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
arbitration
Biggest Arbitration Stories Of 2018
As we close out 2018, it is a good time to reflect on the year in arbitration law. Overall, I would characterize the year as another in which everyone was mildly obsessed with class actions, the U.S. Supreme Court again showed its willingness to enforce arbitration agreements of all kinds, and lower courts and groups…
Severability Doctrine Sends Two Disputes To Arbitration
One of the most confounding doctrines in federal arbitration jurisprudence is the severability doctrine. The U.S. Supreme Court has held, since Prima Paint in 1967, that courts must enforce arbitration clauses within contracts, even if the entire contract is invalid or unenforceable. (Most non-arbitration geeks don’t believe me when I tell them that’s the law.) …
Studies Conclude Arbitration Is A Black Hole With Repeat Player Bias (But Also Faster & Cheaper Than Court)
You know what rarely rises to the top of my “to do” list? Reading scholarly articles and studies about arbitration. Blech. But, since I haven’t seen any good court decisions lately, it is time to visit the neglected pile of articles. Turns out, I should have read some of them right away. Below are summaries…
Four Decisions Conclude Claims Outside Scope of Arbitration Agreement
There are only four ways to avoid an arbitration agreement. You can prove: 1) it was never formed; 2) it was formed, but is invalid under state law; 3) the current dispute is outside the scope of it; or 4) the other party waived their right to arbitrate (through litigation conduct). Today’s post is about…
Two State Courts Reject Arbitration Because Clause Lacked Administrator
This post is aimed at drafters of arbitration clauses. Because if you don’t insert an administrator for your arbitration, and don’t anticipate that the administrator may just stop providing services, your arbitration clause is dead in the water. At least, that’s the holding of two new state court cases.
Alabama Won’t Enforce Arbitration With Nursing Home When Patient Had Dementia
Every time I think the spate of state supreme court opinions about nursing home arbitration surely must be over, another one comes out to prove me wrong. Last week, it was one from Alabama, finding an arbitration agreement was never formed, because the resident lacked capacity and the daughter who signed on his behalf…
Kentucky Goads SCOTUS In New Arbitration Decision; Plus SCOTUS Update
I would understand if not every state supreme court got the memo from last year’s SCOTUS decision on FAA preemption, Kindred, which reminded state courts that the FAA prevents state courts from imposing additional requirements on arbitration agreements that are not required for other types of contracts. But Kentucky definitely got the memo. The…
No Proof Blind Plaintiffs Aware Of Arbitration Clause, So Discrimination Class Action Proceeds In Court
The First Circuit just faced a fascinating formation issue: if a customer cannot see what she is signing, and no employee reads it to her or ensures she knows there are legal terms, is there a contract? With Justice Souter sitting by designation on the panel, the court answered “no,” and thereby kept a class…
Million Dollar Arbitration Award For Attorneys Vacated Due To Ethical Violation
In today’s post I recount an epic battle between the Rules of Professional Conduct (tagline: saving clients from unscrupulous lawyers for over 100 years!) and the Uniform Arbitration Act (tagline: saving arbitration from hostile judges for 60 years!) in the Supreme Court of California. Spoiler alert: the Rules of Professional Conduct win.
The story in…