A resource for litigators, in-house counsel, and arbitrators
The Fifth Circuit recently refused to vacate an arbitration award, despite the loser’s arguments that: the arbitrators decided claims outside the scope of the arbitration agreement; and the winner’s expert used incorrect damage numbers in his testimony. Morgan Keegan & Co., Inc. v. Garrett, 2012 WL 5209985 (5th Cir. Oct. 23, 2012).
At issue in…
In a new decision from the First Circuit, which refuses to make any definitive pronouncements about the law on vacating arbitration awards, the court said it assumes “with some confidence” that if an arbitration award directed a party to violate an administrative agency rule, it could be vacated on that basis.
In Bangor Gas Company…
The Fifth Circuit has issued a harsh reminder that in order to preserve issues of arbitrator bias for appeal, the bias must have been raised before the arbitration award was issued.
In Dealer Computer Servs. v. Michael Motor Co., 2012 WL 3317809 (5th Cir. Aug. 14, 2012), one party (DCS) received a unanimous and favorable…
The Eleventh Circuit has “ironed out a wrinkle” in Alabama’s arbitration jurisprudence that seemed to find executors outside the scope of arbitration contracts signed by the decedent.
In Entrekin v. Internal Medicine Assocs. of Dothan, P.A., ___ F.3d __, 2012 WL 3208641 (11th Cir. Aug. 9, 2012), the district court had denied a nursing home’s…
While a court may vacate an arbitration award if the arbitrator exceeds the scope of his authority, the City of Lebanon was unable to convince the Supreme Court of New Hampshire that an arbitrator exceeded his authority when siding against the City in a tax dispute.
The plaintiff in Lebanon Hanger Assoc. v. City of…
The Fifth Circuit just issued a decision openly disagreeing with how the Second Circuit has interpreted both the Stolt-Nielsen decision and case law regarding the level of deference that courts owe arbitrators. In Reed v. Florida Metropolitan Univ., Inc., __ F.3d __, 2012 WL 1759298 (5th Cir. May 18, 2012), the Fifth Circuit vacated…
Although courts and practitioners may think of the Stolt-Nielsen decision as the death knell of class arbitration, the Third Circuit’s ruling last week serves as a reminder that the Stolt-Nielsen did not deal a mortal blow. In fact, in Sutter v. Oxford Health Plans LLC, __ F.3d __, 2012 WL 1088887 (3d Cir. April…
The Fourth Circuit recently affirmed that it will consider “manifest disregard of the law” as a separate basis for attacking an arbitration award, in addition to the four bases set forth in Section 10 of the Federal Arbitration Act. Wachovia Secs., LLC v. Brand, __ F.3d ___, 2012 WL 507022, at *8 (4th Cir. Feb…
The Sixth and Second Circuits addressed whether to vacate an arbitrator’s award recently. The Sixth Circuit vacated the award of an arbitrator who “exceeded his powers,” while the Second Circuit refused to vacate for “evident partiality.”
Based on the parties’ agreement, the Sixth Circuit considered vacatur under the Michigan Arbitration Act. In particular, the appellant…
The Second Circuit just held that a federal court has the power to enjoin an ongoing arbitration. In re Am. Express Fin. Advisors Sec. Litig., ___ F.3d ___, 2011 WL 5222784 (2nd Cir. 2011). While many litigants would no doubt like a federal court to enjoin their arbitrations — especially when arbitrators refuse to…