Justia Arbitration & Mediation Opinion Summaries

by
In this appeal stemming from a failed real estate investment, plaintiffs challenged the district court’s judgment confirming the arbitration award in favor of the Rainier parties involved in marketing the investment. The real estate transactions underlying this appeal have already been described in greater depth in Rainier DSC 1, L.L.C. v. Rainier Capital Management, L.P., 546 F. App’x 491, 492–93 (5th Cir. 2013). The court affirmed the district court's judgment confirming the arbitration award, concluding that plaintiffs have not identified any basis for vacating the arbitration award. View "Rainier DSC 1, LLC v. Rainier Capital Mgmt." on Justia Law

by
In this appeal stemming from a failed real estate investment, plaintiffs challenged the district court's judgments in favor of the non-arbitrating defendants. The real estate transactions underlying this appeal have already been described in greater depth in Rainier DSC 1, L.L.C. v. Rainier Capital Management, L.P., 546 F. App’x 491, 492–93 (5th Cir. 2013). The court affirmed the district court's grant of summary judgment, concluding that plaintiffs have not shown that the district court erred in not staying the litigation of the non-arbitrating parties during the arbitration or in granting summary judgment in favor of FSA and the physicians. View "Rainier DSC 1, LLC v. Rainier Capital Mgmt." on Justia Law

by
In August 2005, D.R. Horton, Inc. completed construction of the Smiths' home, and the Smiths closed on the property and received the deed. Thereafter, the Smiths experienced a myriad of problems with the home that resulted in severe water damage to the property. D.R. Horton attempted to repair the alleged construction defects on "numerous occasions" during the next five years, but was ultimately unsuccessful. In 2010, the Smiths filed a construction defect case against D.R. Horton and seven subcontractors. In response, D.R. Horton filed a motion to compel arbitration. The Smiths opposed the motion, arguing, inter alia, that the arbitration agreement was unconscionable and therefore unenforceable. The circuit court denied D.R. Horton's motion to compel arbitration, finding that the arbitration agreement was unconscionable. D.R. Horton appealed, but finding no error in the circuit court's decision, the South Carolina Supreme Court affirmed. View "Smith v. D.R. Horton, Inc" on Justia Law

by
Plaintiff filed suit against JSC for an alleged violation of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692. The district court concluded that plaintiff's claim was outside the scope of the arbitration clause and denied JSC's motion to compel arbitration. The court held that plaintiff failed to establish the existence of any agreement between plaintiff and FBD, the issuer of the credit card, beyond the agreement to pay whatever charges plaintiff incurred by using the credit card. Therefore, the court affirmed the judgment on different grounds. View "Bazemore v. Jefferson Capital Sys." on Justia Law

by
RSL Funding, LLC had arbitration agreements with three individuals (collectively, Individuals) who owned annuity contracts they agreed to sell to RSL or its designee. Neither RSL nor the Individuals had arbitration agreements with the companies that wrote the annuity contracts (collectively, MetLife). After MetLife refused to honor contracts by which the Individuals sold their annuities, RSL sued MetLife and the Individuals in the County Court at Law (CCL) for a declaratory judgment. A district court suit was also initiated involving the same parties and subject matter. The Individuals initially joined forces with RSL but disputes subsequently arose. RSL initiated arbitration with the Individuals and moved to stay the CCL suit pending completion of arbitration. The CCL denied the motion. The court of appeals affirmed, concluding that RSL waived its right to arbitrate through its litigation conduct in the trial courts. The First Circuit affirmed but on different grounds, holding (1) the court of appeals erred by determining that RSL waived its right to arbitrate by litigation conduct; but (2) RSL did not challenge a separate ground on which the trial court court have denied RSL’s motion to stay the litigation - that RSL failed to join its assignees in the arbitration. View "RSL Funding, LLC v. Pippins" on Justia Law

by
In this, the second appeal arising out of a lawsuit against Westgate Resorts alleging violations of the Utah Pattern of Unlawful Activity Act, Westgate challenged an arbitration panel’s award of attorney fees to Shawn Adel and Consumer Protection Group, LLC (collectively, CPG). In the first appeal, the Supreme Court confirmed the panel’s award of damages against Westgate. Here, Westgate argued, inter alia, that the arbitration panel had no authority to award attorney fees for the court proceedings that confirmed the panel’s decision on the merits. The Supreme Court affirmed, holding (1) the panel’s award of fees for court proceedings confirming the panel’s own decisions is void because the Utah Uniform Arbitration Act does not authorize attorney fees for such proceedings; (2) the Utah Pattern of Unlawful Activity Act allows the panel’s award of attorney fees expended during arbitration; and (3) CPG is entitled to attorney fees for this appeal. View "Westgate Resorts, Ltd. v. Adel" on Justia Law

by
Panoche, a producer of electricity, and Pacific Gas and Electric Company (PG&E), a utility that purchases its electricity, disputed which of them should bear the costs of complying with a legislatively-mandated program to reduce greenhouse gas emissions pursuant to the Global Warming Solutions Act (Assem. Bill 32 (2005–2006 Reg. Sess.). PG&E invoked the arbitration clause in its agreement with Panoche. Panoche resisted arbitration, arguing that the controversy was not ripe for resolution because ongoing regulatory proceedings at the California Air Resources Board and the California Public Utilities Commission would at least provide guidance in the arbitration and could render the proceeding unnecessary. The arbitration panel denied Panoche’s motion, and after a hearing determined that Panoche had assumed the cost of implementing AB 32 under the agreement and understood that at the time of signing. The arbitrators also concluded that the parties “provide[ed] for recovery of GHG costs” by Panoche through a “payment mechanism” in the agreement. The trial court agreed with Panoche, ruled that the arbitration was premature, and vacated the award. The court of appeal reversed and ordered confirmation of the award. Panoche identified no procedural disadvantage it suffered in going forward with the arbitration as scheduled and failed to meet the “sufficient cause” prong under Code of Civil Procedure 1286.2(a)(5). View "Panoche Energy Ctr. v. Pac. Gas & Elec." on Justia Law

by
This case arose when Leeward and AUA entered into an agreement for Leeward to build a medical school for AUA in Antigua. AUA subsequently appealed the district court's confirmation of an international arbitration award entered in favor of Leeward. AUA principally argues that the district court erred in confirming the award because the arbitration panel failed to fulfill its obligation to produce a reasoned award.The court held, however, that an arbitration decision need not contain a line‐by‐line analysis of damages awarded to be considered a reasoned award. Rather, an arbitration award is a reasoned award when it contains a substantive discussion of the panel’s rationale. The court considered AUA's remaining arguments and found them to be without merit. Accordingly, the court affirmed the judgment. The court disposed of Case No. 15-1595-cv in a separate summary order issued concurrently with this decision. View "Leeward Construction Co. v. American Univ. of Antigua" on Justia Law

by
On her father’s behalf, Debra Tarvin signed a nursing home Admission Agreement which contained an arbitration provision. After her father Caldwell Tarvin died, she brought a wrongful-death suit against the nursing home, CLC of Jackson, LLC d/b/a Pleasant Hills Community Living Center (“Pleasant Hills”). Caldwell was admitted to Pleasant Hills in August 2007, and Debra signed an Admission Agreement as Caldwell’s “Responsible Party.” Janet Terrell and Annette Tarvin also signed the Agreement as “Family Members” but Caldwell himself did not sign the Agreement. Pleasant Hills moved to dismiss the proceedings and to compel arbitration. Debra responded and argued that Pleasant Hills had waived its right to compel arbitration by participating in the litigation. Debra also argued that Pleasant Hills had “completely ignore[d] the issue of whether or not Mr. Tarvin’s family members had the legal authority to bind him to an arbitration agreement[.]” Specifically, Debra argued that there was “no legal authority, such as a power of attorney or conservatorship” by which she could bind her father to the arbitration agreement, nor could she bind him under the Uniform Healthcare Decisions Act, because “the record is devoid of any evidence” that the physicians relied upon by Pleasant Hills were Caldwell’s primary physicians. The trial court granted Pleasant Hills' motion, and Debra appealed. The relevant statutes at play here were codified as the “Uniform Health-Care Decisions Act,” Mississippi Code Section 41-41-201 to 41-41-229 (the “Act”). The Supreme Court's review of this case found that Act required determination by a primary physician that an individual lacks capacity before a “surrogate” properly can make a healthcare decision for that individual. The record here did not support a finding that a certain "Dr. Thomas" was Caldwell’s primary physician. The Court therefore reversed the trial court’s order compelling arbitration and remanded the case for further proceedings. View "Tarvin v. CLC of Jackson, LLC d/b/a Pleasant Hills Community Living Center" on Justia Law

by
Plaintiff filed suit against defendants under federal laws, alleging that he was wrongfully terminated. On appeal, defendants challenge the trial court's denial of their motion to compel arbitration. The court concluded that the undisputed facts demonstrate that there is a valid arbitration agreement; the agreement to arbitrate is not illusory; and, as discussed in the unpublished part of the court's opinion, the arbitration agreement is not unconscionable to the degree that it is unenforceable. Accordingly, the court reversed the order compelling arbitration. View "Harris v. TAP Worldwide" on Justia Law