Justia Arbitration & Mediation Opinion Summaries

In this appeal arising from a long-running dispute between the Republic of Moldova and a Ukrainian energy provider called Energoalliance, a company called Stileks—which owns the right to Energoalliance's arbitration award—seeks to recover the arbitration award. Principally at issue is whether the district court correctly confirmed the arbitration award which, with interest, now exceeds $58 million.The DC Circuit upheld the confirmation of the award. The court rejected Moldova's claims that the district court lacked jurisdiction under the Foreign Sovereign Immunities Act, and that, even if the district court had jurisdiction, it was error to confirm the arbitral award during the pendency of certain foreign proceedings. The court concluded that the district court did not abuse its discretion in awarding prejudgment interest to appropriately compensate Stileks for the time value of money. However, the court remanded for the district court to consider whether Moldova had a settled expectation that an adverse judgment would be denominated in Moldovan lei rather than U.S. dollars. View "LLC SPC Stileks v. Republic of Moldova" on Justia Law

After plaintiff filed suit against Parsons for employment discrimination, Parsons moved to compel arbitration. The district court denied the motion, concluding that genuine disputes of material fact existed as to whether plaintiff agreed to arbitrate.The DC Circuit held that Section 4 of the Federal Arbitration Act makes plain that the district court, once it concluded that a genuine dispute of material fact existed as to whether plaintiff assented to the arbitration agreement, should have proceeded to try the issue of arbitrability. Section 4 allows the defendant to move the district court to compel the parties to arbitrate their dispute, but if arbitrability of the dispute itself is in issue, the FAA instructs the district court to proceed summarily to trial on that limited issue. Accordingly, the court vacated and remanded with instructions that the district court should hold the motion in abeyance pending its prompt resolution of whether the parties agreed to arbitrate. View "Jin O. Jin v. Parsons Corp." on Justia Law

Plaintiff filed suit against his former employer, claiming that Mastro's deprived him and other servers of a minimum wage in violation of the Fair Labor Standards Act and the District of Columbia's Minimum Wage Revision Act.The DC Circuit affirmed the district court's denial of Mastro's motion to compel arbitration, holding that a reasonable factfinder could conclude that plaintiff was unaware of the arbitration agreement during the course of his work at Mastro's, and that he therefore had no reason to believe his continued employment could be seen as an intent to be bound by the agreement. The court held that the district judge, in a comprehensive opinion, correctly treated Mastro's motion as if it sought summary judgment under Federal Rule of Civil Procedure 56(c) with respect to the question whether plaintiff had agreed to arbitrate. In this case, Mastro's was unable to produce a copy of an arbitration agreement bearing plaintiff's signature, or any other direct evidence of his assent to be bound by the policy. Furthermore, nothing in the record negates plaintiff's sworn declaration that he was unaware of the agreement's existence and had no reason to believe he had relinquished his right to a trial. View "Camara v. Mastro's Restaurants LLC" on Justia Law

Appellant filed suit claiming damages under the Consent Decree created in the 1999 settlement between the Department of Agriculture and a class of African American farmers. After the arbitrator denied the claims, appellant petitioned the district court for "monitor review" of the arbitrator's decision. The district court denied the petition and appellant's two motions for reconsideration.The DC Circuit affirmed the district court's judgment and held that monitor review of the arbitrator's decision would have been futile because there was no evidence of appellant's incompetency in the record before the arbitrator. In this case, appellant's actions could be interpreted as a product of irrationality or confusion or frustration but do not support an inference of incompetence. The court also affirmed the district court's decision declining to modify the consent decree under Federal Rule of Civil Procedure 60(b)(5), because appellant's counsel failed to meet the arbitration deadlines. View "Pigford v. Perdue" on Justia Law

The DC Circuit affirmed the district court's judgment refusing to enforce an arbitral award against the Czech Republic Ministry of Health and in favor of Diag Human, S.E., a corporation organized under the laws of the Principality of Liechtenstein. The court held that the final award was not binding on the Czech Republic where, not only the termination of the review, but also the content of the arbitration review panel's "Resolution," prevented the final award from becoming binding. Pursuant to the agreement, the parties had recourse to another arbitration panel, which was sufficient to prevent the award from becoming binding at that time. View "Diag Human S.E. v. Czech Republic - Ministry of Health" on Justia Law

The DC Circuit affirmed the district court's enforcement of the arbitration panel's award against Argentina. The panel held that Argentina was liable to AWG for breach of a contract for the country's water services. Argentina argued that a member of the arbitration panel had, with a connection to two of the parties to the proceeding, shown "evident partiality" under 9 U.S.C. 10(a)(2), and that the way the panel reached its determination exceeded its authority under section 10(a)(4). The court held that the interests at issue were trivial and could not have created evident partiality. Therefore, the court found no basis to vacate the panel's award under section 10(a)(2) of the Federal Arbitration Act. The court also held that Argentina failed to show that the panel's decision had no basis in the governing arbitration agreement. Likewise, the court could not vacate the award under the New York Convention. View "Republic of Argentina v. AWG Group Ltd." on Justia Law

Leidos moved to convert an arbitration award into U.S. dollars based on the exchange rate on July 2, 2013, the date of the original arbitral award. The DC Circuit reversed the district court's grant of the motion, holding that the district court mistakenly granted the motion. The court explained that the exchange rate had dropped 19.1 per cent from the award date to the judgment date, and thus the total dollar value of the conversion increased the value of the arbitral award by approximately $11.9 million. View "Leidos, Inc. v. Hellenic Republic" on Justia Law

In this contract dispute between Getma and the Republic of Guinea, the Common Court of Justice and Arbitration of the Organization for the Harmonization of Business Law in Africa (CCJA), a court of supranational jurisdiction for Western and Central African States, set aside an award in favor of Getma. Getma sought to enforce the annulled award in the United States. The D.C. Circuit held that the CCJA is "a competent authority" for purposes of article V(1)(e) of the New York Convention, and for reasons of international comity, the court declined to second-guess a competent authority's annulment of an arbitral award absent extraordinary circumstances. Because Getma's arguments failed under this stringent standard, the court affirmed the judgment of the district court refusing to enforce the award. View "Getma International v. Republic of Guinea" on Justia Law