Justia Arbitration & Mediation Opinion Summaries
Articles Posted in Arbitration & Mediation
Becker v. Delek US Energy, Inc.
Delek uses third-party specialty inspectors to ensure that Delek’s projects comply with industry and regulatory requirements. Cypress employs and assigns these specialty inspectors to companies like Delek. Becker worked as an electrical inspector for Cypress, which set Becker’s compensation as a day rate and issued his paychecks. Cypress deemed Becker an administrative employee and considered him overtime-exempt under the Fair Labor Standards Act, 29 U.S.C. 201 (FLSA). Becker signed an employment agreement, acknowledging that he “underst[ood] that [his] employment is based on a specific project to be performed for a designated customer” and that any dispute related to this employment relationship would be arbitrated. Becker was assigned by Cypress to work at a Delek location.Becker filed an FLSA complaint against Delek, arguing that “Delek’s day-rate system violates the FLSA because [he] and those similarly situated workers did not receive any overtime pay for hours worked over 40 hours each week.” Becker claimed Delek was his employer because he worked 12-15 hours a day for six-seven days a week at Delek's location, reported to Delek, performed work essential to Delek’s core business, and had his pay and schedule directed by Delek. Cypress was allowed to intervene and moved to compel arbitration. The Sixth Circuit reversed the denial of the motion. Becker’s challenge is not “specific” to the arbitration agreement’s delegation provision, leaving the question of whether Delek can enforce the arbitration agreement for an arbitrator to decide. View "Becker v. Delek US Energy, Inc." on Justia Law
Gill v. Lockhart
The Supreme Court affirmed the order of the district court denying Robert Gill's motion to enforce a judgment confirming arbitration awards entered against Elizabeth Lockhart, holding that there was no error in the proceedings below.Siblings Robert Gill and Lockhart were the beneficiaries of a trust that owned land in Teton County. The trust decided to use the land to create a subdivision. This case concerned an arbitration award contained in an order covering the parties' rights and obligations regarding the subdivision. Gill successfully filed a petition asking the district court to confirm two of the arbitration awards. Thereafter, Gill filed his motion to enforce the judgment. The district court denied the motion, finding that Gill failed to prove some of his damages. The Supreme Court affirmed, holding that the district court did not abuse its discretion by not allowing Defendant to present certain evidence either at the evidentiary hearing or after the district court announced its oral ruling. View "Gill v. Lockhart" on Justia Law
Minn. Department of Corrections v. Knutson
The Supreme Court affirmed the decision of the court of appeals holding that decisions made under Minn. Stat. 43A.33 are quasi-judicial administrative decisions subject to certiorari review by the court but reversed its holding that the Bureau of Mediation Services was a proper party to the appeal, holding that the Bureau was not a proper party to the certiorari appeal.When the Minnesota Department of Corrections sought certiorari review of an arbitrator's decision granting Appellant's appeal from the discharge of his employment at the Minnesota Department of Corrections, Appellant challenged the court of appeals' jurisdiction to hear the appeal, arguing that review must be undertaken by the district court. The court of appeals upheld the arbitrator's decision. The Supreme Court affirmed in part and reversed in part, holding (1) Appellant and the Department were not parties to an arbitration agreement that invoked the judicial review procedures of the Uniform Arbitration Act; (2) the decision of an arbitrator appointed according to section 43A.33 is a quasi-judicial determination of an inferior tribunal reviewable via writ of certiorari at the court of appeals; and (3) the Bureau was not a proper party to this appeal because it had no legal or equitable interest in the outcome. View "Minn. Department of Corrections v. Knutson" on Justia Law
West Warwick Housing Authority v. R.I. Council 94
The Supreme Court affirmed the judgment of the superior court in favor of Defendant-union and denying Plaintiff's motion to vacate an arbitration award, granting Defendant's motion to confirm the award, and awarding attorneys' fees to Defendant as the prevailing party, holding that there was no error.Defendant represented certain municipal employees employed by Plaintiff, West Warwick Housing Authority. After Plaintiff suspended the employment of the grievant, Defendant grieved her termination pursuant to the parties' collective bargaining agreement (CBA). The arbitrator decided in the grievance's favor. Thereafter, Plaintiff filed a complaint seeking to vacate the arbitration award, arguing that the grievance was not substantively arbitrable because the CBA was invalid and that the arbitrator's decision was irrational. The superior court entered judgment in favor of Defendant. The Supreme Court affirmed, holding that the trial justice correctly denied Defendant's motion to vacate because the dispute was arbitrable. View "West Warwick Housing Authority v. R.I. Council 94" on Justia Law
BARBARA KNAPKE V. PEOPLECONNECT, INC.
Plaintiff claimed that PeopleConnect used her name and likeness in its Classmates.com school yearbook database without her consent. Plaintiff retained an attorney, who created a Classmates.com account and searched for Plaintiff on the site. In creating the account, the attorney agreed to the Terms of Service, which contained an arbitration provision. Applying Ohio law, the district court denied PeopleConnect’s motion to compel arbitration, holding that there was no evidence that Plaintiff gave her counsel authority to bind her to the Terms of Service containing the arbitration provision.
The Ninth Circuit vacated the district court’s denial of a motion to compel arbitration in an action involving a right of publicity claim against PeopleConnect, LLC under Ohio law. The panel held that the district court erred in applying Ohio law because Washington law governed the threshold question of arbitrability. Here, because no conflict was shown to exist between the law of Washington (the forum state) and Ohio law, Washington law applied. The court held that on the record before the district court, questions of fact precluded ruling on the motion to compel arbitration.
These questions of fact included: whether Plaintiff and her attorney had an agency relationship when her attorney agreed to the Terms of Service; if they did have an agency relationship, whether and how Plaintiff limited her attorney’s authority as her agent; and whether Plaintiff ratified her attorney’s agreement to arbitrate. The court held further that PeopleConnect had a right to conduct discovery on these and related arbitrability issues before the district court decides the motion to compel arbitration. View "BARBARA KNAPKE V. PEOPLECONNECT, INC." on Justia Law
Town of North Providence v. Fraternal Order of Police, Lodge 13
The Supreme Court vacated the judgment of the superior court in favor of Defendant, the Fraternal Order of Police, Lodge 13 (the Union), in which the Court denied the Town of North Providence's petition to vacate an arbitration award and granted the Union's motion to confirm the award, holding that the arbitrator so imperfectly executed his authority that he did not provide a mutual, final, and definite award upon the subject matter, as required under R.I. Gen. Laws 28-9-18(a)(2).This action arose from a dispute between the Union and the Town regarding the effect of a collective bargaining agreement (CBA) governing the employment relationship between the Town and the Town's police officers. The arbitrator found in favor of the Union, and the superior court granted the Union's motion to confirm the award. The Supreme Court reversed, holding that the arbitrator's award failed to draw its essence from the contract, manifestly disregarded relevant portions of the CBA, and produced completely irrational results. View "Town of North Providence v. Fraternal Order of Police, Lodge 13" on Justia Law
United Steelworkers v. National Grid
The First Circuit reversed the judgment of the district court denying arbitration requested by two unions - the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union and the United Steelworkers Local 12203 (collectively, Union) - on behalf of former two employees of the Boston Gas Company (Company) as to their claims for pension benefits, holding that this matter called for arbitration.The Union represented the two members in filing grievances regarding their underpaid pensions. The Union submitted the grievances to the Joint Pension Committee, which was unable to resolve the dispute. The Union subsequently sought arbitration over the grievances, but the Company refused to arbitrate. The First Circuit reversed, holding that it was up to an arbitrator, not a court, to determine the matters at issue in this case. View "United Steelworkers v. National Grid" on Justia Law
Rachan Reddy v. Rashid Buttar
Plaintiff, a citizen and resident of Vietnam, initiated arbitration proceedings in Singapore against Defendant, then a citizen and resident of North Carolina regarding a dispute related to a sale of property in the Philippines. Plaintiff obtained a $1.55 million award against Defendant, and then brought this case asking the court to enforce the award. The district court rejected Defendant's jurisdictional challenges and granted summary judgment in favor of Plaintiff. Defendant appealed.The Fourth Circuit affirmed the district court's order granting summary judgment to Plaintiff. In so holding, the court rejected Defendant's claim that the district court lacked subject matter and personal jurisdiction, and that the court erred in finding no disputed issues of material fact. View "Rachan Reddy v. Rashid Buttar" on Justia Law
Smith v. Lindemulder
The Supreme Court affirmed the order of the district court granting a motion to approve a settlement agreement reached in mediation involving siblings Lily Smith and Sam, Dan, and Vernon Lindemulder, holding that Petitioners were not entitled to relief on their claims of error.The agreement at issue resolved claims involving the Alice M. Lindemulder Trust, established by the parties' mother, which held more than 2,000 acres of land in Stillwater County. Sam appealed the district court's decision to approve the settlement agreement, arguing that the agreement was unenforceable because he lacked the capacity to enter it and had been subjected to undue influence. The Supreme Court affirmed, holding that the district court (1) did not err in concluding that Sam validly consented to the agreement; and (2) did not err in holding that the agreement was valid and enforceable. View "Smith v. Lindemulder" on Justia Law
MHP Management, LLC v. DTR MHP Management, LLC
The Court of Chancery granted Plaintiff's motion for summary judgment seeking an order confirming the arbitration panel's award in this case and denied Defendants' motion for summary judgment seeking to vacate the award, holding that there was no basis to vacate the arbitration panel's award.Defendants initiated arbitration proceedings against Plaintiff to challenge the validity of unsuitability determination that Plaintiff issued to Defendants under the parties' agreement. The arbitration panel determined that the unsuitability determination was valid. This litigation followed. The Court of Chancery confirmed the arbitration award, holding that Defendants were not entitled to relief on their allegations of error. View "MHP Management, LLC v. DTR MHP Management, LLC" on Justia Law