Justia Arbitration & Mediation Opinion Summaries

In 2018, Shiekh hired Davis; both signed an agreement to resolve all disputes by binding arbitration. Davis resigned after three months, claiming she was subjected to sexual harassment by her co-worker and customers. In March 2019, Davis filed a complaint under the California Fair Employment and Housing Act. On May 12, a summons was served. In July, Shiekh, represented by counsel, answered Davis’s complaint, asserting the arbitration agreement as an affirmative defense, and filed a case management statement. In August, the court scheduled a trial for July 2020. Discovery ensued, without Shiekh asserting a right to arbitrate. The trial date was continued. In October 2020 (17 months after service of process; seven months before the trial date) Shiekh moved to compel arbitration, citing the Federal Arbitration Act (9 U.S.C.1) and California Arbitration Act, asserting that its participation in the lawsuit had been de minimis and not inconsistent with an intent to arbitrate, and that the delay was excusable, citing its lack of counsel for several months, pandemic-related disruptions, and “the fact that [an employee] seemed to be the primary target of [the] complaint," until July 2020.The court of appeal affirmed the denial of Shiekh’s motion. Although the Supreme Court recently held that a waiver of the right to arbitrate cannot be conditioned on a showing of prejudice, substantial evidence supports the denial based on relevant factors other than prejudice. Shiekh’s actions were inconsistent with the right to arbitrate. View "Davis v. Shiekh Shoes, LLC" on Justia Law

The Supreme Court affirmed the order of the State Corporation Commission (SCC) that approved a petition filed by the Virginia Electric and Power Company (VEPCO) to obtain a rate-adjustment clause pursuant to Va. Code 56-585.1(A)(5)(e), holding that, contrary to the arguments brought by Applalachian Voices on appeal, the SCC applied the proper legal standard governing such requests.VEPCO made its request to recover projected costs of purchasing allowances through the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade market regulating carbon dioxide emissions by electric utilities. On appeal, Appalachian Voices, a nonprofit environmental organization, argued that the SCC failed to apply the law when it approved VEPCO's petition. The Supreme Court affirmed, holding that the SCC did not misunderstand or fail o apply the legal standard governing petitions filed pursuant to Va. Code 56-585.1(A)(5)(e). View "Appalachian Voices v. State Corp. Comm'n" on Justia Law

LAD-T, LLC, dba Toyota of Downtown Los Angeles (LAD-T), and its parent company Lithia Motors Inc. (Lithia; collectively, Defendants) appeal from an order denying their motion to compel arbitration of Plaintiff’s claims brought under the California Fair Employment and Housing Act (FEHA). Defendants contend the trial court erred in finding Business and Professions Code section 17918 barred them from enforcing an arbitration agreement made in the name of an unregistered fictitious business, DT Los Angeles Toyota.   The Second Appellate District vacated the order denying Defendants’ motion to compel arbitration remanded for the trial court to address whether Defendants have waived their right to compel arbitration. The court ruled that if the trial court finds waiver, it should again deny the motion to compel arbitration; if it finds no waiver, it should grant the motion. The court explained that it agrees with Plaintiff that Defendants failed to act diligently in filing their fictitious business name statement. Accordingly, in the interests of justice the court vacated the court’s order denying the motion to compel arbitration and direct the court to again consider the motion to compel arbitration limited to the narrow issue of whether Defendants have waived their right to compel arbitration by their delay in filing the fictitious business name statement. View "Villareal v. LAD-T, LLC" on Justia Law

R.A.C. Rolling Hills LP, dba ActivCare at Rolling Hills Ranch, and ActivCare Living, Inc. (together, ActivCare), appealed an order denying their petition to compel arbitration in the elder abuse lawsuit filed by Mary Leger. ActivCare contended the trial court erred in concluding that it had waived its right to arbitration because it sought to compel arbitration less than 30 days after filing its answer. Under the unique facts of this case, the Court of Appeal concluded substantial evidence supported the trial court’s waiver finding and affirmed the order. View "Leger v. R.A.C. Rolling Hills" on Justia Law

Michael O’Connor signed up for a loyalty program when he bought a pair of shoes and socks from Road Runner Sports, Inc. and Road Runner Sports Retail, Inc. (collectively, “Road Runner”). He alleged Road Runner did not tell him the loyalty program was an automatic renewal subscription and that his credit card would be charged an annual subscription fee. After discovering he had been charged for four years of subscription fees, he joined as the named plaintiff in a class action lawsuit alleging Road Runner had violated California’s Automatic Renewal Law and consumer protection statutes. Road Runner asserted O’Connor was bound by an arbitration provision it added to the online terms and conditions of the loyalty program, some three years after he enrolled. Although Road Runner conceded O’Connor did not have actual or constructive notice of the arbitration provision, it contended O’Connor created an implied-in-fact agreement to arbitrate when he obtained imputed knowledge of the arbitration provision through his counsel in the course of litigation and failed to cancel his membership. The Court of Appeal disagreed this was sufficient under California law to prove consent to or acceptance of an agreement to arbitrate. Accordingly, the Court affirmed the trial court’s order denying Road Runner’s motion to compel arbitration. View "Costa v. Road Runner Sports" on Justia Law

KLPI operates Kroger grocery stores throughout Tennessee. KLPI has a collective bargaining agreement (CBA) with the Union, which represents all retail employees in different retail-store configurations. The Union immediately represents the employees in any new KLPI store. In 2020, Kroger’s “Supply Chain Division” opened the Knoxville Local Fulfillment Center. After the warehouse opened, the Union filed a grievance, claiming that the Union represented employees at that facility—which the Union called the “Knoxville eCommerce Store.” The Union described how warehouse employees fill orders placed by Walgreens pharmacies and that employees who pick and deliver these orders perform “fundamental[ly] bargaining[-]unit work” like unionized employees at KLPI’s grocery stores. KLPI refused to process the grievance for itself or Kroger, claiming that the Center is a warehouse, not a grocery store, and is part of Kroger’s “supply chain network,” independent from KLPI’s retail stores; KLPI has no relationship with Fulfillment Center employees.The Union pursued arbitration under the CBA. KLPI refused to arbitrate. The district court determined the Union’s claim was arbitrable under the CBA but Kroger was not a party to the CBA; KLPI was ordered to arbitrate. The Sixth Circuit affirmed. The grievance falls within the scope of the CBA’s arbitration agreement, which does not prevent the possible inference that the fulfillment center and its employees are covered by the CBA. View "United Food & Commercial Workers v. Kroger Co." on Justia Law

Rock Hemp contracted with CBDINC to purchase 6,000 hemp seeds. CBDINC is a fictitious business name used by Dunn, Davies, and Kolodny (Appellees). The contract contains an arbitration clause requiring “[a]ny dispute arising out of this Agreement” be resolved through “binding arbitration” in Denver, Colorado. Disappointed with CBDINC’s hemp seeds, Rock sued the Appellees individually, not CBDINC, in Wisconsin state court. The Appellees removed the case to federal court and moved to dismiss the case for failure to comply with the arbitration clause. Rock sought remand under 28 U.S.C. 1447.The Seventh Circuit affirmed the judgment in favor of the Appellees. Based on the date when Rock “specifically disclose[d] the amount of monetary damages sought,” the district court correctly found that removal was timely. The Appellees did not fully litigate the merits of the case in state court. The allegations in the complaint make clear that CBDINC was not a distinct legal entity from the Appellees, and Rock does not allege it was confused or deceived by the use of the d/b/a; the district court correctly concluded that the contract is valid and Appellees have standing to enforce it. View "Rock Hemp Corp. v. Dunn" on Justia Law

Appellant CVG Ferrominera Orinoco, C.A. (“Ferrominera”), appealed from the district court’s judgment confirming a foreign arbitral award and granting attorney’s fees and costs in favor of Petitioner Commodities & Minerals Enterprise Ltd. (“CME”). Ferrominera challenges the judgment on three grounds. First, it argues that the district court lacked personal jurisdiction because CME never served a summons on Ferrominera in connection with its motion to confirm the arbitral award. Second, Ferrominera contends that the district court erred in confirming the arbitral award based on purported lack of jurisdiction by the arbitral panel, issues with the scope of the award, and conflicts with United States public policy. Third, it argues that the district court abused its discretion in awarding attorney’s fees and costs in favor of CME.   The Second Circuit held that a party is not required to serve a summons in order to confirm a foreign arbitral award under the New York Convention. The court concluded that the district court properly enforced the arbitral award, but that it erred in awarding attorney’s fees and costs. Accordingly, the court affirmed in part and vacated in part. The court wrote that CME complied with the service of notice requirements of the New York Convention and the FAA, and the district court properly exercised personal jurisdiction over Ferrominera. Further, the court explained that Ferrominera has not borne its burden to show that the arbitration agreement is invalid where, as here, it has put forth no arguments whatsoever under the applicable law. View "Commodities & Minerals Enterprise Ltd. v. CVG Ferrominera Orinoco, C.A." on Justia Law

The Supreme Court held that the district court erred in denying Appellant's motion to compel arbitration and refusing to submit the arbitrability determination under the circumstances of this case to an arbitrator.Plaintiffs sued Airbnb, Inc. for wrongful death and personal injury alleging that Airbnb's services had been used by a party's host to rent the house where a shooting occurred, resulting in a fatality. Airbnb moved to compel arbitration, arguing that Plaintiffs had agreed to Airbnb's Terms of Service during the registration process for their accounts. The district court denied the motion to compel. The Supreme Court reversed, holding that because the Federal Arbitrability Administration governed the enforcement of arbitration agreement at issue, and because the agreement delegated the arbitrability question to an arbitrator, the district court erred in deciding the arbitrability question. View "Airbnb, Inc. v. Rice" on Justia Law

The Supreme Court reversed the order of the district court denying Appellant's motion to compel arbitration, holding that where an arbitration agreement delegates the threshold question of arbitrability to the arbitrator, the district court must refer to the case to arbitration, even if the court concludes that the dispute is not subject to the arbitration agreement.Respondents filed a personal injury lawsuit against Uber after their Uber driver rear-ended another Uber driver. Uber moved to compel arbitration on the grounds that Respondents had agreed to arbitrate their claims. The district court denied the motion, concluding that the arbitration agreement did not plainly provide that the parties agreed to submit this particular dispute to arbitration. The Supreme Court reversed, holding that where the arbitration agreement's delegation clause expressly requires the arbitrator to determine threshold issues of arbitrability, the district court erred by denying Uber's motion to compel on the ground that the claims were not subject to the arbitration agreement. View "Uber Technologies, Inc. v. Royz" on Justia Law