One of the very few ways to show evident partiality by an arbitrator is to show the arbitrator had financial ties to a party or witness in the proceeding, another is to show the arbitrator prejudiced a party by reversing a procedural or evidentiary ruling during the hearing. The Sixth Circuit found a Michigan arbitrator
SCOTUS Struggles With Standard Of Review For Arbitrator's Decision To Allow Class Arbitration
While the oral argument before the United States Supreme Court in Sutter today was ostensibly about whether to affirm an arbitrator’s decision that the parties’ contract authorized class arbitration, the decision really turns on how the Court will review all arbitration decisions. (Transcript here.) Multiple Justices expressed an unwillingness to create a special …
Seventh Circuit Is Sick Of Arbitration Appeals; Threatens "High Risk of Sanctions"
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…
Contributions To Arbitrator's Judicial Campaign Are Not Enough To Establish "Evident Partiality"
The Third Circuit refused to vacate an arbitrator’s award, despite allegations that she failed to disclose contributions the defendant’s parent company had made to her judicial campaign and failed to disclose that she co-taught a seminar with in-house counsel for the defendant’s parent company. Freeman v. Pittsburgh Glass Works, LLC, __ F.3d __, 2013 WL…
Non-Signatories Lose In Two Federal Circuits When Trying To Enforce Arbitration
Two federal circuit courts recently reversed district court decisions allowing non-signatories to compel arbitration. The analysis emphasizes that for a defendant to prove equitable estoppel compels arbitration, the plaintiff’s legal claims must be closely related to the contract containing the arbitration clause.
Retail grocers asserted antitrust claims against wholesalers in In re Wholesale Grocery Products …
Eighth Circuit "Owes No Deference" to NLRB Ruling on Class Arbitration
One year ago, the NLRB ruled in D.R. Horton, Inc. that it is a violation of federal labor law for employers to require their employees to sign arbitration agreements waiving class actions, and that any arbitration agreements waiving class arbitration would be void. This week, the Eighth Circuit became the first federal circuit…
Preview of SCOTUS's 2013 Double-Feature on Class Arbitration
Just last Friday, the Supreme Court agreed to review a second circuit court case that allowed a class action to proceed, despite arguments that the arbitration clause precluded any collective actions. The granting of these petitions is a fitting way to end a year in which there has been considerable discussion about how to apply…
SCOTUS Slaps Sooners With Severability Doctrine
On Monday, the United States Supreme Court reminded the Oklahoma Supreme Court who is boss when it comes to the Federal Arbitration Act. In Nitro-Lift Technologies, LLC v. Howard, 2012 WL 5895686 (U.S. Nov. 26, 2012), SCOTUS declared “It is a matter of great importance [] that state supreme courts adhere to a correct…
Arbitration Non-Signatories Lose in Fifth and Eighth Circuits
Two circuit court decisions in the last week have denied arbitration motions based on the lack of an arbitration agreement between the parties. These decisions show that while the federal presumption in favor of arbitration is generally a strong current, it is not strong enough to pull non-signatories into arbitration (or even to stay their…
Catch 22 for Parties Seeking to Vacate Arbitration Award for Bias
The Fifth Circuit has issued a harsh reminder that in order to preserve issues of arbitrator bias for appeal, the bias must have been raised before the arbitration award was issued.
In Dealer Computer Servs. v. Michael Motor Co., 2012 WL 3317809 (5th Cir. Aug. 14, 2012), one party (DCS) received a unanimous and favorable…