News & Analysis as of

Mandatory Arbitration Clauses

First Circuit Upholds Arbitrator’s Denial Of Arbitrability Of Reinsurance Agreement, Finding No Manifest Disregard Of The Law

by Carlton Fields on

Mountain Valley Property, Inc (MVP) entered into a three-year reinsurance participation agreement with Applied Underwriters Captive Risk Assurance Co. Inc. (AUCRA), which contained a mandatory arbitration clause as well as a...more

Second Circuit Court of Appeals Reaffirms Strong Federal Preference for Enforcing Arbitration Agreements in the Evolving Era of...

by Foley & Lardner LLP on

In a big win for the tech industry and app developers, and for other companies seeking to enforce arbitration agreements through web-based interactions, last week the Second Circuit Court of Appeals held that the plaintiff in...more

Sixth Circuit Affirms Vacatur Of Arbitration Award Based On Prior Termination Of Sales Contract

by Carlton Fields on

The Sixth Circuit has affirmed an order vacating an arbitration award, agreeing with the district court that the mandatory arbitration clause at issue was unenforceable upon termination of the agreement in which it was...more

Lessons From Two Auto Dealer Arbitrations About Nonsignatories

In two recent decisions, the Alabama Supreme Court made clear that if an arbitration clause specifies it only applies to disputes between the two parties who sign the clause, that will be strictly enforced. No third party...more

Fifth Circuit Continues To Approve Class Action Arbitration Waivers Over NLRB Objections

by Carlton Fields on

The opening case of the United States Supreme Court’s October 2017 term is a consolidation of three cases that present a Circuit conflict on the issue of whether the collective-bargaining provisions of the National Labor...more

D.C. Federal Court Declines to Enjoin Arbitration Because the Arbitrator Could Issue Any Equitable Relief Required, the Integrity...

by Pepper Hamilton LLP on

TK Servs., Inc. v. RWD Consulting, LLC, 2017 U.S. Dist. Lexis 97239 (D.D.C., June 23, 2017) - This litigation arose from a dispute between TK Services, Inc. (“TKS”), as sub-subcontractor, and RWD Consulting, LLC (“RWD”),...more

PRC Court refuses to enforce SIAC arbitral award made by one arbitrator under expedited arbitration procedures when arbitration...

by Hogan Lovells on

In Noble Resources International Pte. Ltd v. Shanghai Good Credit International Trade Co., Ltd. (2016) Hu 01 Xie Wai Ren No. 1, the Shanghai No.1 Intermediate People's Court in a judgment dated 11 August 2017 refused...more

Dancer's Claims Against Club Not Subject to Arbitration Clause, Third Circuit Rules

by Ballard Spahr LLP on

Employers should take note of a recent ruling by the U.S. Court of Appeals for the Third Circuit in a case involving the arbitration clause in an independent contractor agreement....more

Mobile App Terms and Conditions Decision Clarifies Best Practices in App Designs to Support Enforcement of Contract Provisions

The Second Circuit issued a decision of interest to every company that utilizes a mobile app to interact with its customers. In Meyer v. Kalanick, the court enforced the mandatory arbitration provision in the Uber app. The...more

Landmark Second Circuit Ruling Clarifies the Standards for Mobile Contracts

On August 17, 2017, the United States Second Circuit Court of Appeals issued a landmark ruling in Meyer v. Kalanick that clarifies the standards for contract formation in the age of smartphones and mobile contracting,...more

Uber Victory Provides Relief Regarding Enforceability of App Terms and Conditions

by Buchalter on

Last week, a federal court ruled that mandatory arbitration provisions in lengthy mobile application Terms of Service can be binding, regardless of whether a customer takes the time to read them. This ruling in favor of Uber...more

Uber Uses Arbitration (And Clean Design) To Put Brakes On Consumer Class Action

Last Thursday, the Second Circuit found that the arbitration agreement in Uber’s Terms of Service was conspicuous enough to be binding and enforceable. As a result, the claims of a putative class of consumers will be...more

Court Declines To Determine Whether Reinsurance Syndicate For Which A Company Fronted Should Be Involved In An Arbitration

by Carlton Fields on

The parties in this case presented to a court the issue of whether a reinsurance syndicate for which Federal Insurance acted as “a front” was a real party in interest and should be involved in an arbitration between Federal...more

No Signature? No Problem! Enforcing Arbitration Even Without Everyone Signing

by Seyfarth Shaw LLP on

Seyfarth Synopsis: California courts are often hostile towards defendants that seek to require litigious employees to honor their arbitration agreements. The defendant’s plight might seem more stark still if the defendant has...more

What In-House Counsel Need To Know About Their Form Arbitration Clauses – Ten Foundation Questions

Most arbitrations, and all commercial arbitrations, are creations of contract, and courts are generally required to enforce an arbitration agreement as they would any other contract. Therefore, the terms of the arbitration...more

DOJ Backs Class Action Waivers

by LeClairRyan on

The United States Department of Justice (DOL) has made an about face and now takes the position that class action waivers in arbitration agreements are enforceable. The change in position from the Trump Administration’s DOJ...more

Class Action Waiver Cases Moved to the Top of Supreme Court's October Term

by Clark Hill PLC on

The U.S. Supreme Court recently announced that on the first day of its upcoming October term it would hear oral argument on three consolidated cases addressing whether employers' arbitration agreements that require employees...more

Hawaiian Punch: State Supreme Court Stands Up to SCOTUS on Arbitration

In January of 2016, SCOTUS granted review of an arbitration case from Hawaii, but summarily vacated and remanded it without analysis. (Unless you consider “Please read DIRECTV” substantive analysis.) Here’s the risk of that...more

Construction Contracts And Arbitration Provisions: Is The Word “May” Mandatory? Maybe!

by Burr & Forman on

You don’t always say what you mean. And you don’t always mean what you say. In construction contracts, parties attempt to use plain and ordinary words to describe their respective obligations....more

Has the Era of the Consumer Class Action Waiver Passed?

Financial Institutions may need to revise consumer contracts to remove class action waivers in preparation for a March 2018 federal rule. On July 19, the U.S. Consumer Financial Protection Bureau, the federal regulator for...more

New York Appellate Court Sides Against The Second Circuit And Holds Class Action Waivers Violate The NLRA

by Carlton Fields on

Plaintiffs, former insurance agents for defendants New York Life Insurance Company and its related companies, brought a putative class action seeking recovery for allegedly illegal wage deductions and violations of overtime...more

New York City’s “Freelance Isn’t Free” Act Also Isn’t Waivable

Recently issued final rules impose additional restrictions including prohibitions on requiring independent contractors to waive certain rights. The Freelance Isn’t Free Act is a recent New York City law that went into...more

The State AG Report Weekly Update

by Cozen O'Connor on

Republican Jay McMahon Announces Bid for Massachusetts Attorney General- Republican Jay McMahon, an attorney in private practice, announced his candidacy to become Massachusetts AG. McMahon is the first candidate to...more

Will the CFPB’s Arbitration Rule Survive?

As previously reported, the Consumer Financial Protection Bureau (CFPB) released its new rule prohibiting the use of mandatory arbitration clauses that foreclose group lawsuits. But will the rule survive?...more

Highlights From DRI Class Action Seminar 2017 – Day Two

Here are my highlights from the second day of DRI’s 2017 Class Action Seminar: Class Action Waivers in Employment Agreements (Neal Katyal of Hogan Lovells) - Neal Katyal is a leading Supreme Court advocate and is litigating...more

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