Mandatory Arbitration Clauses

News & Analysis as of

Arbitrator Should Decide Whether Dispute Falls Within the Scope of the Arbitration Clause

U.S. Nutraceuticals, LLC v. Cyanotech Corp. - Addressing who should decide whether a dispute falls within the scope of an arbitration clause, the U.S. Court of Appeals for the 11th Circuit reversed a district court’s...more

NLRB Again Attempts to Invalidate Mandatory Arbitration Clauses for Employment Claims

In its Murphy Oil decision, the National Labor Relations Board affirmed its 2012 holding in D. R. Horton, which found an employer violates the NLRA when it requires employees “as condition of their employment, to sign an...more

Sixteen State Attorneys General Urge CFPB to Limit Pre-dispute Arbitration

State attorneys general from California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington sent a letter to Consumer...more

Firms Have Roadmap for Expanding Litigation of Customer Disputes After Second Circuit Holds Forum Selection Clauses Trump FINRA’s...

In the recent decision, Goldman Sachs & Co. v. Golden Empire Sch. Fin. Auth., 764 F.3d 210 (2d Cir. 2014), the Second Circuit held that nearly-identical forum selection clauses in broker-dealer agreements between the...more

New Ninth Circuit Opinion Requires Companies Seeking to Enforce Arbitration to Pay 'Sirius' Attention to Contract Formation

On November 10, 2014, the U.S. Court of Appeals for the Ninth Circuit continued its recent trend of declining to enforce arbitration clauses after finding that the contracts containing those clauses were never actually formed...more

State Supreme Court’s Interpretation of FAA Sidesteps SCOTUS Court Review

The U.S. Supreme Court’s recent string of pro-arbitration decisions is well documented. In those decisions, the Court has not hesitated to admonish state courts for failing to follow the Federal Arbitration Act...more

Business Litigation Reporter -- October 2014

California - Browsewrap Arbitration Agreement Not Enforced Against Individual Consumer. In Nguyen v. Barnes & Noble Inc., 2014 WL 4056549 (9th Cir. Aug. 18, 2014), the Ninth Circuit affirmed the denial of B&N’s motion...more

Under FAA, Chicago Court Refuses To Determine Whether Claims Should Be Part Of Pending New York Arbitration

A dispute involving competing actions between two competing aeroponic farming companies, FarmedHere, LLC and Just Greens, LLC (doing business as Aero Farm Systems), was simultaneously at issue in a New York arbitration, a New...more

In New Jersey, arbitration clauses in consumer contracts are unenforceable when the parties to the contracts do not explicitly...

The Supreme Court for the State of New Jersey held that the failure to include specific trial by jury waiver language in arbitration clauses renders them unenforceable in consumer contracts, notwithstanding the fact that said...more

New Jersey Court Casts Doubt on Enforceability of Consumer Arbitration Agreements That Lack “Magic Words”

The New Jersey Supreme Court has cast doubt on the enforceability of arbitration clauses in consumer agreements that lack clear language specifying that consumers have waived their rights to litigate claims in a court....more

EEOC Ramps Up Attack On Mandatory Arbitration Agreements

Over the course of its history, the U.S. Equal Employment Opportunity Commission (“EEOC”) has disfavored the application of mandatory arbitration agreements within the employment context. Indeed, until the decision in...more

Federal Law Governing Foreign Risk Retention Groups Preempts State Law That Prohibits Mandatory Arbitration Clauses In Insurance...

The Nebraska Supreme Court has held that Nebraska’s statute prohibiting mandatory arbitration clauses in insurance policies is preempted by the Liability Risk Retention Act of 1986 (LRRA). At issue was a professional...more

Commercial Court Refuses To Stay Proceedings Where Arbitration Clause Required Parties To "Endeavour" To Arbitrate A Dispute

In Christian Kruppa v Alessandro Benedetti & anr [2014] EWHC 1887 (Comm), 11 June 2014, the Commercial Court held that a dispute resolution clause that required the parties to "endeavour" to resolve a dispute through...more

NJ Supreme Court: Consumer Contract Arbitration Clauses are Unenforceable Unless Consumers Are Clearly Notified that Court Redress...

Arbitration clauses in consumer contracts are unenforceable in New Jersey unless they specifically state that a consumer is waiving the right to pursue statutory and constitutional remedies in court, the New Jersey Supreme...more

Second Circuit Holds Forum Selection Clause Supersedes FINRA’s Mandatory Arbitration Rule

In Goldman, Sachs & Co. v. Golden Empire Schools Financing Authority, No. 13-797-cv, 2014 WL 4099289 (2d Cir. Aug. 21, 2014), the United States Court of Appeals for the Second Circuit held that a forum selection clause in a...more

EEOC Sues Doherty Enterprises over Mandatory Arbitration Agreement

Restaurant Franchiser Unlawfully Barred New Hires From Filing Discrimination Charges, Federal Agency Charges - MIAMI - Doherty Enterprises, Inc., a regional company that owns and operates over 140 franchise...more

Third Circuit: Federal Court Should Decide Whether An Arbitration Clause Authorizes Classwide Arbitration – Not The Arbitrator

The Third Circuit recently was presented with the question of whether, in the context of an otherwise silent contract, the availability of classwide arbitration is to be decided by a court rather than an arbitrator. The...more

Missouri Supreme Court Redefines Adequate Consideration for Enforcing Arbitration Agreements

Continued at-will employment is no longer sufficient consideration to enforce arbitration provisions in Missouri. In Baker v. Bristol Care, a recent decision of the Missouri Supreme Court, a slim majority of the Court struck...more

Too Late to Compel Arbitration? Think Again!

In recent years, more and more employers are considering requiring employees to bring any claims arising out of the employment relationship in a private forum such as an arbitration. The American Arbitration Association...more

Second Circuit Decision Provides Guidance for Drafting Enforceable Broker-Dealer Agreement Forum Selection Clause

On August 21, the US Court of Appeals for the Second Circuit decided two closely watched appeals regarding the intersection of Financial Industry Regulatory Authority, Inc. (FINRA) rules mandating arbitration of...more

Corporate and Financial Weekly Digest - Volume IX, Issue 34

In this issue: - Oregon State Court Refuses to Enforce Forum Selection Bylaw - SEC Announces Pilot Program to Widen Tick Sizes for Smaller Companies - NFA Issues Notice Setting Effective Date for Risk...more

Confidentiality & Sealing Orders in Software Disputes

Two software companies wanted to integrate their software products. The relationship soured and one of the parties - McHenry - purported to terminate the Software Licensing and Development Agreement and then launched a...more

Nitty Gritty Advice for Compelling Arbitration under the FAA

I regularly receive questions about compelling arbitration under the Federal Arbitration Act. In particular, people ask : (1) Can I file a motion to compel before any other “complaint” is filed; (2) What should I call my...more

Recent Developments for Federal Contractors

Companies and individuals seeking to do business with the federal government have been targeted in the “year of action” promised by President Barack Obama. The President has taken steps to impose a number of additional labor...more

Fifth Circuit Holds Order Remanding Case Back To Arbitrators For Clarification Is Non-Final And Non-Appealable

The appeal arose from a lawsuit to clarify an arbitration award concerning an alleged breach of a corporate merger agreement containing a binding arbitration clause. The federal district court found the arbitration panel had...more

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