Justia Arbitration & Mediation Opinion Summaries

After RMC implemented new staffing grids for registered nurses at its acute-care hospital, the Union filed a grievance under the parties’ collective bargaining agreement (CBA) and later sought arbitration. The grievance alleged that “the hospital intends to displace bargaining unit (BU) RNs [with] supervisory RNs in the performance of BU work as expressed in the hospital’s staffing grids” that were implemented in June 2020 and that “removed RNs in the BU.” RMC refused to process the grievance, claiming that the CBA did not cover the Union’s allegations of wrongdoing. The Union filed suit, seeking to compel arbitration.The Eighth Circuit affirmed summary judgment in favor of the Union. The CBA defines “grievance” as “[a]n alleged breach of the terms and provisions of this Agreement,” sets forth the process for submitting grievances to RMC, and provides that if the grievance is not resolved by the parties, “the Union may advance the grievance to arbitration.” Article 38(1)(F) exempts from arbitration certain disputes. Because the grievance alleges displacement of bargaining unit nurses, which is covered by Article 3, and not issues related to nurse-to-patient staffing levels, which are covered by Article 38, Article 38(1)(F)’s arbitration exemption does not apply. View "National Nurses Organizing Committee-Missouri & Kansas v. Midwest Division-RMC, LLC" on Justia Law

STA, an association of businesses involved with the transport of cargo at the Port of Baltimore, and the Longshoremen’s union (ILA) entered into trust agreements to create funds that provide employee benefits in accordance with the Labor Management Relations Act. The agreements provide an equal number of trustees representing the labor union and trustees representing the employers. Not all companies that do business at the Port are STA members. The Union Trustees sought to expand the definition of “Employer” in the trust agreements to include non-STA employers engaged in the same businesses as STA-affiliated employers at the Port, to include “any employer who signs a CBA [collective bargaining agreement] with the ILA or its [local affiliates] that requires contributions to the Trust.” Expanding the definition would increase the number of contributors to the trusts. The Management Trustees opposed the amendment, creating a deadlock, and refused the Union Trustees’ request to arbitrate. The Union Trustees sued to compel arbitration under 29 U.S.C. 186(c)(5)(B).The Fourth Circuit affirmed the dismissal of the complaint. Although courts incorporate a “presumption of arbitrability” in employer-union arbitration disputes when an arbitration agreement exists, here the trust agreements provide a “positive assurance” that arbitration may not be compelled. View "Krueger v. Angelos" on Justia Law

In 2005, Lyons opened a Home Equity Line of Credit (HELOC) with PNC’s predecessor, signing an agreement with no arbitration provision. In 2010, Lyons opened deposit accounts at PNC and signed a document that stated he was bound by the terms of PNC’s Account Agreement, including a provision authorizing PNC to set off funds from the account to pay any indebtedness owed by the account holder to PNC. PNC could amend the Account Agreement. In 2013, PNC added an arbitration clause to the Account Agreement. Customers had 45 days to opt out. Lyons opened another deposit account with PNC in 2014 and agreed to be bound by the 2014 Account Agreement, including the arbitration clause. Lyons again did not opt out. Lyons’s HELOC ended in February 2015. PNC began applying setoffs from Lyons’s 2010 and 2014 Accounts.Lyons sued under the Truth in Lending Act (TILA). PNC moved to compel arbitration. The court found that the Dodd-Frank Act amendments to TILA barred arbitration of Lyons’s claims related to the 2014 Account but did not apply retroactively to bar arbitration of his claims related to the 2010 account. The Fourth Circuit reversed in part. The Dodd-Frank Act 15 U.S.C. 1639c(e) precludes pre-dispute agreements requiring the arbitration of claims related to residential mortgage loans; the relevant arbitration agreement was not formed until after the amendment's effective date. PNC may not compel arbitration of Lyons’s claims as to either account. View "Lyons v. PNC Bank" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing the complaint brought by Noah's Ark Processors, LLC seeking a declaration that Noah's was not bound by a business agreement it entered into with UniFirst Corporation, holding that this appeal was without merit.After Noah's notified UniFirst that it was terminating their business agreement UniFirst commenced an arbitration proceeding seeking damages. In its complaint, Noah's sought a declaration that it was not bound by the agreement or the arbitration provision. The court dismissed the complaint and directed Noah's to participate in arbitration, determining that Noah's was equitably estopped from contesting that it was bound by the agreement. The Supreme Court affirmed, holding that there was no merit to any of the arguments presented on appeal. View "Noah's Ark Processors v. UniFirst Corp." on Justia Law

Kirk, an actress, using a pseudonym, entered into a confidential settlement agreement in August 2017 with four entertainment industry executives, who used fictitious names in the agreement and documents filed in the superior court. The agreement contained an arbitration clause. The executives filed a demand for arbitration in June 2020, asserting breach of contract, interference with contract, and civil extortion. The executives obtained from an emergency arbitrator a preliminary injunction prohibiting the actress, her fiance, and two others from disclosing confidential information as that term is defined in the settlement agreement, including any disclosures in court documents, and from initiating any lawsuit against the executives in violation of the arbitration provisions in the settlement agreement.Kirk and her fiance filed a petition in superior court to vacate the preliminary injunction. Because the emergency arbitrator’s ruling was not an “award” under Code of Civil Procedure section 1283.4,1 the court dismissed the petition for lack of jurisdiction. The court of appeal dismissed their appeal as taken from a non-appealable order. An arbitrator's interim rulings are not reviewable until the final award is entered; no appeal is available from a court's dismissal of a petition to vacate such an interim ruling. View "Kirk v. Ratner" on Justia Law

Okada, “a titan of the gambling industry,” hired Bartlit to represent him in a multi-billion-dollar lawsuit against Wynn Resorts. The litigation settled in Okada’s favor for $2.6 billion. Okada refused to pay the $50 million contingent fee specified in the parties’ engagement agreement, which included an arbitration clause. Bartlit initiated arbitration before CPR in Chicago, the agreed-upon forum. Okada participated in the arbitration for over a year.Less than 72 hours before the evidentiary hearing, Okada informed the arbitrators that he would not be attending. The Panel stated that it would proceed without him and that his nonattendance could subject him to default. Okada replied that he rejected the validity of the engagement agreement and was unable to make the journey from Japan to Chicago for undisclosed medical reasons. Okada announced that he would not authorize his attorneys to participate in the arbitration, and canceled all witnesses, reservations, and services. The Panel held him to be in default and found that Okada owed the firm $54.6 million, including a $963,032 sanction for the costs and fees of the proceeding.Okada moved to vacate the award, arguing that he had been deprived of a fundamentally fair proceeding when the Panel decided the case without his participation or his evidence. The district court and Seventh Circuit rejected his argument. The Panel had several reasonable bases for proceeding without him and there was nothing unfair about the proceeding. View "Bartlit Beck, LLP v. Okada" on Justia Law

The Supreme Court affirmed the judgment of the trial court granting Insured's application to compel appraisal with regard to a dispute as to the extent of Insurer's replacement obligation under Con. Gen. Stat. 38a-316e(a) (matching statute), holding that there was no error.At issue was whether a dispute as to the extent of an insurer's obligation under the matching statute to replace items or items in a covered loss for real property with "material of like kind and quality so as to conform to a reasonably uniform appearance" was a question properly relegated to the appraisal arbitral process or a question of coverage to be resolved by the court in the first instance. The trial court granted Insured's application to compel arbitration in this case. The Supreme Court affirmed, holding that the parties' dispute fell within the scope of the insurance policy's appraisal clause. View "Klass v. Liberty Mutual Insurance Co." on Justia Law

Plaintiff Keene School District appealed a superior court decision denying the School District’s petition to modify, correct or vacate an arbitrator’s award. The arbitration arose from grievances lodged by two teachers claiming that the School District’s 120-day delay in paying early retirement benefits violated the collective bargaining agreement (CBA) between the School District and the defendant, Keene Education Association (Association). The arbitrator concluded that the School District’s delay violated the CBA. Finding no reversible error, the New Hampshire Supreme Court affirmed the superior court. View "Keene School District v. Keene Education Association, NEA-NH" on Justia Law

The Supreme Court reversed the decision of the court of appeals vacating the order of the district court entering judgment on an arbitrator's award, holding that the court of appeals erred in finding the award ambiguous and ordering a remand to the arbitrator for further clarification.Signal 88, LLC brought this contract action against Lyconic, LLC. The district court ordered the dispute to be submitted to arbitration. The arbitrator issued a decision, after which Lyconic applied for an order confirming the arbitration award. The district court confirmed the award but, in the process, modified it. The court of appeals vacated the judgment, determining that the arbitrator's award was ambiguous. The Supreme Court reversed, holding (1) the district court erred in modifying rather than confirming the award; and (2) the court of appeals erred in finding that the arbitrator's award was ambiguous. View "Signal 88, LLC v. Lyconic, LLC" on Justia Law

The Court of Appeal granted the motion to compel arbitration in part and denied in part in a lawsuit alleging tort, contractual and statutory causes of action. The court affirmed the order delaying arbitration until after the court resolves the nonarbitrable causes of action. In the published portion of this opinion, the court concluded that the arbitration agreement carve-out for claims seeking equitable relief is not ambiguous and such causes of action are plainly excluded from the agreement to arbitrate. Therefore, the trial court properly concluded that the six causes of action in plaintiffs' complaint seeking equitable relief fall outside the agreement to arbitrate. View "Eminence Healthcare, Inc. v. Centuri Health Ventures, LLC" on Justia Law