Justia Arbitration & Mediation Opinion Summaries

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

Charter created a program for resolving and ultimately arbitrating employment-related disputes. Individuals who received an offer from Charter were required to complete a web-based onboarding process as a condition of employment; they were prompted to review and accept various policies and agreements, including the arbitration agreement and the program guidelines. After agreeing to submit all employment-related disputes with Charter to arbitration, Ramirez was hired in July 2019. In May 2020, Charter terminated Ramirez. Ramirez filed suit, alleging multiple claims under California’s Fair Employment and Housing Act (FEHA) and wrongful discharge. Charter moved to compel arbitration and sought attorney fees in connection with its motion pursuant to the arbitration agreement.The court denied Charter’s motion to compel arbitration, finding that the requirement was substantively unconscionable because it shortened the statute of limitations for FEHA claims, failed to restrict attorney fee recovery to only frivolous or bad faith FEHA claims (contrary to FEHA), and impermissibly provided for an interim fee award for a party successfully compelling arbitration. The court of appeal affirmed. The arbitration agreement was a contract of adhesion, which establishes a minimal degree of procedural unconscionability, and the agreement contained a high degree of substantive unconscionability. The arbitration agreement is permeated by unconscionability and cannot be enforced. View "Ramirez v. Charter Communications, Inc." on Justia Law

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

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 First Circuit reversed the judgment of the district court in this dispute between the International Brotherhood of Electrical Workers, Local 103 (the Union) and Johnson Controls Security Solutions, LLC over Johnson Controls' compliance with the terms of the parties' collective bargaining agreement (CBA), holding that the district court erred by failing to order arbitration as called for by a clause in the CBA.Johnson Controls' Norwood, Massachusetts facility entered into a CBA with the Union, a labor organization that represented employees of the company, that contained an arbitration clause. The Union filed a grievance concerning Johnson Controls' reduction in its matching contribution to the company's 401(k) plan, which Johnson Controls denied. When the Union filed a demand for arbitration Johnson Controls brought this lawsuit seeking a declaratory judgment that the dispute was not arbitrable under the CBA. The district court concluded that the dispute was not arbitrable. The First Circuit reversed, holding that nothing in the record showed that the parties intended to exclude this type of dispute from the scope of the arbitration clause. View "Johnson Controls Security Solutions, LLC v. Int'l Brotherhood of Electrical Workers, Local 103" on Justia Law

The Second Circuit dismissed plaintiff's appeal of the district court's judgment deeming his Federal Rule of Civil Procedure 41(a)(1)(A)(i) notice of dismissal without prejudice withdrawn and compelling arbitration. The court held that the district court properly retained jurisdiction following the notice of dismissal to conduct a Cheeks review of any possible settlement of plaintiff's Fair Labor Standards Act claims; and that the district court reasonably interpreted his request to continue the litigation as a withdrawal of the notice of dismissal, and, in its discretion, deemed it withdrawn. Therefore, plaintiff failed to take a timely appeal of the order deeming his notice of dismissal withdrawn, and the order to stay and compel arbitration is an unappealable interlocutory order. View "Samake v. Thunder Lube, Inc." on Justia Law

The Court of Appeal concluded that the arbitration clause between a job applicant and her prospective employer does not apply to disputes between the applicant and her former employers based on the existence of a business relationship between the prospective employer and the applicant's past employers. Therefore, the arbitration agreement between plaintiff and Expert Staffing West does not apply to disputes arising between her and her former employers. In this case, the court agreed with the trial court that the arbitration agreement between plaintiff and Expert Staffing West did not apply to plaintiff's claims against Essential Seasons and Cool-Pak. Accordingly, the court affirmed the judgment. View "Garcia v. Expert Staffing West" on Justia Law

In a putative class action by Domino’s drivers, asserting violations of various California labor laws, the district court denied a motion to compel arbitration based on its finding that the drivers were a “class of workers engaged in foreign or interstate commerce,” and were exempt from the Federal Arbitration Act (FAA), notwithstanding their contracts with Domino’s, which provided claims between the parties be submitted to arbitration under the FAA. The exemption applies if the class of workers is engaged in a “single, unbroken stream of interstate commerce” that renders interstate commerce a “central part” of their job description.The Ninth Circuit affirmed, rejecting Domino’s argument that the drivers who delivered goods to individual Domino’s franchisees in California were not engaged in interstate commerce because the franchisees, all located in California, placed orders with the supply center in the state, and the goods delivered were not in the same form in which they arrived at the supply center. Domino’s was directly involved in the procurement and delivery of interstate goods, was involved in the process from the beginning to the ultimate delivery of the goods, and its business included not just the selling of goods, but also the delivery of those goods. The transportation of interstate goods on the final leg of their journey by the Domino’s drivers satisfied the requirements of the residual clause. View "Carmona v. Domino's Pizza, LLC" on Justia Law

Defendants Pinnacle Property Management Services, LLC (Pinnacle) and Jennifer Stewart (Stewart) appealed a trial court’s order denying their motion to compel arbitration. The court denied the motion because it determined the arbitration agreement was procedurally and substantively unconscionable. As to the former, the court noted the agreement was unconscionable because plaintiff Anthony De Leon was required to sign the arbitration agreement as a precondition to his employment. As to the latter, the court found the agreement was substantively unconscionable because of its limits on discovery and because it shortened the statute of limitations to one year on all claims. On appeal, defendants contended the arbitration agreement had low procedural unconscionability and contained only one substantively unconscionable provision: the statute of limitations provision. They alternatively claimed the court erred by failing to sever any unconscionable provisions. After careful consideration of the agreement at issue, the Court of Appeal agreed with the court’s unconscionability findings. Further, the Court held the trial court also did not abuse its discretion by refusing to sever any portion of the arbitration agreement. View "De Leon v. Pinnacle Property Management Services, LLC" on Justia Law