Justia Arbitration & Mediation Opinion Summaries

Articles Posted in Supreme Court of Virginia
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The Supreme Court affirmed the judgment of the circuit court refusing to enforce arbitration agreements between NC Financial Solutions of Utah, LLC (NCFS-Utah) and the individual consumers who were affected by alleged violations of the Virginia Consumer Protection Act (VCPA), Va. Code 59.1-196-59.1-207, holding that the circuit court did not err.The Attorney General, acting on behalf of the Commonwealth, filed this action against NCFS-Utah to enforce the provisions of the VCPA. The complaint requested injunctive relief, civil penalties, and awards of attorney's fees, costs, and reasonable expenses. NCFS-Utah filed a motion to dismiss, arguing that the individual Virginia consumers had agreed to arbitrate any disputes arising from the loans at issue. The circuit court denied the motion, concluding that the Commonwealth was not bound by the arbitration agreements between NCFS-Utah and the Virginia consumers. The Supreme Court affirmed, holding that sections 59.1-203 and 59.1-205, read together, implicitly authorize the Attorney General to request a restitution award when pursuing a VCPA enforcement action on behalf of the Commonwealth. View "NC Financial Solutions of Utah, LLC v. Commonwealth" on Justia Law

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The Supreme Court reversed the decision of the circuit court denying Defendant’s motion to compel arbitration, holding that the circuit court erred in denying the motion for arbitration because the parties’ disagreements were controversies arising out of or relating to their contract, and therefore, pursuant to the contract, an arbitrator must resolve them.Plaintiffs sued Defendant, alleging that the home Defendant constructed for Plaintiffs suffered from defects that caused damage to the home. Defendant filed a motion to compel arbitration under the arbitration clause of the parties’ contract. The circuit court denied the motion, concluding that the arbitration clause was unenforceable. The supreme Court reversed, holding that the parties’ disagreement over the interpretation of the arbitration clause, as well as the application of the doctrine of impossibility to the arbitration clause, were “controvers[ies] arising out of or relating to the contract,” and therefore, the circuit court erred in refusing to compel arbitration. View "Brush Arbor Home Construction, LLC v. Alexander" on Justia Law

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In this appeal of a judgment confirming an arbitration award, the Supreme Court held that the circuit court did not err in refusing to vacate the arbitration award under Va. Code 8.01-581.010.Plaintiff filed a fourteen-count complaint against Defendants alleging liability theories for conspiracy, conversion, legal malpractice, breach of trust, and other causes of action. Defendants moved to have the dispute submitted to arbitration pursuant to an arbitration provision in an agreement between the parties. The circuit court granted the motion to compel arbitration, and the arbitrators found in favor of Defendants on all counts. The circuit court confirmed the award in its entirety and denied Plaintiff’s application to vacate the award. The Supreme Court affirmed, holding that there was no basis in law or fact for reversing the circuit court’s confirmation of the arbitration award. View "Meuse v. Henry" on Justia Law