Justia Arbitration & Mediation Opinion Summaries

St. Paul appealed from the district court's grant of a petition by Scandinavian to vacate an arbitral award in St. Paul's favor and denying a cross-petition by St. Paul to confirm the same award. St. Paul had initiated the arbitration to resolve a dispute concerning the interpretation of the parties' reinsurance contract. The principal issue on appeal was whether the failure of two arbitrators to disclose their concurrent service as arbitrators in another, arguably similar, arbitration constituted "evident partiality" within the meaning of the Federal Arbitration Act (FAA), 9 U.S.C. 10(a)(2). The court concluded, under the circumstances, that the fact of the arbitrators' overlapping service in both the Platinum Arbitration and the St. Paul Arbitration did not, in itself, suggest that they were predisposed to rule in any particular way in the St. Paul Arbitration. As a result, their failure to disclose that concurrent service was not indicative of evident partiality. Therefore, the court reversed and remanded with instruction to the district court to affirm the award. View "Scandinavian Reinsurance Co. v. St. Paul Fire & Marine Ins." on Justia Law

This appeal involved Continental's pursuit of a breach of contract claim against Thorpe in Thorpe's Chapter 11 bankruptcy proceeding. The district court affirmed the bankruptcy court's order denying Continental's motion to compel arbitration and disallowing its claim. The court held that the bankruptcy court had discretion not to enforce the arbitration clause at issue and that the bankruptcy court did not abuse its discretion in denying Continental's motion to compel arbitration. The court also held that the bankruptcy court did not abuse its discretion in declining to give Continental further opportunity for discovery and Thorpe could not contract away its right to avail itself of the protections of 524(g) of the Bankruptcy Code. Accordingly, the lower courts correctly disallowed Continental's claim. View "Continental Ins. Co. v. Thorpe Insulation Co." on Justia Law

In 2005, during plaintiff's employment, defendant issued an employee handbook, including a provision that all employment-related disputes, whether initiated by an employee or by defendant, would be "resolved only by an arbitrator through final and binding arbitration," that disputes under the Fair Labor Standards Act were among those subject to the arbitration policy, that disputes cannot be brought as class actions or in representative capacities, and that the Federal Arbitration Act was its governing authority. Plaintiff signed a receipt that reiterated the arbitration policy. After his employment ended, plaintiff filed a class action, alleging violation of the FLSA by failing to adequately compensate him and other similarly-situated employees for overtime work. The district court denied a motion to stay proceedings and compel arbitration, finding that the provision was illusory because the employer retained the right to terminate or modify the provision at any time. The Fifth Circuit affirmed, noting that under the provision the company could make amendments almost instantaneously. View "Carey v. 24 Hour Fitness USA, Inc." on Justia Law

This appeal involved six siblings and their mother. The parties participated in mediation that resulted in an agreement, which, among other things, divided Mother's real property. After disputes arose over the agreement, the probate court ordered arbitration pursuant to the agreement's arbitration clause. The arbitrator concluded that the agreement was enforceable and ordered the transfer of land necessary to effectuate it. Four of the sisters (Appellants) and the remaining siblings and mother (Appellees) then filed a series of motions. The superior court confirmed the arbitration award, denied a motion to vacate the award, denied a motion for judgment on the pleadings, and granted a motion to dismiss a complaint for declaratory judgment. The Supreme Court affirmed, holding that the superior court did not err in affirming the arbitrator's award and in concluding that the arbitrator and that the settlement agreement gave the arbitrator the authority to determine whether the agreement was valid and enforceable. View "Anderson v. Banks" on Justia Law

This case arose when Norma Sandoval and her sister, Nora Martinez, jointly filed suit against SCI alleging fraud, deceptive trade practices, and other tort claims arising from their respective interment rights and services contracts for family burial plots at Mont Meta Memorial Park. Martinez's contract allowed the court to appoint an arbitrator, while Sandoval's contract required the American Arbitration Association (AAA) to appoint the arbitrator if the parties could not reach a mutual agreement. The trial judge severed the cases and then appointed an arbitrator for Martinez's case. Over the objection of SCI, the trial court also appointed the same arbitrator to arbitrate Sandoval's case. At issue on appeal was whether SCI allowed a lapse or mechanical breakdown in the contractual process for selection of an arbitrator, thereby validating the trial court's intervention to appoint the arbitrator. The court held that the trial court abused its discretion by appointing an arbitrator instead of following the agreed-upon method of selection outlined in the contract. As a matter of law, the two-month delay in the selection of an arbitrator in this case, by itself, did not establish a lapse or failure of the parties to avail themselves of the contractual selection method. Accordingly, without hearing oral argument, the court conditionally granted SCI's petition for writ of mandamus and directed the trial court to vacate its prior order appointing David Calvillo as arbitrator. View "In re Service Corp. Int'l and SCI Texas Funeral Services, Inc." on Justia Law

This mandamus proceeding arose from an arbitration agreement governed by the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq. The parties entered into a contract for interment rights and services. The contract obligated the parties to arbitrate this dispute over the care and maintenance of the cemetery. The arbitration agreement provided that an arbitrator would either be selected by mutual agreement of the parties or appointed by the American Arbitration Association (AAA). The parties failed to agree to an arbitrator and the trial court appointed an arbitrator without allowing a reasonable opportunity to procure an appointment by AAA. The court concluded that the trial court abused its discretion and conditionally granted the petition for writ of mandamus. View "In re Service Corp. Int'l and SCI Texas Funeral Services, Inc." on Justia Law

This case concerned an arbitration provision that allowed each party to appoint one arbitrator to a panel, subject to certain requirements. At issue was whether Americo wavied its objection to the removal of the arbitrator it selected. The underlying dispute concerned the financing mechanism for Americo's purchase of several insurance companies from Robert Myer. Pursuant to the financing agreement, Americo and Myer submitted their dispute to arbitration under American Arbitration Association (AAA) rules. The arbitrators found in favor of Myer, and Americo filed a motion to vacate the award. The trial court granted the motion, holding that Americo was entitled to any arbitrator that met the requirements set forth in the financing agreement and that the arbitrator removed by the AAA met those requirements. The court of appeals reversed, holding that Americo had waived these arguments by not presenting them to the AAA. Because the record demonstrated otherwise, the court rejected the court of appeals' judgment and remanded the case to that court for further proceedings. View "Americo Life, Inc., et al. v. Myer, et al." on Justia Law

Plaintiff bought a computer, using the Dell website, and clicked his agreement to Dell's terms, which included an arbitration clause. Plaintiff filed a putative class action, based on claimed design defects with the computer. At the time, the National Arbitration Forum, which was referenced in those terms as the arbital forum, was prohibited, by consent decree, from conducting arbitration. The district court denied Dell's motion to compel arbitration. The Third Circuit vacated. The contract language does not indicate unambiguous intent not to arbitrate disputes if NAF is unavailable. Section 5 of the Federal Arbitration Act creates a presumption favoring arbitration and requires a court to address such unavailability by appointing a substitute arbitrator, 9 U.S.C. 5. View "Khan v. Dell, Inc." on Justia Law

Independence County and the City of Clarksville entered into a power purchase and sale agreement that included an arbitration provision. After the City informed the County that it was going to terminate the agreement, the County filed a motion to compel arbitration. The circuit court denied the motion, ruling that the arbitration agreement was unenforceable because (1) the City validly exercised its right to terminate the agreement, and without the revocation of the entire agreement, the City was released from the obligation to arbitrate; and (2) the arbitration agreement lacked mutuality of obligation. The Supreme Court affirmed, holding that the circuit court did not err in ruling that the arbitration agreement was unenforceable due to the absence of mutuality of obligation, and the arbitration agreement was void on that basis. View "Independence County v. City of Clarksville" on Justia Law

Plaintiff entered into a two-year wireless service agreement with First Cellular in 2005. The company was acquired by defendant, which began dismantling and reorganizing. Plaintiff initially agreed to defendant's terms, but later filed a class action, claiming breach of contract for rendering his phone and equipment useless and refusing to honor the features and prices of the First Cellular Agreement. He also claimed deceptive rade practices under Illinois law and civil conspiracy. The district court denied defendant's motion to compel arbitration. The Seventh Circuit reversed, finding that defendant's arbitration clause applies because part of the claims are based on services and products received under defendant's contract. Defendant's contract unambiguously covers any dispute "arising out of" or "relating to the services and equipment." If a contract provides for arbitration of some issues, any doubt concerning the scope of the arbitration clause is resolved in favor of arbitration as a matter of federal law, 9 U.S.C. 2. View "Gore v. Alltel Comm'cns, LLC" on Justia Law