Justia Arbitration & Mediation Opinion Summaries

This case arose when plaintiff filed a putative class action in state court against Santander alleging violations of various Maryland consumer protection laws for undisclosed finance charges and other unfair business practices. Santander subsequently appealed from the district court's order denying its motion to compel arbitration and stay court proceedings of plaintiff's claims against it. While finding that an enforceable arbitration agreement encompassing plaintiff's claims existed, the district court nevertheless concluded that Santander had waived its rights to enforce arbitration by its delay. The court concluded that the record did not support the district court's finding of waiver. Therefore, the court reversed and remanded with directions to defer the claims to arbitration. View "Rota-McLarty v. Santander Consumer USA, Inc." on Justia Law

Plaintiff sued General Steel, Discount Steel, and those companies' presidents for abuse of process, malicious prosecution, and civil conspiracy, based on their filing an arbitration complaint against him. The trial court found in favor of Plaintiff. The court of appeals held that the trial court did not abuse its discretion by (1) refusing to include additional elements reflecting the heightened standard in Protect Our Mountain Environment, Inc. v. District Court (POME) in the jury instruction for Plaintiff's malicious prosecution claims; and (2) trebling an exemplary damages award against Defendants. The Supreme Court affirmed, holding (1) POME does not apply where, as here, the underlying alleged petitioning activity was the filing of an arbitration complaint that led to a purely private dispute; (2) therefore, the trial court did not err by refusing to include additional elements reflecting POME's heightened standard in the jury instruction for Plaintiff's malicious prosecution claims; and (3) the trial court did not err by trebling the exemplary damages award against Defendants. View "Gen. Steel Domestic Sales, LLC v. Bacheller" on Justia Law

This insurance coverage dispute arose from charges of sexual harassment brought by a one-time employee against Appellant, the former president of Jasmine Company, Inc. Appellant sought a defense to and indemnity for the harassment claims from Appellee, Jasmine's liability insurance provider. The district court ruled that Appellant was not entitled to coverage from Appellee because, under the doctrine of issue preclusion, a prior arbitration between Appellant and the purchaser of his business conclusively established that Appellant's conduct fell within an exclusion to Appellee's insurance policy. The First Circuit Court of Appeals affirmed, holding (1) the arbitration presented Appellant with the full and fair opportunity for adjudication on the issue at hand; and (2) therefore, the district court was correct to bar Appellant from disputing the applicability of the exclusion based on the doctrine of issue preclusion. View "Manganella v. Evanston Ins. Co." on Justia Law

A collective-bargaining agreement between Baltimore County and Baltimore County Fraternal Order of Police, Lodge 4 (FOP) contained an arbitration clause and a retiree health-insurance provision. FOP believed the provision locked in place the health-insurance subsidy as it existed at the time of an officer's retirement. After the agreement expired and the County decreased the health-insurance subsidy, FOP initiated arbitration. The County protested, arguing (1) it had no duty to arbitrate because the collective-bargaining agreement had expired, and (2) the health-insurance subsidy was not locked in place but was subject to change from year to year. FOP was successful in arbitration and on appeal before the circuit court, but the court of special appeals vacated the arbitration award. The Court of Appeals reversed, holding (1) an arbitration clause may survive the expiration of a collective bargaining agreement when it concerns rights that vested during the life of the agreement; and (2) when deciding the issue of arbitrability requires interpretation of the underlying agreement and consideration of the merits of the dispute, the issue of arbitrability should initially be determined by the arbitrator. View "Baltimore County Fraternal Order of Police Lodge v. Baltimore County" on Justia Law

This case stemmed from a dispute over annuity payments. Counter Defendants, RSL, appealed the district court's decision to abstain based on the doctrine of Colorado River Water Conservation District v. United States. Under the Colorado River doctrine, a court could abstain from a case that was part of parallel, duplicative litigation under "exceptional circumstances." The court examined the six relevant factors under Colorado River and reversed and remanded for further proceedings. On remand, the district court should determine whether RSL was entitled to compel arbitration under 9 U.S.C. 3. The district court must determine in the first instance whether any issues or claims decided by the state court were entitled to preclusive effect. View "Saucier v. Aviva Life and Annuity Co." on Justia Law

SSC Selma Operating Company, LLC, doing business as Warren Manor Health & Rehabilitation Center ("SSC"), and Bernard Turk, the administrator of Warren Manor Health & Rehabilitation Center ("Warren Manor") (referred to collectively as "the Warren Manor defendants"), appealed a circuit court judgment denying their joint motion to compel arbitration of the medical-malpractice wrongful-death claims asserted against them by Ethel Gordon ("Gordon"), the administratrix of the estate of Jimmy Lee Gordon, Gordon's husband, pursuant to an arbitration agreement they allege Gordon had entered into with SSC. Upon review, the Supreme Court affirmed, finding that the circuit court properly denied the Warren Manor defendants' motion to compel arbitration of Gordon's claims against them because the trial court had yet to conduct a trial to resolve the issue identified by the Supreme Court in "Gordon I" — whether a valid arbitration agreement existed between Gordon and SSC. "Only if that issue is answered in the affirmative may the Warren Manor defendants properly move to compel arbitration. If that trial results in a judgment holding that there is no valid arbitration agreement, then the Warren Manor defendants may file a timely appeal challenging the trial court's ruling excluding any evidence they wished to submit at trial." View "SSC Selma Operating Company, LLC v. Gordon" on Justia Law

This case was before the Supreme Court upon the appeal of Petitioner from an order of the circuit court granting Respondents' motion for summary judgment and dismissing Petitioner's lawsuit. The court ruled that arbitration clauses in Petitioner's investment contracts were not unconscionable and enforceable. Petitioner alleged the circuit court erred in (1) requiring him to prove the arbitration clauses in the paries' agreements were independently enforceable under federal law rather than applying West Virginia law and finding those agreements unenforceable; (2) failing to find the agreements' arbitration clauses independently unenforceable; (3) refusing to find one respondent's deposition testimony an unresponsive and evasive effort to deprive Petitioner of any opportunity to conduct meaningful discovery; and (4) failing to enforce a respondent's offer to repay Petitioner. The Supreme Court reversed, holding that the circuit court's order lacked the findings of fact and conclusions of law necessary for the Supreme Court to conduct a meaningful appellate review. View "Grayiel v. Appalachian Energy Partners 2001-D, LLP" on Justia Law

The United States court of appeals certified a question to the West Virginia Supreme Court that concerned two areas of state law: the law of contract formation and the doctrine of unconscionability. The question from the court of appeals arose from a contract that contained an arbitration provision requiring one party to the contract to arbitrate all of their claims but allowed the other party to file a lawsuit for some of its claims. A federal district court previously determined that the arbitration provision was not enforceable because it lacked mutuality of obligation and mutuality of consideration. The Supreme Court concluded (1) West Virginia's law of contract formation only required that a contract as a whole be supported by adequate consideration, and hence, a single clause within a multi-clause contract does not require separate consideration when the contract as a whole is supported by adequate consideration; but (2) under the doctrine of unconscionability, a trial court may decline to enforce a contract clause, such as an arbitration provision, if the obligations or rights created by the clause unfairly lack mutuality. View "Dan Ryan Builders, Inc. v. Nelson" on Justia Law

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

Plaintiffs, thirty-five children living near a smelting facility in Peru, alleged that environmental contamination injured them. Plaintiffs claimed that contamination was caused by the owners and operators of the facility. Defendants' associate, Renco, is currently arbitrating related claims with Peru. Defendants moved to stay the proceedings pending the outcome of the arbitration. The court held that the issues in the arbitration could conceivably affect the outcome of this case and the case was properly removed under 9 U.S.C. 205 and that the court did not have pendant appellate jurisdiction over defendants' discretionary-stay claim. The court also held that the issues in this case relate to the arbitration but were not referable to arbitration. Accordingly, the district court properly denied a mandatory stay under 9 U.S.C. 3. View "Sr. Kate Reid, et al v. Doe Run Resources Corp., et al" on Justia Law