News & Analysis as of

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. 

Supreme Court Holds Federal Arbitration Act Preemption Applies To Contract Formation Rules

by Carlton Fields on

Last week, the U.S. Supreme Court rejected the Kentucky Supreme Court’s use of a clear-statement rule to require that powers of attorney specifically authorize a representative to enter into an arbitration agreement, finding...more

Independent Contractor Trucker Dodges FAA Arbitration and Keeps His Class Action Alive

by BakerHostetler on

In Oliveira v. New Prime, Inc., No. 15-2364 (May 12, 2017), the U.S. Court of Appeals for the First Circuit confronted two arbitration-related questions of first impression in that Circuit. In the case, Dominic Oliveira had...more

Supreme Court Emphatically Defends Arbitration Agreements from State Interference

by Littler on

On May 15, 2017, the U.S. Supreme Court reiterated the principle that the Federal Arbitration Act (FAA) requires states to treat arbitration agreements just as they treat other types of contracts. In Kindred Nursing Centers...more

No Pre-Emption Exemption - The U.S. Supreme Court and the Kentucky Supreme Court are not kindred spirits with respect to state law...

The U.S. Supreme Court and the Kentucky Supreme Court are not kindred spirits with respect to state law restrictions on arbitration agreements....more

U.S. Supreme Court Reaffirms FAA Preemption Over Discriminatory State Laws

by Ballard Spahr LLP on

Emphasizing that the Federal Arbitration Act (FAA) preempts state laws that "single out arbitration agreements for disfavored treatment," the U.S. Supreme Court has overturned the Kentucky Supreme Court's refusal to enforce...more

Supreme Court Rejects State Rule That Subjects Arbitration Agreements to Higher Standards

by BakerHostetler on

Some wondered why the U.S. Supreme Court granted certiorari in Kindred Nursing Centers L.P. v. Clark, No. 16-32, and after oral argument on February 22, 2017, many felt they knew the outcome. Indeed, Justice Stephen Breyer...more

Supreme Court Applies FAA Preemption to Contract Formation

The Supreme Court held that the Federal Arbitration Act preempts state law governing contract formation where a state rule discriminates against arbitration, a holding with broad implications for state-court decisions that...more

Supreme Court Reinforces the Primacy of the Federal Arbitration Act, Even Over a “Divine God-Given Right”

by Benesch on

Kentucky law speaks of the right to jury trial in theological terms. The Kentucky Constitution provides that “[t]he ancient mode of trial by jury shall be held sacred, and the right thereof remain inviolate, subject to such...more

Nursing Homes Finally Score a Victory: the Supreme Court of the United States Rules that States May Not Treat Arbitration...

by Tucker Arensberg, P.C. on

As blogged about before, the nursing home industry has long been under fire for the arbitration agreements used as part of the industry’s admissions process. Yesterday, in a victory for the industry, the Supreme Court of the...more

Supreme Court Decides Kindred Nursing Centers, L.P. v. Clark

by Faegre Baker Daniels on

On May 15, 2017, the Supreme Court of the United States decided Kindred Nursing Centers, L.P. v. Clark, No. 16-32, holding that state courts may not single out arbitration agreements for “disfavored...more

SCOTUS Reverses KY Nursing Home Arbitration Decision; Refuses To Prioritize Right To Jury Trial

Just as I predicted, SCOTUS reversed the Kentucky Supreme Court’s decision in Kindred this morning. The interesting piece, though, is that the seven member majority went out of its way to cut off some of the “on trend”...more

Fifth Circuit Dismisses For Lack Of Jurisdiction Appeal Of Court’s Order Selecting Arbitrators

by Carlton Fields on

Bordelon Marine, LLC sued Bibby Subsea ROV, LLC for damages and for writ of attachment arising out of a disagreement over the chartering of an offshore vessel. Pending arbitration, litigation was stayed, but a dispute arose...more

Arbitration Options Put Global Insurers In The Driver Seat

by Robins Kaplan LLP on

Globalization of the insurance market has seen an increase in the use and enforcement of international arbitration agreements in insurance policies. When tragedy strikes or loss occurs, insurers have a variety of options to...more

Will the Supreme Court Rein In Employee Class Actions?

by Baker Donelson on

Three cases involving the enforceability of class/collective action waivers in arbitration agreements are headed to the U.S. Supreme Court. In this piece, we look at the facts of those cases, which will be consolidated for...more

Shouldn't You Be Using Arbitration Agreements to Reduce the Costs of Litigation and the Risk of Class Action Claims?

by Foley & Lardner LLP on

Businesses across the country regularly bemoan the time and expense of litigation. Even when businesses are successful in defending non-meritorious consumer claims alleging unfair or deceptive practices, false advertising,...more

Third Circuit Vacates District Court’s Decision And Remands For Further Proceedings Regarding Whether The Parties Agreed To...

by Carlton Fields on

In this case, plaintiff Aliments Krispy Kernels, a Canadian “snack purveyor,” brought suit to confirm an arbitration award it received against Nichols Farms, a pistachio grower, in New Jersey federal district court. Nichols...more

Only in America: The Controversy Concerning Federal Jurisdiction Over Motions to Confirm, Vacate, or Modify Arbitral Awards

In most countries, it is uncontroversial that a court sitting at the situs of an arbitration has jurisdiction to adjudicate a petition to confirm or vacate or modify an award issued in that arbitration. In the United States...more

Second Circuit Clarifies Process for Enforcement of Nondomestic Arbitral Awards Against Alter Egos of Award Debtor

In a recent pair of opinions, the United States Court of Appeals for the Second Circuit clarified that the procedure for enforcing a nondomestic arbitration award does not require a separate “confirmation” step. CBF Indústria...more

California Supreme Court Punts on FAA Preemption - Court invalidates waiver of public injunctive relief, declines to address...

Last month, the California Supreme Court handed down its unanimous decision in McGill v. Citibank N.A., holding that an arbitration provision that effectively waives a consumer’s statutory right to seek public injunctive...more

U.S. Court Confirms London-Based Arbitral Award Against Belize, Finding Allegedly Partial Arbitrator Did Not Violate U.S. Public...

by Carlton Fields on

The D.C. Circuit recently upheld a district court order confirming a London-based arbitral award against the Belize government over objections that enforcement of that award would violate U.S. public policy regarding the...more

Back To The Class-Action Waiver Drawing Board: California Supreme Court Holds Arbitration Agreement Cannot Extinguish A Claimant’s...

Takeaway: Businesses operating in California now face another hurdle in drafting enforceable arbitration agreements. The California Supreme Court has invalidated a provision in an aggressive class action waiver purporting to...more

California’s Supreme Court Holds Arbitration Clauses Cannot Waive Public Injunctive Relief

by Robins Kaplan LLP on

In what will likely result in a certiorari petition, the Supreme Court of California unanimously ruled that consumers cannot contractually waive their right to pursue public injunctive relief through a pre-dispute arbitration...more

California Supreme Court Creates More Confusion

by Alston & Bird on

The California Supreme Court recently created yet another exception to the enforceability of arbitration agreements with class action waivers, and in doing so generated more uncertainty about what companies should (and should...more

Right to Seek Injunctive Relief Cannot be Waived by Arbitration Provision - Arbitration Agreement does not Provide Shield from...

by Best Best & Krieger LLP on

An arbitration agreement preventing individuals from seeking injunctive relief was void as contrary to California public policy and could not be enforced under California law, the California Supreme Court recently determined...more

Arbitration Clause Cannot Bar Claims for Public Injunctive Relief

by McGuireWoods LLP on

On April 6, the California Supreme Court issued the latest in an ongoing series of cases resisting preemption of California state law under the Federal Arbitration Act (FAA) and again testing the limits of the U.S. Supreme...more

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