Justia Arbitration & Mediation Opinion Summaries

Esso Exploration and Production Nigeria Limited, (“Esso”) the Nigerian subsidiary of an international oil corporation, asked federal courts in the United States to enforce an arbitral award of $1.8 billion, plus interest, against the Nigerian National Petroleum Corporation (“NNPC”) that Nigerian courts have partially set aside. Courts in Nigeria previously set aside the Award in part. Nonetheless, Esso seeks enforcement of the entire Award under the New York Convention. NNPC urges dismissal of Esso’s suit for lack of personal jurisdiction and on the basis of forum non-conveniens, and it opposes the petition for enforcement on the merits.   The Second Circuit determined affirmed the district court’s rulings because its factual determinations were meticulous and its legal conclusions sound. The court held that NNPC has standing on cross-appeal to challenge the denial of its motion to dismiss, even though the district court ruled in its favor on the merits. NNPC has such standing because our partial vacatur on the merits revives the action against it, and it may face an adverse ruling on remand. On considering NNPC’s challenges to the district court’s denial of its motion to dismiss for want of personal jurisdiction and forum non-conveniens.   The court wrote that although the district court should have broadened its analysis under the Pemex standard, it ultimately agreed with its conclusion that U.S. courts owe the Nigerian judgments setting aside the Award comity.  The court concluded, however, that the district court went too far by refusing to enforce not only those parts of the Award that the Nigerian courts set aside but also those parts of the Award that remain viable under the Nigerian judgments. View "Esso Expl. and Prod. Nigeria Ltd. v. Nigerian Nat'l Petroleum Corp." on Justia Law

The Court of Chancery granted summary judgment in favor of Respondents and confirmed a May 10, 2021 arbitration award, holding that this court was obliged to grant Respondents' cross-motion for summary judgment to confirm the award.Respondent commenced an arbitration proceeding against Petitioner asserting several claims relating to amendments to the parties' LLC agreement. After the arbitrator issued decisions, Petitioner filed a petition to vacate the award in part. Respondent and affiliated entities filed a counterclaim to confirm the arbitration award. All parties moved for summary judgment. The Court of Chancery granted summary judgment in favor of Respondents and confirmed the arbitration award, holding that Petitioner's challenges to the award failed. View "Polychain Capital LP v. Pantera Venture Fund II LP" on Justia Law

Delek uses third-party specialty inspectors to ensure that Delek’s projects comply with industry and regulatory requirements. Cypress employs and assigns these specialty inspectors to companies like Delek. Becker worked as an electrical inspector for Cypress, which set Becker’s compensation as a day rate and issued his paychecks. Cypress deemed Becker an administrative employee and considered him overtime-exempt under the Fair Labor Standards Act, 29 U.S.C. 201 (FLSA). Becker signed an employment agreement, acknowledging that he “underst[ood] that [his] employment is based on a specific project to be performed for a designated customer” and that any dispute related to this employment relationship would be arbitrated. Becker was assigned by Cypress to work at a Delek location.Becker filed an FLSA complaint against Delek, arguing that “Delek’s day-rate system violates the FLSA because [he] and those similarly situated workers did not receive any overtime pay for hours worked over 40 hours each week.” Becker claimed Delek was his employer because he worked 12-15 hours a day for six-seven days a week at Delek's location, reported to Delek, performed work essential to Delek’s core business, and had his pay and schedule directed by Delek. Cypress was allowed to intervene and moved to compel arbitration. The Sixth Circuit reversed the denial of the motion. Becker’s challenge is not “specific” to the arbitration agreement’s delegation provision, leaving the question of whether Delek can enforce the arbitration agreement for an arbitrator to decide. View "Becker v. Delek US Energy, Inc." on Justia Law

The Supreme Court affirmed the order of the district court denying Robert Gill's motion to enforce a judgment confirming arbitration awards entered against Elizabeth Lockhart, holding that there was no error in the proceedings below.Siblings Robert Gill and Lockhart were the beneficiaries of a trust that owned land in Teton County. The trust decided to use the land to create a subdivision. This case concerned an arbitration award contained in an order covering the parties' rights and obligations regarding the subdivision. Gill successfully filed a petition asking the district court to confirm two of the arbitration awards. Thereafter, Gill filed his motion to enforce the judgment. The district court denied the motion, finding that Gill failed to prove some of his damages. The Supreme Court affirmed, holding that the district court did not abuse its discretion by not allowing Defendant to present certain evidence either at the evidentiary hearing or after the district court announced its oral ruling. View "Gill v. Lockhart" on Justia Law

The Supreme Court affirmed the decision of the court of appeals holding that decisions made under Minn. Stat. 43A.33 are quasi-judicial administrative decisions subject to certiorari review by the court but reversed its holding that the Bureau of Mediation Services was a proper party to the appeal, holding that the Bureau was not a proper party to the certiorari appeal.When the Minnesota Department of Corrections sought certiorari review of an arbitrator's decision granting Appellant's appeal from the discharge of his employment at the Minnesota Department of Corrections, Appellant challenged the court of appeals' jurisdiction to hear the appeal, arguing that review must be undertaken by the district court. The court of appeals upheld the arbitrator's decision. The Supreme Court affirmed in part and reversed in part, holding (1) Appellant and the Department were not parties to an arbitration agreement that invoked the judicial review procedures of the Uniform Arbitration Act; (2) the decision of an arbitrator appointed according to section 43A.33 is a quasi-judicial determination of an inferior tribunal reviewable via writ of certiorari at the court of appeals; and (3) the Bureau was not a proper party to this appeal because it had no legal or equitable interest in the outcome. View "Minn. Department of Corrections v. Knutson" on Justia Law

The Supreme Court affirmed the judgment of the superior court in favor of Defendant-union and denying Plaintiff's motion to vacate an arbitration award, granting Defendant's motion to confirm the award, and awarding attorneys' fees to Defendant as the prevailing party, holding that there was no error.Defendant represented certain municipal employees employed by Plaintiff, West Warwick Housing Authority. After Plaintiff suspended the employment of the grievant, Defendant grieved her termination pursuant to the parties' collective bargaining agreement (CBA). The arbitrator decided in the grievance's favor. Thereafter, Plaintiff filed a complaint seeking to vacate the arbitration award, arguing that the grievance was not substantively arbitrable because the CBA was invalid and that the arbitrator's decision was irrational. The superior court entered judgment in favor of Defendant. The Supreme Court affirmed, holding that the trial justice correctly denied Defendant's motion to vacate because the dispute was arbitrable. View "West Warwick Housing Authority v. R.I. Council 94" on Justia Law

Plaintiff claimed that PeopleConnect used her name and likeness in its Classmates.com school yearbook database without her consent. Plaintiff retained an attorney, who created a Classmates.com account and searched for Plaintiff on the site. In creating the account, the attorney agreed to the Terms of Service, which contained an arbitration provision. Applying Ohio law, the district court denied PeopleConnect’s motion to compel arbitration, holding that there was no evidence that Plaintiff gave her counsel authority to bind her to the Terms of Service containing the arbitration provision.   The Ninth Circuit vacated the district court’s denial of a motion to compel arbitration in an action involving a right of publicity claim against PeopleConnect, LLC under Ohio law. The panel held that the district court erred in applying Ohio law because Washington law governed the threshold question of arbitrability. Here, because no conflict was shown to exist between the law of Washington (the forum state) and Ohio law, Washington law applied. The court held that on the record before the district court, questions of fact precluded ruling on the motion to compel arbitration.   These questions of fact included: whether Plaintiff and her attorney had an agency relationship when her attorney agreed to the Terms of Service; if they did have an agency relationship, whether and how Plaintiff limited her attorney’s authority as her agent; and whether Plaintiff ratified her attorney’s agreement to arbitrate. The court held further that PeopleConnect had a right to conduct discovery on these and related arbitrability issues before the district court decides the motion to compel arbitration. View "BARBARA KNAPKE V. PEOPLECONNECT, INC." on Justia Law

The Supreme Court vacated the judgment of the superior court in favor of Defendant, the Fraternal Order of Police, Lodge 13 (the Union), in which the Court denied the Town of North Providence's petition to vacate an arbitration award and granted the Union's motion to confirm the award, holding that the arbitrator so imperfectly executed his authority that he did not provide a mutual, final, and definite award upon the subject matter, as required under R.I. Gen. Laws 28-9-18(a)(2).This action arose from a dispute between the Union and the Town regarding the effect of a collective bargaining agreement (CBA) governing the employment relationship between the Town and the Town's police officers. The arbitrator found in favor of the Union, and the superior court granted the Union's motion to confirm the award. The Supreme Court reversed, holding that the arbitrator's award failed to draw its essence from the contract, manifestly disregarded relevant portions of the CBA, and produced completely irrational results. View "Town of North Providence v. Fraternal Order of Police, Lodge 13" on Justia Law

The First Circuit reversed the judgment of the district court denying arbitration requested by two unions - the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union and the United Steelworkers Local 12203 (collectively, Union) - on behalf of former two employees of the Boston Gas Company (Company) as to their claims for pension benefits, holding that this matter called for arbitration.The Union represented the two members in filing grievances regarding their underpaid pensions. The Union submitted the grievances to the Joint Pension Committee, which was unable to resolve the dispute. The Union subsequently sought arbitration over the grievances, but the Company refused to arbitrate. The First Circuit reversed, holding that it was up to an arbitrator, not a court, to determine the matters at issue in this case. View "United Steelworkers v. National Grid" on Justia Law

Plaintiff, a citizen and resident of Vietnam, initiated arbitration proceedings in Singapore against Defendant, then a citizen and resident of North Carolina regarding a dispute related to a sale of property in the Philippines. Plaintiff obtained a $1.55 million award against Defendant, and then brought this case asking the court to enforce the award. The district court rejected Defendant's jurisdictional challenges and granted summary judgment in favor of Plaintiff. Defendant appealed.The Fourth Circuit affirmed the district court's order granting summary judgment to Plaintiff. In so holding, the court rejected Defendant's claim that the district court lacked subject matter and personal jurisdiction, and that the court erred in finding no disputed issues of material fact. View "Rachan Reddy v. Rashid Buttar" on Justia Law