News & Analysis as of

Bulletin: SAG-AFTRA Issues Member Alert to Organize Droga5

SAG-AFTRA’s pledge to increase efforts in enforcing the SAG-AFTRA Commercials Contract and the Radio Recorded Commercials Contract was on full display with its latest Member Alert to organize Droga5, a non-signatory ad...more

Interpreting Arbitration Agreements: Two Key Points from Recent Texas Supreme Court Decisions

The Texas Supreme Court recently added another opinion to its ever-growing body of law interpreting arbitration agreements. The opinion falls in line with prior decisions on two key issues: 1. what amounts to waiver of the...more

Party Waived Untimely Defense To Arbitration, Notwithstanding Party’s Claim That Counsel Committed Malpractice

The court confirmed an arbitration decision awarding damages in favor of workers compensation insurers against various insured employee-staffing companies. One of the defendant companies contended that it never executed the...more

TN COA: Arbitrators Decide Scope and Unconscionability

The Tennessee Court of Appeals at Jackson recently enforced a NY choice-of-law provision against an arbitration challenge, holding that courts determine contract-formation issues, while arbitrators decide the scope and...more

Third Party Bound By Arbitration Agreement Which It Never Signed

In the context of a right of direct action by an injured party (Spain and France) against a D&I insurer, in The London Steamship Owners' Mutual Insurance Association Ltd v The Kingdom of Spain & anr [2015] EWCA Civ 333, 1...more

Third Party Bound By Arbitration Agreement Which It Never Signed

In the context of a right of direct action by an injured party (Spain and France) against a D&I insurer, in The London Steamship Owners' Mutual Insurance Association Ltd v The Kingdom of Spain & anr [2015] EWCA Civ 333, 1...more

Eighth Circuit Upholds Arbitration Agreement In Absence Of Actual Proof Of Unconscionability Due To Cost

The Eighth Circuit affirmed a decision by the U.S. District Court for the Eastern District of Missouri which rejected the contention that an arbitration agreement was unconscionable, and unenforceable under the Federal...more

Missouri Supreme Court “Calls an Audible,” Upholds Arbitration Agreement

In recent years, Missouri courts have seemed reluctant to enforce arbitration agreements entered into between employers and employees. But in a recent decision, the Missouri Supreme Court reversed that trend and compelled...more

A is for…Arbitration: Can A Non-Signatory To A Contract Enforce An Arbitration Provision In That Contract?

A corporate client is engaged in arbitration with a third party pursuant to an arbitration provision in the contract between the parties. An executive signed the contract “on behalf of” the company, but did not sign the...more

Arbitration’s Diamond in the Rough: Lessons from the Dichele Superior Court Ruling

In construction law, contracts are at the heart of our business; contracts between: owners and architects; owners and general contractors; contractors and subcontractors; and subcontractors and sub-subcontractors....more

Third Circuit Reverses Equitable Estoppel Ruling Compelling Arbitration Against Non-Signatory Insurer

The trial court had granted the motion to compel arbitration of Flintkote Company against one of its asbestos liability insurers, Aviva PLC, despite the fact that Aviva was a non-signatory to the subject Alternative Dispute...more

McWane, Inc. v. Lanier, C.A. No. 9488-VCP (Del. Ch. Jan. 30, 2015) (Parsons, V.C.)

In this memorandum opinion, the Court of Chancery denied defendants’ motion to dismiss or stay for lack of personal jurisdiction. The Court held that a mandatory forum selection clause in a merger agreement controlled over a...more

Seventh Circuit Speaks Again on How the Wisconsin Fair Dealership Law Applies in Arbitration

A few months ago, we commented on an aspect of the interaction between the Wisconsin Fair Dealership Law (WFDL), Wis. Stat. ch. 135, and arbitration, as discussed by the Seventh Circuit in Everett v. Paul Davis Restoration,...more

Court Of Chancery Explains Equitable Estoppel Jurisdiction

This decision explains how a non-party to a contract with a Delaware forum selection clause may still be subject to the Court’s jurisdiction under an equitable estoppel theory. ...more

In Battle Over Patents, Non-Signatory Ties Too Uncertain To Grant Motion To Dismiss

The District Court of Colorado recently denied Defendant Garmin International’s motions to dismiss and to stay pending arbitration, concluding that Plaintiff MSPBO was not bound by an arbitration agreement to which it was not...more

California’s “Third Party Litigation Exception” Not Preempted By The FAA

A California appellate court recently examined that state’s legislative response to the situation where a party moves to compel arbitration and some of the parties to the dispute are not parties to the arbitration agreement....more

AFL-CIO’s Industry Wide Agreement May Have Wide Reach in Hospitality Industry

Mid-way through 2012, the Hotel Association of New York City and the New York Hotel & Motel Trades Council, AFL-CIO (the “Union”), renewed a seven-year collective bargaining agreement known as the Industry Wide Agreement, or...more

Fourth Circuit Affirms Order Dismissing Case To Permit Arbitration Against Non-Signatory To Arbitration Agreement

An arbitration agreement was contained in a retail installment contract. The Fourth Circuit affirmed the lower court’s dismissal of the case pending arbitration against a non-signatory to the arbitration agreement on two...more

District Court Grants Motion To Stay Pending Arbitration Over Non-Signatory’s Opposition

In late August, a federal district court in Louisiana granted a group of defendants’ motion to stay pending arbitration. Plaintiff alleged breach of fiduciary duty, negligence, and fraud in connection with a trust account set...more

Court Enforces Five-Year Noncompete Agreement in Connection With Sale of Business

Employers drafting and seeking to enforce noncompete agreements struggle with structuring the temporal and geographic scope of the proposed noncompete covenant. The Texas Supreme Court has wrestled over the last few years to...more

Direct Benefits Estoppel: 7th Cir. Explains How You Can Be Compelled To Arbitrate Without Agreeing To Do So

Everyone knows that you can’t be compelled to arbitrate a dispute unless you’ve agreed to do so. But what everyone knows is sometimes wrong. There are situations in which a person has to arbitrate even though she didn’t sign...more

Third Circuit Reaffirms the Difficulty of Binding a Non-Signatory to Arbitration

Federal law’s much-talked-about presumption in favor of enforcing arbitration clauses has its limits. On August 11, 2014, the United States Court of Appeals for the Third Circuit identified one of those limitations: the...more

Eighth Circuit Finds Incorporation Of AAA Rules Authorizes Arbitrator To Determine Whether Non-Signatory Can Arbitrate

In a short and sweet opinion issued just six weeks after argument, the Eighth Circuit yesterday held that an arbitrator was authorized to decide whether a non-signatory was able to arbitrate a dispute. Eckert/Wordell...more

Courts Stopping Non-Signatories From Compelling Arbitration Through Equitable Estoppel

Now that we know the Supreme Court is not going to be addressing non-signatories’ ability to compel arbitration this term (at least not in the Toyota case), we can take a moment to look at what lower courts are doing with...more

Eighth Circuit Rules Equitable Estoppel Doctrine Cannot Be Used to Compel Non-Signatories to an Arbitration Agreement into...

Arbitration in the context of antitrust class action litigation continues to be a front and center issue for the federal appeals courts. (See this blog’s discussion of a Third Circuit decision from late last year, In re...more

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