Two state supreme courts found consumer arbitration agreements unenforceable in the past week: Arkansas and New Jersey. Arkansas grounded its decision on the lack of mutuality in the consumer arbitration agreement (similar to Missouri’s recent ruling). Alltel Corp. v. Rosenow, 2014 WL 4656609 (Ark. Sept. 18, 2014). New Jersey grounded its decision on
Federal Arbitration Act
End Of The World As We Know It (for Employment Arbitration)?
Cue the R.E.M folks, because the Supreme Court of Missouri issued a 4-3 opinion recently that appears to upend many employment arbitration agreements in that state. Baker v. Bristol Care, Inc., __ S.W.3d__, 2014 WL 4086378 (Mo. Aug. 19, 2014). However, the situation is not as dire as it may seem.
The high court…
Nitty Gritty Advice for Compelling Arbitration under the FAA
I regularly receive questions about compelling arbitration under the Federal Arbitration Act. In particular, people ask : (1) Can I file a motion to compel before any other “complaint” is filed; (2) What should I call my motion?; and (3) What is with this 5-day rule hidden inside Section 4 of the FAA? Wanting to…
ArbitrationNation's Third Anniversary Threesome
This week marks the third anniversary of this blog devoted to interpretations of the Federal Arbitration Act. (Here’s the first post.) After 155 posts, can there possibly be more to say? Yes, indeed. Three new opinions from federal courts of appeals demonstrate how new issues keep “cropping” up in arbitration law each week.
The…
A Motion to Compel Arbitration “Answers” a Complaint
I field a lot of good procedural questions about how arbitration pleadings should be styled. Some of them are answered within the text of the FAA, but many of them leave clerks of court and practitioners scratching their heads and getting creative. I will address one of those common questions today: is a motion to…
Tenth Circuit Clarifies When Trial Is Necessary To Determine Arbitrability
In a beautifully written opinion, the Tenth Circuit examined an under-used aspect of the Federal Arbitration Act this week: having a jury or court trial. Usually disputes about arbitrability can be determined on a motion akin to summary judgment, but the FAA states in Section Four: “If the making of the arbitration agreement or the…
Deference to Arbitrators Is All The Rage Among Supreme Courts This Winter
You may have already heard that SCOTUS affirmed arbitrators’ authority to interpret contractual prerequisites to arbitration last week in BG Group, PLC v. Republic of Argentina. But that is just one of a number of recent decisions from high courts on the deference due arbitrators.
In the BG Group case, the D.C. Circuit had…
No Federal Presumption of Arbitrability Until Court Finds Valid Arbitration Agreement
A new opinion from the Eleventh Circuit highlights an issue that can be confusing to those encountering FAA case law for the first time: when does the federal presumption of arbitrability apply? The answer is the presumption only applies to whether the scope of an arbitration agreement is broad enough to encompass the parties’ dispute,…
FAA Preempts More State Arbitration Law
The Tenth Circuit ruled last week that arbitration case law from New Mexico is preempted by the FAA. This decision calls into question whether states can find arbitration agreements unconscionable simply for being unilateral, i.e. one party is bound to arbitrate its claims while the other party is free to litigate in court.
In 2012,…
Ninth Circuit Says Arbitration Agreements Cannot Restrict Grounds for Vacating Award
In the Hall Street decision in 2008, SCOTUS held that parties could not contractually enlarge Section 10 of the Federal Arbitration Act by agreeing that a court could vacate the arbitration award for reasons not found in that section. This week, the Ninth Circuit held that parties also cannot contractually restrict Section 10 by providing…