Three federal circuit courts have recently looked at the shelf-life of an arbitration agreement. Can it apply even before the contract is effective? What about after a successor takes over the relationship? What if one party unilaterally changes its terms? The answer is that a properly worded arbitration agreement can apply in all those instances,
Are Residential Real Estate Contracts Outside The Bounds of the Federal Arbitration Act?
The Supreme Court of South Carolina just ruled that contracts for the sale of residential property are not interstate commerce, and therefore are outside the reach of the Federal Arbitration Act. Bradley v. Brentwood Homes, Inc., __ S.E.2d __, 2012 WL 2847616 (S.C. July 11, 2012). That is a surprising result in my view,
Sweet Tea Anyone? Three Summer Arbitration Decisions From Southern States (Ala, WVa, La)
It must be near the end of the clerk year, because courts are going gangbusters issuing opinions. Today, a roundup of three arbitration decisions from Southern states. Notably, Louisiana makes it tough for lawyers to enforce arbitration agreements with their clients.
After prominently noting that the lower court rulings were “eminently reasonable, logical and just,”
First Circuit Makes Circuit Split Lopsided In Favor Of Narrowing Impact Of Stolt-Nielsen
With less colorful language than its last arbitration opinion, the First Circuit sided with the Second and Third Circuits in limiting the application of the 2010 Stolt-Nielsen decision on the availability of class arbitration. Fantastic Sams Franchise Corp. v. FSRO Assoc. Ltd., __ F.3d __, 2012 WL 2402560 (1st Cir. June 27, 2012).
Who Decides Whether Statute of Limitations in Arbitration Clause Is Too Short?
Arbitration agreements may shorten the statute of limitations that would otherwise be available for claims — but only to a point. A recent opinion from the First Circuit shows that how a plaintiff frames its argument that the contractual limitations period is unreasonably short can make a difference not only on whether the argument is
West Virginia Won't Back Down On Arbitration Decision
The saga of Brown v. Genesis Healthcare Corporation continues. Almost exactly a year ago, the West Virginia Supreme Court declared that arbitration agreements in pre-dispute nursing home contracts were unenforceable. Then in February SCOTUS reversed that decision and remanded the case for consideration of un-preempted unconscionability. Now, the West Virginia court has issued its decision
The Best New Argument For Compelling Arbitration = Rent-A-Center + the AAA Rules
To date, courts have largely limited the impact of the Rent-A-Center decision to arbitration agreements with explicit delegation clauses. But, what if Rent-A-Center applied to every single arbitration agreement that mentioned the AAA rules? That is a very real possibility, and one which would send almost all arbitrability disputes to arbitrators.
The Rent-A-Center decision used
Parties Can Waive Arbitration, Despite A "No Waiver" Clause in Contract
The Sixth Circuit easily affirmed a district court’s finding that the defendant had waived its right to arbitration by participating in litigation for eight months. Johnson Assoc. Corp. v. HL Operating Corp., __ F.3d __, 2012 WL 1861675 (6th Cir. May 23, 2012). Plaintiffs had filed suit in late December of 2009 and a discovery
Circuit Split: Does Stolt-Nielsen Allow Class Arbitrations Based On Implicit Contract Interpretation?
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
More Administrative Agency Actions on Arbitration
A few months ago I posted about actions that FINRA and the NLRB were taking in support of allowing class arbitration, and those agencies have recently taken additional actions that help consumers or employees with relatively low dollar claims.
The NLRB brought a complaint against 24 Hour Fitness USA, Inc. The complaint alleges that 24