Justia Arbitration & Mediation Opinion Summaries

The Supreme Court reversed the district court’s order denying Kindred Nursing and Rehabilitation - Wind River’s motion to compel arbitration in this wrongful death action. Aletha Boyd died following her discharge from Kindred. Aletha’s daughter, Susan Boyd, filed this action alleging that Kindred’s negligence in caring for Aletha caused her death. Kindred moved to compel arbitration pursuant to an alternative dispute resolution (ADR) agreement signed by Leanna Putman, Aletha’s other daughter and representative under a power of attorney at the time of Aletha’s admission into the nursing home. The district court denied the motion without providing reasons for doing so. The Supreme Court remanded with instructions to order arbitration as required by the ADR agreement, holding (1) Putnam had the authority to sign the ADR agreement on Aletha’s behalf; and (2) the ADR was neither unconscionable nor lacked mutuality of assent or sufficient consideration. View "Kindred Heathcare Operating, Inc. v. Boyd" on Justia Law

The Supreme Court reversed the district court’s order denying Kindred Nursing and Rehabilitation - Wind River’s motion to compel arbitration in this wrongful death action. Aletha Boyd died following her discharge from Kindred. Aletha’s daughter, Susan Boyd, filed this action alleging that Kindred’s negligence in caring for Aletha caused her death. Kindred moved to compel arbitration pursuant to an alternative dispute resolution (ADR) agreement signed by Leanna Putman, Aletha’s other daughter and representative under a power of attorney at the time of Aletha’s admission into the nursing home. The district court denied the motion without providing reasons for doing so. The Supreme Court remanded with instructions to order arbitration as required by the ADR agreement, holding (1) Putnam had the authority to sign the ADR agreement on Aletha’s behalf; and (2) the ADR was neither unconscionable nor lacked mutuality of assent or sufficient consideration. View "Kindred Heathcare Operating, Inc. v. Boyd" on Justia Law

The Supreme Judicial Court affirmed the judgment of the superior court granting Matthew Eastwick’s application to confirm an arbitration award and denying Cate Street Capital, Inc.’s competing motion to vacate that award after concluding that the parties had agreed to arbitrate any disputes arising from a settlement agreement. The Supreme Judicial Court held (1) the agreement contained clear contractual language of the parties’ intent to submit disputes to the mediator for binding arbitration; and (2) although the parties’ confidentiality had been compromised by the litigation, the court’s judgment incorporated the final agreement without ordering acceleration of those payments not yet due and without modifying any of its terms, including the agreement’s confidentiality provision. View "Eastwick v. Cate Street Capital, Inc." on Justia Law

The Supreme Judicial Court affirmed the judgment of the superior court granting Matthew Eastwick’s application to confirm an arbitration award and denying Cate Street Capital, Inc.’s competing motion to vacate that award after concluding that the parties had agreed to arbitrate any disputes arising from a settlement agreement. The Supreme Judicial Court held (1) the agreement contained clear contractual language of the parties’ intent to submit disputes to the mediator for binding arbitration; and (2) although the parties’ confidentiality had been compromised by the litigation, the court’s judgment incorporated the final agreement without ordering acceleration of those payments not yet due and without modifying any of its terms, including the agreement’s confidentiality provision. View "Eastwick v. Cate Street Capital, Inc." on Justia Law

The Supreme Court reversed the circuit court’s order denying Bluestem Brands, Inc.’s motion to compel arbitration brought by Respondent. Bluestem, a retailer of consumer goods, partnered with various bands to offer credit to its customers. The circuit court concluded that the arbitration agreement entered into by the parties was not binding on Respondent. Specifically, the circuit court found that Respondent did not assent to arbitration because she did not receive a copy of the most recent credit card agreement containing arbitration language and that Bluestem’s credit partners, and not Bluestem itself, were party to any potentially applicable credit agreement requiring arbitration. In reversing, the Supreme Court held (1) although the most recent amendments to the credit agreement lacked mutual assent, a prior version of the credit agreement contained a properly formed arbitration agreement and encompassed Respondent’s claims; and (2) Bluestem, as a non-signatory to the agreement, may utilize the theory of equitable estoppel to compel arbitration under the agreement. View "Bluestem Brands, Inc. v. Shade" on Justia Law

Jimmy Nation, Oliver McCollum, James Pickle, James Nation, Micah Nation, and Benjamin Chemeel II (collectively referred to as "the defendants") appealed the circuit court's denial of their motion to compel arbitration of a breach-of-contract claim filed against them by the Lydmar Revocable Trust ("Lydmar"). Lydmar owned a 75% membership interest in Aldwych, LLC. In 2008, Lydmar and the defendants entered into an agreement pursuant to which Lydmar agreed to sell its membership interest in Aldwych, LLC, to the defendants. The defendants paid Lydmar a portion of the agreed price at the time the agreement was executed and simultaneously executed two promissory notes for the balance of the purchase price. By 2014, Lydmar sued defendants for breach of contract for failing to make the required payments. At the request of the parties, the circuit court delayed setting the matter for a bench trial until they had an opportunity to resolve the case without a trial. The parties' attempts failed. Thereafter, defendants filed a motion to compel arbitration of Lydmar's breach-of-contract claim. Lydmar did not file a response to the defendants' motion to compel arbitration. After review, the Alabama Supreme Court reversed, finding defendants submitted evidence showing that Lydmar signed a contract agreeing that all disputes between them related to the defendants' purchase of Lydmar's membership interest in Aldwych would be settled in arbitration and that the contract evidenced a transaction affecting interstate commerce. Lydmar did not refute that evidence, nor did it establish that the defendants waived their right to rely on those arbitration provisions. Therefore, the circuit court erred by returning the case to its active docket and effectively denying the defendants' motion to compel arbitration. View "Nation et al. v. Lydmar Revocable Trust" on Justia Law

The “Sunoco Rewards Program,” which Sunoco advertised, offered customers who buy gas at Sunoco locations using a Citibank-issued credit card a five-cent per gallon discount either at the pump or on their monthly billing statements. The “Terms and Conditions of Offer” sheet, indicating that Citibank is the issuer of the Card, stated that by applying for the card, the applicant authorized Citibank to “share with Sunoco® and its affiliates experiential and transactional information regarding your activity with us.” Sunoco was not a corporate affiliate of and had no ownership interest in Citibank and vice versa. White obtained a Sunoco Rewards Card from Citibank in 2013. He made fuel purchases with the card at various Sunoco-branded gas station locations. White filed a purported class action against Sunoco, not Citibank, alleging that “[c]ontrary to its clear and express representations, Sunoco does not apply a 5¢/gallon discount on all fuel purchases made by cardholders at every Sunoco location. Sunoco omits this material information to induce customers to sign-up for the Sunoco. The Third Circuit affirmed the denial of Sunoco’s motion to compel arbitration. Sunoco, a non-signatory to the credit card agreement and not mentioned in the agreement, cannot compel White to arbitrate. View "White v. Sunoco Inc" on Justia Law

A broadly-worded agreement in one contract can require arbitration of disputes arising under related contracts. To determine whether an arbitration provision in one agreement should be applied to other agreements, in addition to the relationship between two or more agreements and their subject matter, courts consider whether the parties to the separate agreements are identical, whether the underlying agreements were executed closely in time, and the breadth of the language used in the arbitration clause. The question whether a particular dispute is arbitrable usually is for judicial determination unless the parties agree otherwise. Gary and Glory Kramlich appealed, and Robert and Susan Hale cross-appealed, an order dismissing the Kramlichs' lawsuit against the Hales and various entities, and directing the parties to submit their disputes to binding arbitration. The North Dakota Supreme Court concluded the district court correctly ordered arbitration of the Kramlichs' claims relating to the operating agreement for Somerset-Minot, LLC, but erred in ordering arbitration of claims relating to Somerset Court Partnership. View "Kramlich v. Hale" on Justia Law

This case arose from competing claims to a portion of the Yuba Goldfields, a 10,000-acre valley on both sides of the Yuba River near Marysville. At issue was whether an arbitration award resolving a dispute between plaintiff Cal Sierra Development, Inc. (Cal Sierra), and Western Aggregates, Inc., served as res judicata to bar Cal Sierra’s lawsuit against Western Aggregates’ licensee George Reed, Inc., and the licensee’s parent Basic Resources, Inc. The Court of Appeal concluded yes. View "Cal Sierra Development v. George Reed, Inc." on Justia Law

Moon performed at the Breathless Men’s Club in Rahway. She rented performance space in the Club and signed an Independent Dancer Rental Agreement, stating: Dancer understands and agrees that he/she is an independent contractor and not an employee of club. Dancer is renting the performance space for an agreed upon fee previously agreed to by Dancer and Club. … In a dispute between Dancer and Club under this Agreement, either may request to resolve the dispute by binding arbitration. THIS MEANS THAT NEITHER PARTY SHALL HAVE THE RIGHT TO LITIGATE SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL – DISCOVERY AND APPEAL RIGHTS ARE LIMITED IN ARBITRATION. ARBITRATION MUST BE ON AN INDIVIDUAL BASIS. THIS MEANS NEITHER YOU NOR WE MAY JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS. Moon sued under the Fair Labor Standards Act, 29 U.S.C. 201; the New Jersey Wage Payment Law; and the state Wage and Hour Law. The district court denied a motion to dismiss and ordered limited discovery on the arbitration issue. After discovery, the court granted the Club summary judgment. The Third Circuit reversed. Moon’s claims do not arise out of the contract itself; the arbitration clause does not cover Moon’s statutory wage-and-hour claims. View "Moon v. Breathless Inc" on Justia Law