Justia Arbitration & Mediation Opinion Summaries

This mandamus proceeding arose from an arbitration agreement governed by the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq. The parties entered into a contract for interment rights and services. The contract obligated the parties to arbitrate this dispute over the care and maintenance of the cemetery. The arbitration agreement provided that an arbitrator would either be selected by mutual agreement of the parties or appointed by the American Arbitration Association (AAA). The parties failed to agree to an arbitrator and the trial court appointed an arbitrator without allowing a reasonable opportunity to procure an appointment by AAA. The court concluded that the trial court abused its discretion and conditionally granted the petition for writ of mandamus. View "In re Service Corp. Int'l and SCI Texas Funeral Services, Inc." on Justia Law

This case concerned an arbitration provision that allowed each party to appoint one arbitrator to a panel, subject to certain requirements. At issue was whether Americo wavied its objection to the removal of the arbitrator it selected. The underlying dispute concerned the financing mechanism for Americo's purchase of several insurance companies from Robert Myer. Pursuant to the financing agreement, Americo and Myer submitted their dispute to arbitration under American Arbitration Association (AAA) rules. The arbitrators found in favor of Myer, and Americo filed a motion to vacate the award. The trial court granted the motion, holding that Americo was entitled to any arbitrator that met the requirements set forth in the financing agreement and that the arbitrator removed by the AAA met those requirements. The court of appeals reversed, holding that Americo had waived these arguments by not presenting them to the AAA. Because the record demonstrated otherwise, the court rejected the court of appeals' judgment and remanded the case to that court for further proceedings. View "Americo Life, Inc., et al. v. Myer, et al." on Justia Law

Plaintiff bought a computer, using the Dell website, and clicked his agreement to Dell's terms, which included an arbitration clause. Plaintiff filed a putative class action, based on claimed design defects with the computer. At the time, the National Arbitration Forum, which was referenced in those terms as the arbital forum, was prohibited, by consent decree, from conducting arbitration. The district court denied Dell's motion to compel arbitration. The Third Circuit vacated. The contract language does not indicate unambiguous intent not to arbitrate disputes if NAF is unavailable. Section 5 of the Federal Arbitration Act creates a presumption favoring arbitration and requires a court to address such unavailability by appointing a substitute arbitrator, 9 U.S.C. 5. View "Khan v. Dell, Inc." on Justia Law

Independence County and the City of Clarksville entered into a power purchase and sale agreement that included an arbitration provision. After the City informed the County that it was going to terminate the agreement, the County filed a motion to compel arbitration. The circuit court denied the motion, ruling that the arbitration agreement was unenforceable because (1) the City validly exercised its right to terminate the agreement, and without the revocation of the entire agreement, the City was released from the obligation to arbitrate; and (2) the arbitration agreement lacked mutuality of obligation. The Supreme Court affirmed, holding that the circuit court did not err in ruling that the arbitration agreement was unenforceable due to the absence of mutuality of obligation, and the arbitration agreement was void on that basis. View "Independence County v. City of Clarksville" on Justia Law

Plaintiff entered into a two-year wireless service agreement with First Cellular in 2005. The company was acquired by defendant, which began dismantling and reorganizing. Plaintiff initially agreed to defendant's terms, but later filed a class action, claiming breach of contract for rendering his phone and equipment useless and refusing to honor the features and prices of the First Cellular Agreement. He also claimed deceptive rade practices under Illinois law and civil conspiracy. The district court denied defendant's motion to compel arbitration. The Seventh Circuit reversed, finding that defendant's arbitration clause applies because part of the claims are based on services and products received under defendant's contract. Defendant's contract unambiguously covers any dispute "arising out of" or "relating to the services and equipment." If a contract provides for arbitration of some issues, any doubt concerning the scope of the arbitration clause is resolved in favor of arbitration as a matter of federal law, 9 U.S.C. 2. View "Gore v. Alltel Comm'cns, LLC" on Justia Law

Although respondents' credit card agreement required their claims to be resolved by binding arbitration, they filed a lawsuit against petitioner and a division of petitioner bank, alleging, inter alia, violations of the Credit Repair Organizations Act (CROA), 15 U.S.C. 1679 et seq. At issue was whether the CROA precluded enforcement of an arbitration agreement in a lawsuit alleging violations of the Act. The Court held that because the CROA was silent on whether claims under the Act could proceed in an arbitrable forum, the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq., required the arbitration agreement to be enforced according to its terms. View "CompuCredit Corp. v. Greenwood" on Justia Law

The Republic of Argentina appealed the denial of its motion to vacate an arbitral award on the principal ground that the arbitral panel exceeded its authority by ignoring the terms of the parties' agreement. The court held that where, as here, the result of the arbitral award was to ignore the terms of the Bilateral Investment Treaty - between the United Kingdom of Great Britain and Northern Ireland, and Argentina - and shifted the risk that the Argentine courts might not resolve BG Group's claim within eighteen months pursuant to Article 8(2) of the Treaty, the arbitral panel rendered a decision wholly based on outside legal sources and without regard to the contracting parties' agreement establishing a precondition to arbitration. Accordingly, the court reversed the orders denying the motion to vacate and granting the cross-motion to confirm, and vacated the Final Award. View "Republic of Argentina v. BG Group PLC" on Justia Law

This case involved a petition to confirm and enforce a foreign arbitration award against the Government of Belize pursuant to section 207 of the Federal Arbitration Act, 9 U.S.C. 207. The facts underlying the issuance of the challenged stay order involved a telecommunication agreement with the government of Belize. Plaintiff appealed an order staying the proceeding pending the outcome of related litigation in Belize. The court concluded that the stay order as issued exceeded the proper exercise of authority of the district court and remanded the case for further proceedings. View "Belize Social Dev. Ltd. v. Government of Belize" on Justia Law

This case arose when Union entered into a limited job-preference agreement with Peabody Coal where the agreement included an arbitration clause. The district court subsequently entered judgment in favor of Union, ruling that the arbitrator properly determined the arbitrability of the dispute. In the alternative, the district court concluded that the dispute was arbitrable, even if the arbitrator lacked authority to decide the arbitrability question. Peabody Coal appealed. The court held, as an initial matter, that the court, not the arbitrator must decide whether the dispute was arbitrable. The parties' agreement lacked the requisite "clear and unmistakable" language evincing an intent to arbitrate arbitrability. Exercising the court's independent judgment on the arbitrability question, the court concluded that Peabody Coal had not rebutted the ordinary presumption in favor of arbitrability. Accordingly, the court affirmed the judgment and the parties must proceed to arbitration. View "Peabody Holding Co. v. United Mine Workers of America" on Justia Law

Crescent appealed the district court's grant of summary judgment in favor of Volvo where the district court held that the contract between Crescent and Volvo compelled the parties to arbitrate their dispute. The court vacated and remanded to the district court with instructions to dismiss where the district court erred in holding that Volvo's request for a declaratory judgment as to the applicability of 15 U.S.C. 1226 was properly before the court. Because the district court lacked jurisdiction to entertain Volvo's declaratory judgment action, the presence of this action in Volvo's complaint before the district court could not alter the court's holding that there was no subject matter jurisdiction to hear Volvo's petition to compel arbitration. View "Volvo Trucks North America v. Crescent Ford Truck Sales Inc." on Justia Law