Justia Arbitration & Mediation Opinion Summaries

This appeal arose from a dispute between Ecuador and Chevron involving a series of lawsuits related to an investment and development agreement. On appeal, Ecuador challenged the district court's confirmation of an international arbitral award to Chevron. In this case, the Bilateral Investment Treaty (BIT) includes a standing offer to all potential U.S. investors to arbitrate investment disputes, which Chevron accepted in the manner required by the treaty. Therefore, the court concluded that the Foreign Sovereign Immunities Act (FSIA), 28 U.S.C. 1604, allows federal courts to exercise jurisdiction over Ecuador in order to consider an action to confirm or enforce the award. The dispute over whether the lawsuits were “investments” for purposes of the treaty is properly considered as part of review under the Convention on the Recognition of Foreign Arbitral Awards (New York Convention), 9 U.S.C. 201-208. The court further concluded that, even if it were to conclude that the FSIA required a de novo determination of arbitrability, the court still would find that the district court had jurisdiction where Ecuador failed to demonstrate by a preponderance of the evidence that Chevron's suits were not "investments" within the meaning of the BIT. Likewise, the court rejected Ecuador's arguments against confirmation of the award under the New York Convention as meritless. Accordingly, the court affirmed the judgment. View "Chevron Corp. v. The Republic of Ecuador" on Justia Law

In this dispute over the sale of a car, Plaintiff filed a class action lawsuit against Defendant, alleging, inter alia, that Defendant violated the Consumer Legal Remedies Act by making false representations about the condition of the automobile. Defendant filed a motion to compel arbitration pursuant to an arbitration clause in the sale contract that had a class action waiver. The trial court denied the motion, concluding that the class waiver was unenforceable, and therefore, the entire arbitration agreement was unenforceable. After the trial court’s decision was filed, the United States Supreme Court in AT&T Mobility LLC v. Concepcion held that the Federal Arbitration Act (FAA) preempts California’s unconscionability rule prohibiting class waivers in consumer arbitration agreements. On appeal, the Court of Appeal declined to address whether the class waiver at issue was enforceable and instead held that the arbitration appeal provision and the arbitration agreement as a whole were unconscionably one-sided in favor of Defendant. The Supreme Court reversed, holding that the Court of Appeal erred as a matter of state law in finding the agreement unconscionable, as, in light of Concepcion, the FAA preempts the trial court’s invalidation of the class waiver on unconscionability grounds. View "Sanchez v. Valencia Holding Co., LLC" on Justia Law

A district elementary school principal interpreted an educational policy to mean that elementary school teachers were expected to be present in their classrooms ten minutes before the start of the instructional day. The Coastal Education Association, an affiliate of a union representing teachers, filed a grievance with Regional School District Unit No. 5 (RSU No. 5) challenging the principal’s interpretation as a violation of the collective bargaining agreement (CBA) between the Association and the Board of Directors of RSU No. 5. An arbitrator concluded that the principal’s directive violated the CBA and directed RSU No. 5 to rescind the educational policy. RSU No. 5 filed an application to vacate the arbitration award. The superior court granted the application, concluding that the dispute was not substantively arbitrable pursuant to the Municipal Public Employees Labor Relations Law, which prevents school boards from bargaining on matters of educational policy or submitting educational policy disputes to interest arbitration. The Supreme Judicial Court affirmed, holding that the trial court did not err in concluding that the educational policy at issue in this case was, as a matter of law, not substantively arbitrable. View "Reg’l Sch. Unit No. 5 v. Coastal Educ. Ass’n" on Justia Law

A district elementary school principal interpreted an educational policy to mean that elementary school teachers were expected to be present in their classrooms ten minutes before the start of the instructional day. The Coastal Education Association, an affiliate of a union representing teachers, filed a grievance with Regional School District Unit No. 5 (RSU No. 5) challenging the principal’s interpretation as a violation of the collective bargaining agreement (CBA) between the Association and the Board of Directors of RSU No. 5. An arbitrator concluded that the principal’s directive violated the CBA and directed RSU No. 5 to rescind the educational policy. RSU No. 5 filed an application to vacate the arbitration award. The superior court granted the application, concluding that the dispute was not substantively arbitrable pursuant to the Municipal Public Employees Labor Relations Law, which prevents school boards from bargaining on matters of educational policy or submitting educational policy disputes to interest arbitration. The Supreme Judicial Court affirmed, holding that the trial court did not err in concluding that the educational policy at issue in this case was, as a matter of law, not substantively arbitrable. View "Reg’l Sch. Unit No. 5 v. Coastal Educ. Ass’n" on Justia Law

After the district court found plaintiff's state law claims against Verizon to be arbitrable, the district court compelled arbitration but denied Verizon's request to stay proceedings. The court held, however, that the text, structure, and underlying policy of the Federal Arbitration Act, 9 U.S.C.1 et seq., requires a stay of proceedings when all claims are referred to arbitration and a stay requested. The court further concluded that plaintiff's various constitutional challenges to the FAA are meritless. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "Katz v. Cellco P'ship" on Justia Law

Bowman law firm filed suit in Hendricks County Indiana, to recover Bentrud’s credit card debt owed to Capital One. Months later, Bowman moved for summary judgment. Bentrud responded by invoking the arbitration provision in his credit card agreement. The state court granted Bentrud’s election of arbitration and stayed the case, allowing Bentrud 30 days to initiate arbitration. The American Arbitration Association declined to do the arbitration because Capital One had previously failed to comply with its policy regarding consumer claims. Bentrud failed to meet the 30-day deadline, so that the stay automatically dissolved. Bowman filed a second summary judgment motion. Although the state court granted an extension, Bentrud characterized that motion, as an unfair or unconscionable means of attempting to collect a debt, under the Fair Debt Collection Practices Act, 15 U.S.C. 1692f. Bentrud also claimed that the Annual Percentage Rate on his credit card debt was 13.9%, but when Bowman filed its state court complaint, it averred the applicable interest rate to be 10.65%. The Seventh Circuit affirmed judgment in favor of Bowman, noting that when Bowman filed a second summary judgment motion, it acted consistently with the state court order and that any interest rate violation would be attributable to Capital One, which was not a party. View "Bentrud v. Bowman, Heintz, Boscia & Vicia, P.C." on Justia Law

Seller entered into a purchase agreement with Buyer for the sale of certain equipment. The purchase agreement included an arbitration clause. Buyer eventually assigned its assets for the benefit of creditors to Assignee. Assignee sold Buyer’s tangible assets but retained choses in action. Assignee later brought a complaint in arbitration seeking damages for breach of the purchase agreement. The arbitrator concluded that Assignee had standing to bring the action and that the purchase agreement conferred jurisdiction upon him to hear the matter. Seller then brought this action seeking to enjoin the arbitration. The Court of Chancery dismissed this matter for lack of subject matter jurisdiction, concluding that a complete contractual remedy existed in arbitration. View "CVD Equip. Corp. v. Dev. Specialists, Inc." on Justia Law

The case arose from a dispute over the adequacy of concrete work Nordic PCL Construction, Inc. performed on a condominium construction project as a subcontractor to LPIHGC, LLC. The subcontract contained a binding arbitration clause. The arbitrator entered a partial final award and final award (collectively, the arbitration award), ruling in favor of LPIHGC. LPIHGC filed a motion to confirm, and Nordic filed a motion to vacate the arbitration award. Neither party requested an evidentiary hearing to address disputed issues of material fact. The circuit court granted LPIHGC’s motion and denied Nordic’s motion and entered final judgment in favor of LPIHGC. The intermediate court of appeals (ICA) reversed, concluding that the arbitrator’s failure to disclose various relationship with the law firms of LPIHGC’s attorneys established a reasonable impression of partiality requiring vacatur of the arbitration award. The Supreme Court vacated the ICA’s judgment, holding that because the circuit court did not explain the basis of its rulings on the record or enter findings of fact or conclusions of law, the Court was unable to determine whether the circuit court erred in denying Nordic’s motion to vacate. Remanded to the circuit court for an evidentiary hearing and entry of findings of fact and conclusions of law on Nordic’s motion to vacate. View "Nordic PCL Constr., Inc. v. LIPHGC, LLC" on Justia Law

BSDL petitioned the district court to confirm an arbitration award rendered against the government of Belize. The district court entered judgment in favor of BSDL. The arbitration award arises out of the alleged breach by Belize of a 2005 agreement between Belize and Belize Telemedia Limited, BSDL’s predecessor in interest. The court concluded that the language of the Foreign Sovereign Immunities Act, 28 U.S.C. 1605(a)(6), arbitration exception makes clear that the agreement to arbitrate is severable from the underlying contract. In order to succeed in its claim that there was no “agreement made by the foreign state . . . to submit to arbitration,” Belize must show that the Prime Minister lacked authority to enter into the arbitration agreement. Belize has failed to do this and therefore, Belize failed to carry its burden of establishing that BSDL’s allegations do not bring this case within the FSIA’s arbitration exception. The court rejected Belize's remaining arguments and affirmed the judgment. View "Belize Social Dev. Ltd. v. Government of Belize" on Justia Law

In this personal injury action arising out of an automobile accident, Robert and Terri Zeller filed a complaint against Charlotte Nixon alleging claims for negligence and loss of consortium. The Zellers submitted their claims for arbitration under Utah Code 31A-22-321, which provides that the election of arbitration stands unless a notice of rescission is filed within ninety days. After the ninety-day rescission period had passed, the Zellers moved to amend their complaint to add a claim for negligent entrustment against Nixon & Nixon, Inc. Nixon opposed the motion to amend and filed a motion to compel arbitration. The district court denied the motion to compel arbitration, concluding that the Zellers were justified in seeking the amendment, thus freeing the Zellers of the statutory limitations on their claims against Nixon and allowing their claims to proceed against Nixon & Nixon. The Supreme Court (1) reversed as to the claims against Nixon, as those claims were irretrievably subject to arbitration given the Zellers’ failure to rescind their election of arbitration within ninety days; and (2) affirmed as to the claims against Nixon & Nixon, holding that the Zellers’ earlier election of arbitration as to their claim against Nixon did not encompass their subsequent claim against the corporation. View "Zeller v. Nixon" on Justia Law