American Arbitration Association

News & Analysis as of

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...more

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. ...more

Know the Rules Before Playing Ball: The ICDR and AAA’s Supplementary Rules Governing Baseball-Style Arbitrations

Baseball-style arbitration is a promising tool that encourages parties to reach an amicable resolution of their disputes. Although increasing in popularity, agreements to participate in a baseball-style arbitration often fail...more

2016 in Arbitration Law: Fleeting Victories for Consumer Advocates?

If I had drafted this annual summary post on November 7, 2016, it would have looked different. At that point, the year had produced numerous (final or proposed) federal regulations that significantly restricted the use of...more

Eighth Circuit Upholds Arbitral Immunity In Challenge To AAA’S Removal Of Arbitrator

Owens, a terminated CEO, engaged in a AAA arbitration with his former company before a three-member panel. In the course of the proceeding, the company sought to remove an arbitrator for making an incomplete disclosure...more

8th Circuit Expands Arbitral Immunity Doctrine

A per curiam opinion from the 8th Circuit last week highlights that even if an arbitration goes off the rails, the only remedy is vacating (or confirming) the award. The parties cannot recover from the administrator of the...more

Arbitration Clause Requiring Arbitrators to Render a Decision within 30 Days from Their Appointment? Superfast Decision?

Ever wonder about a superfast arbitration procedure in a contract that you have been given? An arbitration clause requiring an arbitration panel to issue a decision within 30 days of being selected for the panel was recently...more

Court Confirms Award, Holds Arbitrator Did Not Err In Determining Vesting Status Of Former Executive’s Shares

The case arose from an arbitration initiated under an employment agreement, after the chief operating officer of ACP Investment Group resigned. Addressing a provision in the agreement that required the COO’s forfeiture of...more

Court Compels Arbitration To Determine The Arbitrability Of Reinsurance Dispute With Captive Insurance Company

In a suit by an auto body company against a captive insurance company for rescission of certain workers compensation reinsurance participation agreements, for disgorgement of $70,000 paid thereunder, and for fraud, breach of...more

Illinois Federal Court Grants Motion To Confirm Arbitration Award For Pre-Hearing Security

We previously reported on this case in our blog dated December 21, 2015. The background of the dispute is as follows. A dispute arose between an insurer and its insured under four written program agreements, each containing...more

Federal Court in North Carolina Holds That Impracticability of Arbitration Clause Which Required Decision Within 30 Days of...

Tribal Casino Gaming Enterprise v. W.G. Yates & Sons Constr. Co., 2016 U.S. Dist. LEXIS 86100 (W.D. NC July 1, 2016) - Tribal Casino Gaming Enterprise (the “Casino”) contracted with joint general contractors, W.G. Yates...more

New Jersey Federal District Court Holds That Arbitration Clause In AIA A201-1997 Does Not Apply To Post Construction Disputes

Blackman & Co., Inc., v. GE Bus. Fin. Servs., Inc., 2016 U.S. Dist. LEXIS 87904 (D.N.J. July 7, 2016) - Grove Street Realty Urban Renewal, LLC (“Grove Street”) contracted with Blackman & Co., Inc. (“Blackman”) to manage...more

Ninth Circuit Allows Dispute To Proceed In Court After Arbitration Dismissed For Failure To Pay Deposit

In mid-June, the U.S. Court of Appeals for the Ninth Circuit issued an opinion which holds that where an arbitration proceeding is dismissed because one side is unable to pay their share of the arbitration, the case may...more

Construction Group News: Private Parties Powerless to Expand Scope of Court's Review of Arbitrator's Decision

The Massachusetts Supreme Judicial Court ("SJC") recently ruled that the parties to an arbitration agreement cannot, by contract, expand the grounds upon which a court may set aside an arbitrator’s award beyond the very...more

Making Arbitration Easier: AAA Launches ‘À La Carte’ Services

The American Arbitration Association recently launched a suite of “à la carte” services allowing parties to select only the services they need. The benefit to litigants is that they will not have to incur the costs of a...more

New Bauhaus v. American Green

Partner Kevin Broerman prevailed on a commercial binding arbitration using the American Arbitration Association (AAA). Claimant asserted damages in excess of $5 million (capped pursuant to agreement with AAA at $1.5 million)...more

AAA’s Revised Construction Industry Arbitration Rules and Mediation Procedures

The American Arbitration Association (“AAA”) recently revised its Construction Industry Arbitration Rules and Mediation Procedures. The revised rules became effective on July 1, 2015 and include a host of changes, large and...more

New Stats From The AAA

The American Arbitration Association (AAA) has not released statistics for years (other than to the CFPB). But recently, arbitration geeks got a summer solstice gift of (limited) new information. The piece is only three...more

Practioners -- Time to Update Your Client Arbitration Agreements, Part II

Many attorneys have been using the same engagement agreements for decades designating standard commercial providers such as the American Arbitration Association to resolve client disputes. In recent years some have learned...more

California District Court Finds Petitioner’s Defenses To Confirmation Are Barred By The Statute Of Limitations

Since a motion to vacate, modify, or correct an award must be served within 3 months after the award is filed or delivered (9 U.S.C. § 12), and Plaintiff filed its opposition to confirmation nearly four months after the award...more

Arbitration Agreements: Make Your Own Rules of Civil Procedure

Generally, a party in litigation is constrained to follow the applicable State or Federal Rules of Civil Procedure as they navigate through each stage of the case. One of the perks of arbitration (in addition to the commonly...more

Failure To Pay Costs Did Not Materially Breach Arbitration Agreement In Light Of Legitimate Dispute As To The Forum

A New Jersey appellate court affirmed an order dismissing a class action and compelling individual (non-class) arbitration. The underlying arbitration agreements provided that the defendant car dealership would pay all costs...more

Rethinking the “Standard” Arbitration Clause in Cloud Agreements (Part II)

Part I of this article included a little bit of history about how it came to be so common that modern technology agreements – including “cloud agreements” – often include a rather ubiquitous, sort of “standard” arbitration...more

Fourth Circuit: Courts, Not Arbitrators, Decide the Availability of Class Arbitration

A decision allowing class-wide arbitration can transform a routine dispute into a “bet the company” problem. Who makes that decision: an arbitrator or a court? The Fourth Circuit Court of Appeals answered that question...more

Rethinking the “Standard” Arbitration Clause in Cloud Agreements

Twenty or so years ago, arbitration began to gain wide acceptance among lawyers as a viable alternative for the effective resolution of civil disputes. Clients were beginning to view “alternative dispute resolution” (ADR) as...more

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