Justia Arbitration & Mediation Opinion Summaries

After an arbitrator interpreted a collective bargaining agreement to require Warrior Met Coal Mining to establish just cause to discharge an employee for violating the agreement's four-strike attendance policy, and the arbitrator determined that just cause was not present, the district court vacated the arbitrator's award as contrary to the agreement.The Eleventh Circuit reversed, concluding that the arbitrator arguably interpreted the agreement and the court must defer to his interpretation. The court distinguished Warrior & Gulf Navigation Company v. United Steelworkers, 996 F.2d 279 (11th Cir. 1993), from the circumstances here and concluded that, in this case, the arbitrator relied on past practices to give meaning to the attendance policy. Accordingly, the court remanded with instructions to enter judgment for the union. View "Warrior Met Coal Mining, LLC v. United Mine Workers of America" on Justia Law

When she began work, Campbell signed a contract with Keagle, the bar’s owner; it included an arbitration clause. After a dispute arose, the district judge denied Keagle’s motion to refer the matter to arbitration, finding several parts of the arbitration clause unconscionable: Keagle had reserved the right to choose the arbitrator and location of arbitration. Campbell had agreed not to consolidate or file a class suit for any claim and to pay her own costs, regardless of the outcome. The judge did not find that the contract was one-sided as a whole. Keagle accepted striking the provisions found to be unconscionable but sought to arbitrate rather than litigate.The Seventh Circuit remanded with instructions to name an arbitrator, reasoning that the mutual assent to arbitration remains. The Federal Arbitration Act, 9 U.S.C. 4, provides that, absent a contrary agreement, the arbitration takes place in the same judicial district as the litigation; “who pays” may be determined by some other state or federal statute, such as the Fair Labor Standards Act, on which Campbell’s suit rests. The chosen arbitrator can prescribe the procedures. Under 9 U.S.C. 5, “if for any … reason there shall be a lapse in the naming of an arbitrator" the court shall designate an arbitrator. View "Campbell v. Keagle Inc" on Justia Law

Claude Rogers, a former resident of a residential care facility for the elderly known as Meadow Oaks of Roseville, died after experiencing heatstroke. His wife and successor-in-interest Kathryn and sons Jeffrey, Phillip and Richard sued Meadow Oaks of Roseville, Roseville SH, LLC, CPR/AR Roseville SH Owner, LLC, DCP Investors Roseville SH, LLC, DCP Management Roseville SH, LLC, Westmont Living, Inc., Tanysha Borromeo, Ana Rojas, and Andrew Badoud for elder abuse, fraud, and wrongful death. Defendants appealed an order denying their petition to compel plaintiffs to arbitrate their claims pursuant to an arbitration agreement that was part of the Residency Agreement Richard signed as Claude’s representative. Although defendants filed a notice of appeal, the appellate briefs were filed on behalf of Roseville SH, LLC only. Roseville SH, LLC contended that in denying the petition to compel arbitration: (1) the trial court erroneously believed defendants had to show that Claude lacked mental capacity to consent before they could prove that Richard had the authority to sign the arbitration agreement for Claude; (2) the trial court erred in concluding that Richard did not act as Claude’s actual or ostensible agent when he signed the arbitration agreement on Claude’s behalf; and (3) the trial court’s order violated the Federal Arbitration Act. The Court of Appeal concluded: (1) Roseville SH, LLC misconstrued the trial court’s analysis; (2) the trial court did not err in denying the petition to compel arbitration; and (3) the trial court’s order did not violate the Federal Arbitration Act. Accordingly, judgment was affirmed. View "Rogers v. Roseville SH, LLC" on Justia Law

The Eleventh Circuit affirmed the district court's interlocutory order denying defendant's motion to compel arbitration. Defendant argues that the parties should be required to arbitrate their dispute under the terms of a 2018 Settlement Agreement entered into between her and plaintiff. The court agreed with plaintiff that the district court correctly denied the motion to compel arbitration after finding that the parties mutually rescinded the 2018 Settlement Agreement in 2019 under Florida law. The court found instructive Dasher v. RBC Bank (USA), 745 F.3d 1111 (11th Cir. 2014), which held that arbitration could not be compelled based on an earlier agreement containing an arbitration clause when a subsequent agreement without an arbitration clause entirely superseded the earlier agreement under state law. Furthermore, the district court's credibility determinations are supported, not contradicted, by the objective evidence in this case, and so its findings of fact are untouchable on appeal. View "Reiterman v. Abid" on Justia Law

Mendoza applied for employment with FTU. Mendoza cannot read English. A supervisor interviewed Mendoza in Spanish and filled out the application form, which Mendoza signed. All of the acknowledgments Mendoza signed were in English. FTU’s director of human resources later testified that it was his practice to review the FTU Employee Handbook, including an arbitration policy, in Spanish if appropriate, and to give Spanish-speaking employees a Spanish-language version of the Handbook. Mendoza denied receiving the Spanish-language Handbook.FTU hired Mendoza as a temporary, interstate truck driver. Mendoza filed a putative class action, alleging Labor Code violations: failure to pay minimum wages, to provide rest periods, to provide meal periods, to provide accurate wage statements, and to pay all wages owed upon termination. Mendoza opposed a motion to compel arbitration, arguing that the Handbook, which stated that it was not a contract and was merely for informational purposes, did not create a binding agreement and that any agreement was void for lack of mutual consent or voidable based on unilateral mistake.The court of appeal affirmed the denial of the motion to compel arbitration. It was for a court to decide whether the parties had entered into an agreement to arbitrate. In these circumstances, the parties have not entered into either an express or an implied contract to arbitrate. View "Mendoza v. Trans Valley Transport" on Justia Law

The Supreme Court reversed the decision of the court of appeals that applied the doctrine of forfeiture as the basis for its reversal of the circuit court's vacatur of Loren Imhoff Homebuilder, Inc.'s arbitral award under Wis. Stat. 788.10(1), holding that remand was required.This case arose from a construction contract that Imhoff entered into with Homeowners for a remodeling project on Homeowners' home. Homeowners later asserted that Imhoff breach the construction contract. The parties proceeded to arbitration. Imhoff brought a motion to confirm the arbitral award. Homeowners moved to vacate the award based partly on the arbitrator's sleeping during arbitration, which Homeowners alleged was both misbehavior that resulted in prejudice and indicative of a flawed process. The Supreme Court reversed, holding (1) Homeowners did not forfeit their objection to the arbitrator's sleeping; and (2) because this Court is divided on whether the arbitration award should be vacated pursuant to Wis. Stat. 788.10, remand was required for consideration of section 788.10 issues. View "Loren Imhoff Homebuilder, Inc. v. Taylor" on Justia Law

Sacks is a law firm with a 20-year history of working with the International Monetary Fund (IMF). In 2011, IMF hired Sacks to negotiate disputed claims of various contractors that worked on the renovation of its headquarters. The parties’ contract asserts IMF’s immunity from suit and provides that any disputes not settled by mutual agreement shall be resolved by arbitration. In a subsequent fee dispute between Sacks and IMF, Sacks filed a demand for arbitration with the AAA. The arbitration panel awarded Sacks $39,918.82 plus interest but denied Sacks’ claim of underpayment in connection with earlier work.Sacks sued the Fund, claiming that the award should be vacated pursuant to the D.C. Code as “the result of misconduct by the arbitrators.” IMF removed the case to federal court and moved to dismiss it on immunity grounds pursuant to its Articles of Agreement, given effect in the U.S. by the Bretton Woods Act, 22 U.S.C. 286h. Sacks asserted the contract waived immunity by expressly providing for arbitration pursuant to the AAA Rules, which contemplate courts’ entry of judgment on arbitral awards. The D.C. Circuit affirmed the dismissal of the suit. The AAA Rules and D.C. law contemplate judicial involvement in the enforcement of arbitral awards, so arguably the contract also does so but an international organization's waiver of the immunity must be explicit. The parties' contract expressly retains the IMF’s immunity, reiterating it even within the arbitration clause. View "Leonard A. Sacks & Associates P.C. v. International Monetary Fund" on Justia Law

Warfield, a securities broker, contended before an arbitration panel that his former employer, ICON, wrongfully terminated him without just cause. Warfield’s employment fell within the ambit of the Financial Industry Regulatory Authority (FINRA), so arbitrators resolved the dispute under FINRA Rule 13200(a). Warfield argued the mere fact that disputes over his employment relationship had to be resolved by arbitration implied that he could only be fired for cause. The panel awarded him $1,186,975.The district court refused to enforce the award (9 U.S.C. 9), holding that the arbitrators manifestly disregarded the law because North Carolina is an “at-will” employment state that does not recognize a cause of action for wrongful termination without just cause. The Fourth Circuit reversed. ICON has not made the “exceedingly difficult showing” necessary to demonstrate that the arbitrators acted with manifest disregard of the law. ICON never cited any North Carolina case rejecting the specific proposition that the arbitrability of an employment relationship implies for-cause protections. Even if ICON had the better argument before the arbitrators, there was still an argument and the issue is “subject to reasonable debate,” View "Warfield v. ICON Advisers, Inc" on Justia Law

The Supreme Court reversed the judgment of the district court concluding that an arbitration provision was void under Nev. Rev. Stat. 597.995 for failure to include a specific authorization, holding that the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq., preempted section 597.955, and therefore, the district court's decision was erroneous.Nev. Rev. Stat. 597.995 requires any agreement that includes an arbitration provision to include a specific authorization for that provision. The district court concluded that the arbitration provision at issue in this case was void for failure to include a specific authorization, as required by section 597.995. The Supreme Court reversed, holding (1) because section 597.995 singles out and disfavors arbitration provisions by imposing stricter requirements on them than on other contract provisions, the FAA preempts the statute in cases involving interstate commerce; and (2) the district court erred by concluding that section 597.995 voided the parties' arbitration agreement. View "Maide, LLC v. Dileo" on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing order of the circuit court denying the motion of Legacy Health Services, Inc. Cambridge Place Group, LLC, and Cambridge Place Properties, LLC (collectively, Defendants) to dismiss or stay this lawsuit and compel arbitration of the medical malpractice claims brought by Christopher Jackson, as guardian for Christine Jackson, his mother, holding the court of appeals erred.At issue was whether Christopher possessed the authority, as his mother's guardian, to enter a voluntary arbitration agreement that was not a prerequisite to the provision of care or services to his ward. The circuit court concluded that Christopher did not have that authority. The court of appeals reversed, holding that a guardian's authority to enter into contracts generally is within the ambit of what is reasonably inferable from the relevant statutes. The Supreme Court reversed, holding (1) guardians have the authority to bind their wards to contracts that limit or deprive the civil rights of their wards only to the extent necessary to provide needed care and services to the ward; and (2) because the arbitration agreement was not necessary to provide care or services to Christine, Christopher lacked the authority to enter into the arbitration agreement. View "Jackson v. Legacy Health Services, Inc." on Justia Law