American Arbitration Association

News & Analysis as of

January Arbitration Update: Effective Vindication, Class Arbitration, and FAA Preemption

Lots of interesting arbitration law has been made already in 2016, so here is a roundup from the first four weeks of the year. As a teaser, courts have resuscitated the effective vindication doctrine, found arbitrators cannot...more

Third Circuit Reaffirms High Burden To Establish Delegation Of Class Arbitrability Determination

Earlier this month, the Third Circuit Court of Appeals reaffirmed its holding that the availability of class arbitration constitutes a question of arbitrability to be decided by courts unless the arbitration agreement...more

Arbitration Provision Which Completely Prohibited Any Discovery Enforced By NC Business court.

I don't draft arbitration provisions in agreements, but if I did I would not draft one like the one in Taggart v. Physicians Pharmacy Alliance, Inc. Not because it turned out to be unenforceable, but because it was found to...more

Third Circuit Holds That Courts – Not Arbitrators – Must Determine Whether Arbitration Clauses Permit Class Action Arbitration

The United States Court of Appeals for the Third Circuit, in a precedential opinion, recently held that courts, not arbitrators, must decide whether a class action dispute should be governed by arbitration unless the...more

Alabama Acknowledges AAA Rules Authorize Arbitrator To Determine Whether Non-Signatory Is Bound

The Alabama Supreme Court has followed the Eighth Circuit’s lead, concluding that when the parties agree to arbitrate pursuant to the AAA Rules, they have clearly and unmistakably authorized the arbitrator to determine who is...more

Third Circuit Rules Court Should Decide Class Arbitrability

Action Item: In a precedential opinion, the U.S. Court of Appeals for the Third Circuit outlined what is required for parties to allow arbitrators—rather than courts—to decide whether a matter could be arbitrated as a class....more

Court Grants Motion To Compel Arbitration, Finding That Issue Of Consolidation Is Question For Arbitrator, Not Court

An Illinois federal court recently granted an insurer’s motion to compel arbitration of a dispute with its insureds and denied the insureds’ motion to dismiss and transfer venue. This dispute arose under four written...more

Arbitration Awards Prove an Obstacle to Class Claims

Two recent decisions illustrate the impact arbitration provisions can have on the availability of classwide relief. In Kaspers v. Comcast Corp., plaintiff, a Comcast customer, refused to pay for certain billed services...more

Final Means Final: No Reconsideration in Arbitration

Recent decisions from the 3d and 11th Circuits drive home this point: an arbitration award is final and should not be revisited. In Robinson v. Littlefield, 2015 WL 5520017 (3d Cir. Sept. 17, 2015), the parties...more

Nevada Says Rule 68’s Offer of Judgment Applies In Arbitration

Today’s post is a good one for all those defendants/ respondents who are convinced that they have a slam-dunk case and want to recover their attorneys’ fees.  Because while these particular respondents were not successful,...more

Arbitration: A Comparison of the Pros and Cons

The Federal Rules of Civil Procedure were designed to “secure a just, speedy, and inexpensive determination of every action and proceeding.” Fed. R. Civ. P. 1. Yet with the previously “accepted rule that a complaint should...more

NC Business Court On Arbitrability: Clear And Unmistakable

You may have pondered over the question whether a Judge or an Arbitrator decides if a particular dispute is subject to an agreement to arbitrate. If you have wondered who makes that sort of decision, it's actually not an...more

CFPB Likely To Require Access To Class Actions And Data On Individual Arbitrations

Richard Cordray, Director of the Consumer Financial Protection Bureau, has positioned himself as the Boogeyman that financial companies fear this Halloween season. Earlier this month, the CFPB outlined the proposals under...more

California Appellate Court Denies Mandamus Petition: Arbitrator Will Decide Whether Arbitration Agreement Permits Class Action...

An appellate court in California denied Universal Protection Service, LP (“Universal”) and their affiliate’s mandamus petition, seeking to overturn a lower court ruling compelling arbitration. The court found that whether an...more

Minnesota Supreme Court Decides Best Value Bid Protest - Attorneys' Fees in AAA Arbitrations

In a recent decision from the Missouri Court of Appeals, City of Chesterfield v. Frederick Constr. Inc., 2015 Mo. App. LEXIS 439 (Mo. Ct. App. Apr. 21, 2015), the court found that in the arbitration of a contract dispute...more

Beware the Boilerplate: Request for Attorneys' Fees in Arbitration Can Haunt You Later

The general rule in litigation is that each side pays its own legal fees, regardless of who wins. There is no fee shifting. Exceptions to that general rule primarily exist in the form of contractual arrangements or statutes...more

Following the Sixth Circuit’s Lead, Ohio Appellate Courts Find Whether an Agreement Allows Class Arbitration Is a “Gateway Issue”

As we stated previously, the potential impact of whether entitlement to class arbitration is a “gateway issue” will likely diminish with each passing year. (See our March 12, 2015, blog article on the denial of certiorari in...more

Federal Law Must Govern Arbitrability Of Employment Dispute, Notwithstanding Choice Of State Law In Employment Agreement

The Ninth Circuit held that an arbitration agreement between Opus Bank and its former executive vice president Carey Brennan should be interpreted under federal, not state, law unless the parties unambiguously agreed...more

AAA Revises Construction Arbitration Rules

The American Arbitration Association (“AAA”) revised its Construction Industry Arbitration Rules and Mediation Procedures (“Rules”) as of July 1, 2015. Many of the changes are designed to streamline the arbitration process,...more

Construction Law Advisory - August 2015

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

AAA Issues Revised Rules for Arbitration in Construction Industry Disputes

The American Arbitration Association recently updated its Construction Industry Arbitration Rules and Mediation Procedures, effective July 1, 2015. There are six new rules, some of which are borrowed from litigation...more

Important Changes to the AAA Construction Industry Mediation and Arbitration Rules

The American Arbitration Association (“AAA”) is one of the primary providers of alternative dispute resolution, such as mediation and arbitration, in the United States. Many construction contracts call for disputes to be...more

Class Action Defense Cases: American Arbitration Association (AAA) Enforces Binding Individual Arbitration While JAMS Allows...

AAA Requires Separate Arbitration Petitions by Employees Subject to Arbitration Clause with Class Action Waiver but JAMS Permits Plaintiff to Unilaterally Join Dozens of Individual Employee Claims in Single...more

American Arbitration Association Revises Construction Industry Rules and Mediation Procedures

The American Arbitration Association (AAA) recently revised its Construction Industry Rules and Mediation Procedures (Rules). The revised Rules, which took effect on July 1, 2015, are intended to provide a more efficient and...more

Professor Sovern’s comments about CFPB arbitration study numbers don’t add up

In a recent blog post, Professor Jeff Sovern responded to our blog post indicating that the CFPB’s March 10, 2014 Arbitration Study strongly supports the industry’s view that consumers fare better in arbitration than...more

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