Arbitration

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A recent decision of the Third Circuit Court of Appeals, Ario, Insurance Commissioner of the Commonwealth of Pennsylvania, in his official capacity as the statutory liquidator of Legion Insurance Company (in liquidation) v. The Underwriting Members of Syndicate 53 at Lloyd’s for the 1998 Year of Account, No. 09-1921, 09-2989 and 09-2991 (3d Cir. 2010), involved a dispute between the Liquidator of Legion and Villanova, as cedents, and The Underwriting Members of Syndicate 53 at Lloyd’s for the 1998 Year of Account, as reinsurers, which concerned whether the cedents had properly underwrote the business described in the reinsurance placement materials. …
Read More Third Circuit Rules that Clear and Unambiguous Intent is Required to Opt Out of the Removal Provision and Vacatur Standards of the FAA and Convention

As our readers know, we have been following the developments in Louisiana Safety Association of Timbermen – Self Insured Fund v. Certain Underwriters at Lloyd’s, London, et al., No. 09 945, a case under consideration for certiorari by the U.S. Supreme Court that concerns whether Article II of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, as implemented by Chapter 2 of the Federal Arbitration Act (the “FAA”), is an “Act of Congress” subject to the anti preemption provision of the McCarran Ferguson Act, 15 U.S.C. 1011, et seq. …
Read More United States Solicitor General: The Convention Is Not Preempted by the McCarran-Ferguson Act

In Granite Rock Co. v. International Brotherhood of Teamsters et al., No. 08-1214 (2010) — the United States Supreme Court held — by a vote of seven to two — that the issue of when and whether an arbitration agreement was ratified falls within the exclusive purview of the court, and not the arbitrator, if that determination concerns whether the parties’ intent was to submit the dispute at issue to arbitration. …
Read More U.S. Supreme Court: Ratification Issue to be Determined by Judiciary, Despite Federal Policy Favoring Arbitration of Disputes

In Rent-A-Center, West, Inc., v. Antonio Jackson, the U.S. Supreme Court addressed the issue of whether, under the Federal Arbitration Act (“FAA”), a federal court has the authority to address a party’s claim that an arbitration agreement is unconscionable, where the agreement explicitly delegates that decision to the arbitrator.  The Supreme Court held that courts lack the power to do so, where the party asserting unconscionability does not specifically challenge the delegation provision. …
Read More U.S. Supreme Court Rules that Court Lacks the Authority to Determine Whether an Arbitration Agreement Is Unconscionable

A dispute arose between Certain Underwriters at Lloyd’s London and R.A. Wilson & Associates, Ltd concerning an insurance policy.  After a lawsuit was filed, the court ordered the parties to proceed to arbitration based upon the insurance policy’s arbitration agreement. …
Read More New York Federal Court Refuses to Appoint Umpire, Finding That Arbitration Clause Provided Sufficient Mechanism

In Binder v. Medicine Shoppe International, Inc., No. 09-14046 (E.D.Mich. 2010), a breach of contract dispute between the plaintiff (a franchisor) and the defendant (a franchisee) arose out of a Uniform Franchise Offering Circular and subsequent License Agreement (“Agreement”).  The Agreement was entered into in Michigan and provided that the parties would arbitrate any disputes regarding the Agreement in Missouri. …
Read More District Court Finds that the Federal Arbitration Act Preempts State Statute Barring Out-of-State Arbitrations

In Fensterstock v. Education Finance Partners and Affiliated Computer Services, Inc., plaintiff Fensterstock commenced a class action lawsuit in the Southern District of New York against Education Finance Partners and Affiliated Computer Services for engaging in fraudulent and deceptive practices in connection with the issuance of student loans.  The defendant lenders moved to stay the action and compel individual arbitration in accordance with the loan agreement’s binding arbitration clause. …
Read More Second Circuit Finds that Class Arbitration Waiver Clause Is Unconscionable, Refuses to Compel Arbitration

In a recent decision by the Fourth Circuit Court of Appeals, MCI Constructors, LLC v. City of Greensboro, No. 09-1600 (4th Cir. July 1, 2010), the court held that the district court did not err in denying motions to vacate certain arbitration awards. …
Read More Fourth Circuit Rules that Panel Did Not Exceed the Scope of Its Powers and Declines to Opine Whether Manifest Disregard of the Law is Available After Hall Street