Showing it will soldier on without Justice Scalia, the Supreme Court granted cert, vacated, and remanded an arbitration decision from West Virginia yesterday. Because this is the exact same treatment the Court gave a case from Hawaii’s highest court in January (and the same treatment I predicted, ahem), it suggests SCOTUS is trying to go
arbitration
Scalia Sizzled on Arbitration
Justice Scalia wrote some blockbuster decisions about arbitration, enforcing arbitration agreements regardless of their real-world impact, and making a potentially dry topic exciting and contentious. Readers of his opinions knew from the first few paragraphs of the analysis how the case was coming out. If he was bench-slapping a lower court for its interpretation of…
Three Appellate Courts Remand for Trial on Existence of Agreement to Arbitrate
Most questions of arbitrability can be resolved on motion, using a summary judgment-like standard. However, just like summary judgment, if there are genuine disputes of material fact about whether a claim must be arbitrated — like competing evidence about whether the parties ever formed an arbitration agreement — those should be determined by a trial. …
Fourth Circuit Holds Arbitration Agreement May Not Waive All Federal Statutory Rights
This week, the Fourth Circuit found an arbitration agreement invalid because it waived all federal and state laws. Although two other federal circuit courts had already found the same company’s arbitration agreement unenforceable because it called for an impossible arbitration process, the Fourth Circuit found it invalid for a new reason.
The issue in Hayes…
January Arbitration Update: Effective Vindication, Class Arbitration, and FAA Preemption
Lots of interesting arbitration law has been made already in 2016, so here is a roundup from the first four weeks of the year. As a teaser, courts have breathed life into the effective vindication doctrine, found arbitrators cannot determine the availability of class actions, and found state laws not preempted. More surprisingly, state courts…
SCOTUS's Arbitration Docket Contracts
The actual and potential arbitration docket at the Supreme Court contracted in the last week due to three events.
First, SCOTUS made quick work of an appeal from the Hawaii Supreme Court. Remember when I predicted that the DIRECTV case was going to make it even harder for state courts to find arbitration agreements unenforceable…
Alabama Acknowledges AAA Rules Authorize Arbitrator To Determine Whether Non-Signatory Is Bound
The Alabama Supreme Court has followed the Eighth Circuit’s lead, concluding that when the parties agree to arbitrate pursuant to the AAA Rules, they have clearly and unmistakably authorized the arbitrator to determine who is bound by that arbitration agreement. Federal Ins. Co. v. Reedstrom, __ So. 3d __, 2015 WL 9264282 (Ala.…
2015: Arbitration Inches Toward Center Stage
Arbitration case law did not break any new ground in 2015. Instead, a larger sector of the public became aware of the ground already broken in 2011 and 2013, as well as how common arbitration is in professional sports.
Let’s review some of the attention-grabbing arbitration headlines of 2015. There was:
- That time in February
…
SCOTUS Finds California's Contract Interpretation Skills Lacking In New Arbitration Decision
Just under the wire, SCOTUS released an arbitration opinion today, ensuring that 2015 would continue the string of years with cases interpreting the Federal Arbitration Act. In DIRECTV v. Imburgia, the Supreme Court found that California’s interpretation of an arbitration clause was preempted by the FAA. DIRECTV is a 6-3 decision, with Justice Kagan…
Final Means Final: No Reconsideration in Arbitration
Recent decisions from the 3d and 11th Circuits drive home this point: an arbitration award is final and should not be revisited.
In Robinson v. Littlefield, 2015 WL 5520017 (3d Cir. Sept. 17, 2015), the parties arbitrated their dispute over the quality of a new RV. The arbitrator ruled for the RV buyers, awarding…