One question I get frequently is whether a party can protect the status quo by seeking a court injunction, even if there is an arbitration agreement in place. Usually, I point them back to this post from 2011 (with the caveat that the AAA rules now authorize arbitrators to grant emergency relief, without any
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Arbitration In the Eye of the Storm
Sometimes current events provide an occasion perfect storm to educate about arbitration basics. This is one of those occasions.
Here are questions that friends and colleagues storming mad people have asked me in the past day or so, with my best answers:
- Does an arbitration agreement have to be signed by both parties to be
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Eighth Circuit Finds Former Employees Lack Standing To Challenge Employer's New Arbitration Policy
What’s one way to derail a potentially large collective action about Fair Labor Standards Act violations? To implement a new arbitration policy within days, thereby ensuring that your current employees cannot join the court case. At least, that was the successful tactic used by a Chicago restaurant recently.
In Conners v. Gusano’s Chicago Style Pizzeria, …
Who Decides Whether New Claims Are Precluded By Old Arbitration? An Arbitrator, Says 2d Circuit
We all know that the doctrines of issue preclusion (collateral estoppel) and claim preclusion (res judicata) apply with equal force to both arbitration awards and court orders. But, if your adversary brings new claims that you believe have already been determined in arbitration, where do you go to shut down those new claims — court…
Three Lessons on Appealing from Arbitrations
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 …
Federal Circuit Refuses To Enjoin International Arbitration of Patent Claims
Just after I posted about the awesome power of federal courts to enjoin other cases, the Federal Circuit reminds us the power is not absolute. In Sanofi-Aventis Deutschland Gmbh v. Genentech, Inc., __ F.3d __, 2013 WL 1921073 (Fed. Cir. May 10, 2013), it affirmed the district court’s decision not to enjoin a foreign…
Federal Courts Can Enjoin State Court Litigation of Arbitrable Claims
In a new case that reminds federal judges everywhere to sing “I’ve got the power!” like C&C Music Factory, the Fifth Circuit reiterates that federal courts can stay related state court actions if necessary to “protect or effectuate” an order compelling arbitration. American Family Life Assurance Co. of Columbus v. Biles, __ F.3d __,…
Second Circuit Finds Courts Have Power To Enjoin Arbitration In Limited Circumstances
The Second Circuit just held that a federal court has the power to enjoin an ongoing arbitration. In re Am. Express Fin. Advisors Sec. Litig., ___ F.3d ___, 2011 WL 5222784 (2nd Cir. 2011). While many litigants would no doubt like a federal court to enjoin their arbitrations — especially when arbitrators refuse to…