted section 229, and Muller had to submit his cause of action for unpaid wages to arbitration, along with his five other causes of action. The Court found the trial court correctly concluded Muller was exempt from FAA coverage under section 1. Even though Muller did not physically transport goods across state lines, his employer was in the transportation industry, and the vast majority of the goods he transported originated outside California. Thus, section 229 required staying the prosecution of his cause of action for unpaid wages while the other five causes of action proceed to arbitration. View "Muller v. Roy Miller Freight Lines, LLC" on Justia Law

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The Second Circuit affirmed the district court's confirmation of an arbitration award under 9 U.S.C. 9 for petitioners and other individuals. This case involved a dispute between two groups of the Bobov Hasidic Jewish community in Brooklyn that agreed to arbitration before a rabbinical tribunal. The tribunal ruled that petitioners owned the "Bobov" trademark, and the district court confirmed the ruling. The court held that district courts should "look through" a 9 U.S.C. 4 petition to the underlying controversy to determine whether subject matter jurisdiction exists to confirm the arbitration award pursuant to 9 U.S.C. 9. The court held that the district court properly looked through the arbitration petition here to the underlying controversy to determine that it had subject matter jurisdiction. In this case, the district court properly turned aside respondent's non-jurisdictional arguments, found the petition "effectively" unopposed and that no issue of material fact precluded confirmation, and did not err in confirming the award. View "Landau v. Rheinold" on Justia Law

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The Supreme Court reversed the decision of the circuit court finding a delegation clause in an arbitration agreement unconscionable and refusing to enforce the arbitration agreement, holding that the delegation clause was neither unconscionable nor unenforceable. Respondent, who was terminated from her employment, filed workers' compensation discrimination claims against Petitioners. Petitioner moved to compel arbitration based on the arbitration agreement that Respondent signed at the time she was hired. The circuit court refused to enforce the arbitration agreement on the grounds that the agreement's delegation clause was ambiguous, unconscionable and in violation of W. Va. Code 23-2-7. The Supreme Court reversed, holding (1) the delegation clause clearly and unmistakably showed the parties' intent to send gateway questions of arbitration to an arbitrator; (2) the delegation clause was valid; and (3) the circuit court should have referred the parties' arguments about the enforceability of the arbitration agreement to the arbitrator. View "Rent-A-Center Inc. v. Ellis" on Justia Law