Justia Arbitration & Mediation Opinion Summaries

The Supreme Court dismissed this interlocutory appeal from a district court order granting a motion to stay arbitration proceedings between the codefendants in the underlying negligence action, holding that the order staying arbitration was not immediately appealable.Walgreens Boot Alliance, Inc. contracted with Ferrandino & Son, Inc. to provide services at various locations through the United States. Ferrandino contracted with Patera Landscaping, LLC to perform snow removal services at three Walgreens locations in Omaha. Yvonne McPherson was injured when she slipped and fell on an icy sidewalk outside an Omaha Walgreens and filed a negligence action against Patera, Ferrandino, and Walgreens. Ferrandino filed a demand for arbitration seeking a determination that under the terms of the subcontract, Patera had a contractual duty to defend and indemnify both Ferrandino and Walgreens against McPherson's claims. Petera moved to stay the arbitration based on Neb. Rev. Stat. 25-2603. The district court granted the motion to stay arbitration, and Ferrandino appealed. The Supreme Court dismissed the appeal, holding that the order staying arbitration was not immediately appealable. View "McPherson v. Walgreens Boot Alliance, Inc." on Justia Law

The Supreme Court reversed the decision of the district court finding that Plaintiff did not waive its right to arbitration by its litigation-related conduct, holding that reversal was required in light of Morgan v. Sundance, Inc., __ U.S. __ (2022).Plaintiff sued Defendant for breach of contract. Defendant moved to dismiss the complaint with prejudice, arguing that Plaintiff waived its breach of contract claim under the parties' agreement by filing suit on the claim rather than commencing it in arbitration. Plaintiff subsequently filed a demand for arbitration and a motion to stay the case for arbitration. The district court granted Plaintiff's motion to stay the case, concluding that Defendant suffered no prejudice because of Plaintiff's litigation-related conduct. The Supreme Court reversed, holding that prejudice is not required to prove a party waived its right to stay a court case pending arbitration under section 3 of the Federal Arbitration Act following the United States Supreme Court's decision in Morgan. View "Kingery Construction Co. v. 6135 O Street Car Wash, LLC" 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

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 Supreme Court affirmed the decision of the district court confirming an arbitration award ordering the reinstatement of Steve LeClair to his position as a firefighter with the City of Omaha, holding that the district court did not err in refusing to vacate the arbitrator's decision.After LeClair was charged with assault and battery and disorderly conduct the City discharged him from employment. LeClair invoked his right under the collective bargaining agreement between the City and the union to challenge his discharge in arbitration. The arbitrator concluded that the City did not have just cause to terminate LeClair's employment and ordered his reinstatement with backpay. The City filed a motion to vacate the arbitration decision. The district confirmed the arbitration award and ordered the City to pay the union's attorney fees and costs. The Supreme Court affirmed in part and reversed in part, holding (1) the district court erred in awarding attorney fees and costs because the City's motion to vacate was not frivolous; and (2) the district court's order in all other respects was without error. View "City of Omaha v. Professional Firefighters Ass'n" on Justia Law

The Supreme Court affirmed the judgment of the district court confirming an arbitrator's award, holding that the court properly affirmed the award.Plaintiff brought this action against Defendant seeking rescission of a contract of purchase and sale of dental practice and lease, alleging that fraudulent misrepresentations were made and that he relied upon them to his detriment. Because the contract contained an arbitration provision the district court sustained Defendant's motion to compel arbitration. The arbitrator concluded that Plaintiff ratified the contract through his conduct and waived any cause of action he might have had arising from his purchase of the dental practice. Plaintiff filed an application to vacate the arbitrator's award. The district court denied the motion. Thereafter, Defendant filed a motion to confirm the award, which the district court granted. The Supreme Court affirmed, holding (1) this Court had jurisdiction to consider Plaintiff's challenge to the denial of his application to vacate, but his challenge lacked merit; and (2) the district court did not err in confirming the arbitration award. View "Cinatl v. Prososki" on Justia Law

The Supreme Court affirmed as modified the district court's confirmation of an arbitration award of almost $3 million under the Federal Arbitration Act (FAA) and awarding attorney fees as a sanction under Neb. Rev. Stat. 25-824, holding that no grounds existed for vacating or modifying the award, and therefore, the parties were bound by their agreement to arbitrate and the arbitrator's construction of that agreement.The Supreme Court affirmed the district court's confirmation of the arbitration award and the denial of Appellants' motions to vacate and/or modify the award, holding (1) the district court did not err in confirming the arbitration award and denying the motions to vacate and/or modify the award; (2) the district court did not err by denying a motion to supplement the record; (3) the district court did not abuse its discretion in awarding attorney fees; and (4) the court did not err in awarding sanctions. View "Seldin v. Estate of Silverman" on Justia Law

In this lawsuit filed by the purchasers of a home against the sellers the Supreme Court reversed the judgment of the district court vacating an arbitration award entered in favor of Sellers and remanded with directions to confirm the arbitration award, holding that the district court erred by finding that arbitration provision in the purchase agreement was unenforceable, vacating the award, and failing to confirm the award.In this action, Purchasers alleged that several defects in the home they purchased had been concealed by Sellers. An arbitrator issued an award in favor of Sellers, finding that no credible evidence supported any of Purchasers' claims. Purchasers filed an application to vacate the arbitration award, and Sellers filed a motion seeking judicial confirmation of the award. The district court entered an order finding the arbitration void and vacating the award, holding that the arbitration provision in the purchase agreement was unenforceable under Nebraska's Uniform Arbitration Act. The Supreme Court reversed, holding that the district court should have confirmed the arbitration award pursuant to Neb. Rev. Stat. 25-2612. View "Garlock v. 3DS Properties, LLC" on Justia Law

The Supreme Court affirmed the decision of the district court granting Prospect Funding Holdings, LLC's (Prospect) motions to confirm arbitration awards and for summary judgment in this interpleader action, holding that when Prospect moved to confirm the arbitration awards under section 9 of the Federal Arbitration Act (FAA), 9 U.S.C. 1 through 16, the district court was required by the FAA to do so.After selling an interest in her personal injury claim to Prospect, Edrie Wheat settled her claim. When a dispute arose over the amount due Prospect, Prospect initiated arbitration proceedings against Wheat and Ronald J. Palagi, P.C., LLC (Palagi), the law firm representing Wheat. Awards were eventually entered against Wheat and Palagi in favor of Prospect. Wheat and Palagi then brought this interpleader action but did not seek to vacate, modify, or correct the arbitration awards. The district court granted Prospect's motion to confirm the arbitration awards and also granted Prospect's motion for summary judgment. The Supreme Court affirmed, holding (1) summary judgment was not premature; and (2) the district court did not err in failing to find the agreement was invalid and unenforceable. View "Ronald J. Palagi, P.C. v. Prospect Funding Holdings" on Justia Law

The Supreme Court affirmed the decision of the arbitration board finding that a discount to wholesale customers who renewed their contractual relationship with Nebraska Public Power District (NPPD) was not discriminatory or an abuse of NPPD’s statutory rate-setting authority.Appellants were political subdivisions engaged in the distribution of electricity to retail electric customers and were wholesale customers of NPPD. Appellants brought this complaint after they elected not to renew their contractual relationship, alleging that the discount was discriminatory and that NPPD breached the implied covenant of good faith and fair dealing by charging them a different rate. The arbitration board determined that the discount was reasonable and nondiscriminatory and that NPPD did not breach the contract or the covenant of good faith and fair dealing. The Supreme Court affirmed, holding that NPPD’s rate structure was fair, reasonable, and nondiscriminatory and that the rate structure did not constitute a breach of contract or the implied covenant of good faith. View "In re Application of Northeast Nebraska Public Power District" on Justia Law