
Justia
Justia Arbitration & Mediation Opinion Summaries
Seagate Tech., LLC v. W. Digital Corp.
After Sining Mao left his employment with Seagate Technology, LLC, Mao joined Seagate’s competitor, Western Digital Corporation. Seagate subsequently commenced a district court action alleging that Mao stole Seagate’s trade secrets and confidential information and provided it to Western Digital. Western Digital invoked an arbitration clause in Mao’s employment agreement with Seagate. Before the arbitration hearing, Seagate brought a motion for sanctions against Western Digital and Mao (Appellants) based on alleged fabrication of evidence. An arbitrator issued an award against Appellants in an amount exceeding $500 million. The district court vacated the award in part, but the court of appeals reinstated the award. On appeal, Appellants argued that the arbitrator’s exceeded his authority by issuing punitive sanctions and prejudiced Appellants by refusing to hear evidence material to the controversy. The Supreme Court affirmed the court of appeals’ decision reinstating and confirming the arbitration award in full, holding that the arbitrator did not exceed his authority or refuse to hear material evidence as required for vacatur. View "Seagate Tech., LLC v. W. Digital Corp." on Justia Law
CB Richard Ellis v. Terra Nostra Consultants
Plaintiff CB Richard Ellis, Inc. (CBRE), pursuant to a 2004 listing agreement, sought a commission after the 2005 sale of 38 acres of land in Murrieta. Arbitration proceedings between CBRE and the seller, Jefferson 38, LLC resulted in a confirmed arbitral award in CBRE’s favor, but no monetary satisfaction for CBRE because Jefferson had no assets by the time of the arbitral award and judgment. The issue this case presented to the Court of Appeal centered on CBRE’s attempt to recover damages from Jefferson’s individual members. A jury trial resulted in a $354,000 judgment in favor of CBRE. Both defendants and CBRE appealed the judgment, citing alleged errors pertaining to jury instructions, the admissibility of evidence, juror misconduct, attorney fees, and prejudgment interest. Upon review, the Court of Appeal rejected the parties’ contentions, except with regard to CBRE’s entitlement to attorney fees. View "CB Richard Ellis v. Terra Nostra Consultants" on Justia Law
Smith v. Express Check Advance of Mississippi, LLC
Lacie Smith worked for Express Check Advance of Mississippi, LLC. A condition in her employment papers was that she agreed to submit “any employment-related dispute” to arbitration. Later, in response to her termination, Smith sued Express Check in circuit court. The trial judge compelled arbitration and Smith appealed. Finding no reversible error, the Supreme Court affirmed.
View "Smith v. Express Check Advance of Mississippi, LLC" on Justia Law
Posted in:
Arbitration & Mediation, Labor & Employment Law
Inetianbor v. Cashcall, Inc., et al.
Plaintiff filed suit against CashCall, which then sought to compel arbitration based on the parties' loan agreement. The district court refused to compel arbitration and CashCall appealed. The court held CashCall to the terms of the integral forum selection provision included in plaintiff's loan agreement. Because the selected forum - the Cheyenne River Sioux Tribal Nation - is unavailable, a substitute arbitrator under 9 U.S.C. 5 cannot be appointed under the terms of the contract. Accordingly, the court affirmed the district court's order deciding not to compel arbitration. View "Inetianbor v. Cashcall, Inc., et al." on Justia Law
Posted in:
Arbitration & Mediation
Sch. Comm. of Lexington v. Zagaeski
The Lexington school district superintendent dismissed Mark Zagaeski, a Lexington high school teacher, from his position for conduct unbecoming a teacher. Zagaeski timely filed an appeal from the school district’s dismissal decision, which resulted in arbitration proceedings. The arbitrator (1) concluded that the school district carried its burden to show facts amounting to conduct unbecoming a teacher but that Zagaeski’s conduct only “nominally” constituted a basis for dismissal; and (2) reinstated Zagaeski as a teacher on the basis of “the best interests of the pupils.” The superior court confirmed the arbitrator’s award. The Supreme Judicial Court reversed the decision of the superior court judge and vacated the arbitration award, holding that, under the facts of this case, the arbitrator exceeded the scope of his authority by awarding Zagaeski's reinstatement. View "Sch. Comm. of Lexington v. Zagaeski" on Justia Law
Commissions Import Export S.A. v. Republic of the Congo, et al.
After the Company prevailed in a 2000 arbitration in France against the Congo, the Company sought to collect the arbitral award with little success. The Company obtained a judgment in 2009 from a court in England enforcing the arbitral award. The Company then sued in the United States to enforce the foreign judgment under state law. The court held that the limitations period in the Federal Arbitration Act (FAA), 9 U.S.C. 207, does not preempt the longer limitations period in the D.C. Recognition Act, D.C. 15-639, and the court reversed the dismissal of the complaint. The court remanded the case for the district court to determine whether the English Judgment is enforceable under the D.C. Recognition Act.View "Commissions Import Export S.A. v. Republic of the Congo, et al." on Justia Law
Visiting Nurse Ass’n of Fla., Inc. v. Jupiter Med. Ctr., Inc.
In this contract dispute between a home health care agency, Visiting Nurse Association of Florida, Inc. (VNA), and a hospital, Jupiter Medical Center, Inc. (JMC), an arbitration panel granted VNA damages. JMC filed a motion to vacate the arbitration award, alleging that the arbitration panel construed the contract containing an arbitration provision to be an unlawful agreement. The circuit court dismissed the motion to vacate and granted the motion to enforce the award. The Fourth District Court of Appeal reversed, holding that a court must determine whether a contract is legal prior to enforcing an arbitral award based on the contract. The Supreme Court quashed the Fourth District’s decision, holding (1) the claim that an arbitration panel construed a contract containing an arbitration provision to be an unlawful agreement is an insufficient basis to vacate an arbitrator’s decision pursuant to the Federal Arbitration Act or the Florida Arbitration Code; and (2) the arbitration panel did not exceed its powers in this case.
View "Visiting Nurse Ass’n of Fla., Inc. v. Jupiter Med. Ctr., Inc." on Justia Law
Posted in:
Arbitration & Mediation, Contracts
Douglas v. Trustmark National Bank
Plaintiff briefly had a checking account with Union Planters Bank and had signed a signature card binding her to arbitration. Union Planters merged with Regions Bank. Years after closing her account, plaintiff was injured in an automobile accident. The lawyer she retained allegedly embezzled plaintiff's portion of the settlement and she sued Trustmark Bank, where the lawyer maintained his accounts, for negligence and conversion. Regions moved to compel arbitration based on the arbitration agreement. Because the events leading to plaintiff's claim - a car accident, a settlement, and embezzlement of the funds through an account that a third party held with the bank - have nothing to do with her checking account opened years earlier for only a brief time, the notion that her claim falls within the scope of the arbitration agreement is "wholly groundless." Accordingly, the court affirmed the district court's denial of the motion to compel arbitration.View "Douglas v. Trustmark National Bank" on Justia Law
Posted in:
Arbitration & Mediation, Banking
Al Rushaid, et al. v. National Oilwell Varco, Inc., et al.
Plaintiffs filed suit against defendants over a dispute regarding various, separate contracts between ARPD and individual defendants. On appeal, defendants challenged the district court's denial of a motion to compel arbitration submitted by NOV Norway. The court vacated and remanded, concluding that there was an arbitration agreement and that NOV Norway could not be held responsible for the actions of its codefendants in this case.View "Al Rushaid, et al. v. National Oilwell Varco, Inc., et al." on Justia Law
Posted in:
Arbitration & Mediation
Eckert/Wordell Architects, Inc, et al. v. FJM Propertiesof Willmar, LLC
Eckert Wordell appealed the district court's grant of summary judgment to FJM, which compelled the parties to submit to an arbitrator the threshold issue of whether FJM may use an arbitration provision in a contract it did not sign to compel Eckert Wordell to arbitrate. The court previously held that the incorporation of the American Arbitration Association (AAA) Rules into a contract requiring arbitration to be clear and unmistakable indicated that the parties intended for the arbitrator to decide the threshold questions of arbitrability. Eckert Wordell's drafting of the architectural services contract here to incorporate the AAA Rules requires the same result. Accordingly, the court affirmed the judgment of the district court.View "Eckert/Wordell Architects, Inc, et al. v. FJM Propertiesof Willmar, LLC" on Justia Law
Posted in:
Arbitration & Mediation