Mandatory Arbitration Clauses Federal Arbitration Act

News & Analysis as of

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

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

Two States Buck FAA Preemption, While Alabama Stays the Course

Three state supreme courts tackled arbitration law in recent weeks: Alabama, North Carolina, and Rhode Island. Rhode Island reversed a construction arbitration award because it disagreed with the arbitrator’s analysis. ...more

Arbitration Is Back on the Docket: The Supreme Court to Review the Enforceability of Class Action Waivers in Employment...

The United States Supreme Court recently granted certiorari in a trio of cases—Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP v. Morris, No. 16-300; and NLRB v. Murphy Oil USA Inc., No. 16-307—to decide on a...more

Supreme Court to Hear Class Action Cases Involving Class Action Waivers and Tolling of Statutes of Limitations

The U.S. Supreme Court recently granted certiorari in class action cases involving: (1) class action waivers in employment contracts; and (2) whether filing of a securities class action tolled a statute of repose. In both...more

Supreme Court to Decide Legality of Class Action and Collective Action Waivers

On January 13, 2017, the Supreme Court agreed to consider whether employee arbitration agreements containing class/collective action waivers are unlawful and unenforceable. The Court’s decision to consider this issue portends...more

Justices to Consider Arbitration Agreements With Class Waivers – The End of the Beginning?

Apologies to Winston Churchill, but the conflict over the enforcement of arbitration agreements with class waivers has become an ongoing legal and ideological struggle. Some view individual arbitration as a quicker and less...more

Supreme Court Will Hear Class Action Waiver Cases

Last week, the Supreme Court consolidated and agreed to hear three appeals of Circuit Court decisions concerning whether class action waivers contained in employment arbitration agreements infringe on employees’ rights under...more

When An Arbitration Clause Sounds Permissive But Is Not — Does “May” Really Mean “Must”?

Is an arbitration clause mandatory or permissive when it provides that either party to the contract may elect to submit a dispute to binding arbitration? What if the contract also provides that the right to arbitrate is not...more

2016 in Arbitration Law: Fleeting Victories for Consumer Advocates?

If I had drafted this annual summary post on November 7, 2016, it would have looked different. At that point, the year had produced numerous (final or proposed) federal regulations that significantly restricted the use of...more

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

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

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

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

Opt-Out Clauses May Help Some Employers Opt In To Individual Arbitration

Ironically, giving employees the right to decline to resolve their employment claims in binding arbitration may actually help employers enforce arbitration agreements in some parts of the country....more

Second Circuit Panel Adheres To Circuit Precedent And Affirms Enforceability Of Employment Class Action Waivers

The Second Circuit issued a summary order affirming a decision by the Southern District of New York compelling arbitration pursuant to class-action and collective-action waivers contained in an employment arbitration...more

Ninth Circuit Finds That Requiring Employees to Sign Class Action Waivers Violates the NLRA

In a recent opinion, Morris v. Ernst & Young, the Ninth Circuit Court of Appeals followed the Seventh Circuit and held that employers violate the National Labor Relations Act (NLRA) when they require employees to sign an...more

Don’t Wait: Review Your Company’s Arbitration Agreement Now

Many businesses ask their employees to agree to arbitration to resolve employment disputes because arbitration can be cheaper and faster than the court system. Arbitration can also be used as a shield to prevent the filing of...more

Ninth Circuit Holds That Class Action Waiver In Employment Agreement Is Unenforceable, Adding To The Circuit Split On The Issue

As a condition of employment, Ernst & Young’s employees were required to sign agreements that contained a “concerted action” waiver requiring employees to pursue legal claims against E&Y exclusively through arbitration, and...more

Adding to Circuit Split, Divided Ninth Circuit Finds Concerted Action Waiver in Ernst & Young’s Employment Agreement Unenforceable...

Ernst & Young’s (“E&Y”) employment agreements contained “separate proceedings” and arbitration provisions, which together required that disputes be resolved individually through arbitration, rather than collectively through...more

Ninth Circuit Allows Dispute To Proceed In Court After Arbitration Dismissed For Failure To Pay Deposit

In mid-June, the U.S. Court of Appeals for the Ninth Circuit issued an opinion which holds that where an arbitration proceeding is dismissed because one side is unable to pay their share of the arbitration, the case may...more

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