Justia Arbitration & Mediation Opinion Summaries

Carmen Lamonaco sued Experian Information Solutions, Inc., alleging violations of the Fair Credit Reporting Act after a fraudulent auto loan appeared on her credit report. She claimed Experian failed to implement reasonable procedures to ensure credit report accuracy and did not conduct a proper reinvestigation. Experian moved to compel arbitration based on a clickwrap agreement that included an arbitration clause and a delegation clause. The District Court for the Middle District of Florida denied the motion, concluding that Experian did not prove the existence of an agreement and had waived arbitration by engaging in litigation.The District Court found that Experian's declaration, which was based on internal records and described the enrollment process, lacked probative value because it did not attach the internal records or provide sufficient detail. The court also held that Experian waived its right to arbitration by participating in litigation activities such as answering the complaint, participating in a case management conference, and serving Rule 26 disclosures.The United States Court of Appeals for the Eleventh Circuit reviewed the case and reversed the District Court's decision. The appellate court held that Experian provided competent and unrebutted evidence that Lamonaco agreed to the Terms of Use, which included the arbitration clause. The court also determined that the delegation clause in the agreement assigned the question of waiver to the arbitrator, not the court. Therefore, the District Court lacked the authority to decide the waiver issue. The Eleventh Circuit reversed and remanded the case with instructions to grant Experian's motion to compel arbitration. View "Lamonaco v. Experian Information Solutions, Inc." on Justia Law

Fu Jing Wu and Wai Lam set up investment funds for foreign investors, promising opportunities to immigrate to the United States through the EB-5 visa program. They fraudulently diverted millions of dollars from these funds. An investor, Chun Liu, sued them in a Florida court. Wu and Lam removed the case to federal court and moved to compel arbitration based on a purchase agreement. The district court denied the motion to compel arbitration and remanded the case to state court for lack of subject-matter jurisdiction.The United States District Court for the Southern District of Florida reviewed the case. The court found that Wu was not a signatory to the purchase agreement containing the arbitration clause and thus could not enforce it. Consequently, the court ruled that it lacked subject-matter jurisdiction under the Federal Arbitration Act and remanded the case to state court.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court held that 28 U.S.C. § 1447(d) barred appellate review of the district court's order that both denied the motion to compel arbitration and remanded the case for lack of subject-matter jurisdiction. The court concluded that the denial of the motion to compel arbitration was intrinsic to the jurisdictional decision and could not be reviewed separately. Therefore, the Eleventh Circuit dismissed Wu and Lam’s appeal for lack of jurisdiction. View "Wu v. Liu" on Justia Law

A catastrophic turbine failure occurred at the Hadjret En Nouss Power Plant in Tipaza, Algeria. The plant is owned by Shariket Kahraba Hadjret En Nouss (SKH), which is jointly owned by the Algerian government and Algerian Utilities International Ltd. SNC-Lavalin Contructeurs International Inc. (SNC) operated the plant on behalf of SKH. SNC entered into multiple contracts with various General Electric entities, including a Services Contract with General Electric International, which contained an arbitration clause.The insurers, reinsurers, and retrocessionaires (collectively the "Insurers") initiated litigation as subrogees of SKH against General Electric International, General Electric Company, GE Power, and GE Power Services Engineering (collectively the "GE Entities") in Georgia's state-wide business court. The GE Entities removed the case to federal court and moved to compel arbitration based on the arbitration provision in the Services Contract. The United States District Court for the Northern District of Georgia granted the motion, concluding that SKH was a third-party beneficiary of the Services Contract.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court affirmed the district court's decision, holding that SKH, as the plant's owner, was a third-party beneficiary of the Services Contract. Consequently, the Insurers, as subrogees of SKH, were bound by the arbitration clause. The court also affirmed that any questions regarding the arbitrability of specific claims should be resolved by the arbitrator, as the Services Contract incorporated the Conciliation and Arbitration Rules of the International Chamber of Commerce, which delegate such decisions to the arbitrator. View "Various Insurers, Reinsurers and Retrocessionaires v. General Electric International, Inc." on Justia Law

Lee Tillett, Inc. developed and registered a trademark for a line of cosmetics products known as Kroma cosmetics. Tillett entered into an agreement with Kroma EU to give it exclusive rights to sell and distribute Kroma products. Kimberly, Kourtney, and Khloe Kardashian entered into a licensing agreement with Boldface Licensing + Branding, Inc. to create a Kardashian makeup line called “Khroma.” After Tillett, Boldface, and the Kardashians settled a cosmetics trademark infringement suit, Tillett refused to share any of its settlement recovery with Kroma EU. Kroma EU subsequently filed this suit alleging trademark infringement and tortious interference claims against Boldface, vicarious liability for trademark infringement claims against the Kardashians, and a promissory estoppel claim against Tillett. The district court granted Tillett’s motion to compel Kroma EU to arbitrate, but denied the Kardashians’ motion to compel Kroma EU to arbitrate its claims against them. In this case, while the Kardashians are not signatories to the agreement between Kroma EU and Tillett, they contend that they can compel arbitration of Kroma EU’s claims against them by using Florida’s doctrine of equitable estoppel. The court held, however, that Florida’s doctrine of equitable estoppel permits a nonsignatory to an agreement to avail herself of an arbitration clause only when the claims asserted against her fall within the scope of the clause that the signatories had agreed upon. Accordingly, the court concluded that the district court correctly denied the Kardashians’ motion to compel arbitration. View "Kroma Makeup EU, LLC v. Kardashian" on Justia Law

This case began as a contract dispute between two corporations: PTA-FLA, Inc., and ZTE USA, Inc. Shortly thereafter, three corporations affiliated with PTA-FLA filed similar cases against ZTE USA and its parent corporation, ZTE Corp., in several different federal district courts. All of the parties involved in these disputes participated in a consolidated arbitration proceeding that resulted in a zero-dollar award binding ZTE USA and the four affiliated plaintiff corporations. ZTE USA then moved the district court in the Middle District of Florida to reopen PTA-FLA’s case, join the three other plaintiff corporations to the case, and, finally, to confirm the arbitrator’s award against all four plaintiff corporations. But before the district court could rule on that motion, PTA-FLA (the original plaintiff) voluntarily dismissed its claims. The district court eventually confirmed the arbitral award against all parties, concluding that it had subject matter jurisdiction (grounded in diversity of citizenship) to confirm the award against the original parties and supplemental jurisdiction to confirm the award against the later-joined parties despite PTA-FLA’s voluntary dismissal and the reduction in the amount in controversy. The three joined parties appealed the confirmation of the award, claiming that the district court was without subject matter or supplemental jurisdiction. After careful review, the Eleventh Circuit concluded that the district court properly exercised its jurisdiction and, accordingly, affirmed. View "PTA-FLA, Inc. v. ZTE USA, Inc." on Justia Law

The Union filed suit to compel arbitration under its collective bargaining agreement (CBA) with Shaw. The district court granted the Union’s motion to compel arbitration and ordered the parties to select an arbitrator, which they did. After holding a hearing, the arbitrator issued a written decision siding with the Union. Shaw moved the district court to vacate the award, contending, among other things, that the arbitrator had exceeded her power by improperly modifying the CBA instead of interpreting it. The district court then vacated the award and the Union appealed. In light of United Steelworkers of Am. v. Enter. Wheel & Car Corp., the court concluded that it must resolve the ambiguity in the stated reasons for the award in favor of enforcement. Therefore, the court concluded that the arbitrator interpreted instead of modified the agreement. The court reversed and remanded. View "Wiregrass Metal Trades Council v. Shaw Envtl." on Justia Law

Plaintiff filed suit against NBCal regarding a payday loan she acquired in 2013. On appeal, NBCal challenges the district court's denial of its motion to compel arbitration under the loan agreement. The court concluded that the arbitration agreement’s forum selection clause mandates the use of an illusory and unavailable arbitral forum. Because neither party disputes that the Cheyenne River Sioux Tribe( CRST) forum is unavailable, the court agreed with the district court that it cannot enforce the delegation clause or the underlying arbitration agreement. Accordingly, the court affirmed the district court's order. View "Parm v. National Bank of CA" on Justia Law

Plaintiff, a United States citizen, worked as the lead trumpeter on a passenger Royal Caribbean cruise ship. The ship is a Bahamian flagged vessel with a home port in Fort Lauderdale, Florida. Royal Caribbean, the operator of the vessel, is a Liberian corporation with its principal place of business in Florida. After plaintiff became ill while working for Royal Caribbean, he filed suit alleging unseaworthiness, negligence, negligence under the Jones Act, maintenance and cure, and seaman’s wages and penalties. Royal Caribbean moved to compel arbitration, and the district court granted the motion. This appeal presents an issue of first impression: whether a seaman’s work in international waters on a cruise ship that calls on foreign ports constitutes “performance . . . abroad” under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 9 U.S.C. 202. The Convention makes enforceable an arbitration agreement between United States citizens if their contractual relationship “envisages performance . . . abroad.” The court affirmed the order compelling arbitration of the dispute because a seaman works abroad when traveling in international waters to or from a foreign state. View "Alberts v. Royal Caribbean Cruises, Ltd." on Justia Law

After Cooks terminated him, plaintiff filed suit against the company, alleging claims under the Uniform Services Employment and Reemployment Rights Act of 1994 (USERRA), 38 U.S.C. 4301, 4302(b), and Alabama state law. The district court entered an order striking from the arbitration agreement two terms that violated USERRA, dismissing the suit without prejudice, and ordering plaintiff to submit his claims to arbitration. On appeal, plaintiff contends that the district court erred by failing to apply the plain language of USERRA’s non-waiver provision. The court concluded that the contract's arguable delegation clause - which would require that the arbitrator, rather than the court, determine whether the arbitration agreement is enforceable - does not control this appeal. The court also concluded that, in reaching whether the arbitration agreement is enforceable, section 4302(b) is not in conflict with the Federal Arbitration Act (FAA), 9 U.S.C. 1, 2, and the district court properly determined the arbitration agreement is enforceable. Accordingly, the court affirmed the district court's decision to compel arbitration. View "Bodine v. Cook's Pest Control" on Justia Law

Plaintiff filed suit against JSC for an alleged violation of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692. The district court concluded that plaintiff's claim was outside the scope of the arbitration clause and denied JSC's motion to compel arbitration. The court held that plaintiff failed to establish the existence of any agreement between plaintiff and FBD, the issuer of the credit card, beyond the agreement to pay whatever charges plaintiff incurred by using the credit card. Therefore, the court affirmed the judgment on different grounds. View "Bazemore v. Jefferson Capital Sys." on Justia Law