A comprehensive weekly ADR overview from the National Arbitration Forum |
Week of June 16, 2006 |
| IN THIS ISSUE |
Convention Grants Broad Federal Court Jurisdiction To Cases That “Relate To” an Arbitration Agreement The Fifth Circuit Court of Appeals reinforced an expansive definition of cases that “relate to” arbitration agreements, allowing removal of such cases to federal court under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Act (“Convention”).
Arbitration Panel's Award Upheld Despite Refusal to Grant Continuance An arbitration panel’s refusal to grant a continuance does not constitute misconduct on part of the panel sufficient to overturn an arbitration award, the United States Court of Appeals for the Fifth Circuit held.
Non-Signatory to an Arbitration Agreement Cannot Compel Arbitration if not “Intertwined” With a Signatory The District of Connecticut denied a non-signatory’s motion to compel a signatory shipping company to arbitrate a dispute based upon the shipping company’s agreement with another company.
Party Waived Right to Arbitrate Because Unexplained Delay in Demanding Arbitration Was Unfairly Prejudicial The Northern District of Illinois denied a motion to compel arbitration because the moving party’s unexplained delay in demanding arbitration was unfairly prejudicial.
District of Indiana Rejects Venue and Personal Jurisdiction Challenges to Arbitration Agreement Specifying Location for Proceedings According to the District of Indiana, parties who execute an arbitration agreement specifying a location for the proceedings are bound to arbitrate according to the terms of the agreement.
Satisfaction of Conditions Precedent to an Arbitration Agreement and Statute of Limitations Issues Should Be Decided By Arbitrator Expiration of the statute of limitations is a defense to an underlying claim to be determined by the arbitrator, the United States District Court for the Northern District of Texas held.
Award Confirmation Is Appropriate Even If Damages Portion of Award Has Already Been Paid in Full The Southern District of Texas confirmed an arbitration award even though the damages portion of the award had already been paid in full.
FORUM Decision Is Admissible in Litigation over Disputed Domain Name The Western District of Washington ruled that a decision issued by the National Arbitration Forum (FORUM) in a domain name dispute is admissible in a subsequent court proceeding involving the same parties.
“Binding Mediation…Arbitration.” Confused? So Was the Court The California Court of Appeals refused to enforce a settlement agreement when neither the Court nor the parties could understand a material term—dispute resolution by “binding mediation.”
Electronic Arbitration Agreement Never Shown to or Signed by Consumer is Unenforceable The California Court of Appeal affirmed an order denying a motion to compel arbitration against a woman who never saw nor signed her agreement to arbitrate.
Connecticut Supreme Court Vacates Arbitration Award Because Moving Party Was “Substantially Prejudiced” by Arbitrator’s Evidentiary Ruling The Connecticut Supreme Court held that an arbitrator’s refusal to consider evidence “substantially prejudiced” the moving party and thus justified the trial court’s order vacating the award under Connecticut law.
Defending Party Not Required to Demand Arbitration Prior to Lawsuit A defending party should not be required to demand arbitration prior to being sued by the claimant according to the Florida District Court of Appeal.
Arbitration Mechanism in Consent Order Provides Complete Remedy for Aggrieved Consumers The Minnesota Court of Appeals upheld an arbitration provision in a consent order between the Minnesota Attorney General and a car dealership to hear consumer complaints, holding that the provision provides all consumers with an adequate remedy.
FAA Trumps Missouri Law Regarding Formation of a Valid Arbitration Agreement An arbitration agreement that violates arbitration notification procedures required by Missouri law is valid because the Federal Arbitration Act (FAA) trumps Missouri law, according to the Missouri Court of Appeals.
Extrinsic Evidence May Be Used to Ascertain the Intent of Ambiguous Arbitration Agreement The Missouri Court of Appeals held that an arbitration agreement was ambiguous and remanded the case to the trial court to resolve the ambiguity.
New Jersey Court Reminds Parties They Can Agree to Require Arbitrator to Follow the Law A New Jersey court properly denied a motion to vacate an arbitration award based on an arbitration panel’s alleged failure to follow New Jersey law, where the parties’ arbitration agreement had not required the arbitrators to follow the law.
Directed Execution of a Hold Harmless Agreement Upheld as Consistent With Arbitral Immunity Provided for by Law In Indemnity Insurance Co. v. Mandell, 2006 N.Y. Slip Op. 04351, 2006 WL 1528926 (N.Y. App. Div. June 6, 2006), a New York Appeals Court affirmed an order directing execution of a hold harmless agreement requested by arbitrators.
New York Court Provides the “How-To” Process for Parties Seeking to Confirm a Credit Card Arbitration Award A New York court recently established for future litigants the “statutory and constitutional framework for review of a petition to confirm a credit card arbitration award,” while denying MBNA’s petition to confirm an arbitration award against a cardholder.
Appellate Court Can’t Review Denial of Motion to Compel Arbitration When Trial Court Fails to State Basis for Their Decision A trial court that denies a motion to compel arbitration must state the basis for their decision so that an appellate court can properly review the decision, the North Carolina Court of Appeals held.
Court Vacates Arbitration Award Because Party-Appointed Arbitrator Was Acting As Party’s Attorney in Unrelated Matters The Rhode Island Supreme Court affirmed an order vacating an arbitration award because a party-appointed arbitrator failed to disclose that he had an attorney-client relationship with the party that appointed him.
Delaware SB362 (Introduced 06/09/2006) This Act comprehensively reforms Delaware's workers' compensation law. Among other things, the Act limits medical costs by providing for: a comprehensive fee and cost schedule for medical expenses and utilization costs; the certification of health care providers providing care for workers' compensation injuries; and a medical dispute resolution process. The Act clarifies concepts of temporary disability and permanent partial disability and sets standards for determining when an employee has reached maximum medical improvement from a work related injury. The Act provides a process for injured workers to receive vocational rehabilitation to aid their return to work. The Act also provides for an informal arbitration process to resolve disputed workers' compensation claims operated by the Department of Labor, and implements controls for attorneys' fees incurred in the workers' compensation process to ensure that all such fees are reasonable. The Act improves data collection practices and requires certain safety measures, particularly for firms with high rates of industrial accidents.
Louisiana HB1377 (Introduced 05/10/2006) Signed by Governor 6/15/2006 Relates to the Recreational and Used Motor Vehicle Commission. The bill states, “The venue for any arbitration proceeding and the jurisdiction and venue for any action concerning the franchise, selling, or other contractual agreement between any recreational products dealer and any manufacturer or distributor shall be in Louisiana in the parish of East Baton Rouge. It is the public policy of this state that the venue and jurisdiction provided for in this Paragraph shall not be modified by contract.”
Oklahoma SB324 (Introduced 02/07/05) Signed by Governor 6/9/2006 This act prohibits certain types of provisions in construction agreements, namely, provisions that require an entity to indemnify, insure, defend or hold harmless another entity which caused death or bodily injury to persons, or damage to property, due to negligence or fault. Any portion of the construction agreement that attempts to circumvent these prohibitions by requiring litigation, arbitration or other dispute resolution proceeding in another state is void and unenforceable.
Pennsylvania HB2738 (Introduced 06/06/2006) Requires parties in worker’s compensation litigation to participate in a mediation conducted by a worker’s compensation judge.
Pennsylvania HB2752 (Introduced 06/13/2006) Provides for mediation of land use planning disputes involving certain classes of cities and towns.
Rhode Island SB2777 (Introduced 02/14/2006) This act allows a homeowner, who has contracted with a foreclosure consultant, to have the option of making the contractual arbitration provision void.
South Carolina SB3700 (Introduced 3/3/2005) Signed by Governor 6/9/2006
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