Justia Arbitration & Mediation Opinion Summaries

Exum, an employer of Elrac, served a notice of intention to arbitrate on Elrac, seeking uninsured motorist benefits. Elrace petitioned to stay the arbitration. Supreme Court granted the petition, but the Appellate Division reversed, permitting the arbitration to proceed. The court affirmed and held that a self-insured employer whose employee was involved in an automobile accident could not be liable to that employee for uninsured motorist benefits, notwithstanding the exclusivity provision of the Workers' Compensation Law. View "Matter of Elrac, Inc. v Exum" on Justia Law

Plaintiff sued the Union for damages caused by a work stoppage conducted by the Union in alleged violation of the collective bargaining agreement. The district court entered summary judgment without reaching the merits holding that the dispute was subject to arbitration under the contract. Plaintiff appealed. The court held that, in this case, the employee oriented grievance machinery in the parties' contract qualified and limited the universe of claims and grievances subject to arbitration, and the language negated the intention that the employer's claim for damages must be submitted to arbitration. Accordingly, the district court's grant of summary judgment was reversed and the case remanded for further proceedings. View "Jim Walter Resources, Inc. v. United Mine Workers of America, et al." on Justia Law

Plaintiff appealed from a judgment of the district court denying her petition to vacate an arbitration decision that rejected her claims, which asserted principally that defendant, her former employer, discriminated against her on the basis of gender in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e et seq. On appeal plaintiff principally contended that the arbitrators' decision should be vacated in light of the Lilly Ledbetter Fair Pay Act of 2009 (Fair Pay Act), Pub. L. No. 111-2, 123 Stat. 5. The court reviewed the district court's conclusions of law de novo and found plaintiff's contentions to be without merit. Accordingly, the judgment of the district court was affirmed. View "Schwartz v. Merrill Lynch & Co, Inc." on Justia Law

Plaintiffs-Appellants Eddie Lee Howard and Shane Schneider (Employees) entered an employment contract with Defendant-Appellee Nitro-Lift Technologies, L.L.C. For two years following termination, the contract prohibited employees from: working for, leasing to, or selling equipment to competitors. The contract contained an arbitration agreement requiring application of Louisiana law with disputes to be resolved in Houston, Texas. After the employees terminated their employment with Nitro-Lift, they went to work for a competitor in Arkansas. The employer filed an arbitration proceeding in Houston. Howard and Schneider filed an application for a declaratory judgment and injunctive relief in Oklahoma asserting that the non-competition agreement violated public policy. The district court initially granted the employees a temporary injunction, prohibiting Nitro-Lift from continuing the arbitration proceedings in Texas. Thereafter, the employer filed a motion to dismiss. After considering the parties' briefs and arguments, the district court found the arbitration clause to be valid on its face and reasonable in its terms, lifted the temporary restraining order, and granted the motion to dismiss. Upon review, the Supreme Court held that: (1) the existence of an arbitration agreement in an employment contract did not prohibit judicial review of the underlying agreement; and as drafted, the non-competition covenants were void and unenforceable as against Oklahoma public policy. The Court reversed the district court's judgment and remanded the case for further proceedings. View "Howard v. Nitro-Lift Technologies, LLC" on Justia Law

This case stemmed from a dispute over the arbitration of a collective bargaining agreement that contained a no-layoff clause. The court held that because the clause was not explicit, unambiguous and comprehensive, there was nothing for the Union to grieve or for an arbitrator to decide. Having concluded that the dispute was not arbitrable for reasons of public policy, the court need not reach the issue of whether the parties agreed to arbitrate. Accordingly, the order of the Appellate Division was reversed and the Village's application to stay the arbitration was granted. View "Matter of Johnson City Professional Firefighters Local 921" on Justia Law

Consolidating several appeals, the Supreme Court addressed the effect of a municipality's financial distress and recovery planning on an arbitration award agreed to pursuant to the Policemen and Firemen Collective Bargaining Act (Act). For approximately twenty years, the City of Scranton has been designated a distressed municipality under the Municipalities Financial Recovery Act. Pursuant to the Recovery Act, the City has its Commonwealth-mandated financial advisors who assist in creating a financial recovery plan (essentially a budget). In the most recent collective bargaining agreements between the City of Scranton and its Police and Firefighter Unions expired at the close of 2002. Negotiations as to future terms and work conditions for union members resulted in impasses. Accordingly, pursuant to the Act, arbitrators were selected to establish appropriate terms and conditions. Throughout the arbitrations, the City maintained that the arbitrators lacked legal authority to award relief impinging on the City's financial recovery plan. The City attempted to resist paying the ensuing award that resulted from the arbitration. The Commonwealth Court found that it was required to vacate the awards, holding that they did not conform to the City's Recovery Plan and would result in increased financial and operational burdens on an already distressed municipality. The Unions appealed to the Supreme Court. The Court focused on the distinction between the terms "arbitration award" and "arbitration settlement": the City argued that it was not mandated to pay "awards" but "settlements." The Supreme Court found the term "settlement" ambiguous, and the plain meaning could include the "award" given by the arbitrators in this case. Accordingly, the Court reversed the Commonwealth Court's order that the award negatively impacted the City's Recovery Plan. View "City of Scranton v. Firefighters Local Union" on Justia Law

This case arose when Cat Tech sought indemnification from its insurers after Cat Tech damaged several components of a hyrotreating reactor owned by Ergon Refining, Inc. and arbitrators entered an award against Cat Tech for the damage. Insurers subsequently denied the claim, contending, inter alia, that the "your work" exclusion found in the policies precluded coverage for damage to the reactor. The district court found that insurers had no duty to indemnify Cat Tech. The court held that the information contained in the arbitration award was insufficient to properly apply the "your work" exclusion. As such, the court concluded that the district court erred when it relied on the award in granting insurer's summary judgment motion. On remand, the district court should conduct any additional fact-finding necessary to determine whether the damage suffered by Ergon's reactor was limited only to those components upon which Cat Tech worked, or instead included other components unrelated to Cat Tech's operations. Accordingly, the judgment was reversed and the case remanded for further proceedings. View "American Home Assurance Co, et al. v. Cat Tech L.L.C." on Justia Law

This case stemmed from plaintiff's allegations that, while she was employed with defendant on one of its cruise ships, she was drugged by other employees, raped, and physically injured while she was unconscious, and when she reported to officials of the cruise line what had happened to her, they treated her with indifference and even hostility, failed to provide her with proper medical treatment on board, and interfered with her attempts to obtain medical treatment and counseling ashore. Plaintiff subsequently asserted five claims against defendant involving violations of the Jones Act, 46 U.S.C. 30104, or the general maritime law applicable to the Seaman's Wage Act, 46 U.S.C. 10313. Plaintiff's remaining five claims involved common law tort claims. At issue was whether plaintiff's claims fell within the scope of the arbitration clause in the crew agreement. The court held that the district court did not err in holding that Counts VI, VII, VIII, IX, and X of plaintiff's complaint did not fall within the scope of the arbitration provision where all five of these claims involved factual allegations about how the cruise line and its officials treated plaintiff after learning that she had been raped, including allegations that she was kept on the ship against her will, that she was prevented from getting medical attention off the ship, that her rape kit was destroyed in the incinerator, and that her confidentiality as a rape victim was intentionally violated. The court held, however, that the remaining five counts arose directly from her undisputed status as a "seaman" employed by defendant and fell within the scope of the arbitration provision. Therefore, the district court erred in denying defendant's motion to compel arbitration for Counts I, II, III, IV, and V. View "Doe v. Princess Cruise Lines, Ltd." on Justia Law

The Union, representing certain employees at ExxonMobil's Baton Rouge refinery and chemical plant, brought suit to compel ExxonMobil to arbitrate two labor grievances pursuant to the parties' collective bargaining agreement. The court held that it was within the province of the courts to decide whether "a good faith claim by one party that the other party had violated a written provision" of the bargaining agreement had been asserted. The court also held that, in light of the clairty of the parties' agreement, the Union's claim that ExxonMobil violated Section 1131 of the agreement when the language of that section explicitly authorized its actions was not colorable and could not constitute a good faith claim within the meaning of the arbitration clause. The court agreed with ExxonMobil that Baton Rouge Oil & Chemical Workers Union v. ExxonMobil Corp foreclosed reliance on Section 1151 of the agreement as an independent basis for the arbitrability of the contracting-out grievance. The court further held that for the same reasons that the court held that the contracting-out grievance was not arbitrable under Section 1151, Section 1151 could not serve as a basis for requiring arbitration of the post-reduction claim. Accordingly, the court reversed the district court's grant of the Union's motion for summary judgment with regard to the contracting-out grievance, affirmed the district court's denial of the Union's motion for summary judgment with regard to the post-reduction grievance, and reversed the district court's denial of ExxonMobil's motion for summary judgment. View "Paper, Allied-Industrial Chemical and Energy Workers Int'l Union v. Exxon Mobil Corp." on Justia Law

After Roger Hudspeth's employment with the Bank of the Commonwealth was terminated, Hudspeth filed a complaint against the Bank, alleging the Bank failed to pay him compensation owed for his employment. The Bank filed a motion to stay and compel arbitration before the Financial Industry Regulatory Authority (FINRA), arguing (1) the Bank was a "customer" as defined by the FINRA Code of Arbitration Procedure for Customer Disputes (Customer Code), (2) Hudspeth was an associated person of a "member," and (3) because the dispute was between a customer and an associated person of a member, arbitration was mandatory under the Customer Code. The circuit court denied the Bank's motion, concluding that the Bank was not a customer under the Customer Code. The Supreme Court reversed, holding (1) the Customer Code was susceptible to an interpretation under which the Bank could be considered a customer, and (2) because under the Federal Arbitration Act any doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration, the circuit court erred when it denied the Bank's motion in this case. Remanded. View "Bank of the Commonwealth v. Hudspeth" on Justia Law