In an opinion that coins new terms and uses the insouciant tone of a blogger, the 11th Circuit just shut down a putative class action brought by homeowners against a vendor of roof shingles. The Court found that the terms and conditions printed on the exterior of the shingle packaging formed an enforceable contract (with
unconscionable
4th Circuit Finds Club Waived Right To Compel Arbitration Of Exotic Dancers’ Claims
In a recent opinion, the Fourth Circuit cited waiver as its basis to refuse to compel arbitration, but the result seems animated by a sense that the arbitration agreements were unenforceable. Degidio v. Crazy Horse Saloon & Restaurant, Inc., __ F.3d __, 2018 WL 456905 (4th Cir. Jan. 18, 2018).
The case involved a…
Enforcing Nursing Home Arbitration Agreements Post-Kindred
Just five months ago, the U.S. Supreme Court weighed in on a nursing home arbitration dispute in Kindred Nursing Centers v. Clark. It held that the Kentucky supreme court’s rationale for not enforcing the arbitration agreement was preempted by the Federal Arbitration Act. Before that, multiple state courts had found state law bases for…
Hawaiian Punch: State Supreme Court Stands Up to SCOTUS on Arbitration
In January of 2016, SCOTUS granted review of an arbitration case from Hawaii, but summarily vacated and remanded it without analysis. (Unless you consider “Please read DIRECTV” substantive analysis.) Here’s the risk of that course of action: Hawaii can refuse to change its mind.
Last month, in Narayan v. The Ritz-Carlton Development Co., 2017…
3 Class Actions, 3 Motions to Compel Arbitration, 1 Class Action Survives
The Ninth, Sixth, and Third Circuits all recently issued decisions about whether putative class or collective actions could proceed despite the existence of arbitration clauses. In two of those decisions, the courts found the arbitration agreements did not allow for class arbitration and therefore dismissed the claims. In the third, the court found the arbitration…
Two States Buck FAA Preemption, While Alabama Stays the Course
Three state supreme courts tackled arbitration law in recent weeks: Alabama, North Carolina, and Rhode Island. Rhode Island reversed a construction arbitration award because it disagreed with the arbitrator’s analysis. North Carolina found that an arbitration agreement in a doctor-patient setting was unenforceable as a breach of the doctor’s fiduciary duty. And Alabama strictly enforced…
Exhibit C For The Case That California Is No Longer Anti-Arbitration
The Supreme Court of California this week enforced the arbitration agreement between an employee and employer. Yes, you read that right. While reputed to be reliably anti-arbitration, California’s highest court continues to provide evidence that it is tired of being reversed by SCOTUS * and is ready to follow federal precedent on the FAA.
In…
In 3 Recent Decisions, Supreme Court of Arkansas Deeply Divided on Arbitration
The Supreme Court of Arkansas has issued three opinions within the span of four weeks, all on the topic of whether defendants can compel arbitration. Each of the opinions came with a vigorous dissent. The cases offer an interesting look at a state high court that appears to be struggling to deal with FAA case…
Montana Finds Arbitration Agreement Unconscionable For Lack of Mutuality
March comes in like a lion, right? Well, that’s not true with respect to the weather here in Minneapolis. But it may be true with respect to arbitration decisions from around the country. This post focuses on two recent decisions from state high courts that refuse to compel arbitration.
In Global Client Solutions, LLC v.
SCOTUS Selects Second Arbitration Case For 2015 Term
2015 has been a dry spell in arbitration decisions from the U.S. Supreme Court, but 2016 promises to be much more interesting. In addition to the California case being heard next week, SCOTUS just granted certiorari in another California-based arbitration decision. This one, MHN Government Services, Inc. v. Zaborowski, will review an unpublished 2-1 …