This week the Eighth Circuit confronted an interesting question: if a union member believed he failed a drug test, and therefore agreed his employer could terminate him if he tested positive again, can the arbitrator invalidate that agreement if the union member never actually failed the drug test? The appellate court answered yes, reversing the
Three Lessons on Appealing from Arbitrations
By Liz Kramer on
Three decisions came out recently that offer guidance on appealing from arbitration awards. Here are three pearls of arbitration appeal wisdom, one from each case:
1. If you want to appeal from an arbitration, you must have a record. Sounds basic, right? But many parties, either due to confidence they will win in arbitration or …
Think You Have A Chance Of Vacating Your Arbitration Award? Read this.
By Liz Kramer on
Just how hard is it to vacate an arbitration award? The Sixth Circuit recently held that even if the arbitrator reached a result directly contrary to federal precedent, the arbitration award would be upheld. And the Tenth Circuit found that even if the arbitrator based his award on an agreement that does not support the…
ArbitrationNation Makes The Blawg 100 Again
By Liz Kramer on
Posted in Uncategorized
The ABA Journal released its seventh annual list of the top 100 legal blogs in the country and ArbitrationNation is honored to be included for a second year in a row. ArbitrationNation is the only blawg on the list devoted to arbitration. (And it looks like one of only two from Minnesota authors…)
Now that…
Arbitration Awards Cannot Be Vacated Just Because Arbitrator Excluded Evidence
By Liz Kramer on
In two decisions this week, courts consider whether arbitration awards can be vacated based on arbitrators’ decisions to exclude evidence. In both cases, the courts affirm an arbitrator’s authority to make reasonable evidentiary decisions — excluding hearsay and denying tardy subpoena requests — as long as those decisions do not deny a party a fair…
Seventh Circuit Is Sick Of Arbitration Appeals; Threatens "High Risk of Sanctions"
By Liz Kramer on
Posted in Appealing Arbitration Decisions
In an opinion released yesterday, the Seventh Circuit schooled appellant’s counsel first on the application of the New York Convention and Panama Convention, then on the high standard of review it applies to commercial arbitration awards, and finally expressed profound disappointment with the frequency of motions to vacate arbitration awards. “Attempts to obtain judicial review…
Expert's Trick (changed damage calculation) Does Not Entitle Arbitration Loser to a Treat (a/k/a vacatur)
By Liz Kramer on
The Fifth Circuit recently refused to vacate an arbitration award, despite the loser’s arguments that: the arbitrators decided claims outside the scope of the arbitration agreement; and the winner’s expert used incorrect damage numbers in his testimony. Morgan Keegan & Co., Inc. v. Garrett, 2012 WL 5209985 (5th Cir. Oct. 23, 2012).
At issue in…
Happy First Birthday to Arbitration Nation!
By Liz Kramer on
Posted in Uncategorized, Year In Review
Take out your birthday hats and balloons — Arbitration Nation is celebrating its first full year of existence! I have enjoyed reading all the developments in arbitration law over the past year and connecting with many people — through this blog, listservs, emails and Twitter– about their reactions to the case law.
Here are some…
Circuit Split: Does Stolt-Nielsen Allow Class Arbitrations Based On Implicit Contract Interpretation?
By Liz Kramer on
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…
“Manifest Disregard Of The Law” Has Circuit Courts in Disarray
By Liz Kramer on
Posted in Appealing Arbitration Decisions
The Fourth Circuit recently affirmed that it will consider “manifest disregard of the law” as a separate basis for attacking an arbitration award, in addition to the four bases set forth in Section 10 of the Federal Arbitration Act. Wachovia Secs., LLC v. Brand, __ F.3d ___, 2012 WL 507022, at *8 (4th Cir. Feb…