Arbitration Federal Arbitration Act

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

New York Federal Court Orders End To Arbitration Fight Over Document Allegedly Withheld Prior To Arbitration

A federal district court in New York entered an order enjoining an attempt at a second arbitration initiated by Equitas Insurance Limited and Certain Underwriters at Lloyd’s of London against Arrowood Indemnity Company. The...more

Unvacated: 11th Circuit Finds Repeat Arbitrator Not Biased

The Eleventh Circuit has a lesson for future litigants: the presence of a repeat player is not enough to show the evident partiality needed to vacate an arbitration award under the Federal Arbitration Act. In Johnson v....more

Second Circuit: FAA Mandates Stay of Claims Pending Arbitration

The Second Circuit recently held in Katz v. Cellco P’Ship d/b/a/ Verizon Wireless, Nos. 14-138, 14-291, 2015 WL 4528658 (2d Cir. July 28, 2015) that, under the Federal Arbitration Act (“FAA”), district courts must stay all...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

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

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

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

A Four-Year Blogiversary – and an Infographic for Compelling Arbitration!

The primary purpose of this blog is to educate lawyers and clients about arbitration law. So, what better way to celebrate my fourth blogiversary than with an awesome new infographic about compelling arbitration! Making...more

California Supreme Court Upholds Arbitration Clause, but Unconscionability Remains a Defense to Arbitration

The California Supreme Court issued its long-awaited decision in Sanchez v. Valencia Holding Company, LLC, on August 3, 2015, reversing a finding by the Court of Appeal that an arbitration provision was unconscionable...more

Court Denies Terminated Employee’s Motion To Vacate Arbitration Award For Failure To Show Bias, Misconduct, Or Manifest Disregard

A district court refused to vacate an arbitration award where Preis, a terminated employee, failed to produce sufficient evidence of bias or misconduct in the arbitration panel’s decision. Preis moved to vacate the award in...more

The California Supreme Court Holds Consumer Class Action Waivers In Arbitration Provisions Are Enforceable Under Federal Law

On August 3, 2015, the California Supreme Court issued its long-awaited arbitration decision in Sanchez v. Valencia Holding Co., LLC, No. B228027. The Court held that the arbitration provision found in a standard form auto...more

Delaware Enacts The “Delaware Rapid Arbitration Act”

The purpose of the Act is to provide Delaware businesses with the ability to resolve disputes within 120 days in a “cost-effective, and efficient manner, through voluntary arbitration conducted by expert arbitrators.” The Act...more

Representative Action Under California’s Private Attorneys General Act Not Waived Through Employment Agreement’s Arbitration...

The Central District of California held that a waiver of representative actions in an employment agreement’s arbitration provision did not preclude a former employee from pursuing in court a claim under California’s Private...more

CA Supreme Court Upholds Class Action Waivers in Long-awaited Sanchez Decision

On August 3, 2015, the California Supreme Court issued its long-awaited decision in Sanchez. v. Valencia Holding Company, LLC (2015) — Cal.4th — (Sanchez). The court provided much-needed clarity for consumers and auto finance...more

California Upholds Controversial Arbitration Clause Within Consumer Contract

California is changing its tune. Although previously known for decisions that flouted federal arbitration law, its decision yesterday in Sanchez shows the current California Supreme Court will abide by SCOTUS’s...more

To Stay or Not to Stay, That Is the Question Answered by the Second Circuit

Weighing in on an issue that has divided the federal courts of appeals, the Second Circuit has held that under the Federal Arbitration Act (FAA), a court that grants a motion to compel arbitration of all claims must stay the...more

Second Circuit Clarifies That Arbitrable Claims Should Be Stayed, Not Dismissed

Parties who ask a court to compel arbitration of all the plaintiff’s claims have a decision to make: should they ask the court to stay the claims or dismiss them (if it finds them arbitrable)? After noting that the federal...more

Should I Stay Or Should I Go? Second Circuit Holds That FAA Requires a Stay, Not Dismissal, Upon Successful Motion to Compel...

Many courts dismiss an action once they order the parties to arbitrate the dispute. And many of these courts do so even if one of the parties requests that the court stay the proceedings pending arbitration. The...more

Fourth Circuit Rejects Characterization Of Motions “For Reconsideration,” Remands To Determine Whether Dispute Is Arbitrable

The Court of Appeals for the Fourth Circuit recently remanded a case to the district court for full consideration of a request to compel arbitration, finding the lower court’s order “inconsistent with the emphatic federal...more

Appealing an International Arbitration Award: Drafting the International Arbitration Clause, Part 4 of 4

It is generally accepted that an international arbitration award is final and binding. Unlike a court judgment that can be appealed for factual and legal review, an arbitration award typically can only be challenged based on...more

Should You Cut The Delegation Clause From Your Arbitration Agreement?

A recent report showed that less than half of arbitration agreements in the consumer financial arena include delegation clauses in their arbitration agreements. Two recent decisions from state high courts suggest that is a...more

Motion To Compel Arbitration Granted In Hurricane Sandy Row

A New York district court granted Hudson Specialty Insurance Company’s (“Hudson”) petition to compel arbitration against New Jersey Transit Corporation (“N.J. Transit”) after determining that the parties had agreed to...more

Sixth Circuit Denies Additional Attorneys’ Fees For Post-Arbitration Confirmation Proceeding, Finding Them Beyond The Scope Of...

The Sixth Circuit affirmed the district court’s denial of a motion for attorneys’ fees and enhancement of fees resulting from post-arbitration confirmation proceedings. The issue before the court was whether the agreement...more

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