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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

Order Compelling Arbitration Reversed Due To Failure To Determine The Existence And Scope Of Arbitration Agreement

The Ninth Circuit recently reversed a trial court for compelling arbitration without issuing an order that (1) made “the necessary factual findings as to the parties’ communications,” (2) determined “the law applicable to...more

Court Distinguishes Between Claims For Relief And Affirmative Defenses In Denying Rehearing Of Order Compelling Arbitration

On May 11, 2016 we reported on a dispute between certain captive insurance administrative service providers (Capstone) against various defendants concerning the rights to certain intellectual property related to a captive...more

Court Confirms Arbitration Award In Chemical Transport Dispute Finding No Manifest Disregard Of The Law

ICC Chemical Corporation sued Nordic Tankers Trading A/S concerning a cancelled charter agreement. Per the agreement, Nordic was scheduled to have its vessel present at the port ready to be loaded with ICC’s chemical cargo....more

Court Denies Motion To Enforce Judgment And Grants Motion To Stay Pending Appeal In Contentious Arbitration Clause Dispute

We previously reported on the confirmation of three awards in a dispute between National Indemnity Company (“NICO”) and IRB Brasil Ressegurous S.A (“IRB”). In April, NICO submitted a motion for an award of its fees and costs...more

Court Considers Defenses Under Both New York Convention And The FAA In Confirming Domestic Arbitration Award Against Foreign Party

Immersion Corporation, a U.S. company, had previously entered into a settlement with Sony, a Japanese company, regarding the latter’s alleged patent infringement. Subsequently, a dispute arose surrounding whether Sony was...more

Court Grants Motion Of Non-Signatory To Compel Arbitration Of Privacy Violation Claims Of Putative Class Of Verizon Customers

The class action was brought by Verizon subscribers against a “targeted advertising” company business partner of Verizon (Turn, Inc.) for deceptive trade practices under New York law. Plaintiffs alleged that Turn violated...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

Sixth Circuit Clarifies Prior Reversal Of An Order That Had Vacated Arbitration Award As A Manifest Disregard Of The Law

After an arbitrator ruled that indemnification agreements between an acquiring company and certain former directors and trustees of employee stock ownership plans, were void under ERISA, the district court vacated the...more

Tennessee Supreme Court Holds That State Unconscionability Law Does Not Implicate Concepcion And Is Not Preempted By FAA

The Supreme Court of Tennessee reversed the lower courts’ rulings that a non-mutual arbitration provision in an installment contract on the sale of a manufactured home was unconscionable and unenforceable. In doing so,...more

Sixth Circuit Reverses Vacatur Of Award Stressing Limited Scope Of Permissible Judicial Review

The district court had vacated an arbitration award that had reinstated a terminated hospital employee under a collective bargaining agreement. The district court based its ruling on its interpretation of the CBA, which it...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

Fourth Circuit Applies “Limited Review” Of Class Arbitration Award And Finds No Manifest Disregard Of The Law

The Fourth Circuit considered whether an arbitrator manifestly disregarded the law by failing to find actual damages and failing to award sufficient attorney’s fees against certain non-profit credit repair companies, despite...more

Procedural Oddities Result From Simultaneously Seeking Vacatur Of An Arbitration Award And Relief On The Merits Of The Dispute

The Second Circuit reversed the district court’s dismissal of a claim for vacatur without prejudice, which had been based on the panel’s finding that it lacked personal jurisdiction. The Second Circuit examined the merits of...more

Seventh Circuit Rejects Challenge To Arbitration Award Based On “Manifest Disregard Of The Law” And Fraud

This case involved a FINRA arbitration held to resolve a dispute over money allegedly owed to Ameriprise Financial Services by a former financial adviser. The financial adviser appealed the district court’s confirmation of...more

Ninth Circuit Directs Court To Vacate Ruling That Disqualified Arbitrator In The Midst Of An Ongoing Arbitration

The dispute at issue in this case involved claims of fraud in the sale of condominium units asserted by unit purchasers against the condominium developer. Arbitration under the AAA was underway between the parties, when it...more

Fifth Circuit Affirms Vacatur Of Arbitration Award Where Arbitrator Failed To Follow Provisions Governing Selection Of Arbitrator...

Organizational Strategies Inc. (OSI) had entered into an agreement with Capstone Associated Services Ltd. for the latter to form three captive insurance companies for OSI. Included in the contract was an arbitration clause...more

Arbitration Roundup

Emilio v. Sprint Spectrum L.P., Case No. 14-732-cv (2d Cir. Nov. 12, 2014) (affirming denial of motion to vacate award; district court did not err by finding that arbitrator did not exceed powers nor manifestly disregard law...more

Court Applies Concepcion And Compels Arbitration, Rejecting Claim That Agreement Precluded “Effective Vindication Of State...

In a putative class action alleging violation of Pennsylvania labor laws, unfair trade practices, and other state law claims brought by a franchisee against the franchisor and two subsidiaries, the court stayed the...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

Second Arbitration Compelled On Reinsurance Claims Made Under Treaty Previously Construed In Prior Arbitration Award

In a complicated web of proceedings, the initial dispute involved whether the reinsurer, Nationwide Mutual Insurance Co., was permitted to condition payment of reinsurance claims on receiving access to the claim records of...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

Court Confirms Award Over Arguments Of “Manifest Disregard,” “Evident Partiality,” And “Corruption”

A transported liquid chemical had been found degraded after shipping from Texas to South Korea. The chemical company contended that the shipper was responsible for the losses as samples taken from the chemical prior to its...more

11/26/2014  /  Arbitration , Chemicals , Shipping

Arbitration Denied In Mortgage Life Insurance Dispute Where Neither Note Nor Policy Referenced Arbitration Agreement

A court refused to compel arbitration in a dispute surrounding the cancellation of and failure to pay life insurance benefits under a debtor group life insurance policy. The relevant note and insurance policy did not contain...more

Second Circuit Affirms Orders Enjoining Arbitration, Holding Broad Forum Selection Clause Supersedes FINRA Arbitration Rule

The Second Circuit affirmed two cases in which financial services firms had succeeded in enjoining FINRA arbitrations that were initiated against them by public financing entities. The court held that in each case, the FINRA...more

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