Independent insurance sales agents have been treated as independent contractors (ICs) for decades. But recently, class action lawyers have begun to target insurance companies with claims that carriers have misclassified these sales agents as ICs instead of employees. These lawsuits allege that insurance companies have violated wage and hour, employee
Arbitration
Five Key Legal Developments in 2017 in Independent Contractor Misclassification and Compliance Law – and What to Expect in 2018
Independent contractor misclassification class action lawsuits and administrative proceedings are becoming more prevalent. Why? Because most industries have made use of independent contractors either to supplement their workforce or as part of their business model. The insurance industry is no exception; indeed, it has traditionally treated agents as ICs and…
NEBRASKA: A Good Home for Berkshire Hathaway, but not for Reinsurance Agreements
By Troutman Pepper Locke on
A Cornhusker by birth, I’ve always had a special affinity for Nebraska, and particularly Omaha, where I was raised. My only regret is that I was neither old nor rich enough to participate in Mr.Buffet’s original partnership. Notwithstanding the frequent kvetching about the arbitration process, it is still the most…
Massachusetts Federal Court Rejects Pre-Award Challenge Based On Arbitrator Qualifications
By Troutman Pepper Locke on
Posted in Arbitration, Massachusetts Developments
A Massachusetts federal court recently denied a pre-award petition to remove a party-appointed arbitrator finding that the Federal Arbitration Act (FAA) did not authorize the court to order arbitrator removal before a final arbitration award has been issued. The parties disputed whether the qualification requirements of the arbitration clause in…
Locke Lord’s Brian T. Casey, Partner from the Atlanta Office authors “CFPB’s Arbitration Ban Could Affect Insurance Products” for Law360 on May 31, 2016
By Brian Casey & Troutman Pepper Locke on
On May 5, 2016, the Consumer Financial Protection Bureau published its 377 page anticipated proposed regulation, which would create new Part 1040 in Chapter Ten of Title 12 of the Code of Federal Regulations, regarding the use of mandatory predispute arbitration clauses in contracts for certain types of consumer financial…
Third Circuit Applies Constructive Knowledge Standard And Finds Waiver Of Arbitration Panel Challenge
By Troutman Pepper Locke on
Posted in Arbitration
The U.S. Court of Appeals for the Third Circuit has found that post-award objections to an arbitrator were waived because the party had constructive knowledge of the arbitrator’s insufficient disclosure. The court held that a party should be precluded from challenging an award where malfeasance, ranging from conflicts-of-interest to non-disclosures…
UK: France and Spain Lose State Immunity in M/T “PRESTIGE” Case
By Troutman Pepper Locke on
Posted in Arbitration, United Kingdom
In The London Steam-Ship Owners’ Mutual Insurance Association Ltd v (1) The Kingdom of Spain (2) The French State [2013] EWHC 3188, London Steam-Ship (the Claimant) sought an English judgment pursuant to s. 66 Arbitration Act 1996 (the Act) enforcing arbitral awards it had obtained against the Kingdom of Spain and the French State (the Defendants). …
Massachusetts High Court Rules That Federal Arbitration Act Applies to Contracts Involving Interstate Commerce
By Troutman Pepper Locke on
In a decision that has implications for reinsurance, the Massachusetts Supreme Judicial Court last week decided that the Federal Arbitration Act preempts the Massachusetts Arbitration Act where the relevant contract involves interstate commerce. The decision is McInnes v. LPL Financial, LLC, et al., No. SJC-11356 (Aug. 12, 2013), and is available at the court’s website. …
Recent Caselaw Illuminates the Limits of the Federal Arbitration Act’s Reach to Insurance Contracts
By Troutman Pepper Locke on
Posted in Arbitration
Courts are more and more likely to enforce an arbitration clause, but not necessarily the ones in an insurance contract. The U.S. Supreme Court has held the Federal Arbitration Act (“FAA”) to override state common law and statutes that would obstruct enforcement of an arbitration clause.…
Class Waiver Provisions in Arbitration Agreements Are Enforceable, Regardless of Arbitration Costs to Individual Plaintiff, Says United States Supreme Court.
By Troutman Pepper Locke on
Posted in Arbitration, United States
A recent decision by the United States Supreme Court in American Express Co. et al. v. Italian Colors Restaurant et al., __ U.S. __ (June 20, 2013) marks a victory for many seeking to minimize their class action exposure through execution of arbitration agreements with consumers or employees. …