Category Archives: Arbitration

Arbitration Fairness Act of 2009 – Senate version

Last week, during the April 29 observance of “Arbitration Fairness Day,” Senator Russell Feingold introduced into the Senate the Arbitration Fairness Act of 2009 (s. 931).  Senator Feingold’s website announcement states: The bill would make pre-dispute agreements requiring arbitration for any employment, consumer, franchise, or civil rights disputes unenforceable.  The bill does not prohibit arbitration, but rather prevents … Continue reading Arbitration Fairness Act of 2009 – Senate version

An SEC Commissioner opposes mandatory arbitration

My great friend and former colleague, Barbara Black (Cincinatti), is attending the 15th Institute of Law and Economic Policy (ILEP) conference in Scottsdale, Arizona on “Recoveries for Victims of Securities Fraud.”  While she blogged generally about the conference here, she reported to me privately that Elisse Walter, the keynote speaker and a current Commissioner of … Continue reading An SEC Commissioner opposes mandatory arbitration

Wisconsin Court Affirms Arbitration Award of Reinstatement

In a very interesting decision by the Wisconsin Court of Appeals last week, the Court upheld an arbitration award against the large household goods store Menard’s for employment discrimination against, wait for it, its own in-house lawyer.  As reported in the Milwaukee Journal Sentinel, Menard Inc. must reinstate a woman it fired as vice president … Continue reading Wisconsin Court Affirms Arbitration Award of Reinstatement

Pyett Analysis — Unions can waive but what is clear and unmistakable?

As those of you who follow arbitration know, 14 Penn Plaza v. Pyett raised the age-old question whether a union can waive an individual employee’s right to bring a statutory claim in court by mandating that statutory claims be arbitrated through a clause negotiated in a collective bargaining agreement (“CBA”). The issue was initially resolved … Continue reading Pyett Analysis — Unions can waive but what is clear and unmistakable?

Pyett Decided Today — Union can waive rights

The US Supreme Court today held that a collective-bargaining agreement that clearly and unmistakably requires union members to arbitrate ADEA claims is enforceable as a matter of federal law. The Court did not overrule Gardner-Denver; rather, it distinguished it. The decision was 5-4 with Thomas writing the majority opinion. Here is the cite: http://www.supremecourtus.gov/opinions/08pdf/07-581.pdf I … Continue reading Pyett Decided Today — Union can waive rights

Discover Bank v. Vaden Decided Today

Today, the Supreme Court held in Discover Bank v. Vaden, http://www.supremecourtus.gov/opinions/08pdf/07-773.pdf, that a district court should “look through” a petition to compel arbitration to determine whether the case is predicated on a controversy that “arises under” federal law. Jurisdiction cannot be established, however, by a counterclaim if the whole complaint does not “qualify for federal … Continue reading Discover Bank v. Vaden Decided Today

Second Circuit Refuses to Enforce Class Action Waiver in Arbitration Agreement

The Second Circuit ruled today that a class action arbitration waiver contained in credit card agreement was unenforceable. See In Re: American Express Merchants’ Litigation, No. 06-871 (2d Cir. 2009). The relevant part of the arbitration agreement stated: IF ARBITRATION IS CHOSEN BY ANY PARTY WITH RESPECT TO A CLAIM, NEITHER YOU NOR WE WILL … Continue reading Second Circuit Refuses to Enforce Class Action Waiver in Arbitration Agreement

Second Circuit Rules that Manifest Disregard Exists After Hall Street

The Second Circuit in Stolt-Nielsen SA v. Animalfeeds Int’l Corp., No. 06-3473 (2nd Cir. 2008), www.reinsurancefocus.com/uploads/Stolt.pdf, held that courts may continue to review arbitration awards to determine whether the arbitrator manifestly disregarded the law when he or she rules on a case. Acknowledging that some courts have held that manifest disregard did not survive the … Continue reading Second Circuit Rules that Manifest Disregard Exists After Hall Street