Federal Arbitration Act Arbitration

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

Sign O’ The Times: SCOTUS Denies Cert In Franchise Arbitration Dispute

On Monday of this week, after stringing the parties along for five months, SCOTUS denied cert in a case involving the intersection between arbitration and franchise regulation. The petition was filed in November of 2015,...more

Untangling the Webb of Arbitrability: The Fourth Circuit Holds That Courts Determine the Availability of Class-Wide Arbitration

Is the availability of class-wide arbitration a “gateway” question for courts, or are arbitrators charged with such a decision once a matter is compelled to them? In Dell Webb Communities, Inc. v. Carlson, the Fourth Circuit...more

New York Federal Court Considers Procedural Attacks To Arbitration Confirmation Proceedings

Late last month, a federal district court in New York tackled procedural challenges to an arbitration confirmation proceeding. The arbitration arose from a dispute between an insurer and its reinsurer over the amount due to...more

Ninth Circuit Dismisses Interlocutory Appeal Of Order Denying Motion To Stay Under Federal Arbitration Act For Lack Of...

Western Security Bank brought an action in the United States District Court for the District of Montana against certain doctors seeking to enforce commercial loan guaranties. The doctors asserted that a non-party, Meridian...more

Fifth Circuit: Diversity Jurisdiction Over FINRA Award Based on Demand

The Fifth Circuit Bar Association’s summary reports: “Appellants were investors who suffered financial losses as a result of R. Allen Stanford’s Ponzi scheme. In their arbitration complaint, they sought $80 million in...more

Federal Courts Lack Jurisdiction Over Enforcement Of Foreign Judgments, Even Where Judgment Is Inconsistent With Earlier...

Plaintiff Albaniabeg, power plant operator, sought enforcement of an Albanian judgment in a New York state court against defendant Italian power companies. Section 205 of the FAA permits removal of an action that relates to...more

Arbitration Under Fire: Brace Your Company for Less Contract Freedom and More Class Actions

Since the Federal Arbitration Act (FAA) of 1925, the United States has had a policy preference for arbitration, even when an arbitration provision includes language barring class action litigation. We saw this most recently...more

New York Federal Court Addresses Umpire’s “Pre-Selection” Disclosure Obligations In Reinsurance Dispute

In a dispute arising out of a series of contentious reinsurance arbitrations over a seven-year period between National Indemnity Company (“NICO”) and IRB Brasil Ressegurous S.A., the court confirmed three awards issued by an...more

U.S. Supreme Court Ruling Upholds Arbitration Over Class Action Litigation

SUPREME COURT UPHOLDS CLASS ARBITRATION WAIVERS - With its ruling on December 14, 2015, the Supreme Court continues to protect arbitration as a means of dispute resolution by cracking down on attempts to circumvent the...more

In 3 Recent Decisions, Supreme Court of Arkansas Deeply Divided on Arbitration

The Supreme Court of Arkansas has issued three opinions within the span of four weeks, all on the topic of whether defendants can compel arbitration. Each of the opinions came with a vigorous dissent. The cases offer an...more

Ninth Circuit Remands PAGA Cases To Lower Courts To Determine The Proper Forums For Arbitration Or Litigation

We previously reported on California courts refusing to enforce waivers contained in arbitration agreements of representative claims under California’s Private Attorneys General Act of 2004 (“PAGA”). These cases have...more

Eleventh Circuit Upholds Refusal To Compel Arbitration Due To Unavailable Forum

A borrower had previously entered into a pay day loan agreement in August of 2012, which contained an arbitration provision mandating that all claims be arbitrated in the National Arbitration Forum (NAF), and under the Code...more

New York Court of Appeals: McCarran-Ferguson Act Does Not Reverse Preempt Application of the Federal Arbitration Act to Enforce...

Monarch Consulting, Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., __ N.Y.3d __, 2016 WL 633946 (N.Y., Feb. 18, 2016) Case at a Glance - National Union Fire Insurance of Pittsburgh (“National Union...more

New York Court Of Appeals Finds Mccarran Ferguson Act Does Not Reverse Preempt The FAA With Respect To California Insurance Code §...

In an action to compel arbitration under payment agreements entered into between National Union and its insured, the New York Court of Appeals held the determination of arbitrability was not barred by the McCarran Ferguson...more

Witnesses in Arbitration – Federal Arbitration Act

Testimony and documents may be obtained in arbitration in accordance with the parties’ agreement, the applicable institutional arbitration rules and provisions of law (federal and state arbitration acts, as applicable). My...more

SCOTUS Summarily Reverses Second Arbitration Case This Term

Showing it will soldier on without Justice Scalia, the Supreme Court granted cert, vacated, and remanded an arbitration decision from West Virginia yesterday. Because this is the exact same treatment the Court gave a case...more

Fees & FINRA

Following are two interesting and recent federal court rulings related to arbitration. Award of Attorney’s Fees Associated with Motion to Confirm Reversed on Appeal - Zurich American Insurance (as subrogee of Vinmar...more

Fourth Circuit Holds Arbitration Clause Unenforceable When It Forbids Arbitrator From Applying The Applicable Law

This case involves a class action filed in a Virginia district court against Delbert Services Corporation, the servicing agent of certain loans, for which the plaintiffs claimed that Delbert’s unfair debt collection practices...more

January Arbitration Update: Effective Vindication, Class Arbitration, and FAA Preemption

Lots of interesting arbitration law has been made already in 2016, so here is a roundup from the first four weeks of the year. As a teaser, courts have resuscitated the effective vindication doctrine, found arbitrators cannot...more

Top 8 Pitfalls of Arbitration

After months of arguing over defective solar panels with his supplier, California X-Tra Green Solar, Ed Ezeeout finally calls his favorite attorney at Fixx, Itt & Quick. Dutifully gathering all emails, invoices and transport...more

"Challenging the Selection of Party-Appointed Arbitrators"

As arbitration continues to be widely utilized in international commerce, the issue of how arbitrators should handle conflict checks, and who is suitable for appointment as arbitrator in complex cases, will remain a vital...more

To Be or Not to Be in Arbitration? That is the Question

Arbitration has become a very common and effective way to resolve construction disputes in lieu of traditional litigation, and it is easy to understand why: - The parties can select arbitrators with construction...more

Court Confirms Final Arbitration Award In Reinsurance Dispute

Certain Underwriters at Lloyd’s of London petitioned the U.S. District Court for the District of Massachusetts to confirm an award issued by a three-member panel in an arbitration against Transport Insurance Company. The...more

State Statute Of Limitations For Recognition Of Foreign Judgments Held Not Preempted By FAA

National Aluminum Co., Ltd. (“NALCO”) prevailed in arbitration held in India against Peak Chemical Corp. in 2005. Ultimately, the award was affirmed on appeal by an Indian court in February 2012. When earlier this year, NALCO...more

3 Year-End Arbitration Lessons From Appellate Courts

Before I can sum up 2015 in arbitration (next post!), I need to report on some new cases coming out of the federal and state appellate courts in recent weeks. Two are just good reminders of basic arbitration law, but the...more

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