Justia Arbitration & Mediation Opinion Summaries

An owners association for a construction defect action against a condominium developer, seeking recovery for damage to its property and damage to the separate interests of the condominium owners who composed its membership. In response, the developer filed a motion to compel arbitration based on a clause in the recorded declaration of covenants, conditions, and restrictions providing that the association and the individual owners agreed to resolve any construction dispute with the developer through binding arbitration. The trial court determined that the clause embodied an agreement to arbitrate between the developer and the association but invalidated the agreement upon finding it marked by slight substantive unconscionability and a high degree of procedural unconscionability. The court of appeal affirmed. The Supreme Court reversed, holding that the arbitration clause bound the association and was not unconscionable. View "Pinnacle Museum Tower Ass'n v. Pinnacle Market Dev." on Justia Law

When Edith Entrekin was admitted to a nursing home in Alabama, she signed a contract requiring the arbitration of "all claims or disputes" that she or the executor of her future estate might have against the nursing home. After Entrekin died, the executor of her estate brought an action against the nursing home for damages under Alabama's wrongful death statute. The district court denied the nursing home's motion to compel arbitration. The issue on appeal to the Eleventh circuit centered on whether a decedent's agreement with a nursing home to arbitrate any claims that she or her executor may have in the future against the nursing home bind her executor to arbitrate a wrongful death claim against the nursing home under Alabama law? The Court found it was "compelled" to follow the Alabama Supreme Court's holdings and compel arbitration of the wrongful death claim in this case. The Court reversed the district court's order denying the nursing home's motion to compel arbitration and remanded the case with instructions to compel arbitration. View "Entrekin v. Westside Terrace, LLC" on Justia Law

Germany and Thailand signed a treaty, providing that disputes concerning investments between Germany or Thailand and an investor of the other party may be resolved by arbitration at the request of either party. The treaty applies to “approved investments” made before the treaty by investors of either country in the territory of the other. Bau initiated arbitration, claiming that Thailand had interfered with investments made, 1989-1997, in a Thai tollway project. An arbitration tribunal convened under agreed terms, which empowered the tribunal to consider objections to jurisdiction and provided that U.N. Commission on International Trade Law Arbitration Rules would apply. Thailand objected to jurisdiction on the ground that Bau’s were not “approved investments” because Bau never obtained a “Certificate of Admission” from Thailand’s Ministry of Foreign Affairs. Bau responded that the project was comprised of “approved investments” because Bau was invited to make the investments by the Thai Council of Ministers, which approved the project at various stages, and because the Thai Board of Investment issued certificates of investment for the project. The tribunal held that it had jurisdiction and made an award in favor of Bau. The district court confirmed. The Second Circuit affirmed, rejecting an argument that the court should have independently adjudicated jurisdiction instead of performing deferential review.View "Schneider v. Kingdom of Thailand" on Justia Law

Plaintiff played professional football for nineteen years. When he retired in 2002, he was employed by the Tennessee Titans. In 2008, he filed a workers' compensation claim in California, alleging that he suffered pain and disability from injuries incurred during his career. Plaintiff asked the Ninth Circuit Court of Appeals to vacate an arbitration award that prohibited him from pursuing workers' compensation benefits under California law, arguing (1) the award violated California public policy and federal labor policy, and (2) the award was in disregard of the Full Faith and Credit Clause. The district court confirmed the arbitration award. The Ninth Circuit affirmed, holding (1) Plaintiff did not allege sufficient contacts with California to show his workers' compensation claim came within the scope of California's workers' compensation regime, and therefore, he did not establish that the arbitration award violated California public policy; (2) because Plaintiff did not show that the award deprived him of something to which he was entitled under state law, he did not show it violated federal labor policy; and (3) Plaintiff did not establish that the arbitrator manifestly disregarded the Full Faith and Credit Clause. View "Matthews v. Nat'l Football League Mgmt. Council " on Justia Law

Two individuals brought suit as individuals and on behalf of a putative class of investors, alleging that Stifel, Nicolaus & Co. (Stifel) and two of its employees, Neil Harrison and Roger Compton, violated federal securities law. Stifel and Compton (Defendants) filed a motion to dismiss for failure to state a claim under Fed. R. Civ. P. 12(b)(6) and the Private Securities Litigation Reform Act of 1995 (PSLRA). The district court concluded that Plaintiffs' allegations failed to satisfy the requirements for class action claims under Fed. R. Civ. P. 23(b)(3) and dismissed Plaintiffs' compliant with prejudice. The Eighth Circuit Court of Appeals (1) reversed the district court's order with respect to Plaintiffs' individual claims, holding the district court erred in dismissing the claims without either staying the claims pending arbitration or undertaking an analysis of the claims under the PSLRA; and (2) affirmed the district court's order as it applied to Plaintiffs' class claims, holding that the court correctly determined that the complained failed to state viable class claims under Rule 23. Remanded. View "McCrary v. Stifel, Nicolaus & Co." on Justia Law

Alpine Glass, Inc. appealed the district court's partial denial of Alpine's motion to consolidate 482 short-pay claims for arbitration against the Country Mutual Insurance Co. and five of its subsidiaries. The Eighth Circuit Court of Appeals dismissed Alpine's appeal for lack of appellate jurisdiction, holding (1) the Court lacked jurisdiction to hear the appeal under 28 U.S.C. 1291 because the district court's order was not a final order; and (2) the denial of a motion to consolidate arbitrations does not imperil a substantial public interest sufficient to warrant jurisdiction under the collateral order doctrine, and therefore, the order was not appealable under the collateral order doctrine. View "Alpine Glass, Inc. v. Country Mut. Ins. Co." on Justia Law

This case arose from an underlying dispute involving three parties related to an alleged breach of an assignment agreement. The three parties disagreed over the appointment of arbitrators to hear their dispute. The agreement to arbitrate seemed designated for a two-party dispute. Notwithstanding that the parties agreed to arbitrate before three arbitrators, the district court ordered the parties to proceed to arbitration before five arbitrators: three party-appointed arbitrators, who would then choose two neutral arbitrators. If the party-appointed arbitrators could not agree, the district court ordered the parties to petition for appointment of the two neutral arbitrators. On appeal, the Fifth Circuit Court of Appeal affirmed in part and vacated in part the district court's judgment, holding (1) there was a lapse in the naming of the arbitrators in the parties' agreement; (2) the district court was authorized to exercise appointment power under 9 U.S.C. 5; and (3) the district court erred in deviating from the parties' express agreement to arbitrate before a three-member panel. Remanded. View "BP Exploration Libya Ltd. v. ExxonMobil Libya Ltd." on Justia Law

Art Etc., LLC sought a declaratory judgment that the sale of inventory purchased from Angel Gifts, Inc. and Donald Schmit would amount to copyright infringement in violation of the United States Copyright Act. Angel Gifts and Donald Schmit moved to stay the proceedings pending arbitration, invoking an arbitration provision in an agreement between the parties. The district court denied the motion. The Eighth Circuit Court of Appeals affirmed, holding (1) the parties intended for the arbitration provision to apply only under certain circumstances; and (2) Art. Etc.'s claims did not fall within the scope of the arbitration provision. Thus, arbitration in this case was not required. View "Art Etc. LLC v. Angel Gifts, Inc." on Justia Law

Appellant initiated an arbitration against his former investment advisor, Fisher Investments, Inc. During the arbitration, the arbitrator (1) dismissed Appellant's Missouri statutory claims based on the arbitration agreement's Delaware choice-of-law provision, and (2) sua sponte prohibited Appellant from adding a federal securities law claim. Appellant then filed a civil action against Fisher Investments in federal district court, re-alleging the Missouri statutory and federal securities law claims and seeking a declaration that the arbitration agreement was void. The district court dismissed Appellant's claims without prejudice, concluding that Defendant had to complete arbitration before he could pursue remedies in federal court. The Eighth Circuit Court of Appeals affirmed, holding (1) Appellant was challenging an interim ruling and thus the complete arbitration rule applied, and (2) because the complete arbitration rule applied, the district court did not err in deciding that it did not have jurisdiction to adjudicate Defendant's claims. View "Wootten v. Fisher Invs., Inc." on Justia Law

CS manufactures and sells X-ray and metal detection devices for use in public facilities around the world. Tecapro is a private, state-owned company that was formed by the Vietnamese government to advanced technologies into the Vietnamese market. In 2010, Tecapro purchased 28 customized AutoClear X-ray machines from CS for $1,021,156. The contract provides that disputes shall be settled at International Arbitration Center of European countries for claim in the suing party’s country under the rule of the Center. Tecapro initiated arbitration proceedings in Belgium in November 2010. In December 2010, CS notified Tecapro of its intention to commence arbitration proceedings in New Jersey. In January 2011, CS filed its petition to compel arbitration in New Jersey and enjoin Tecapro from proceeding with arbitration in Belgium. The district court concluded that it had subject matter jurisdiction under the U.N.Convention on the Recognition and Enforcement of Foreign Arbitral Awards, that it had personal jurisdiction over Tecapro, and that Tecapro could have sought to arbitrate in Vietnam and CS in New Jersey. The latter is what happened, so “the arbitration shall proceed in New Jersey.” After determining that it had jurisdiction under the Federal Arbitration Act, 9 U.S.C. 1, the Third Circuit affirmed. View "Control Screening LLC v. Technological Application & Prod. Co." on Justia Law