Arbitration Agreements

News & Analysis as of

Party Waived Untimely Defense To Arbitration, Notwithstanding Party’s Claim That Counsel Committed Malpractice

The court confirmed an arbitration decision awarding damages in favor of workers compensation insurers against various insured employee-staffing companies. One of the defendant companies contended that it never executed the...more

California Legislature Targets Employment Arbitration Agreements

It is no secret that California is no friend to arbitration agreements. As the United States Supreme Court noted in its 2011 opinion in AT&T Mobility LLC v. Concepcion, “California’s courts have been more likely to hold...more

Noted Scholars Critique the CFPB’s Arbitration Study and Find It Lacking

We have previously blogged about the comment letter concerning the CFPB’s March 10, 2015 Study on consumer arbitration that we submitted to the CFPB on behalf of the American Bankers Association, the Consumer Bankers...more

How Not To Write An Employment Agreement Arbitration Clause: Court Of Appeal Rejects One Sided Clause As Procedurally And...

In Carlson v. Home Team Pest Defense, Inc. (Ct. of Appeal A142219), published August 17, 2015, the Court of Appeal held that an employer’s arbitration clause which allowed only the employer to file lawsuits for certain...more

Second Circuit Denies JP Morgan’s Attempt To Force Arbitration

The Second Circuit affirmed a New York district court ruling that found that the FINRA arbitration rules, one of which prohibits arbitration of putative or collective class actions, was incorporated within the subject...more

Employment Law - August 2015 #2

The Customer Isn't Always Right—Especially When He Harasses Employees: Why it matters - Providing an important reminder about the potential for liability from customers, a new lawsuit was filed against a supermarket...more

Missouri Appellate Court Enforces Delegation Clause, Holds Arbitrator Has Authority to Decide Whether Claims Are Arbitrable

This year, Missouri courts have issued several decisions interpreting arbitration agreements between employers and employees. While some of these agreements have been enforced, others have been struck down. The Missouri Court...more

To (b)(1) or not to (b)(1): What to Call your Rule 12 Arbitration Motion

Let’s say your client gets sued in court, the parties have an arbitration agreement, and you want to compel arbitration right away and not mess around with any other court proceedings. You already know you can make a motion...more

Last Call: California Legislature Makes Final Push for 2015 Session

The California Legislature reconvened on Monday, August 17, to finish its work for the 2015 regular session, which must end by September 11. The following bills are of particular interest to California private sector...more

TN COA: Arbitrators Decide Scope and Unconscionability

The Tennessee Court of Appeals at Jackson recently enforced a NY choice-of-law provision against an arbitration challenge, holding that courts determine contract-formation issues, while arbitrators decide the scope and...more

Tenth Circuit Finds Concealment Of Arbitration Agreement To Constitute Waiver Of Right To Arbitrate

The Tenth Circuit recently held that Cox Communications, Inc., (Cox) had waived its right to arbitration while defending a class action lawsuit brought on behalf of its cable subscribers. These subscribers sued the...more

Lender’s Allegedly “One-Sided” Gift Card Arbitration Clause Questioned

On August 6, 2015, a California federal judge requested further briefing on whether the arbitration clause in a lender’s Visa gift card user agreement may be unenforceable against a putative class action plaintiff – raising...more

California Supreme Court Upholds Consumer Contract Arbitration Provision Under California’s Unconscionability Framework

In a dispute over the purchase of a car, the purchaser filed a class action in California against the car dealer, and the dealer moved to compel arbitration. The dealer invoked the arbitration agreement contained in the...more

Second Circuit Clarifies That A Stay, Not Dismissal, Is The Appropriate Federal Arbitration Act Remedy

When a party files a lawsuit in violation of a contractual obligation to arbitrate, the defendant often moves to "dismiss or stay" pending arbitration pursuant to Section 3 of the Federal Arbitration Act ("FAA"), 9 U.S.C. §...more

Effective Carve-Outs to Seek Injunctive Relief from the Court in Arbitration Provisions

Christopher Pike: “That’s a technicality.” Spock: “I am a [lawyer], sir. We embrace technicalities.” Star Trek Into Darkness - Arbitration is no longer the final frontier. Instead, arbitration is often the...more

It Is Now Easier To Draft Class Action Waivers and Arbitration Agreements

Last week, the California Supreme Court provided additional guidance as to how to draft an enforceable arbitration agreement and how Courts should analyze whether mandatory arbitration provisions can be held unconscionable...more

Man Bites Dog: California Supreme Court unanimously rejects unconscionability challenge to consumer arbitration provision

The California Supreme Court has a reputation for hostility to arbitration, especially in the consumers and employment context. Much of the arbitration docket of the United States Supreme Court over the past 30 years has...more

We Thought It Might Be Getting Better … But Class Certification is Still On the Rise

The explosion of wage and hour class action litigation in the last 10 to 15 years or so has shined a spotlight not only on wage and hour practices themselves, but also on the critical question of whether an employer’s...more

Massachusetts Federal Court Upholds Arbitration Award Based On Equitable Powers

A recent case out of the District of Massachusetts reviewing an arbitration award against Ace American Insurance Company (“Ace”) found that an arbitrator did not exceed her power in crafting an arbitration award when she...more

MEasure - Summer 2015

Welcome to the Summer 2015 issue of measure, King & Spalding’s Middle East quarterly newsletter. This issue covers a number of areas with interesting developments and valuable guidance. Phillip Sacks and Jodi Norman discuss...more

Surprisingly Good News: California Supreme Court Upholds Arbitration Agreement

Many companies doing business in California have had difficulty persuading California courts to enforce their arbitration agreements. Those courts often have used the doctrine of unconscionability to deny enforcement on the...more

Massachusetts Court Of Appeals Maintains “Severely Limited” De Novo Review Of Reinsurance-Related Arbitration Award

Collective defendants, Nationwide, appealed from a Massachusetts superior court judgment confirming an arbitration award in favor of collective plaintiffs, Liberty Mutual. The underlying dispute involved a 1972 reinsurance...more

Key Changes Introduced in the Brazilian Arbitration Law

On May 26, 2015, Brazil amended its arbitration law (nº 9,307/96) to expressly permit the “public administration” (i.e., companies owned by the state, government agencies) to be bound by arbitration agreements. The new law...more

California Supreme Court Issues Ruling in Sanchez v. Valencia Holding Company, LLC

On August 3, 2015, the California Supreme Court issued a long-awaited opinion that provides further clarity on the standard of unconscionability needed to invalidate an arbitration agreement. The court determined that its...more

Florida’s Third DCA Enforces Florida Arbitration Statute – Sends Questions of Enforceability and Unconscionability to Arbitrator

In Arrasola v. MGP Motor Holdings, LLC, 3D15-381, 40 Fla. L. Weekly D1837b (Fla. 3d DCA August 5, 2015) the Florida Third District Court of Appeal was asked to resolve whether a court or an arbitrator should decide if an...more

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