Mandatory Arbitration Clauses

News & Analysis as of

Third Circuit Reverses Order Denying Arbitration, Ruling That State Law Prohibiting Arbitration Of Insurance Matters Challenged...

Applied Underwriters Captive Risk Assurance Company appealed from the denial of its motion to compel arbitration in a dispute related to a reinsurance participation contract with South Jersey Sanitation Company. The trial...more

SDNY Confirms Arbitration Award Following Respondent’s Default

On an unopposed petition to confirm an arbitration award, a New York federal court treated the petition and accompanying record as a motion for summary judgment. “Thus, like unopposed summary judgment motions, unopposed...more

Website Design Implicated in Two Rulings on Enforceability of Online Terms – Highlights the Importance of Legal Review of Design...

This past summer, we wrote about two instances in which courts refused to enforce website terms presented in browsewrap agreements. As we noted, clickthrough agreements are generally more likely to be found to be enforced. ...more

After Five Years In Court, West Virginia Finds Plaintiff Did Not Waive Right To Arbitrate

The highest state court in West Virginia just found that a credit card company did not waive its right to arbitrate, despite initially choosing a court forum and waiting almost five years to raise its right to arbitrate. ...more

Arbitration Clause Requiring Arbitrators to Render a Decision within 30 Days from Their Appointment? Superfast Decision?

Ever wonder about a superfast arbitration procedure in a contract that you have been given? An arbitration clause requiring an arbitration panel to issue a decision within 30 days of being selected for the panel was recently...more

FCC Adopts New Broadband Privacy Rules and Begins Process to Eliminate Mandatory Arbitration Clauses

On November 2, the FCC released its Report and Order adopting new broadband privacy rules after a 3-2 vote. Among other extensive obligations, the new rules require broadband Internet service providers to notify...more

Southern District Of Indiana Determines Parties’ Dispute Regarding Nonpayment Of Bond By Sureties Was Not Within The Scope Of...

In order to be arbitrable, a dispute must fall within the scope of the parties’ operative arbitration agreement. Here, a non-signatory to the relevant agreement was seeking to “invoke an arbitration provision that was not...more

Mandatory arbitration agreements in long-term care facilities: A thing of the past...or not?

Effective Nov. 28, 2016, the Centers for Medicare & Medicaid Services (CMS) will prohibit the use of pre-dispute arbitration agreements by long-term care facilities. After the effective date of this rule, long-term care...more

With the Election (Mercifully) Behind Us, What Will a Trump Administration Mean for Employers?

The 2016 Presidential election was arguably the most contentious, unpredictable, and politically polarizing race in this nation's history. The contours of the electoral map changed by the hour in the days leading up to...more

U.S. Dept. of Education Joins Tide Against Class-Action Waivers/Mandatory Arbitration

There’s been plenty of news regarding a recent trend that contract provisions precluding class actions and mandating arbitration may have hit their high water mark and appear to be receding...more

Court Confirms Award, Holds Arbitrator Did Not Err In Determining Vesting Status Of Former Executive’s Shares

The case arose from an arbitration initiated under an employment agreement, after the chief operating officer of ACP Investment Group resigned. Addressing a provision in the agreement that required the COO’s forfeiture of...more

The Empire Strikes Back – Nursing Homes Enjoin Government’s Rule Barring Arbitration Clauses in Agreements with Residents

The way to stop a runaway train is to push the brake. The way to stop a runaway horse is to pull the reins. The way to stop a runaway jury is to demand arbitration. This September, the Centers for Medicare & Medicaid...more

CMS Final Rule Prohibiting Nursing Home Use of Arbitration Agreements Put On Hold

This morning, U.S. District Court Judge Michael P. Mills granted a preliminary injunction in the U.S. District Court for the Northern District of Mississippi, putting on hold the looming November 28, 2016 deadline that would...more

Takeaways from the Admiralty Law Institute-Maritime Law Association 50-Year Reunion

Last week, 425 admiralty and maritime lawyers, law professors, U.S. Coast Guard officers, law students, and maritime industry professionals descended on New Orleans for the Golden Rules: Tulane Admiralty Law Institute and...more

Gig and Technology Sectors Targeted in EEOC Enforcement Plan

The EEOC is targeting the “21st-century workplace” by focusing on gig economies and the technology sector in its new Strategic Enforcement Plan. The new Enforcement Plan also targets what the EEOC calls “complex employment...more

5 things to consider when deciding whether to include an arbitration clause in a real estate contract

Many types of contracts require the parties to submit their disputes to arbitration. For example, arbitration clauses are common in consumer agreements, such as car leases and gym memberships. While a consumer can negotiate...more

The NLRB Continues To Go After Non-Union Employers in Industries it Has Historically Not Targeted

Seyfarth Summary: The relevance of the National Labor Relations Act to industries and business sectors that have not traditionally had to deal with its implications – such as hedge funds. The New York Times recently...more

Gone For Good: Federal Court Denies Arbitration Opportunity

A recent decision from the United States District Court for the Southern District of Florida is a reminder that if a litigant intends to enforce its contractual arbitration provision, the issue must be raised at an early...more

CFPB Grabs for SEC/CFTC Turf

In May, the Consumer Financial Protection Bureau (CFPB) proposed a ban on “mandatory arbitration” contract clauses that make financial products consumers waive their right to join class actions. Broker-dealers,...more

Another Benefit of Arbitrating Employment Disputes

One of my least favorite phrases in blogging is “repurposing content.” The verb “repurposing” hurts my ears. You can give something a purpose, but you’re not “purposing” it. And if “purposing” isn’t a verb, how did...more

Louisiana Rejects Arbitration Clause In Contract Of Adhesion

The Supreme Court of Louisiana refuses to send customers who were injured while playing at Sky Zone to arbitration, finding that the arbitration clause “is adhesionary and therefore unenforceable”. Duhon v. Activelaf, LLC,...more

Second Circuit Upholds Refusal To Compel Arbitration Due To Unavailable Forum, Recognizing Split In Federal Circuits

A borrower had previously entered into three payday loan agreements that contained arbitration provisions mandating that all claims be arbitrated in the National Arbitration Forum (NAF), and under the Code of Procedure of the...more

District Court Refuses To Bind Surety To Subcontract Arbitration Clause

An engineering company was hired to perform work in connection with construction and renovation of the South African Embassy, and subcontracted for sheet metal work with a third party. The subcontract contained an arbitration...more

Court Compels Arbitration To Determine The Arbitrability Of Reinsurance Dispute With Captive Insurance Company

In a suit by an auto body company against a captive insurance company for rescission of certain workers compensation reinsurance participation agreements, for disgorgement of $70,000 paid thereunder, and for fraud, breach of...more

Fifth Circuit Affirms Order Compelling Arbitration Against Non-Signatories Based On “Intertwined Claims” Estoppel

A physician sued several healthcare entities for wrongful termination of employment, negligence, breach of contract, and tortious interference with at-will employment. While two of the defendants were signatories to...more

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