News & Analysis as of

Arbitration Delegation Clauses

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 -
Carlton Fields

Ninth Circuit Reverses Order Denying Motion to Compel Arbitration, Concluding “Delegation Provision” Is Enforceable

Carlton Fields on

Noting the court was deciding, as a matter of first impression, “what a party must do to specifically challenge a delegation provision and what a court may consider when evaluating this challenge,” the Ninth Circuit Court of...more

Womble Bond Dickinson

Ninth Circuit Sets Low Bar for Challenges to Delegation Clauses in Arbitration Agreements and Allows Expansive Review by District...

Womble Bond Dickinson on

When parties are battling over whether a court should compel a putative class action to arbitration, the outcome often turns on who decides the “gateway” arbitrability issues of whether a valid arbitration agreement exists...more

Fenwick & West LLP

SCOTUS to Weigh Whether a Court or Arbitrator Should Decide if a Subsequent Agreement Narrows a Preceding Arbitration Agreement...

Fenwick & West LLP on

The United States Supreme Court recently granted a petition for certiorari to review a Ninth Circuit decision and resolve the issue of whether, when parties enter into an arbitration agreement with a delegation clause, the...more

Dorsey & Whitney LLP

The Supreme Court Update - November 6, 2023

Dorsey & Whitney LLP on

On November 3, 2023, the Supreme Court of the United States granted certiorari in 3 cases: Coinbase, Inc. v. Suski, No. 23-3: This case concerns the enforceability of “delegation clauses” in arbitration agreements. A...more

Lathrop GPM

Tennessee Federal Court Enforces Delegation Provision and Compels Dozens of Franchisees to Arbitration

Lathrop GPM on

A federal court in Tennessee recently granted a franchisor’s motion to compel arbitration, including as to questions of arbitrability, in response to a 15 count complaint brought by 54 separate franchisees. Anthony v. Van...more

Carlton Fields

Nevada Supreme Court Reverses Order Denying Motion to Compel Arbitration

Carlton Fields on

The Nevada Supreme Court recently reversed the denial of a motion to compel arbitration, explaining that the plaintiff’s arguments that the contract at issue was illegal were not a valid basis to deny arbitration because...more

Proskauer - Minding Your Business

Ninth Circuit Holds Clause Delegating Authority to Decide Arbitrability Is Valid Even If Broader Arbitration Agreement Is Not

Parties to an arbitration agreement sometimes choose to include a delegation clause, which is a provision that delegates to the arbitrator—rather than a court—gateway questions of arbitrability, such as whether the agreement...more

Benesch

DCD Compels Arbitration for TCPA Class Action Despite Being Non-Signatory to Agreement

Benesch on

The District of Massachusetts’s recent decision in Fairfield v. DCD Auto. Holdings, Inc., No. 22-cv-11977, 2023 U.S. Dist. LEXIS 109463 (D. Mass. June 26, 2023) serves as a key reminder for businesses not only to have...more

Carlton Fields

Ninth Circuit Affirms District Court’s Order Denying Online Cryptocurrency Exchange’s Motion to Compel Arbitration of Users’...

Carlton Fields on

In David Suski v. Coinbase, Inc., et al., the Ninth Circuit affirmed a district court order denying defendant Coinbase, Inc.’s (Coinbase) motion to compel arbitration, concluding that issues surrounding a forum selection...more

Morgan Lewis

Third Circuit Rules on ‘Mind-Bending’ Arbitration Question

Morgan Lewis on

The US Court of Appeals for the Third Circuit recently issued a precedential decision on what it called “the mind-bending issue of arbitration about arbitration.” Relying on an arbitration agreement between the plaintiff and...more

Burr & Forman

Now Say That Five Times Fast! Eleventh Circuit Upholds Arbitration Clause Delegating Adjudication of Threshold Questions of...

Burr & Forman on

On May 26, 2022, the Eleventh Circuit issued an opinion reversing the Southern District of Florida’s denial of the appellant’s motion to compel arbitration, therein finding that the district court erred in failing to apply...more

Morrison & Foerster LLP - Left Coast Appeals

This Week at the Ninth: Delegation and Wildfires

This week, the Ninth Circuit resolves whether parties can delegate issues of contract formation to an arbitrator, and explains the bounds of federal courts’ jurisdiction over ratemaking orders in a challenge to the procedure...more

Proskauer - Minding Your Business

Ninth Circuit Splits From the Second, Third and Fourth Circuits in “Brain Twister” Arbitration Case

Arbitration provisions are common features of commercial agreements.  Arbitration is often touted as a cost-effective alternative to litigation that provides contract parties the freedom to decide everything from what law the...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Upholds Arbitration Provision Delegating Enforceability Determination to Arbitrator

In Brice v. Haynes Investments LLC, No. 19-15707 (9th Cir. Sept. 16, 2021), the Ninth Circuit considered an appeal by shareholders in Native American tribe-linked online lenders of a district court order denying the...more

Jaburg Wilk

Putting the Shine on Schein, and What Does Vin Diesel Have to Say About Arbitrations?

Jaburg Wilk on

As Dominic Toretto says: “Ask any racer, any real racer, it doesn’t matter if you win by an inch or a mile, winning’s winning.” “Fast and Furious” is the tenth highest-grossing film series ever, with a combined gross of over...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

First Circuit Enforces Delegation Clause in Arbitration Agreement

On March 30, 2021, in Bossé v. New York Life Insurance Co. et al., the First Circuit Court of Appeals issued an important decision upholding the enforceability of an arbitration agreement that delegates the arbitrability of...more

Fisher Phillips

SCOTUS Punts Question Of Who Decides Arbitrability, Leaving 5th Circuit Decision To Stand

Fisher Phillips on

The U.S. Supreme Court just refused to address the question of whether a carve-out in an arbitration agreement exempting certain claims from arbitration also exempts those claims from the agreement’s delegation of...more

Troutman Pepper

Not So Severable After All: Third Circuit Lets Courts Determine Arbitration Agreement Existence When Underlying Contract’s...

Troutman Pepper on

On September 14, the U.S. Court of Appeals for the Third Circuit addressed the perennially thorny issue of whether the courts or arbitrators retain the authority to resolve questions involving the enforceability of...more

Carlton Fields

Ninth Circuit Remands Order Denying Motion to Compel Arbitration That Failed to Address the Effect of Delegation Clause in...

Carlton Fields on

The delegation clause in the parties’ arbitration agreement provided that any “questions regarding the validity or enforcement of these Dispute Policies shall be delegated and submitted to the arbitrator, including whether...more

Burr & Forman

Fifth Circuit Holds Procedural Unconscionability Determination Was From Judge, Not Arbitrator, Despite Delegation Clause

Burr & Forman on

An employee sued her former employer alleging that she was unlawfully terminated under federal law. During the course of her employment, the employee acknowledged on multiple instances that “all employment disputes” with the...more

Carlton Fields

Fifth Circuit Reverses Ruling That Procedural Unconscionability Is Decided by Arbitrator

Carlton Fields on

The plaintiff challenged the formation of an arbitration clause contained in her employment contracts and acknowledgment of employee handbooks, arguing: (1) there was no “meeting of the minds” and therefore there was not the...more

Carlton Fields

Failure to Specifically Challenge “Delegation” Clause in Arbitration Agreement Means Motion to Compel Arbitration “Must Be...

Carlton Fields on

The plaintiff sued his former employer for discrimination, retaliation, hostile work environment, and violations of the Missouri Human Rights Act. The defendant moved to compel arbitration based on the parties’ Mutual...more

Carlton Fields

West Virginia Supreme Court Reverses, Finds “Delegation Clause” in Employment Arbitration Agreement Neither Ambiguous nor...

Carlton Fields on

Petitioners, two Rent-A-Center entities, moved to compel arbitration of a lawsuit by Anita Ellis alleging that Rent-A-Center unlawfully terminated her employment for seeking workers’ compensation benefits....more

Lathrop GPM

Missouri Supreme Court Upholds Arbitration Agreement Involving At-Will Employee

Lathrop GPM on

The Missouri Supreme Court has upheld an arbitration agreement signed at the commencement of at-will employment. In doing so, the Court implicitly identified two steps that employers can take to strengthen arbitration...more

Carlton Fields

California Appellate Court Holds Arbitration Agreement and Delegation Clause Unenforceable for Failure to File with State...

Carlton Fields on

The California Court of Appeals became the latest court to determine that a common arbitration agreement related to the EquityComp workers’ compensation insurance program and accompanying reinsurance agreements is...more

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