Federal Arbitration Act

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
News & Analysis as of

Federal Court Resolves Arbitration Challenges To Dissolution Of Lawyer And Non-Lawyer Partnership

A federal court recently decided a host of different motions related to an arbitration dissolving the now-defunct Beltway Law Group (“BLG”), a firm that operated websites and other marketing efforts to attract clients on...more

Employers Closely Follow Gorsuch Confirmation Hearing as He May Cast Deciding Vote on Validity of Class Action Waivers

March 22, 2017 marks the third day of the confirmation hearing for U.S. Supreme Court nominee Neil Gorsuch. Many employers throughout the Carolinas are watching the process with interest given the impact Judge Gorsuch would...more

Federal Circuit Upholds $455 Million International Arbitration Award, But Finds That Federal Statutory Interest Rate, Rather Than...

The Federal Circuit has upheld a district court’s confirmation of a $455 million award by an international arbitration tribunal, but modified the judgment to clarify that, after the date of the district court’s judgment...more

Arbitral Award Settling Buyout Price In Diamond Business Dispute Affirmed Over Allegations Of Arbitrator Partiality

The arbitration award in a dispute between former joint venture partners in a series of international diamond businesses has been confirmed by the Southern District of New York. The decision resolved motions by Julius Klein...more

Congress Considers Limiting Pre-dispute Arbitration Agreements in the Employment Context

Many employers require employees to sign arbitration agreements at the inception of the employment relationship and prior to any disputes, such as part of their new hire packets or as a condition of their employment. ...more

Proposed Legislation That Could Impact Class Action Litigation and Arbitration – The Fairness in Class Action Litigation Act of...

Two new pieces of proposed legislation could, if passed, change the architecture and requirements of class actions and outlaw mandatory arbitration clauses in employment and consumer contracts. But neither is a sure thing....more

Supreme Court Decision On Arbitration Clauses Could Significantly Reduce Employer Exposure to Class Claims

Savvy employers always need to be on the look-out for ways to mitigate the ever-growing risks posed by increasingly burdensome state and federal employment laws. Later this year, the U.S. Supreme Court will have the chance to...more

Federal Court in California Rules That the Federal Arbitration Act Preempts California Statute That Requires Arbitrations Relating...

Bell Prods. v. Hosp. Bldg. & Equip. Co., 2017 U.S. Dist. LEXIS 9183 (ND of Cal. Jan. 23, 2017) - A Contractor, Hospital Building and Equipment Company (“HBE”) entered into a subcontract with a mechanical subcontractor,...more

Don’t Assume PAGA Claims Are Not Arbitrable: Ninth Circuit Reverses District Court Order Denying Motion To Compel Arbitration of...

On March 3, 2013, in an unpublished decision in Valdez v. Terminix International Company Limited Partnership, Case No.15-56236, the U.S. Court of Appeals for the Ninth Circuit reversed a District Court order denying defendant...more

Of Employees and Independent Contractors: The Ninth Circuit to Consider Where Truck Drivers Fall

On February 24, 2017, Senior U.S. District Judge John W. Sedwick in the district of Arizona stayed a proposed class action in Virginia Van Dusen et al v. Swift Transportation Co., Inc. et al, No.: 2:10-cv-00899, against Swift...more

Ninth Circuit Confirms Arbitration Award Challenged For Lack Of “Reasoned Opinion”

Petitioner Daniel Olson brought an action in federal court seeking vacatur of an award against him in arbitration of an employment dispute. He challenged the arbitration award for lack of a “reasoned opinion” and failure of...more

Kentucky Federal Court Orders Further Briefing On Whether The Federal Arbitration Act Or Kentucky Law Applies In Dispute Involving...

The background of this case is as follows. State Insurance Commissioner Brian Maynard, acting as liquidator of the failed Kentucky Health Cooperative (“KYHC”), filed suit in Kentucky state court against CGI Technologies and...more

New Jersey Court Compels Arbitration, Declines To Appoint Substitute Arbitrator Despite “Exorbitant” Administrative Fee

Terra Finance LLC brought an action to compel arbitration. Defendant Acrow Corporation moved to dismiss the action under Fed. R. Civ. P. 12(b)(6), arguing that the arbitration clause was unconscionable, and therefore...more

Ninth Circuit Provides More Detailed Guidance on the Enforceability of Arbitration Provisions

On January 19, 2017, the U.S. Court of Appeals for the Ninth Circuit issued an opinion in Norcia v. Samsung Telecommunications America, LLC in which it provided guidance on the enforceability of arbitration agreements in...more

Appellate Court Rejects Claim Of Arbitrator Bias Based On Umpire’s Service As A Party Arbitrator In Other Matters Involving A...

The Second Circuit has rejected the attempt of a retrocedent, IRB Brasil Reseguros S.A. (“IRB”), to vacate certain arbitration awards against it in favor of its retrocessionaire, National Indemnity Company (“NICO”). IRB...more

Does the Show Stop For Appeal After a Court Compels Arbitration? The Federal Circuit Courts Are Split

Under the Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 1 et seq., if a District Court compels arbitration of all of the claims that are before it, and thereupon dismisses the suit, its order compelling arbitration is final...more

Do Arbitration Agreements Between Nursing Homes and Patients Violate Public Policy-- or Are They Enforceable Under the FAA?

The Federal Arbitration Act (FAA) provides for enforcement of arbitration agreements in a “contract evidencing a transaction involving commerce” in the district court. A nursing home sought to enforce arbitration agreements...more

Retail and Consumer Products Law Roundup - February 2017

Ninth Circuit Tackles Several TCPA Issues in Gym Texting Case - Why it matters: Retailers communicate with their customers frequently as an essential part of their business. While these communications are typically...more

Sixth Circuit Denies Arbitration in TCPA Class Action for Calls to Past Customers

Phone calls made by a lawn care company after the termination of a customer's contract were beyond the scope of the parties' agreement to arbitrate any claim "arising from or relating to" their contract, the U.S. Court of...more

SCOTUS Hearing Arbitration Case Wednesday; Spotlight On State Cases

While the Supreme Court has put off hearing a more contentious arbitration case until the fall (presumably in hopes that it will have nine justices by then), tomorrow it will hear the nursing home arbitration case from...more

Waiting for Gorsuch: SCOTUS Kicks Important Class-Action Waiver Case to Next Term

Last week, the United States Supreme Court informed litigants in Epic Systems Corp. v. Lewis that it is pushing the case to its October 2017 term. The lawsuit, which rose up through the Western District of Wisconsin and the...more

Supreme Court Delays Oral Arguments Regarding Employment ‘Class Arbitration’ Waivers

UPDATE: On February 8, 2017, the Supreme Court announced that it would delay until its October 2017 term oral arguments in the consolidated cases concerning the enforceability of class arbitration waivers in employment...more

Nursing Home Arbitration Agreements: A Changing Landscape

Because arbitration proceedings often offer a less costly and more efficient alternative to the burdens of protracted courtroom litigation, arbitration agreements are increasingly common in the nursing home industry. However,...more

Are Class Action Waivers Enforceable?

The Supreme Court granted petitions for certiorari in three lawsuits challenging the legality of arbitration agreements that bar workers from pursuing class actions. The Court consolidated the cases, Murphy Oil USA Inc., Epic...more

First Circuit Affirms District Court’s Confirmation Of Arbitration Award Under The “Look-Through” Test

The background of this matter could be found here. In sum, Plaintiffs Dr. Luis Ortiz-Espinosa and his wife Maritza Soto-Garcia, the conjugal partnership they formed, Espinosa-Soto, and Luis Ortiz-Espinosa, as trustee of...more

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