Justia Arbitration & Mediation Opinion Summaries

In this case, employers M&K Employee Solutions, LLC and Ohio Magnetics, Inc. withdrew from the IAM National Pension Fund during the 2018 plan year. The Fund assessed withdrawal liability for each entity based on actuarial assumptions. Both employers challenged their respective assessments and won in arbitration, with the arbitrator ruling that the Fund's actuary erred in setting actuarial assumptions for a given measurement date after the measurement date based on information available at that date. The Fund appealed and the district court vacated the arbitration awards, ruling that an actuary may indeed set actuarial assumptions for a given measurement date after the measurement date based on information available "as of" the measurement date.The Court of Appeals for the District of Columbia Circuit affirmed the district court's decision. The court held that it would be contrary to the legislative intent of the Multiemployer Pension Plan Amendments Act to require an actuary to determine what assumptions to use before the close of business on the measurement date. The court also ruled that M&K was entitled to a “free-look” exception because it partially withdrew from the Fund within a period of less than five years, meaning it could withdraw without incurring liability. View "Trustees of the IAM National Pension Fund v. M & K Employee Solutions, LLC" on Justia Law

The case involves a group of former firefighters who retired from the city of Meriden and claimed damages from the city and the Meriden Municipal Pension Board for alleged breach of a collective bargaining agreement. The plaintiffs, who retired in 2015, claimed that they should have received an increase in their pension benefits based on a 2% wage increase that was awarded retroactively in an arbitration process after the plaintiffs had retired. The trial court ruled in favor of the plaintiffs, holding that the defendants had breached the collective bargaining agreement by failing to recalculate the plaintiffs' pension benefits based on the retroactive wage increase.On appeal, the Connecticut Supreme Court reversed the trial court's decision. The Supreme Court held that the defendants did not breach the collective bargaining agreement. This conclusion was based on the fact that the pension plan did not allow for the recalculation of pension benefits for retirees who voluntarily retired before the issuance of the arbitration award. The court noted that the pension plan only allowed for a retroactive adjustment of pension benefits for those who were forced to retire due to reaching the mandatory retirement age of 65. The court also held that the trial court did not lack subject matter jurisdiction to hear the case, rejecting the defendants' claim that the plaintiffs failed to exhaust their administrative remedies before filing the lawsuit. View "Stiegler v. Meriden" on Justia Law

In a dispute between Voltage Pictures, LLC (Voltage) and Gussi S.A. de C.V. (Gussi SA) regarding their Distribution and License Agreement (DLA), the United States Court of Appeals for the Ninth Circuit affirmed the District Court for the Central District of California's decision to confirm an arbitral award in favor of Voltage. The court held that the district court had jurisdiction under Section 203 of Chapter 2 of the Federal Arbitration Act (FAA) and 28 U.S.C. § 1331, despite an incorrect initial assertion of diversity jurisdiction. The court also ruled that Federal procedural law, not California law, governed the service of Voltage's notice of motion to confirm the arbitral award. It held that Voltage had sufficiently served the notice by mailing the motion papers to Gussi SA's counsel. Lastly, the court held that the district court had not erred in refusing to extend comity to an alleged Mexican court order enjoining Voltage from seeking to confirm the award in the United States, as Gussi SA had not certified the genuineness of the purported Mexican court order or its translation. View "VOLTAGE PICTURES, LLC V. GUSSI, S.A. DE C.V." on Justia Law

The Indiana Supreme Court heard a case involving a dispute between Tonia Land and the IU Credit Union (IUCU). When Land became a customer at the credit union, she was given an account agreement that could be modified at any time. Later, when she registered for online banking, she accepted another agreement that allowed the IUCU to modify the terms and conditions of the services. In 2019, the IUCU proposed changes to these agreements, which would require disputes to be resolved through arbitration and prevent Land from initiating or participating in a class-action lawsuit. Land did not opt out of these changes within thirty days as required, which, according to the IUCU, made the terms binding. However, Land later filed a class-action lawsuit against the credit union, which attempted to compel arbitration based on the addendum.The court held that while the IUCU did provide Land with reasonable notice of its offer to amend the original agreements, Land's subsequent silence and inaction did not result in her assent to that offer, according to Section 69 of the Restatement (Second) of Contracts. The credit union petitioned for rehearing, claiming that the court failed to address certain legal authorities and arguments raised on appeal and in the transfer proceedings.Upon rehearing, the court affirmed its original decision, rejecting the credit union's arguments. However, the court also expressed a willingness to consider a different standard governing the offer and acceptance of unilateral contracts between businesses and consumers in future cases. The court found no merit in the credit union's arguments on rehearing and affirmed its original opinion in full. View "Land v. IU Credit Union" on Justia Law

In a dispute between Conti 11 Container Schiffarts-GMBH & Co. KG M.S. and MSC Mediterranean Shipping Company S.A., the United States Court of Appeals for the Fifth Circuit found that the District Court for the Eastern District of Louisiana lacked personal jurisdiction over the case and reversed the district court's decision. The dispute arose from an incident where three chemical tanks exploded onboard a cargo vessel chartered by Conti to MSC, causing extensive damage and three deaths. After Conti won a $200 million award from a London arbitration panel, Conti sought to confirm the award in the Eastern District of Louisiana. MSC argued that the court lacked personal jurisdiction. The Fifth Circuit agreed with the district court’s assessment that when confirming an award under the New York Convention, a court should consider contacts related to the underlying dispute, not just those related to the arbitration itself. However, the Fifth Circuit disagreed with the district court's ruling that MSC waived its personal jurisdiction defense through its insurer’s issuance of a letter of understanding. The court also disagreed with the district court's finding that the loading of the tanks in New Orleans conferred specific personal jurisdiction over MSC, as this contact resulted from the actions of other parties not attributable to MSC. Therefore, the Fifth Circuit reversed the lower court's decision and remanded the case with instructions to dismiss it for lack of personal jurisdiction. View "Conti 11. Container Schiffarts-GMBH & Co. KG M.S. v. MSC Mediterranean Shipping Co. S.A." on Justia Law

Charles Ramsey, a subscriber to Comcast Cable Communications, LLC’s Xfinity services, filed a lawsuit against Comcast for violations of California’s consumer protection statutes. He alleged that Comcast engaged in unfair, unlawful, and deceptive business practices under the Consumers Legal Remedies Act (CLRA) and the unfair competition law (UCL). Ramsey’s complaint sought injunctive relief, not monetary damages. Comcast filed a petition to compel arbitration pursuant to the arbitration provision in the parties’ subscriber agreement which required the parties to arbitrate all disputes and permitted the arbitrator to grant only individual relief. The trial court denied the petition based on the Supreme Court’s decision in McGill v. Citibank, which held that a predispute arbitration provision that waives a plaintiff’s right to seek public injunctive relief in any forum is unenforceable under California law. On appeal, Comcast argued that the trial court erred in concluding that Ramsey was seeking public injunctive relief. Comcast further argued that the Federal Arbitration Act (FAA) preempts McGill. The Court of Appeal of the State of California Sixth Appellate District held that Ramsey’s complaint seeks public injunctive relief, and that McGill is not preempted, thus affirming the trial court’s order. View "Ramsey v. Comcast Cable Communications, LLC" on Justia Law

In a case heard before the Court of Appeal of the State of California Second Appellate District Division Five, Omar Kader, the plaintiff, sued his employer, Southern California Medical Center, Inc., and other defendants due to allegations of sexual harassment and assault. Kader had signed an arbitration agreement with his employer, but this was without disclosure of the ongoing sexual harassment and assault. After the enactment of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (the Act), which invalidates predispute arbitration agreements under certain circumstances, Kader brought his suit.The defendants filed a motion to compel arbitration, arguing that the Act does not invalidate the arbitration agreement in this case since the alleged sexual conduct constituted a “dispute” which preexisted the arbitration agreement and the effective date of the Act.The court concluded that a dispute for the purposes of the Act does not arise merely from the fact of injury. Instead, for a dispute to arise, a party must first assert a right, claim, or demand. In this case, there was no evidence of a disagreement or controversy until after the date of the arbitration agreement and the effective date of the Act, when Kader filed charges with the Department of Fair Employment and Housing in May 2022. Therefore, the court held that the predispute arbitration agreement is invalid, and the order denying the motion to compel arbitration was affirmed. View "Kader v. Southern California Medical Center, Inc." on Justia Law

The case involves a dispute between Onecimo Sierra Suarez, an employee, and his employer, Rudolph & Sletten, Inc. (R&S), concerning the payment of arbitration fees. Suarez had initially sued his employer for alleged wage and hour violations. R&S successfully moved to have the case resolved through arbitration, as provided in their employment agreement. However, R&S delayed in paying its share of the initial arbitration fee, leading Suarez to argue that R&S has waived its right to arbitration. The Court of Appeal, Fourth Appellate District Division One, State of California held that the employer's delay in paying the arbitration fees constituted a material breach of the arbitration agreement, thereby waiving its right to arbitration. The court concluded that R&S's payment was late, even if certain provisions of the Code of Civil Procedure could potentially extend the deadline. The court also held that R&S's argument -- that the Federal Arbitration Act (FAA) preempted California's arbitration-specific procedural rules for fee payment -- was incorrect. The court found that such rules neither prohibited nor discouraged the formation of arbitration agreements, and therefore, were not preempted by the FAA. The court granted Suarez's petition and ruled that the case should proceed in court. View "Suarez v. Super. Ct." on Justia Law

In 2020, Loring De Martini agreed to sell a commercial property to Puja Gupta. A dispute arose and the parties entered arbitration. Subsequently, Gupta filed a petition to confirm the arbitration award and recorded a lis pendens on the property. Gupta obtained a judgment confirming the award, but abandoned the case after De Martini successfully moved to expunge the lis pendens. Gupta then filed a new action seeking to compel De Martini to complete the sale and recorded another lis pendens. De Martini moved to expunge the new lis pendens, arguing that Gupta needed the court's permission to record it under the Code of Civil Procedure section 405.36, as it was recorded by the same claimant and affected the same property. The trial court denied the motion, concluding that section 405.36 only applies to successive lis pendens filed in the same action and Gupta had established a prima facie case regarding the probable validity of a real property claim.De Martini petitioned the Court of Appeal of the State of California, First Appellate District, Division Three for a writ of mandate. The court granted the petition, concluding that the trial court erred both in its interpretation of section 405.36 and its application of the prima facie standard in determining the probable validity of the real property claim. The court held that section 405.36 requires a claimant to seek court permission before recording a lis pendens on the same property in a subsequent proceeding if a lis pendens in a prior, related proceeding has been expunged. Additionally, the court determined that the trial court should have applied a preponderance of the evidence standard, not a prima facie standard, in determining the probable validity of the real property claim. The court ordered the trial court to vacate its order denying expungement of the lis pendens and to enter a new order granting the requested expungement and ruling on De Martini's motion for attorney fees. View "Di Martini v. Superior Court" on Justia Law

The United States Court of Appeals for the Second Circuit has decided an appeal from The Resource Group International Limited, TRG Pakistan Limited, Mohammed Khaishgi, and Hasnain Aslam against Muhammad Ziaullah Khan Chishti. The appellants sought to avoid arbitration proceedings initiated by the appellee, arguing that a later-executed release agreement superseded the arbitration agreement in the original Stock Purchase Agreement. The appellants also sought a preliminary injunction to halt the ongoing arbitration, but the District Court denied their request, asserting that they failed to show a likelihood of success on their claims and that they would suffer irreparable harm without the injunction.On appeal, the Circuit Court held that it had jurisdiction over the case, finding that the parties had chosen New York law to govern the arbitration proceedings, thereby bypassing the restrictions on appellate review under the Federal Arbitration Act. The court also held that the District Court had relied on an erroneous view of the law in concluding that the appellants failed to show a likelihood of success on the merits of their claims and that they would suffer irreparable harm. The court found that the release agreement, which contained a forum selection clause, superseded the Stock Purchase Agreement's arbitration clause. The court also clarified that being forced to arbitrate a non-arbitrable claim could constitute irreparable harm, particularly where attorneys' fees and arbitration costs could not adequately compensate the harm.As a result, the court vacated the District Court's decision and remanded the case for further proceedings. View "The Resource Group International Limited v. Chishti" on Justia Law