While the Supreme Court has put off hearing a more contentious arbitration case until the fall (presumably in hopes that it will have nine justices by then), tomorrow it will hear the nursing home arbitration case from Kentucky. I look forward to listening to the questions and trying to figure out why the Justices granted
Unvacating Arbitration Awards: Quarterbacks and Car Accidents
The Second Circuit reminded us yesterday that judicial review of arbitration awards is “among the most deferential in the law.” And when district courts are not sufficiently deferential, their decisions are likely to be overturned. That happened recently in Tom Brady’s “deflate-gate” arbitration, and in an arbitration over how much a pedestrian was owed
Fifth Circuit Finds Federal Jurisdiction Over $10,000 Arbitration Award
The Fifth Circuit recently addressed a hard question: what should the court consider when determining the amount in controversy for purposes of federal jurisdiction over an arbitration award? The court decided to rely on the amount originally sought by the claimant in the demand for arbitration. Pershing, LLC v. Kiebach, __ F.3d __, 2016
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
Spring Vacations: Which arguments are winning on appeals from arbitration so far in 2015?
Today I present a collection of recent state and federal appellate court decisions that vacate or un-vacate arbitration awards. The seven opinions below emphasize how difficult it is to prove that an arbitrator exceeded his or her power and suggest that the surest way to vacate an arbitration award is still by presenting evidence that
Fifth Circuit Finds Parties Can Authorize Arbitrators By Their Conduct
The Fifth Circuit un-vacated an arbitration award last week, holding the district court had wrongly concluded that the court was the proper decision-maker on contract formation. Although courts are presumptively authorized to decide whether an arbitration agreement exists, the Fifth Circuit found the parties altered that presumption by “submitting, briefing, and generally disputing that issue
When Can A Party Recover Attorneys' Fees Incurred Confirming An Arbitration Award?
If you won your arbitration, it is vexing to have to spend many thousands more in attorneys’ fees opposing a motion to vacate the arbitration award. (That is especially true if you signed up for arbitration thinking it was faster and avoided appeals.) But, can you ask the court to award you the attorneys’ fees
Lessons From Lance Armstrong About the Finality of Arbitration Awards
On February 4, an arbitration panel ordered Lance Armstrong to pay $10 million to his former promotions company, SCA, as a result of his “unparalleled pageant of international perjury, fraud and conspiracy” that covered up his use of performance-enhancing drugs. (Read the NYT story about it here.) What is curious about the award, from
Arbitration Award Vacated Because Arbitrators Were Impartial
Although we usually expect arbitrators to be impartial, the Supreme Court of Texas vacated an arbitration award because the chosen arbitrators were too impartial. Americo Life, Inc. v. Myer, __S.W.3d__, 2014 WL 2789429 (Tex. June 20, 2014). Because the court found the parties’ agreement allowed each side to choose an arbitrator who was partial
Alabama Confirms Arbitrators' Grant of Judgment As A Matter of Law
Just as SCOTUS held its nose and confirmed an arbitration award it thought stunk in Sutter, the Supreme Court of Alabama has confirmed an arbitration award made after only the claimant presented evidence and grounded in a possible misunderstanding of Alabama law. Tucker v. Ernst & Young, __ So.3d__, 2014 WL 2619860 (Ala. June