Arbitration Arbitration Agreements

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
News & Analysis as of

Three State Courts Hold Timeliness Of Claim Is Issue For Arbitrator

In March, the highest courts of Montana, Texas, and Wisconsin all held that, when parties have a valid arbitration agreement, the issue of whether an arbitration demand was timely is presumptively for the arbitrator to...more

Decisions Raise Bar on Waiver of Arbitration Agreements Under Texas Law

While employers may enter into arbitration agreements with employees relatively easily, ensuring the enforcement of arbitration agreements can be a different matter. For this reason, employers are rightfully cautious to avoid...more

Can the CFPB Really Prohibit Pre-Dispute Arbitration Agreements?

Section 1028 of the Dodd-Frank Act, entitled “Authority to Restrict Mandatory Pre-Dispute Arbitration,” gives the CFPB the authority to promulgate regulations imposing conditions, limitations, or outright prohibitions on...more

Arbitration Agreements in Residency Contracts Offer Valuable Protections—Part III

Over the past few months, I have explained how arbitration agreements can help save your company money, and described several “best practices” for drafting arbitration agreements. As I wrote last month, getting your case...more

Arbitration Agreement With PAGA Waiver And Opt Out Provision Deemed Unenforceable

Last month, a California Court of Appeal invalidated an arbitration agreement for including a representative action waiver combined with a non-severability clause....more

Circuit Courts Address Impact of Arbitration Agreements on Labor Class and Collective Actions

In Conners v. Gusano’s Chicago Style Pizzeria, plaintiffs, former employees of defendant, brought a collective action alleging violations of the Fair Labor Standards Act. Defendant responded by implementing a binding...more

Supreme Court To Decide California Arbitration Issue

On March 23, the U.S. Supreme Court granted certiorari in DirecTV, Inc. v. Imburgia, agreeing to resolve a split between the Ninth Circuit and California state courts on how to interpret the same DirecTV arbitration...more

Eighth Circuit Shows How Difficult It Is To Prove Arbitration Agreement Unconscionable Due To Cost

Almost two years ago in American Express Co. v. Italian Colors, SCOTUS significantly narrowed, but did not overrule, the “effective vindication” doctrine, which allows plaintiffs to invalidate an arbitration agreement if it...more

Texas Supreme Court Argument Preview - 3/15

On Thursday, March 26, 2015, the Supreme Court of Texas will hear argument in three cases. - No. 13-1026, Royston, Rayzor, Vickery & Williams LLP v. Lopez - The Petitioner law firm seeks to enforce an arbitration...more

Delaware Legislature Introduces Rapid Arbitration Act

The Delaware Rapid Arbitration Act, House Bill 49, was recently introduced in the Delaware General Assembly. The proposed Act would establish a streamlined arbitration procedure to resolve disputes involving Delaware business...more

Eighth Circuit Finds Former Employees Lack Standing To Challenge Employer’s New Arbitration Policy

What’s one way to derail a potentially large collective action about Fair Labor Standards Act violations? To implement a new arbitration policy within days, thereby ensuring that your current employees cannot join the court...more

Question Certified To Second Circuit: Does The Court Or The Arbitrator Decide Whether An Arbitration Agreement Permits Class...

In the Second Circuit, as in other jurisdictions, only exceptional circumstances will justify a departure from the basic policy of postponing appellate review until after the entry of a final judgment. A New York federal...more

Court Rejects General Unconscionability Argument And Compels Arbitration

Late last year, a district court judge in Connecticut granted Defendant General Electric’s (“GE”) motion to compel arbitration based on Plaintiff’s signature to GE’s Acknowledgement Conditions of Employment Form. Ms. Pingel,...more

CFPB Releases Arbitration Study Report to Congress

On March 10, the Consumer Financial Protection Bureau (CFPB) released its long-awaited, statutorily-mandated report to Congress on the use of pre-dispute arbitration provisions in consumer financial products. As we predicted...more

The CFPB and the Future of Arbitration Clauses

The CFPB has issued a report regarding mandatory consumer arbitration clauses, a sign that arbitration clauses may become passé. On March 10, the Consumer Financial Protection Bureau (CFPB), as required by section...more

CFPB Says Arbitration Agreements Limit Consumer Relief in Class Actions; New Regulations on the Horizon?

The Supreme Court’s 2011 decision in AT&T Mobility LLC v. Concepcion upheld an arbitration clause requiring arbitration of claims individually, thereby effectively preventing class actions. While the consumer finance industry...more

Tactics Kill Arb Agreement

In Roe v. SFBSC Management, LLC, No. 14-cv-03616 (N.D. Cal. Mar. 2, 2015), a federal district court in California rejected a night club’s attempt to compel arbitration by a class of performers who claimed they were...more

Arbitration Agreements Can Backfire on Employers

It is no secret that arbitration agreements may greatly reduce the risks that many employers face in disputes with employees. For example, when used correctly, such agreements can curb exposure to class actions by forcing...more

California Court Rules on Whether to Compel Arbitration Where Employer Could Not Authenticate Employee’s Electronic Signature

Ruiz v. Moss Bros. Auto Group., Inc., No.E057529 (December 23, 2014): Challenges to the validity and enforcement of arbitration agreements continue to be a hotly litigated area of California wage and hour law, specifically...more

Are You Sure You Want an Arbitration Clause? (Part 2 of 3)

Many business people, and even some lawyers, take it as an article of faith that any contract is improved by including an arbitration clause. If you ask them why they think a contract should contain an arbitration clause, you...more

Missouri Appellate Court Strikes Down Another Arbitration Agreement

The Missouri Court of Appeals has struck down an arbitration agreement because it included a common clause requiring the employee to arbitrate all of her claims but did not require the company to arbitrate all of its claims....more

Rare Claim Falls Outside Arbitration Agreement, Creates Piecemeal Litigation

Because of the strong federal policy favoring arbitration, and cases providing that any doubt about the scope of an arbitration agreement must be resolved in favor of arbitration, it is uncommon to find a decision holding...more

Seventh Circuit Speaks Again on How the Wisconsin Fair Dealership Law Applies in Arbitration

A few months ago, we commented on an aspect of the interaction between the Wisconsin Fair Dealership Law (WFDL), Wis. Stat. ch. 135, and arbitration, as discussed by the Seventh Circuit in Everett v. Paul Davis Restoration,...more

UPDATE: SCOTUS Denies Petition For Cert In Iskanian

On June 24, 2014, the California Supreme Court issued a controversial decision in Iskanian v. CLS Transportation Los Angeles, LLC. While the Court in Iskanian confirmed that an express class action waiver in an employment...more

Court Finds Agreement to Arbitrate in Home Mortgage Invalid

The United States District Court For The Southern District Of Mississippi, Southern Division, recently found an agreement to arbitrate in a home mortgage was invalid in Richards v. Gibson. The court cited 15 U.S.C. §...more

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