The Supreme Court issued another arbitration decision today in New Prime v. Oliveira. And like last week’s decision in Henry Schein, it was unanimous (but Kavanaugh did not participate). Today’s New Prime decision has two key holdings: First, it is for courts, and not arbitrators (regardless of any delegation clause) to determine whether
Litigation vs. Arbitration
1st Circuit Issues Reminder That Courts Can Enjoin Conduct Pending Arbitration
One question I get frequently is whether a party can protect the status quo by seeking a court injunction, even if there is an arbitration agreement in place. Usually, I point them back to this post from 2011 (with the caveat that the AAA rules now authorize arbitrators to grant emergency relief, without any…
New Jersey Says Non-Payment Of Arbitration Fees is Breach of Agreement
The New Jersey Supreme Court refused to allow a respondent to benefit from its refusal to pay arbitration fees in Roach v. BM Motoring, LLC, 2017 WL 931430 (NJ March 9, 2017).
First, Ms. Jackson filed a demand for arbitration against a New Jersey car dealership with the AAA. The parties’ arbitration agreement required the…
Administration Joins Courts In Prohibiting Arbitration In Nursing Home Admissions
Within the U.S. Government, the CFPB has gotten most of the attention for trying to regulate consumer arbitration. But this month, the Centers for Medicare & Medicaid Services (CMS) are bumping the CFPB out of the arbitration regulation spotlight. In particular, the CMS issued a rule that will prohibit the use of pre-dispute arbitration…
Is Refusal To Pay Fees A Way Out Of Arbitration?
The 9th Circuit recently allowed a claimant to proceed in court after her arbitration had been terminated due to her failure to pay half the arbitration fees. Tillman v. Tillman, __ F.3d __, 2016 WL 3343785 (9th Cir. June 15, 2016).
The case involved a client’s malpractice claim against her lawyers, which…
What’s in a Name?: Defining Arbitration Across the Circuits
What is “arbitration”? Although courts often use and apply the word, rarely do they stop to define it. While the FAA concerns agreements to “settle by arbitration a controversy,” the FAA does not define “arbitration,” leaving the question to the courts. Lacking definitive guidance from the U.S. Supreme Court, two lines of cases have developed…
Class Rep Can Opt Out of Arbitration for All (And Other Recent State Court Anomalies)
Continuing last week’s theme of “States Gone Wild,” here are three more oddball summer decisions from state supreme courts. All of them find interesting paths around federal case law (IMHO).
Georgia Says Class Complaint Is Deemed Arbitration Opt Out For All Class Members
In Bickerstaff v. SunTrust Bank, 2016 WL 3693778 (Ga. July 8,…
3 Year-End Arbitration Lessons From Appellate Courts
Before I can sum up 2015 in arbitration (next post!), I need to report on some new cases coming out of the federal and state appellate courts in recent weeks. Two are just good reminders of basic arbitration law, but the third addresses an interesting question of double recovery.
Our first “reminder” case comes from…
"Older Workers" Do Not Have To Arbitrate Statutory Employment Claim
Arbitration is having its 15 minutes of fame. Thanks to a series in the New York Times, my inbox is full of links to the articles, questions about the information, and fascinating commentary. [Next time I am in Oakland, I am totally having the “Scalia” cocktail at Italian Colors.] With the far-reaching audience of the…
CFPB Likely To Require Access To Class Actions And Data On Individual Arbitrations
Richard Cordray, Director of the Consumer Financial Protection Bureau, has positioned himself as the Boogeyman that financial companies fear this Halloween season. Earlier this month, the CFPB outlined the proposals under consideration for regulating arbitration in the consumer financial industry. The proposals address the availability of class actions — as was widely expected — but…