Justia Arbitration & Mediation Opinion Summaries

This interlocutory appeal concerned a contract dispute about the provision of food services at the Fort Riley Army base in Kansas. The Department of the Army (Army) contracts with outside vendors for food preparation and related supporting services for its cafeteria dining facilities at Fort Riley. Since 2006, the State of Kansas, through the Kansas Department for Children and Families (Kansas), successfully bid under the RSA on those food preparation and related services contracts at Fort Riley. Kansas’s most recent contract awarded under the RSA was scheduled to expire in February 2016. As that date approached, the Army determined that its next dining contract at Fort Riley would be for supporting services only. The Army therefore decided that it need not solicit bids under the RSA and it approached another vendor directly, as permitted by the JWOD. Kansas took exception to the Army’s decision because it eliminated Kansas’s ability to bid on the contract. So Kansas initiated arbitration proceedings under the RSA’s dispute resolution provisions. And upon learning that the Army intended to contract with the other vendor despite the commencement of arbitration proceedings, Kansas sued in federal court, seeking to preliminarily enjoin the Army from executing the JWOD contract pending arbitration. The root of the dispute was the intersection of two federal statutes that both address the procurement of food services at federal facilities: (1) the Randolph-Sheppard Vending Facility Act of 1936 (RSA), and (2) the Javits Wagner O’Day Act (JWOD). The parties disagreed as to which of these statutes governed the award of the Fort Riley food services contract. And due to events that have occurred since this action was filed, the parties also disputed whether this appeal was rendered moot. The Tenth Circuit concluded that the issue raised by this appeal fell within an exception to the mootness doctrine for matters capable of repetition yet evading review. Because an arbitration panel has since issued its decision thereby dissolving the injunction at issue in this appeal, the Court declined to address whether the district court correctly granted the injunction. View "Kansas Department for Children v. SourceAmerica" on Justia Law

Baxter sued her former employer, Genworth, for wrongful termination and related causes of action, based on discrimination and retaliation, arising out of her employment. Genworth moved to compel arbitration as part of Genworth’s Resolve Employee Issue Resolution Program, which consists four stages, The trial court concluded, and the court of appeal affirmed, that the arbitration agreement Baxter signed in 2006, as a condition of continued employment, is unconscionable, refusing to sever any provisions. Agreement as a condition of continued employment amounted to “modest procedural unconscionability.” The court concluded that several features of the agreement were substantively unconscionable: default discovery limitations, a prohibition against contacting witnesses, procedural deadlines that effectively shorten the statute of limitations and preclude a meaningful opportunity for a pre-litigation Fair Employment and Housing Act investigation, and accelerated hearing procedures that infringe upon an employee’s ability to adequately present his or her case. The severance of the offending provisions was not an option because the arbitration agreement is permeated by unconscionability. View "Baxter v. Genworth North America Corp." on Justia Law

This appeal stemmed from Brian Pedigo’s suit against Rent-A-Center, Inc., for actual and punitive damages, alleging claims of malicious prosecution, false imprisonment, and intentional infliction of emotional distress. Pedigo visited Rent-A-Center, Inc.’s (RAC) Booneville location, and decided to make the rental-purchase of a back-lit, LED television. He entered a Rental Purchase Agreement (RPA) for the lease. Under the RPA, Pedigo agreed to make specified payments over the course of twenty-three months, in an effort to own the television after all payments were remitted. Incorporated within the RPA was RAC’s standard Consumer Arbitration Agreement (CAA), which outlined those claims covered and those not covered in a dispute between the parties, and the process the parties would engage in should a dispute arise. Pedigo initialed and signed both documents, agreeing to the terms within. By February 2013, Pedigo had failed to fulfill his payment obligations under the RPA and was more than twenty days past-due under the agreement. Finding the contract had been breached, RAC manager Kristopher Robinson sought to recover the television from Pedigo. Through his attempts at recovery, Robinson discovered that the television was pawned shortly after it was leased. After discovering Pedigo had pawned the television, Robinson filed a complaint with the Booneville police in April 2013. Based on this information, an arrest warrant for the theft of rental property was issued for Pedigo on May 1, 2013. He was indicted on October 22, 2013, for defrauding RAC, and was arrested and incarcerated on December 11, 2013. On June 9, 2014, the State retired the October 2013 felony charge, ending the prosecution of the criminal matter. Following his release, Pedigo filed this civil action claiming that RAC filed a false report with the police which resulted in his incarceration–an act that he claims amounted to malicious prosecution. After a preliminary review of the matter, the Circuit Court found in favor of Rent-A-Center, ruling that the parties entered a valid and enforceable arbitration agreement which covered Pedigo’s claims. The Mississippi Supreme Court found, however, such ruling was made in error: though broad, the arbitration agreement did not contemplate Pedigo having to arbitrate his claim that Rent-A-Center maliciously swore out a criminal affidavit, causing his wrongful incarceration. Accordingly, the Court reversed the previous ruling and remanded the case to the circuit court for further proceedings. View "Pedigo v. Rent-A-Center, Inc." on Justia Law

The Tennessee Uniform Trust Code is intended to give trustees broad authority to fulfill their duties as trustee and gives trustees the power to enter into predispute arbitration agreements, so long as doing so is not prohibited under the operative trust instrument.At issue in this interlocutory appeal was whether the signature of the trustee of a trust on an investment/brokerage account agreement that included a provision requiring the arbitration of disputes bound the beneficiary of the trust to the predispute arbitration provision. The Supreme Court held (1) under both the Tennessee Uniform Trust Code and the operative trust instrument, the trustee had authority to enter into the arbitration agreement contained within the account agreement; and (2) applying the principle that a third party who seeks the benefit of a contract must also bear its burdens, the trust beneficiary in this case may be bound to arbitrate claims against the investment broker that sought to enforce the account agreement. The court vacated the trial court order compelling arbitration of all claims and remanded the case to the trial court for a determination as to which, if any, of the claims asserted by the trust beneficiary seek to enforce the account agreement. View "Harvey ex rel. Gladden v. Cumberland Trust & Investment Co." on Justia Law

In an appeal by allowance, the issue presented for the Pennsylvania Supreme Court’s review was whether, in the context of a grievance arbitration award, an arbitrator has subject matter jurisdiction to adjudicate a dispute between a union and a municipality arising out of a surviving spouse’s pension benefit, where the benefit was afforded to the surviving spouse statutorily and incorporated into the parties’ collective bargaining agreement (CBA). Pamela Cimino’s husband, Thomas J. Cimino, was a police officer for the City of Arnold, Pennsylvania (City) from July 1, 1990 until April 4, 2002. On April 4, 2002, Officer Cimino died off-duty of natural causes. At the time of his death, Officer Cimino had completed 11.77 years of service. The City issued Mrs. Cimino 142 consecutive monthly death benefit payments, from May 1, 2002 to February 1, 2014. However, in a 2014 compliance audit, the Commonwealth Auditor General’s Office determined that the City was incorrectly administering the death benefit. According to the Auditor General’s compliance audit, the City had been paying Mrs. Cimino twice as much as it should have under its interpretation of the applicable statute. The Wage Policy Committee of the City of Arnold Police Department (Union) initiated a grievance on behalf of Mrs. Cimino to dispute the 50% reduction in her death benefit pension payments. The Union followed the grievance procedure contained in the CBA between the City and the Union. The Pennsylvania Supreme Court concluded a dispute as here was arbitrable under the Policemen and Firemen Collective Bargaining Act (“Act 111”), 43 P.S. secs. 217.1-217.10, because the surviving spouse’s pension benefit was incorporated into the CBA. Accordingly, the Court reversed the order of the Commonwealth Court which held to the contrary. View "City of Arnold v. Wage Policy Committee" on Justia Law

San Francisco Baseball Associates (the Giants) unsuccessfully moved to compel arbitration of the wage and hour claims of Melendez, a security guard employed at AT&T Park. Melendez argued that he and other security guards were employed “intermittingly” for specific assignments and were discharged “at the end of a homestand, at the end of a baseball season, at the end of an inter-season event like a fan fest, college football game, a concert, a series of shows, or other events,” and, under Labor Code section 201, were entitled to but did not receive immediate payment of their final wages upon each “discharge.” The Giants argued that immediate payment was not required because, under the terms of the collective bargaining agreement (CBA) between the Giants and the union, Melendez and all such security guards are not intermittent employees but are “year-round employees who remain employed with the Giants until they resign or are terminated pursuant to the CBA.” The Giants argued that the action is preempted by section 301 of the federal Labor Management Relations Act, 29 U.S.C. 185(a). The court of appeal affirmed, finding that the dispute is not within the scope of the CBA's arbitration provision but that arbitration is required by section 301. View "Melendez v. San Francisco Baseball Associates" on Justia Law

The NFLPA filed a complaint on behalf of Ezekiel Elliott, a running back for the Dallas Cowboys, seeking a preliminary injunction preventing enforcement of a forthcoming six game suspension by the NFL and NFL Management Council. The Commissioner of the NFL determined that domestic violence allegations were substantiated and that Elliott should be suspended for six games. An arbitrator issued a decision upholding the suspension on the same day the district court held a preliminary injunction hearing. The district court then enjoined the NFL from enforcing the suspension. The Fifth Circuit vacated the district court's preliminary injunction, holding that the district court lacked subject matter jurisdiction when it issued the preliminary injunction. In this case, when the NFLPA filed the complaint, the arbitrator had not yet issued his decision, and jurisdiction depends on the facts as they exist when the complaint was filed. Accordingly, the court remanded with instructions to dismiss the case. View "NFLPA v. NFL" on Justia Law

The Supreme Court reversed the district court’s order denying Kindred Nursing and Rehabilitation - Wind River’s motion to compel arbitration in this wrongful death action. Aletha Boyd died following her discharge from Kindred. Aletha’s daughter, Susan Boyd, filed this action alleging that Kindred’s negligence in caring for Aletha caused her death. Kindred moved to compel arbitration pursuant to an alternative dispute resolution (ADR) agreement signed by Leanna Putman, Aletha’s other daughter and representative under a power of attorney at the time of Aletha’s admission into the nursing home. The district court denied the motion without providing reasons for doing so. The Supreme Court remanded with instructions to order arbitration as required by the ADR agreement, holding (1) Putnam had the authority to sign the ADR agreement on Aletha’s behalf; and (2) the ADR was neither unconscionable nor lacked mutuality of assent or sufficient consideration. View "Kindred Heathcare Operating, Inc. v. Boyd" on Justia Law

The Supreme Court reversed the district court’s order denying Kindred Nursing and Rehabilitation - Wind River’s motion to compel arbitration in this wrongful death action. Aletha Boyd died following her discharge from Kindred. Aletha’s daughter, Susan Boyd, filed this action alleging that Kindred’s negligence in caring for Aletha caused her death. Kindred moved to compel arbitration pursuant to an alternative dispute resolution (ADR) agreement signed by Leanna Putman, Aletha’s other daughter and representative under a power of attorney at the time of Aletha’s admission into the nursing home. The district court denied the motion without providing reasons for doing so. The Supreme Court remanded with instructions to order arbitration as required by the ADR agreement, holding (1) Putnam had the authority to sign the ADR agreement on Aletha’s behalf; and (2) the ADR was neither unconscionable nor lacked mutuality of assent or sufficient consideration. View "Kindred Heathcare Operating, Inc. v. Boyd" on Justia Law

The Supreme Judicial Court affirmed the judgment of the superior court granting Matthew Eastwick’s application to confirm an arbitration award and denying Cate Street Capital, Inc.’s competing motion to vacate that award after concluding that the parties had agreed to arbitrate any disputes arising from a settlement agreement. The Supreme Judicial Court held (1) the agreement contained clear contractual language of the parties’ intent to submit disputes to the mediator for binding arbitration; and (2) although the parties’ confidentiality had been compromised by the litigation, the court’s judgment incorporated the final agreement without ordering acceleration of those payments not yet due and without modifying any of its terms, including the agreement’s confidentiality provision. View "Eastwick v. Cate Street Capital, Inc." on Justia Law