Dispute Resolution and Arbitration Commons^™

Unwaivable: Public Enforcement Claims And Mandatory Arbitration, Myriam E. Gilles, Gary Friedman

Articles

This essay, written for a conference on the “pathways and hurdles” that lie ahead in consumer litigation, is the first to examine the implications of California’s recent jurisprudence holding public enforcement claims unwaivable in standard-form contracts of adhesion, and the inevitable clash with the U.S. Supreme Court’s decisional law interpreting the Federal Arbitration Act. With its rich history of rebuffing efforts to deprive citizens of public rights through private contract, California provides an ideal laboratory for exploring this escalating conflict.

A Cure For Every Ill? Remedies For “Pathological” Arbitration Clauses, Harout J. Samra, Ramya Ramachanderan

University of Miami Law Review

Defective arbitration and dispute resolution clauses—widely called “pathological clauses”—may undermine parties’ intent to seek recourse to arbitration rather than the courts. Questions concerning the existence and validity of arbitration clauses are subject to state contract law despite the wide sweep of the Federal Arbitration Act. This Article examines selected common “pathologies” and reviews recent court decisions, including from the Eleventh Circuit Court of Appeals and its constituent federal district courts, concerning the enforcement of such clauses.

Realigning Federal Statutes: Contradictions Between The Federal Arbitration Act And The National Labor Relations Act, Denise Han

Brigham Young University Prelaw Review

Christopher Steele and Brendan Leveron were employees at a private

maintenance company named Pinnacle. Both Steele and Leveron

reported that Pinnacle allegedly forced them to work overtime without

just compensation—an allegation that, if proven valid, would

violate the Fair Labor Standards Act and California state law. They

also claimed that Pinnacle was guilty of unfair business practices,

retaliation and whistleblowing violations, and a failure to account.

Soon after Steele and Leveron filed these allegations, they discovered

that their predicament was not unique across the firm. In 2012,

they decided to represent their fellow employees in a class-action suit

which so …

Express Preclusion Of The Federal Arbitration Act For All Bankruptcy-Related Matters, John R. Hardison

St. John's Law Review

(Excerpt)

This Article sets forth a more solid justification for bankruptcy courts to refuse to order arbitration of any matter related to and affecting a bankruptcy case through express preclusion. First, this Article describes the historical development of the Supreme Court’s holdings on preclusion of the FAA in general and on the courts of appeals’ current formulation of a bankruptcy exception to the FAA. Next, this Article discusses the statutory, historical, and policy-based support for reading the bankruptcy jurisdictional provisions as creating an express exception to the FAA, or alternatively as supporting an implied exception to the FAA. As discussed, …

The Final Frontier: Are Class Action Waivers In Broker-Dealer Employment Agreements Enforceable?, Jill I. Gross

Elisabeth Haub School of Law Faculty Publications

How would a court resolve a broker-dealer's action to enforce its class action waiver, which would require the court to disregard FINRA Rule 13204? The Supreme Court has identified one exception to the FAA's mandate: if a “contrary congressional command” displaces the FAA. Thus far, the Court has not had occasion to examine whether a class action waiver in a broker-dealer's employment agreement with an employee is enforceable under this exception. While the Court seems very supportive of these waivers, the securities industry is different. Securities arbitration is heavily regulated, and pronouncements by the SEC--when exercising power expressly delegated to …

Federalizing Contract Law, Stephen A. Plass

Lewis & Clark Law Review

Contract law is generally understood as state common law, supplemented by the Second Restatement of Contracts and Article 2 of the Uniform Commercial Code. It is regarded as an expression of personal liberty, anchored in the bargain and consideration model of the 19th century or classical period. However, for some time now, non-bargained or adhesion contracts have been the norm, and increasingly, the adjudication of legal rights and contractual remedies is controlled by privately determined arbitration rules. The widespread adoption of arbitral adjudication by businesses has been enthusiastically endorsed by the Supreme Court as consonant with the Federal Arbitration Act …

So You Are Saying That There’S A Chance: Strategies For Challenging Compelled Arbitration, Elizabeth Graves

Lewis & Clark Law Review

Significant scholarship has been dedicated to recent jurisprudence on arbitration clauses and class action waivers in modern contracts. Given the difficult landscape of legislation and court decisions favoring arbitration, the availability of the class action model as a vehicle for relief has dwindled. Although the prospects for litigants who wish to bring class claims in courts may be daunting, this Note has discovered some strategies that still may prove useful for future litigation.

I reviewed putative class action cases in which a party moved to compel arbitration between January 1, 2017 and April 1, 2019 to identify recent, effective tactics …

Arbitration Of Worker Contracts: New Prime's Proper Statutory Interpretation Of The 1925 Federal Arbitration Act, Margaret L. Moses

Faculty Publications & Other Works

In 1925, the Congress that adopted the Federal Arbitration Act did not intend for it to cover any workers’ contracts. However, this changed dramatically when the Supreme Court determined in Circuit City Stores, Inc. v. Adams (2001) that all workers’ contracts were covered except for transportation workers. Thus, today, thousands of workers are forced into adhesion contracts requiring arbitration. However, the recent unanimous decision of the Supreme Court in New Prime v. Oliveira unequivocally declares that the proper way to interpret the Act is to give it the meaning it had when Congress enacted the statute. This very reasonable conclusion …

The State Qui Tam To Enforce Employment Law, Andrew Elmore

Faculty Scholarship

This Article examines the states' response to Epic Systems v. Lewis, which held enforceable under the Federal Arbitration Act (FAA) mandatory arbitration agreements that require employees to waive their participation in collective and class actions in employment contracts. Recent evidence shows that mandatory arbitration can erode access to justice for and deterrence of employment law claims. States in response are considering qui tam statutes, which assign the state interests in penalties for employment law violations to private enforcers in return for a bounty, to substitute for the loss of class action enforcement after Epic Systems.

These statutes can …

Arbitration Agreements – What Is The Employee Actually Signing Up For?, Kennedy Poe

The Journal of Business, Entrepreneurship & the Law

This note will examine the various effects and implications the Supreme Court’s decision concerning the legality of class action waivers within employee-employer contracts will have on employers, employees, and the contracts made between them. Part I will identify class action waivers within an employment contract’s arbitration agreement and will further elaborate upon the legal implications of such waivers being present in the contract. Part II will then discuss the history of the NLRA and assess its present-day role in employee–employer contract formation, in order to provide clarity as to the dispute that has arisen between the NLRA and class action …

Recent Developments, Raelynn J. Hillhouse

Arkansas Law Review

No abstract provided.

The Best Of Times And The Worst Of Times: The Current Landscape Of Mandatory Arbitration Clause Enforcement In Domestic Arbitration, Virginia Neisler

Law Librarian Scholarship

There is nothing new about arbi­tration, a method of alternative dispute resolution designed to settle disputes more efficiently, cheaper, and faster than litigation. Today, mandatory arbitration clauses are ubiquitous in commercial contracts, social media terms and conditions, employment contracts, and more. These contracts, where one party in the weaker position (often a consumer or an employee) must either accept or reject the terms as written with no power to negotiate, are known as contracts of adhesion. The widespread use of arbitration clauses—specifically, pre­dispute, forced arbitration agreements, often including class­action waiv ers found in adhesion contracts—has come under pressure.

Sign Or Else: Employment Arbitration In The Wake Of An Epic Decision, Brendan Williams

Marquette Benefits and Social Welfare Law Review

No abstract provided.

The Uncertain Status Of The Manifest Disregard Standard One Decade After Hall Street, Stuart M. Boyarsky

Dickinson Law Review (2017-Present)

The Federal Arbitration Act (FAA) enables parties to obtain quick and final resolution to disputes without incurring the costs, delays, and occasional publicity of litigation. Indeed, section 10 of the FAA enumerates four specific grounds on which courts may vacate arbitral awards: corruption, fraud, impartiality, and misconduct or incompetence. Yet over the past 60 years, a debate has raged over the existence of an additional ground: the arbitrator’s manifest disregard of the law.

The Supreme Court first enounced this standard in dicta in its 1953 decision in Wilko v. Swan. Over next four decades, every federal circuit court slowly …

Protecting Against Protectionism: Commisa V. Pemex, Victoria Aynne Barker

Georgia Journal of International & Comparative Law

No abstract provided.

Class Dismissed: Compelling A Look At Jurisprudence Surrounding Class Arbitration And Proposing Solutions To Asymmetric Bargaining Power Between Parties, Matthew R. Hamielec

Chicago-Kent Law Review

Class actions and arbitrations have existed since the United States’ inception. Since the mid-twentieth century, both Congress and the U.S. Supreme Court have helped arbitration blossom from litigation’s overshadowed alternative to a prominent means of resolving disputes. Soon, the commercial industry proceeded to incorporate arbitration provisions in their consumer and employment contracts. That way, when a dispute arose between the business and a person, the business would arbitrate with claimants individually. Plaintiffs’ attorneys who favored collective action proceedings like class actions, however, pushed for courts’ allowance of class arbitration—a class proceeding conducted within an arbitration’s confines.

Corporations litigated such class …

Evolution Of The Arbitration Forum As A Response To Mandatory Arbitration, Teresa J. Verges

Articles

No abstract provided.

Uber Hitches A Ride With Arbitration: How Pro-Arbitration Attitudes And Uber Will Prevail In California And The Ninth Circuit, Neil Eddington

Pepperdine Dispute Resolution Law Journal

Part I of this article will introduce Uber and describe how the sharing economy functions. This section will explain Uber’s current conflict with their drivers regarding arbitration agreements and why the stakes are so high. Part II will explore the FAA—its history, original legislative intent and purpose—in order to provide a baseline from which to contrast its current broad application. Part III will highlight Supreme Court jurisprudence on arbitration to illustrate how the FAA is now expansively interpreted contrary to its original limited scope. This Part will culminate in an examination of the Concepcion and American Express majority and dissenting …

Cross-Border Insolvencies: To “Universalize” Or To Arbitrate?, Young Hye (Martina) Chun

Pepperdine Dispute Resolution Law Journal

This note makes a cost-benefit analysis of the U.S. Bankruptcy Code Chapter 15 and International Commercial Arbitration in the context of cross-border bankruptcy proceedings. Part I sets the stage by providing two opposing theoretical approaches to cross-border insolvencies: territorialism and universalism. Part II introduces the UNCITRAL’s Model Law on Cross-Border Insolvency, which is incorporated into the U.S. Bankruptcy Code Chapter 15. It presents how the Model Law has attempted to compensate for the lack of a global court by incorporating universalism. Part III demonstrates that while Chapter 15 sounds good in theory, it fails to address the very issue it …

Religious Arbitration And Its Struggles With American Law & Judicial Review, Sukhsimranjit Singh

Pepperdine Dispute Resolution Law Journal

No abstract provided.

Doscher: The Second Circuit Frees Itself From Its Prior Look Through Approach, Fueling A Circuit Split, Peter Nelson

Arbitration Law Review (2009 - Present)

No abstract provided.

Trumping The Ninth Circuit: How The 45th President’S Supreme Court Appointments Will Strengthen The Already Strong Federal Policy Favoring Arbitration, Eric Schleich

Arbitration Law Review (2009 - Present)

No abstract provided.

The Future Of Class Action Waivers In Employment Agreements: Lewis Creates A Framework For The United States Supreme Court, Meghan Gonyea

Arbitration Law Review (2009 - Present)

No abstract provided.

Bolstering The Foundation Of Fundamental Fairness: The Ninth Circuit Declares Equitable Tolling Now Applies To The Federal Arbitration Act, Matthew E. Selmasska

Arbitration Law Review (2009 - Present)

No abstract provided.

How The Supreme Court's Misconstruction Of The Faa Has Affected Consumers, Margaret L. Moses

Faculty Publications & Other Works

Neither the drafters of the Federal Arbitration Act nor the Congress that adopted it intended for it to cover consumers or workers or displace state jurisdiction or state substantive law. The FAA was simply intended to provide a means for resolving disputes among commercial entities that might voluntarily choose to forego their rights to have their disputes settled in court, in favor of what they deemed to be a simpler and more efficient means of dispute resolution. That point, which is entirely beyond dispute, has been lost on the Supreme Court. In a series of cases over the past fifty …

Notes From A Quiet Corner: User Concerns About Reinsurance Arbitration – And Attendant Lessons For Selection Of Dispute Resolution Forums And Methods, Jeffrey W. Stempel

Scholarly Works

Arbitration between insurers and reinsurers – those who insure insurance companies – should logically run as smoothly as any arbitration process. Like the traditional commercial arbitration that drove enactment of the Federal Arbitration Act, reinsurance arbitration involves experienced actors in a confined industry in which the parties should be constructively aware of the rules, norms, customs and practices of the industry. But in spite of this, reinsurance arbitration experiences consistent problems of which the participants complain. This article reviews the complaints and exams possible solutions – including the possibility of arbitrating less and litigating more. Although these possible solutions would …

Changing The Game: The Effects Of The 2012 Revision Of The Icc Arbitration Rules On The Icc Model Arbitration Clause For Trust Disputes, Colin Connor

Georgia Journal of International & Comparative Law

No abstract provided.

Arbitration Case Law Update 2016, Jill I. Gross

Elisabeth Haub School of Law Faculty Publications

This chapter identifies decisions by the U.S. Supreme Court and selected federal and high state courts in the past year that interpret and apply the Federal Arbitration Act (FAA). This chapter also analyzes the impact some of these cases might have on securities arbitration practice.

Does Rigorously Enforcing Arbitration Agreements Promote “Autonomy”?, Hiro N. Aragaki

Indiana Law Journal

In recent years, the U.S. Supreme Court has helped transform arbitration law into a radical private-ordering regime in which freedom of contract has come to eclipse public regulation. Arbitration jurisprudence justifies this transformation in part on a profound and longstanding commitment to the ideal of individual autonomy, understood as the freedom—lacking in litigation—to select a disputing process best suited to one’s needs.

In this Article, I question the cogency of this justification. I argue, first, that autonomy has had different and sometimes conflicting meanings even within arbitration jurisprudence. Second, depending on the meaning one ascribes to autonomy, it is at …

Arbitrating Estoppel: Equitable Estoppel In Arbitration Contracts, Nicholas Oleski

Cleveland State Law Review

The Sixth Circuit and the district courts within the circuit have held that non-signatories to arbitration contracts may be compelled to arbitrate under the Federal Arbitration Act—even though they are not signatories to the arbitration contract. These courts reason that the non-signatories must arbitrate their claims because of an equitable estoppel theory. Although the Federal Arbitration Act displaces most state law regarding arbitration, the Supreme Court has held that federal courts must use state contract law to determine who is bound by an arbitration contract. This Note examines state contract law in the Sixth Circuit on equitable estoppel and concludes …