Justia Arbitration & Mediation Opinion Summaries

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Saxon Special Servicing serviced a promissory note that secured a home loan for Appellants. After Appellants stopped making payments to Saxon, a notice of default was recorded. Appellants elected to mediate in Nevada's Foreclosure Mediation Program (FMP). Saxon provided all of the required documents for the mediation, including an eighty-three-day-old broker's price opinion (BPO). The mediator ultimately determined that Saxon failed to provide "an appraisal within sixty days of mediation" because the BPO was not prepared within sixty days of the mediation. The district court concluded that the parties had negotiated in good faith with valid authority and that there was no reason to withhold the FMP certificate. The Supreme Court affirmed the district court's order denying the petition for judicial review, holding (1) the mediation rule requiring an appraisal or broker's price opinion that is no more than sixty days old at the time of the mediation requires substantial, rather than strict, compliance; and (2) Saxon substantially complied with the foreclosure mediation rule requiring a current appraisal. View " Markowitz v. Saxon Special Servicing" on Justia Law

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Plaintiff obtained a last will and testament from LegalZoom.com. Before receiving the requested document, Plaintiff agreed to LegalZoom.com's terms of service, which included an arbitration provision. The agreement also provided that the Federal Arbitration Act (FAA) governed the interpretation and enforcement of the agreement's provisions. Plaintiff later filed a class-action lawsuit, alleging that LegalZoom.com engaged in the unauthorized practice of law, among other claims. LegalZoom.com filed a motion to compel arbitration. The trial court denied the motion based upon the allegations concerning the unauthorized practice of law. The Supreme Court reversed, holding (1) the circuit court erred because Arkansas law does not prohibit the enforcement of arbitration agreements requiring resolution through arbitration of private claims when a dispute concerns allegations of the unauthorized practice of law; and (2) any rule prohibiting arbitration of unauthorized practice-of-law claims were preempted by the FAA in this case. View "Legalzoom.com, Inc. v. McIllwain" on Justia Law

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Stephanie Lee and Benjamin Redus were the parents and joint managing conservators of their minor daughter. A 2007 order adjudicating parentage gave Stephanie the exclusive right to designate the child's primary residence. Benjamin sought to modify that order. The parties executed a mediated settlement agreement (MSA) modifying the 2007 order. Stephanie moved to enter judgment on the MSA, but Benjamin withdrew his consent to the MSA, arguing that it was not in the best interest of the child. The district court refused to enter judgment on the MSA, concluding that it was not in the best interest of the child. Stephanie unsuccessfully petitioned the court of appeals for a writ of mandamus ordering the trial court to enter judgment on the MSA. The Supreme Court conditionally granted the writ of mandamus, holding (1) a trial court may not deny a motion to enter judgment on a properly executed MSA on the grounds that the MSA was not in a child's best interest; and (2) because the MSA in this case met the Family Code's requirements for a binding agreement, the trial court abused its discretion by denying the motion to enter judgment on the MSA.View "In re Lee" on Justia Law

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Respondents in this case included Kaiser Foundation Health and Kaiser Foundation Hospitals (collectively, Kaiser). Michael Siopes, a public school teacher, enrolled in a Kaiser health plan offered through the Hawaii Employer-Union Health Benefits Trust Fund (EUTF). Michael was later diagnosed with cancer by a Kaiser medical professional. Michael and his wife, Lacey, subsequently consulted a medical team at Duke University Medical Center. The Duke team determined that Kaiser's diagnosis was erroneous and recommended a different treatment plan. Michael received treatment at Duke that was ultimately successful. Kaiser denied Michael's request for coverage. Michael and Lacey sued Kaiser for, among other things, breach of contract and medical malpractice. Kaiser filed a motion to compel arbitration, arguing that a group agreement entered into Kaiser and the EUTF was applicable to Michael when he signed the enrollment form. The group agreement contained an arbitration provision. The circuit court granted the motion to compel arbitration. The Supreme Court vacated the circuit court's orders, holding (1) the arbitration provision was unenforceable based on the lack of an underlying agreement between Kaiser and Michael to arbitrate; and (2) accordingly, Lacey was also not bound to arbitrate her claims in this case.View "Siopes v. Kaiser Found. Health Plan, Inc." on Justia Law

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Raymond James Financial Services, Inc. (RJFS), and its employee, Bernard Michaud appealed a trial court order vacating an arbitration award in their favor and entering a judgment in favor of Kathryn Honea. Honea had multiple investment accounts with Raymond James and sued RJFS alleging violations of the Alabama Securities Act and sought damages for breach of contract, breach of fiduciary duty, negligence, wantonness, and fraud. RJFS moved to compel arbitration, and the trial court granted the motion. An arbitration panel unanimously entered an award in favor of RJFS on Honea's claims. Honea filed a motion at circuit court to vacate the award. The trial court ultimately vacated the award, and RJFS appealed. On appeal, the Supreme Court reversed the trial court's judgment vacating the arbitration award, holding that a provision in the arbitration agreement Honea signed when she opened the accounts required the trial court to conduct a de novo review of the arbitration award, and remanded the case for it to conduct such a review. Both parties acknowledged on appeal that the award had not been entered as a judgment of the trial court. Because the award to RJFS was not entered as a judgment of the trial court as required by statute, the Supreme Court could reach no other conclusion but that the trial court lacked subject-matter jurisdiction to review the award on remand. Accordingly, the trial court's judgment purporting to vacate that award and to enter a judgment in favor of Honea was void. This appeal was dismissed.View "Raymond James Financial Services, Inc. v. Honea " on Justia Law

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Plaintiff took exceptions to the Master's Final Report which allowed for the withdrawal of an agreed-upon arbitrator because he had concluded that he could not fairly and objectively resolve plaintiff's dispute with defendant. The Master concluded that ordering arbitration before an arbitrator who admitted his conflicts would serve no useful purpose and that a substitute arbitrator should be designated to resolve the parties' dispute. The court concluded that plaintiff's exceptions to the Master's Final Report were overruled. The Master's Report, with its findings of fact, conclusions of law, and recommended remedy were confirmed and adopted.View "Lynn v. Ullrich" on Justia Law

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This matter involved the acquisition of R&S by KBR from ENI pursuant to a stock purchase agreement (SPA). At issue was whether the entire escrow fund should be released to ENI or whether it was entitled to a portion of this fund. KBR sought a preliminary injunction of any further proceedings before the arbitrator. The court denied the motion for a preliminary injunction because the issues involved in this request were largely mooted by clarification of the parties' positions during briefing and by clarification of the law by the Supreme Court in Viacom International v. Winchell, which was decided while this matter was being briefed.View "ENI Holdings, LLC v. KBR Group Holdings, LLC" on Justia Law

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Petitioners Lawrence Hill, Adam Wise, and Robert Miller represented a class of employees who worked for an armored car company Garda CL Northwest, Inc. They brought a wage and hour suit against the company, citing violations of the Washington Industrial Welfare Act, and the Washington Minimum Wage Act. After several months of litigation, Garda moved to compel arbitration under the terms of a labor agreement. The trial court granted the motion, but ruled that the employees could arbitrate as a class. The Court of Appeals affirmed the order to compel arbitration, but that the employees must arbitrate individually notwithstanding the class certification. Both sides appealed the appellate court decision. Upon review, the Supreme Court concluded the arbitration clause was unconscionable, and reversed the Court of Appeals. View "Hill v. Garda CL Northwest. Inc." on Justia Law

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In 2007, Schuiling hired Harris as his full-time, live-in housecleaner. Harris signed an arbitration agreement, a one-page, pre-printed form prepared for Schuling’s auto business, stating that disputes “shall be resolved exclusively by arbitration administered by the National Arbitration Forum under its code of procedure then in effect.” In 2011, Harris sued Schuiling, alleging multiple torts, statutory violations, and breach of contract. Schuiling moved to enforce arbitration under Code § 8.01-581.02(A), stating that the National Arbitration Forum was no longer available and requesting the court to appoint a substitute arbitrator under Code § 8.01-581.03. Harris argued that unavailability of the named arbitrator, coupled with the agreement’s failure to provide for a substitute arbitrator, rendered the agreement unenforceable. The circuit court agreed with Harris and denied the motion to compel arbitration. The Virginia Supreme Court reversed. Relying on the intention of the parties as expressed in the language of the agreement, the court concluded that NAF’s designation as arbitrator was not integral and was severable in order to give effect to the arbitration requirement, the sole purpose of the agreement.View "Schuiling v. Harris" on Justia Law

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In a matter of first impression, the Supreme Court was asked to determine if an unsuccessful party in an arbitration proceeding could prevent the confirmation of an award by paying the award prior to the confirmation proceeding. Diane Henderson filed an action against Summerville Ford-Mercury, Inc. alleging the dealer made misrepresentations to her when she purchased a used vehicle. The circuit court granted the dealer's motion to compel arbitration, and an arbitrator found for Henderson on her claims for violation of the South Carolina Unfair Trade Practices Act and the South Carolina Regulation of Manufacturers, Distributors, and Dealers Act. Henderson moved to confirm the arbitration award, which was granted by the circuit court. The dealer appealed, arguing the circuit court erred: (1) in rejecting its assertion that payment of the award mooted the request for confirmation, leaving no "justiciable controversy"; and alternatively (2) in applying the provision for confirming awards contained in the South Carolina Uniform Arbitration Act ("UAA"), rather than the Federal Arbitration Act ("FAA"). Upon review, the Supreme Court concluded the unsuccessful party could not prevent confirmation of the award by paying it before confirmation. View "Henderson v. Summerville Ford-Mercury" on Justia Law