Justia Arbitration & Mediation Opinion Summaries

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The Fifth Circuit reversed the district court's judgment compelling arbitration in an action brought by a former employee of Ref-Chem. The court held that the express language of the agreement at issue required for it to be signed by both parties and it was undisputed that Ref-Chem did not sign the agreement. Therefore, there was no valid agreement to arbitrate in this case. The court remanded for further proceedings. View "Huckaba v. Ref-Chem, L.P." on Justia Law

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Charlotte Fischer was moved into a nursing home; after she died, her family initiated a wrongful death action against the health care facility in court. Citing a clause in the admissions agreement, the health care facility moved to compel arbitration out of court. The trial court denied the motion, and the court of appeals affirmed, determining the arbitration agreement was void because it did not strictly comply with the Health Care Availability Act ("HCAA"). In this case, the Colorado Supreme Court considered whether section 13-64-403, C.R.S. (2017) of the HCAA, the provision governing arbitration agreements, required strict or substantial compliance. The HCAA required that such agreements contain a four-paragraph notice in a certain font size and in bold-faced type. Charlotte’s agreement included the required language in a statutorily permissible font size, but it was not printed in bold. Charlotte’s daughter signed the agreement on Charlotte’s behalf. The Supreme Court held the Act demanded only substantial compliance. Furthermore, the Court concluded the agreement here substantially complied with the formatting requirements of section 13-64-403, notwithstanding its lack of bold-faced type. Accordingly, the Supreme Court reversed the judgment of the court of appeals and remanded for further proceedings. View "Colorow Health Care, LLC v. Fischer" on Justia Law

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Smythe, a driver for both Uber and Lyft, claimed that Uber directed its drivers and others to use fake Lyft accounts to request rides, sending Lyft drivers on “wild goose chases.” He asserted claims for unfair business practices and intentional interference with prospective economic damage on behalf of a putative class of Lyft drivers. Uber moved to compel arbitration. Smythe signed agreements containing an arbitration provision that “applies to any dispute arising out of or related to this Agreement or termination of the Agreement … without limitation, to disputes arising out of or related to this Agreement and disputes arising out of or related to your relationship with the Company …. to disputes regarding any city, county, state or federal wage-hour law, trade secrets, unfair competition, compensation, breaks and rest periods, expense reimbursement, termination, harassment and claims arising under [several specific laws] and all other similar ... claims. This Agreement is intended to require arbitration of every claim or dispute that lawfully can be arbitrated.” The agreement's delegation clause states that the disputes subject to arbitration include "disputes arising out of or relating to interpretation or application of this Arbitration Provision, including the enforceability, revocability or validity .... All such matters shall be decided by an arbitrator and not by a court.” The court of appeal affirmed that Smythe’s allegations were beyond the scope of the arbitration agreement and that the delegation provision was unenforceable in this context. View "Smythe v. Uber Technologies, Inc." on Justia Law

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The Supreme Court reversed the district court’s declaration that the arbitration agreement at issue in this case was void and unenforceable on state law grounds and for being contrary to public policy, holding that the court erred in both respects.Plaintiff sued Defendants, a nursing home and its employees, for injuries he sustained as a resident at the nursing home. Defendants filed motions to compel arbitration pursuant to an arbitration cause within the admission agreement Plaintiff had signed upon being admitted as a resident in the nursing home. The district court overruled the motions, concluding that the arbitration clause (1) lacked mutuality of obligation by the parties, (2) was unenforceable for failure to strictly conform to the requirements of Nebraska’s Uniform Arbitration Act, Neb. Rev. Stat. 25-2601 et seq., and (3) was void and unenforceable as contrary to public policy. The Supreme Court reversed, holding that the arbitration agreement was valid and enforceable and governed by the Federal Arbitration Act. View "Heineman v. Evangelical Lutheran Good Samaritan Society" on Justia Law

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The Supreme Court reversed the district court’s declaration that the arbitration agreement at issue in this case was void and unenforceable on state law grounds and for being contrary to public policy, holding that the court erred in both respects.Plaintiff sued Defendants, a nursing home and its employees, for injuries he sustained as a resident at the nursing home. Defendants filed motions to compel arbitration pursuant to an arbitration cause within the admission agreement Plaintiff had signed upon being admitted as a resident in the nursing home. The district court overruled the motions, concluding that the arbitration clause (1) lacked mutuality of obligation by the parties, (2) was unenforceable for failure to strictly conform to the requirements of Nebraska’s Uniform Arbitration Act, Neb. Rev. Stat. 25-2601 et seq., and (3) was void and unenforceable as contrary to public policy. The Supreme Court reversed, holding that the arbitration agreement was valid and enforceable and governed by the Federal Arbitration Act. View "Heineman v. Evangelical Lutheran Good Samaritan Society" on Justia Law

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ICA insures workers compensation claims. The Underwriters provide ICA with reinsurance under treaties, which require that disputes be adjudicated by a three-member arbitration panel: one party-appointed arbitrator for each party, and the neutral umpire. Each party bears the expense of its own arbitrator and is permitted to engage in ex parte discussion with its party-appointed arbitrators during discovery. Underwriters declined ICA's request for coverage. ICA demanded arbitration and appointed Campos as its arbitrator. At the organizational meeting, each arbitrator was asked to disclose pre-existing or concurrent relationships with a party. Campos disclaimed any appreciable link to ICA. Before the conclusion of the arbitration, Campos let pass several opportunities for additional disclosures. The district court subsequently found that Campos’s relationships with ICA’s representatives were considerably more extensive than disclosed. The district court vacated the panel's award of damages under the Federal Arbitration Act, 9 U.S.C. 10(a)(2). The Second Circuit vacated, holding that a party seeking to vacate an award must sustain a higher burden to prove evident partiality on the part of an arbitrator who is appointed by a party and who is expected to espouse the perspective of the appointing party. The district court weighed the conduct of ICA’s party-appointed arbitrator under the standard governing neutral arbitrators. An undisclosed relationship between a party and its party-appointed arbitrator constitutes evident partiality, such that vacatur is appropriate, if the relationship violates the contractual requirement of disinterestedness or prejudicially affects the award. View "Certain Underwriting Members of Lloyds of London v. Insurance Company of the Americas" on Justia Law

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James Zenovic, doing business as James Zenovic Construction (Zenovic), appealed an order denying his petition to compel arbitration in an action filed by Von Becelaere Ventures, LLC (VBV). The trial court determined Zenovic waived his right to compel arbitration by filing a separate complaint in Orange County to foreclose on a mechanics lien without complying with provisions in Code of Civil Procedure section 1281.51 to preserve his arbitration rights. Zenovic contended the court misread and misapplied section 1281.5, which he contended should only have applied to the mechanics lien action and should not have operated to preclude arbitration of the separate action filed by VBV. The Court of Appeal disagreed: "section 1281.5 'means what it says: A party who files an action to enforce a mechanic's lien, but who does not at the same time request that the action be stayed pending arbitration, waives any right to arbitration.'" The Court, therefore, affirmed the order. View "Von Becelaere Ventures, LLC v. Zenovic" on Justia Law

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In this long-running contractual dispute between Petitioners, the West Virginia Investment Management Board (IMB) and the West Virginia Consolidated Public Retirement Board (CPRB) and Respondent, The Variable Annuity Life Insurance Company (VALIC), the Supreme Court affirmed the order dismissing this matter from the Business Court Division’s docket in reliance on conclusions reached in an arbitration panel’s final decision.The first time the parties were before the Supreme Court, the Court reversed a summary judgment and remanded for further proceedings. The Court further directed that the matter be referred to the Business Court Division. Due to the complexity of the case, the parties agreed to submit the dispute to binding arbitration before a panel of three business court judges. The panel unanimously found in favor of Respondent. The Supreme Court affirmed, holding (1) there was no cause to void the parties’ agreement to submit the matter to binding arbitration; and (2) Petitioners’ arguments that the panel failed to apply the law of the case and neglected to decide all issues before it were unavailing. View "W. Va. Investment Management Board v. Variable Annuity Life Insurance Co." on Justia Law

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In this long-running contractual dispute between Petitioners, the West Virginia Investment Management Board (IMB) and the West Virginia Consolidated Public Retirement Board (CPRB) and Respondent, The Variable Annuity Life Insurance Company (VALIC), the Supreme Court affirmed the order dismissing this matter from the Business Court Division’s docket in reliance on conclusions reached in an arbitration panel’s final decision.The first time the parties were before the Supreme Court, the Court reversed a summary judgment and remanded for further proceedings. The Court further directed that the matter be referred to the Business Court Division. Due to the complexity of the case, the parties agreed to submit the dispute to binding arbitration before a panel of three business court judges. The panel unanimously found in favor of Respondent. The Supreme Court affirmed, holding (1) there was no cause to void the parties’ agreement to submit the matter to binding arbitration; and (2) Petitioners’ arguments that the panel failed to apply the law of the case and neglected to decide all issues before it were unavailing. View "W. Va. Investment Management Board v. Variable Annuity Life Insurance Co." on Justia Law

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The Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters does not permit Chinese citizens to be served by mail, nor does it allow parties to set their own terms of service by contract. The Court of Appeal reversed the trial court's denial of a motion to set aside a default judgment against SinoType, a Chinese company. In this case, the trial court acknowledged that the service of the summons and petition had not complied with the Hague Service Convention, but concluded that the parties had privately agreed to accept service by mail. The court held, however, that SinoType was never validly served with process, and thus no personal jurisdiction by the court was obtained and the resulting judgment was void as violating fundamental due process. View "Rockefeller Technology Investments (Asia) III v. Changzhou Sinotype Technology Co." on Justia Law