Justia Arbitration & Mediation Opinion SummariesArticles Posted in US Court of Appeals for the Ninth Circuit
Breazeale v. Victim Services
Plaintiffs filed a putative class action alleging that VSI's practices violated state law and the Fair Debt Collection Practices Act. The Ninth Circuit held that it lacked jurisdiction to consider the district court's denial of VSI's motion to strike under California's anti-SLAPP statute, because under the terms of the state statute, such a denial in a case deemed to be filed in the public interest was not immediately appealable. The panel held that it did have jurisdiction over VSI's appeal of the district court's denial of its motion to compel arbitration and affirmed the denial because this was not a private contract subject to the provisions of the Federal Arbitration Act. The panel remanded for further proceedings. View "Breazeale v. Victim Services" on Justia Law
Vividus, LLC v. Express Scripts, Inc.
The Federal Arbitration Act, 9 U.S.C. 7, does not grant arbitrators the power to compel the production of documents from third parties outside of a hearing. In this case, the Ninth Circuit affirmed the district court's denial of a petition to enforce a subpoena issued prehearing by an arbitration panel against a company that was not a party to the arbitration. View "Vividus, LLC v. Express Scripts, Inc." on Justia Law
Roberts v. AT&T Mobility, LLC
The Ninth Circuit affirmed the district court's order compelling arbitration of putative class action claims against AT&T by customers who alleged that AT&T falsely advertised their mobile service plans as "unlimited" when in fact it intentionally slowed data at certain usage levels. The panel held that there was no state action in this case, rejecting plaintiffs' claim that there was state action whenever a party asserts a direct constitutional challenge to a permissive law under Denver Area Educational Telecommunications Consortium, Inc. v. FCC, 518 U.S. 727 (1996). The panel held that Denver Area did not broadly rule that the government was the relevant state actor whenever there was a direct constitutional challenge to a "permissive" statute, and did not support finding state action here. The panel also held that the Federal Arbitration Act merely gives AT&T the private choice to arbitrate, and did not encourage arbitration such that AT&T's conduct was attributable to the state. View "Roberts v. AT&T Mobility, LLC" on Justia Law
Yang v. Dongwon Industries, Ltd.
The Convention on the Recognition and Enforcement of Foreign Arbitral Awards does not allow nonsignatories or non-parties to compel arbitration. The Federal Arbitration Act (FAA) expressly exempted from its scope any contracts of employment of seamen. In this maritime action, the Ninth Circuit affirmed the denial of a motion to compel arbitration arising from the death of a seaman in the sinking of a fishing vessel. Dongwon moved to compel arbitration based on an employment agreement between the seaman and the vessel's owner, Majestic. The panel held that Dongwon was neither a signatory nor a party to the employment agreement. The panel also held that Dongwan could not compel arbitration on grounds other than the Convention Treaty, such as the FAA. View "Yang v. Dongwon Industries, Ltd." on Justia Law
US/Nevada ex rel. Welch v. My Left Foot Children’s Therapy, LLC
After relator alleged that her former employer violated the federal False Claims Act (FCA), 31 U.S.C. 3730(a), (b), and Nevada FCA, the United States and Nevada declined to intervene. The employer then moved to compel arbitration under the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq. The Ninth Circuit affirmed the district court's denial of the motion to compel arbitration on an alternate ground, holding that the plain text of relator's arbitration agreement did not encompass the FCA case. View "US/Nevada ex rel. Welch v. My Left Foot Children's Therapy, LLC" on Justia Law
Portland General Electric Co. v. Liberty Mutual Insurance Co.
The incorporation of the rules of the International Chamber of Commerce (ICC) into an arbitration agreement constitutes clear and unmistakable evidence of a delegation of gateway issues to the arbitrator. The Ninth Circuit vacated the district court's judgment entering a preliminary injunction prohibiting sureties from pursuing claims against PGE in arbitration and denying a mandatory stay of the judicial proceedings under section 3 of the Federal Arbitration Act (FAA), 9 U.S.C. 3. The panel held that the district court erred in enjoining the sureties from participating in the ICC arbitration and denying at least a temporary stay of the litigation under the FAA, preventing the arbitral tribunal from addressing the scope of the arbitration. View "Portland General Electric Co. v. Liberty Mutual Insurance Co." on Justia Law