News & Analysis as of

Mandatory Arbitration Arbitration

Faegre Drinker Biddle & Reath LLP

The Fifth Circuit Held That Parties to an Arbitration Agreement Must Arbitrate Their Claims Even If the Forum They Selected No...

The U.S. Court of Appeals for the Fifth Circuit recently compelled two parties to arbitrate their claims despite the abolishment of the forum that they selected in their international commercial arbitration clause. The case...more

Troutman Pepper Locke

Fourth Circuit Holds SCRA Does Not Bar Mandatory Arbitration in Consumer Agreements, Forcing Portion of Class Action Into...

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On January 27, a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit issued a significant opinion holding that the Servicemembers Civil Relief Act (SCRA) does not prohibit the enforcement of arbitration...more

Fisher Phillips

California Court Expands Tools for Invalidating Arbitration Agreements: 3 Steps Employers Can Take Now

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A California appeals court recently ruled that a federal law preventing employers from requiring sexual harassment claims to be arbitrated also blocks arbitration of all other claims alleged as part of the same case. While...more

Payne & Fears

August/September Case Summaries

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Summary: The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies not just to sexual assault and sexual harassment claims, but to all claims asserted in the “case.”...more

Husch Blackwell LLP

Not So Fast: The Supreme Court of the United States Holds District Courts Should Not Dismiss Lawsuits Pending Arbitration

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On May 16, 2024, the Supreme Court of the United States (“SCOTUS”) unanimously held that when a district court finds that when a lawsuit involves an arbitrable dispute and a party has requested a stay of the court proceeding...more

Womble Bond Dickinson

Supreme Court Clarifies Arbitration Clauses: Key Takeaways for Companies

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Recent decisions by the U.S. Supreme Court in Smith v. Spizzirri, 601 U.S. 472 (2024) and Coinbase, Inc. v. Suski, 144 S. Ct. 1186 (2024) provide important guidance for companies utilizing arbitration clauses in their...more

Troutman Pepper Locke

Stay or Dismiss: The Supreme Court Weighs How to Address Cases Subject to Mandatory ‎Arbitration That Are Filed in District Court

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What happens when a party required by contract to arbitrate a claim tries pursuing it in court, nonetheless? Should the case be dismissed? Or must the court hold the case on its docket while the parties seek resolution...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

Stark & Stark

United States Senate Judiciary Committee Advances Protecting Older Americans Act Bill

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The United States Senate Judiciary Committee, with bipartisan support, has advanced the Protecting Older Americans Act Bill. The bill, which was introduced by Kirsten Gillibrand, D-N.Y., and Lindsey Graham, R-S.C., heads to...more

Sheppard Mullin Richter & Hampton LLP

Supreme Court Holds that District Courts Must Stay – Not Dismiss – Actions Brought by Parties Subject to Binding Arbitration...

On May 16, 2024, the United States Supreme Court unanimously held that, when enforcing an arbitration clause subject to the Federal Arbitration Act (FAA), if any party requests a stay, the district court lacks discretion to...more

Perkins Coie

Supreme Court Requires Federal District Courts To Stay Cases Pending Arbitration

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On May 16, 2024, in Smith v. Spizzirri, the Supreme Court of the United States resolved a long-standing circuit split that affects motions to compel arbitration in federal court. Specifically, the Court answered whether...more

Parker Poe Adams & Bernstein LLP

Supreme Court Says Federal Courts Cannot Dismiss Suits Sent to Arbitration

Mandatory arbitration agreements remain popular for employers concerned about the cost, delays, and unpredictability of traditional litigation. The Federal Arbitration Act (FAA) requires federal courts to defer in most...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Recent Court Rulings on FAA’s Transportation Worker Exemption May Require Employers to Update Their Arbitration Agreements

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to...more

Jackson Lewis P.C.

Resolving Circuit Split, U.S. Supreme Court Says Courts ‘Shall’ Stay Cases Sent to Arbitration

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“Shall” means “shall” in the Federal Arbitration Act (FAA), a unanimous U.S. Supreme Court held in Smith v. Spizzirri, No. 22–1218 (May 16, 2024). The Court explained the language in the FAA providing a court “shall on...more

Benesch

“Stay Awhile”: Supreme Court Tells District Courts Not to Dismiss Claims Pending Arbitration

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In Smith v. Spizzirri, the Supreme Court unanimously held that federal district courts lack the power to dismiss a case sent to arbitration. Instead, under the Federal Arbitration Act, if a party moves to compel arbitration...more

Fox Rothschild LLP

U.S. Supreme Court Decides that Federal Courts Should Stay, Rather than Dismiss, Cases that Are Subject to Arbitration, If One...

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The U.S. Supreme Court has decided an issue concerning cases that are subject to arbitration that has divided the federal courts of appeals: when the claims at issue in a federal court suit are subject to arbitration, does...more

Miller Canfield

Supreme Court Holds That District Courts May Not Dismiss Lawsuits Pending Arbitration, But Instead Must Stay Them

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On May 16, 2024, the United States Supreme Court in Smith v. Spizzirri addressed whether district courts are required to stay a lawsuit pending arbitration, or if they have the discretion to dismiss the suit when all the...more

McGlinchey Stafford

SCOTUS Unanimous: Order Compelling Arbitration Requires Court to Stay, not Dismiss Case

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On May 16, 2024, the Supreme Court unanimously held that when a district court compels claims to arbitration and a party has requested a stay under section 3 of the Federal Arbitration Act (FAA), the district court is...more

Fox Rothschild LLP

In Arbitration, Shall Means Shall

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The Supreme Court issued a decision Thursday in a case named Smith, et al. v. Spizzirri, et al., that has significant import for the franchise community. Many, if not the vast majority of, franchise agreements contain clauses...more

Ervin Cohen & Jessup LLP

When Does a “Dispute” Arise Under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act?

In 2022, Congress enacted the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act” (the “Act”) which provides that, at the election of the person alleging conduct constituting a sexual harassment dispute or...more

Fox Rothschild LLP

U.S. Supreme Court to Decide Whether Federal Courts Have Authority to Dismiss, Rather than Stay, Cases that Are Subject to...

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The U.S. Supreme Court has agreed to decide an issue concerning cases that are subject to arbitration that has divided the federal appeals courts: when the claims at issue in a federal court suit are subject to arbitration,...more

Miller Canfield

New Michigan Law: Act 312 Compulsory Arbitration to Now Include Higher Education Police Officers

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Effective January 22, 2024, Michigan’s law on compulsory arbitration of public labor disputes will be officially amended to include police officers employed by higher education institutions....more

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

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There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Hinshaw & Culbertson - Lawyers for the...

Florida Appellate Court Invalidates Arbitration Provision in Fee Agreement for Violating Florida Bar Rules

Labelle v. Berenson LLP, 2023 Fla. App. LEXIS 8693 - Brief Summary - In a legal malpractice action arising out of an underlying commercial dispute, Florida's Third District Court of Appeal reversed and remanded a trial...more

Bradley Arant Boult Cummings LLP

When Is a Waiver of the Right to Arbitrate a Waiver?

Arbitration continues to be a growing preference for dispute resolution. Mandatory arbitration provisions are found in a variety of commercial contracts, especially in consumer agreements. In fact, it has been reported in a...more

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