A lot of interesting arbitration law was made this year, on topics from validity to vacatur, but the banner issue was arbitrator authority. SCOTUS announced that theme for the year with its BG Group decision in March and federal and state courts around the country ran with it. [Warning: this post is a doozy. Get
Liz Kramer
Liz Kramer current serves as Minnesota's Solicitor General. Previously, she was a partner at Stinson Leonard Street and the founder of the award-winning blog, ArbitrationNation.
First Circuit Finds Plaintiff Waived Right to Arbitrate by Litigating for 9 Months
We haven’t had a good waiver case in a while. The First Circuit served one up last week with a flourish, teaching me multiple new words in the process (not for the first time, either). It found that a plaintiff had waived its right to arbitrate, not by bringing its claims to court…
Three-Peat: ArbitrationNation Makes ABA's Blawg 100 Again in 2014
Do you remember Balki’s Dance of Joy from the TV show Perfect Strangers? That is what I am doing today. Editors of the ABA Journal announced yesterday they have selected ArbitrationNation as one of the top 100 best blogs for a legal audience for the third straight year (out of 4,000+ legal blogs). I am…
New Survey Dispels Common Myths About Arbitration
Did you know that 87% of experienced arbitrators report *always* trying to follow applicable law in rendering an award? That will come as a surprise to many critics who like to complain that arbitrators do not adhere to established law.
The statistic comes from a survey that Prof. Thomas Stipanowich of Pepperdine University School of…
Sirius XM Faces Class Action Because Arbitration Agreement Provided Late Is Invalid
A few months ago, the Ninth Circuit found that the arbitration agreement in Barnes & Noble’s website was not enforceable. This week, the Ninth Circuit found that the arbitration agreement Sirius XM Radio relied upon was not enforceable because the user did not know he had any agreement with Sirius XM, let alone an arbitration…
Hawaii Finds Unilateral Arbitrator-Selection Provision Fundamentally Unfair
The Supreme Court of Hawai’i concluded last week that it is fundamentally unfair to allow one party to an arbitration agreement to unilaterally select the arbitral forum. Nishimura v. Gentry Homes, Ltd., __ P.3d__, 2014 WL 5503393 (Haw. Oct. 31, 2014). The parties can either jointly agree to a forum, or the court will…
Don't Sign Your Spouse's Arbitration Agreement, And Other Lessons From Non-Signatories
In three cases in recent months, courts have found that plaintiffs who did not sign an arbitration agreement (non-signatories) are not obligated to arbitrate. In all three cases, a key issue was that the plaintiff’s claims in court did not rely on the contract containing the arbitration clause.
In the most interesting and widely applicable …
"Harmonizing" Contract Language Leads Two Circuit Courts To Deny Arbitration
Two parties recently convinced federal circuit courts that the language of their arbitration agreements was not sufficient to compel arbitration of their disputes. Both cases turned on how courts “harmonize” language from different parts of an agreement or from multiple agreements.
The decision from the Eighth Circuit was a pretty easy one. The parties’ contract…
Second Federal Circuit Court Refuses To Enforce Arbitration By South Dakota Tribe
Using a different analysis, but reaching the same result as a recent decision from the Seventh Circuit, the Eleventh Circuit agreed that a defendant could not compel arbitration of consumer claims before the Cheyenne River Sioux Tribal Nation in South Dakota. Inetianbor v. CashCall, __ F.3d__, 2014 WL 4922225 (11th Cir. Oct.…
Minnesota Supreme Court Finds AAA Rules Give Arbitrator Power To Issue Sanctions Over $600 Million
The Minnesota Supreme Court today unanimously confirmed an arbitration award of over $600 million in punitive sanctions. Seagate Technology, LLC v. Western Digital Corp., (Minn. Oct. 8, 2014). Although the appellant argued the arbitrator exceeded his authority by severely sanctioning appellant for fabricating evidence, the court concluded that the parties’ agreement gave the arbitrator power…