Justia Arbitration & Mediation Opinion Summaries

The Supreme Court affirmed in part and reversed and remanded in part the order of the circuit court denying motions to compel arbitration of a class-action complaint filed by Appellees, holding that Appellants failed to meet their burden of proving a valid and enforceable arbitration agreement with respect to certain agreements but that Appellants met their burden to prove the validity of the remainder of the arbitration agreements.Appellees filed a class-action complaint against Appellants, a nursing home and related entities, alleging that Appellants had breached their admission and provider agreements, violated the Arkansas Deceptive Trade Practices Act, committed negligence and civil conspiracy, and had been unjustly enriched. Appellants' filed four motions to compel arbitration with respect to ten class members/residents. The circuit court denied the motions. The Supreme Court affirmed in part and reversed in part, holding (1) certain arbitration agreements contained deficiencies that prevented Appellants from meeting their burden of proving a valid and enforceable arbitration agreement; and (2) Appellants met their burden to prove the validity of the remainder of the arbitration agreements not already discussed. View "Robinson Nursing & Rehabilitation Center, LLC v. Phillips" on Justia Law

The Supreme Court reversed the decision of the court of appeals affirming the trial court's judgment granting Plaintiff's motion to certify a class action, holding that when a class-certification case originates with a single named plaintiff and that plaintiff is not subject to an arbitration agreement that was entered into by unnamed putative class members, the defendant need not raise a specific argument referring or relating to arbitration in the defendant's answer.Plaintiff filed a class-action complaint against Defendant, his former employer. When Plaintiff moved to certify the case as a class action Defendant opposed the motion, asserting the defense of arbitration. The trial court granted the motion, concluding that Defendant waived any right of arbitration. The appellate court affirmed, determining that Defendant's failure to assert the arbitration defense in his answer or to seek to enforce the right to arbitration prior to its opposition to the certification was inconsistent with its right to assert the defense. The Supreme Court reversed, holding (1) because arbitration was not available as a defense at the time Defendant submitted its answer, Defendant could not waive a right to assert arbitration at that time; and (2) Defendant had no duty to raise an argument that Plaintiff failed to satisfy Civ.R. 23(A)'s typicality and adequacy requirements. View "Gembarski v. PartsSource, Inc." on Justia Law

Defendants Merchants Building Maintenance, LLC and Merchants Building Maintenance Company (the MBM defendants) appeal from an order of the trial court denying their joint motion to compel arbitration. The MBM defendants moved to compel arbitration of a portion of plaintiff Loren Mejia's cause of action brought against them for various violations of the Labor Code under the Private Attorneys General Act of 2004 (PAGA). The MDM defendants moved to compel arbitration of that portion of Mejia's PAGA claim in which she seeks "an amount sufficient to recover underpaid wages." The Court of Appeal reduced the issue presented as whether a court could split a single PAGA claim so as to require a representative employee to arbitrate that aspect of the claim in which the plaintiff sought to recover the portion of the penalty that represented the amount sufficient to recover underpaid wages, where the representative employee has agreed to arbitrate her individual wage claims, while at the same time have a court review that aspect of the employee's claim in which the plaintiff sought to recover the additional $50 or $100 penalties provided for in section 558 of the Labor Code for each violation of the wage requirements. The Court of Appeal concluded that a single PAGA claim seeking to recover section 558 civil penalties could not be "split" between that portion of the claim seeking an "amount sufficient to recover underpaid wages" and that portion of the claim seeking the $50 or $100 per-violation, per-pay-period assessment imposed for each wage violation. The Court affirmed the trial court's order denying the MDM defendants' motion to compel arbitration in this case. View "Mejia v. Merchants Building Maintenance" on Justia Law

Defendants-appellants Catalina Restaurant Group, Inc., Carrows Restaurants, Inc., Carrows Family Restaurants, Inc., Coco’s Bakery Restaurants, Inc. and Coco’s Restaurants, Inc. (collectively, Catalina Defendants) appealed the partial denial of their motion to compel arbitration. Plaintiff-respondent Yalila Lacayo (Lacayo) was an employee of Catalina Defendants, and filed a plaintiff’s class action complaint on behalf of herself and others similarly situated (Class Members) against Catalina Defendants in superior court alleging numerous wage and hour violations under the Labor Code, and an injunctive relief claim under California’s unfair competition law (UCL). Catalina Defendants responded by filing a motion to compel arbitration of Lacayo’s individual claims, including the UCL claim, and dismissal of the class claims (Motion). The trial court granted the Motion as to Lacayo’s individual claims; refused to dismiss the class claims, instead letting the arbitrator decide if the class claims were subject to arbitration or a class action waiver; and denied the Motion as to the UCL claim; and stayed the matter until after arbitration was completed. Catalina Defendants on appeal argued the trial court erred by: (1) refusing to enforce the individual arbitration agreement according to its terms; and (2) refusing to compel arbitration of Lacayo’s UCL claim. In supplemental briefing, both parties addressed whether Catalina Defendants could appeal the trial court’s order granting arbitration of individual claims but refusing to dismiss the classwide claims, leaving the decision for the arbitrator. The Court of Appeal found Catalina Defendants could not appeal the portion of the Motion that granted arbitration for Lacayo’s individual claims and the refusal to dismiss the class claims. The Court of Appeal only addressed the order finding that the UCL claim was not subject to arbitration, and affirmed the trial court's order denying defendants' Motion as to the UCL claim. View "Lacayo v. Catalina Restaurant Group Inc." on Justia Law

Au pairs and former au pairs filed a class action lawsuit against AuPairCare, Inc. (“APC”) and other au pair sponsoring companies alleging violations of antitrust laws, the Racketeer Influenced and Corrupt Organizations Act (“RICO”), the Fair Labor Standards Act (“FLSA”), federal and state minimum wage laws, and other state laws. Eventually, the au pairs amended their complaint and added two former au pairs, Juliane Harning and Laura Mejia Jimenez, who were sponsored by APC. In response, APC filed a motion to compel arbitration, which the district court denied. The district court found the arbitration provision between the parties both procedurally and substantively unconscionable and declined to enforce it. Because the arbitration provision contained only one substantively unconscionable clause, the Tenth Circuit concluded the district court abused its discretion by refusing to sever the offending clause and otherwise enforce the agreement to arbitrate. The Court therefore reversed the district court’s ruling and remanded for further proceedings. View "Beltran v. Interexchange, Inc." on Justia Law

Plaintiff Jeff Gist worked as a driver for defendant Driver Resources, LLC. The other two defendants were related companies. In November 2013, plaintiff filed a class-action complaint against defendants, on behalf of himself and other similarly situated drivers. At issue was defendants’ compliance with Oregon’s wage and hour laws. In January 2014, defendants filed a petition to compel arbitration, on the basis of an agreement that plaintiff had signed with one defendant. Plaintiff responded to the petition by arguing that the agreement was unconscionable, and therefore that arbitration should not be compelled. The trial court granted defendants’ petition, requiring plaintiff to proceed to arbitration. Plaintiff made several attempts to obtain appellate review of the trial court’s order compelling arbitration. This case required the Oregon Supreme Court to determine whether the Court of Appeals correctly dismissed plaintiff’s appeal of a judgment dismissing his complaint with prejudice on the grounds that the appeal was barred by the Supreme Court’s decision in Steenson v. Robinson, 385 P2d 738 (1963). That decision set out the common-law rule that a party may not appeal from a voluntarily-requested judgment. The Court concluded the judgment was appealable and remanded the case to the Court of Appeals. View "Gist v. Zoan Management, Inc." on Justia Law

Plaintiffs, current and former Uber drivers, filed putative class actions alleging that Uber violated various federal and state statutes by, among other things, misclassifying drivers as independent contractors rather than employees. The Ninth Circuit previously considered and reversed the district court's orders denying Uber's motions to compel arbitration in Mohamed v. Uber Technologies, Inc., 848 F.3d 1201, 1206 (9th Cir. 2016).In this case, the panel rejected plaintiffs' additional arguments as to why the arbitration agreements were unenforceable. Because the class certification by the district court was premised on the district court's determination that the arbitration agreements were unenforceable, the panel reversed class certification. The panel also held that the Rule 23(d) orders were based on the district court’s denial of the motions to compel arbitration and its granting of class certification. Because these decisions must be reversed, there was no longer a basis for the district court's restrictions on Uber's communication with class and putative class members. Therefore, these orders were moot and the panel reversed. View "O'Connor v. Uber" on Justia Law

The Eleventh Circuit held that the district court correctly determined that the availability of class arbitration was a question of arbitrability, presumptively for the court to decide, because it was the kind of gateway question that determined the type of dispute that would be arbitrated. In this case, defendants sought to compel arbitration on a class basis with JPay, a Miami-based company that provides fee-for-service amenities in prisons in more than thirty states.The court held, however, that the language the parties used in their contract expressed their clear intent to overcome the default presumption and to arbitrate gateway questions of arbitrability, including the availability of class arbitration. Therefore, the court vacated the district court's grant of summary judgment to JPay, reversed the denial of defendants' motion to compel arbitration, and remanded for further proceedings. View "JPay, Inc. v. Kobel" on Justia Law

Matthew Ray, a former DISH Network L.L.C. employee who signed an arbitration agreement when he was employed, filed an action in the federal district court alleging violations of the Fair Labor Standards Act (“FLSA”), Colorado’s Wage Claim Act, Colorado’s Minimum Wage Act, and a common law claim for breach of contract. Dish moved to dismiss, demanding that Ray arbitrate his claims pursuant to the Agreement. Ray dismissed the lawsuit and filed with the American Arbitration Association (“AAA”), asserting the same four claims. In addition, and the focus of this case, Ray attempted to pursue his claims as a class action under Fed. R. Civ. P. 23 and a collective action under 29 U.S.C. 216(b). The arbitrator determined that the Arbitration Agreement between the two parties permitted classwide arbitration, and then stayed the arbitration to permit DISH to contest the issue in court. DISH filed a Petition to Vacate Clause Construction Arbitration Award, which the district court denied. After review, the Tenth Circuit determined the arbitrator in this case did not manifestly disregard Colorado law when he concluded that he was authorized to conduct class arbitration by the broad language of the Agreement in combination with the requirement that arbitration be conducted pursuant to the AAA’s Employment Dispute Rules. Accordingly, the district court correctly denied DISH’s petition to vacate the arbitration award. View "Dish Network v. Ray" on Justia Law

In July 2007, NMG, a luxury fashion retailer, notified its employees that acceptance of the NMG Arbitration Agreement was a mandatory condition of employment which would be implied for all employees who continued to work at NMG beyond July 15, 2007. Tanguilig unsuccessfully tried to negotiate its terms. Tanguilig chose not to return to work after July 15, and sued alleging, among other things: wrongful termination in violation of public policy; wrongful retaliation; wrongfully requiring employees to agree to allegedly illegal terms, failure to provide 10-minute rest periods and 30-minute meal periods and to pay overtime wages and minimum wage in violation of the Labor Code; and failure to pay wages owed at the time of discharge. Early in the proceedings, the court dismissed Tanguilig’s wrongful termination and related claims. Several years later, it dismissed the remaining claims under California’s five-year dismissal statute, Code of Civil Procedure 583.310. The court of appeal affirmed, rejecting Tanguilig’s argument that the trial court erred in failing to toll the five-year clock under section 583.340(c), for the period during which an order compelling a co-plaintiff to arbitration was in effect. Tanguilig made no factual showing that she could not have brought her claims to trial while that order was in effect View "Tanguilig v. Neiman Marcus Group, Inc." on Justia Law