The big issue in arbitration law in 2012 was class arbitration. Many state court opinions that had found class arbitration waivers unconscionable were preempted under federal law based on application of Concepcion. And the federal circuit courts developed a split on how to interpret Stolt-Nielsen in cases where the parties’ arbitration agreement lacks language
Defendant Did Not "Waive" Goodbye to Arbitration Despite Litigating For 6 Months
In contrast to recent decisions from other circuit courts, the Fourth Circuit found a defendant did not waive its right to arbitrate, despite litigating for more than 6 months and conducting discovery. Rota-McLarty v. Santander Consumer USA, Inc., __ F.3d __, 2012 WL 5936033 (4th Cir. Nov. 28, 2012).
In this potential class
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
Arbitrators Labeling Your Securities "Crap" Does Not Entitle You To Vacate The Award
In the last post, the Fifth Circuit affirmed an arbitration award against Morgan Keegan. The Ninth Circuit just affirmed an arbitration award against Morgan Keegan in a sister case. In less than two pages, the Ninth Circuit rejected Morgan Keegan’s arguments that the arbitrators were partial or exceeded their power. Morgan Keegan & Co. v.
Expert's Trick (changed damage calculation) Does Not Entitle Arbitration Loser to a Treat (a/k/a vacatur)
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
An ArbitrationNation Roadmap: Document subpoenas to third parties
This post is dedicated to a perennial favorite topic: subpoenas for documents in arbitration. Why this topic and not something hot off the presses? Because SCOTUS has not yet accepted or denied the cert petition in Sutter, and no cases have come out recently that meet my high standards for discussion on this blog
Three Is The Magic Number: Courts Cannot Authorize Panel of Five Arbitrators When Contract Specifies Three
In a dispute over how faithful a court must be to the parties’ arbitration agreement when it is asked to resolve an impasse in arbitrator selection under Section 5 of the FAA, the Fifth Circuit decided the court must give effect to the letter of the agreement, even if that defies its spirit.
In BP
Are Residential Real Estate Contracts Outside The Bounds of the Federal Arbitration Act?
The Supreme Court of South Carolina just ruled that contracts for the sale of residential property are not interstate commerce, and therefore are outside the reach of the Federal Arbitration Act. Bradley v. Brentwood Homes, Inc., __ S.E.2d __, 2012 WL 2847616 (S.C. July 11, 2012). That is a surprising result in my view,
Concepcion's Continuing Domino Effect: Case Law in California, Washington, and Pennsylvania Preempted By FAA
Three state law decisions relating to arbitration were toppled recently, based on application of the U.S. Supreme Court’s preemption decision in Concepcion.
In Kilgore v. Keybank, __ F.3d __, 2012 WL 718344 (9th Cir. Mar. 7, 2012), the Ninth Circuit held that California case law, which precluded arbitration of claims asking for public injunctive
“Manifest Disregard Of The Law” Has Circuit Courts in Disarray
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