Justia Arbitration & Mediation Opinion SummariesArticles Posted in Antitrust & Trade Regulation
King Cole Foods, Inc., et al v. SuperValu, Inc., et al
Plaintiffs, five retail grocers, each attempting to bring class-action antitrust claims against one of two wholesale grocers, appealed the district court's grant of defendants' motion to dismiss plaintiffs claims from the putative class action. The court held that the non-signatory defendants could not use equitable estoppel to compel arbitration of plaintiffs' claims. Since the district court found the equitable estoppel issue dispositive, it did not address the successor-in-interest argument and therefore, the court remanded for the district court to consider this argument in the first instance. The court concluded that the remaining public policy arguments were moot or the court declined to issue an advisory opinion. View "King Cole Foods, Inc., et al v. SuperValu, Inc., et al" on Justia Law
In Re: Pharmacy Benefit Mgrs. Antitrust Litig.
AdvancePCS is a prescription benefits manager for plans sponsored by employers, unions, and others and is retained to achieve savings by negotiating discounts from drug manufacturers, providing mail order service, contracting with retail pharmacies, and electronic processing and paying of claims. Plaintiffs are retail pharmacies that entered into agreements with AdvancePCS that include an agreed reimbursement rate and an arbitration clause. In 2003, plaintiffs filed suit, asserting that AdvancePCS engaged in an unlawful conspiracy with plan sponsors to restrain competition in violation of the Sherman Act, 15 U.S.C. 1; that AdvancePCS used the economic power of its sponsors to reduce the contractual amount it pays below levels prevailing in a competitive marketplace; and that the agreements impose other limitations. For almost a year, AdvancePCS litigated without mentioning arbitration. After denial of a motion to dismiss and reconsideration, AdvancePCS filed an answer with affirmative defenses, then sought to compel arbitration. The court granted the motion. Plaintiffs did not initiate arbitration, but sought dismiss pending appeal. A different judge vacated the order compelling arbitration. The Third Circuit remanded with directions to reinstate the order compelling arbitration. On remand, a third judge granted dismissal. The Third Circuit ruled in favor of plaintiffs, holding that AdvancePCS waived its right to arbitrate. View "In Re: Pharmacy Benefit Mgrs. Antitrust Litig." on Justia Law
DIRECTV, Inc. v. Murray
Appellee initiated this putative class-action lawsuit against DIRECTV, seeking damages for herself individually and on behalf of other former DIRECTV subscribers who paid an early cancellation fee to DIRECTV after they terminated DIRECTV's service. Appellee alleged that DIRECTV's enforcement and collection of its early cancellation fee was deceptive and unconscionable in violation of the Arkansas Deceptive Trade Practices Act. Appellee moved to certify the litigation as a class action. DIRECTV moved to compel Appellee to arbitration in accordance with the arbitration provision in the customer agreement that DIRECTV alleged had been mailed with Appellee's first billing statement. The circuit court denied the motion to compel arbitration and granted Appellee's motion for class certification. The Supreme Court affirmed, holding (1) the circuit court correctly denied DIRECTV's motion to compel Appellee to arbitration on the basis that Appellee cancelled her service so quickly she did not assent to the arbitration agreement by her continued use of service; and (2) there was no merit to DIRECTV's arguments for reversal of the class-certification order. View "DIRECTV, Inc. v. Murray" on Justia Law