Justia Arbitration & Mediation Opinion Summaries

Hamilton Park, a long-term care facility, belonged to a multi-employer bargaining group, Tuchman. Tuchman and the employees' union agreed to a CBA beginning in 2008 and extending through February 28, 2013, giving the union the option to reopen negotiations in November 2011 to bargain for new terms for the CBA’s last year and to submit any unresolved items to binding interest arbitration, and allowing the arbitrator to “determine his jurisdiction” and grant “all appropriate remedies.” In 2011, the union invoked its right to reopen negotiations. The parties agreed to arbitrate unresolved issues, including the cost to maintain the existing health benefits. The arbitrator, Scheinman, suggested a multi-year award to spread increased contributions over a longer period. Scheinman claims that “[b]oth sides [orally] agreed my jurisdiction permitted a multi-year Award, at my discretion.” In 2012, Scheinman issued an award that extended through June 2016, dealing with wages and health benefits contributions, and allowing the union to reopen negotiations for the contract’s last year. Scheinman did not address why he included a second generation interest arbitration provision, nor did he claim that the parties consented. Hamilton Park petitioned to vacate the award, arguing that Scheinman exceeded his authority. The Third Circuit reversed in part. Hamilton Park agreed to expand Scheinman’s jurisdiction to a multi-year award, but did not agree to inclusion of a second generation interest arbitration provision. View "Hamilton Park Health Care Ctr., Ltd.v. 1199 SEIU United Healthcare Workers E." on Justia Law

Singer-songwriters John Whitehead and Gene McFadden were “an integral part of the 1970s Philadelphia music scene. In 2002, Pullman approached them about purchasing their song catalogue. The parties signed a contract but never finalized the sale. Pullman claims he discovered tax liens while conducting due diligence and that the matter was never resolved. Whitehead and McFadden passed away in 2004 and 2006, respectively. Pullman became embroiled in disputes with their estates over ownership of the song catalogue. The parties eventually agreed to arbitration. Pullman, unhappy with the ruling, unsuccessfully moved to vacate the arbitration award on the ground that the panel had committed legal errors that made it impossible for him to present a winning case by applying the Dead Man’s Statute, which disqualifies parties interested in litigation from testifying about personal transactions or communications with deceased or mentally ill persons.” The Third Circuit affirmed, stating that the arbitrators did not misapply the law, but that legal error alone is not a sufficient basis to vacate the results of an arbitration in any case. View "Whitehead v. Pullman Group LLC" on Justia Law

In 2008, Chesapeake, as “Lessee,” entered into oil and gas leases with northeastern Pennsylvania landowners. The Leases indicate that they were “prepared by” Chesapeake and include a provision, stating that, in the event of a disagreement between “Lessor” and “Lessee” concerning “this Lease,” performance “thereunder,” or damages caused by “Lessee’s” operations, “all such disputes” shall be resolved by arbitration “in accordance with the rules of the American Arbitration Association.” In 2013, Scout purchased several leases and began receiving royalties from Chesapeake. In 2014, Scout filed an arbitration demand on behalf of itself and similarly situated lessors, alleging that Chesapeake paid insufficient royalties. Chesapeake objected to class arbitration and sought a declaratory judgment, arguing that “[it] did not agree to resolve disputes arising out of the leases at issue in ‘class arbitration,’ nor did Chesapeake agree to submit the question of class arbitrability ... to an arbitrator.” The district court and Third Circuit ruled in favor of Chesapeake, finding that the issue of arbitrability is a question for the court. Based on the language of the Leases, the nature and contents of the AAA rules, and existing case law, the Leases did not “clearly and unmistakably” delegate the question of class arbitrability to the arbitrators. View "Chesapeake Appalachia LLC v. Scout Petroleum, LLC" on Justia Law