American Arbitration Association

News & Analysis as of

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

Chamber of Commerce suggests issues for CFPB to address at May 5 arbitration field hearing

The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness has sent a letter to Director Cordray suggesting a series of issues for Mr. Cordray to address in his prepared remarks at the CFPB’s field hearing on...more

Express Yourself! Ongoing Split Over Class Arbitration Points to Importance of Clear Provisions

Despite the numerous Supreme Court decisions limiting class arbitrations, one central issue remains undecided: who decides whether an arbitration agreement permits class arbitration, the courts or the arbitrators? Entities...more

Are the New Emergency Relief Rules in Arbitration the Death Knell for Court-Ordered Injunctions Pending Arbitration?

Peter Silverman, partner in the Toledo office, presented "The New Emergency Relief Arbitration Rules – The Death Knell for Court-Ordered Injunctions Pending Arbitration?" at a national webinar sponsored by the American...more

Carbajal v. HWBSC Decision Provides Guidance for Drafting Employment Arbitration Agreements

On February 26, 2016, the California Court of Appeal, Fourth District, issued its decision in Carbajal v. HWBSC, Inc., invalidating an employment arbitration agreement due to a number of provisions the Court considered...more

California Supreme Court Issues Pro-Arbitration Agreement Decision

On March 28, 2016, the Supreme Court of California issued another ruling on the enforceability of arbitration agreements. In Baltazar v. Forever 21, Inc. (S208345), the court considered the enforceability of an arbitration...more

The Camel’s Nose: Incorporating Commercial and Construction Arbitration Rules

There is an old proverb that states, “If the camel once gets his nose in the tent, his body will soon follow.” Stated differently, one should not let the camel’s nose inside unless he or she is prepared to accept the whole...more

Arbitration Program Gets Straight AAA’s Despite Failing in JAMS

On March 1, 2016, the New Jersey Appellate Division upheld a decision to compel an employee to arbitrate her dispute with Raymours Furniture Inc. (“Raymours”) before the Arbitration Association of America (“AAA”) after JAMS...more

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...more

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

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