Arbitration roundup

By natalie • Jan 10th, 2010 • Category: Arbitration

USA
December 2 2009

The Federal Arbitration Act severely limits the authority of courts to vacate or modify arbitration awards. In AIG Baker Sterling Heights, LLC v. American Multi-Cinema, Inc., however, the Eleventh Circuit approved a way of getting around those limits that is available in some circumstances. During the arbitration of a dispute between a landlord and tenant over the amount of taxes owed by the tenant under the terms of the lease agreement, the tenant stipulated that it had not paid taxes for a certain six-month period, but discovered after the arbitration award was entered that it actually had paid taxes for that period. In federal court proceedings to confirm the arbitration award, the tenant persuaded the court to reduce the award by the amount of the taxes paid. The Eleventh Circuit reversed the modification of the award, holding that such relief was unavailable under the strict limitations of the FAA.   

Click to continue reading “Arbitration roundup”



Fifth Circuit rules en banc that arbitration treaty trumps state insurance laws

By natalie • Jan 9th, 2010 • Category: Arbitration, Arbitration Cases, Arbitration News

Jorden Burt LLP

USA
November 21 2009

 In Safety National Casualty Corporation v. Certain Underwriters At Lloyd’s, London, — F.3d —-, 2009 WL 3722727 (5th Cir. (La.)), the Fifth Circuit considered en banc the question of whether the McCarran-Ferguson Act caused Louisiana state law to “reverse-preempt” the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the Convention) or its implementing legislation (the Convention Act).   

Click to continue reading “Fifth Circuit rules en banc that arbitration treaty trumps state insurance laws”



Arbitrability of statutory discrimination claims

By natalie • Jan 8th, 2010 • Category: Arbitration

USA
December 4 2009

Congress enacted the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq. (the “FAA”) in 1925 as a solution to the “costliness and delays of litigation,” but arbitration has other benefits as well, including keeping potentially embarrassing discrimination claims private. Whether statutory discrimination claims are arbitrable has been the subject of debate and conflicting legal analysis, leaving employers with no reliable option other than defending claims publicly and at great expense. However, a few recent cases shed some light on the subject for employers who wish to take advantage of the benefits of arbitration to resolve statutory discrimination claims.   

Click to continue reading “Arbitrability of statutory discrimination claims”



Court holds that question of arbitrability is reserved to arbitrators by parties’ agreement

By natalie • Jan 8th, 2010 • Category: Arbitration, Arbitration Cases, Arbitration News

A New York court has affirmed the trial court’s denial of the plaintiff’s motion to stay or enjoin arbitrations pending before the American Arbitration Association. Although noting that the question of arbitrability is generally an issue for judicial determination, the parties’ agreement incorporated the AAA rules, which provide that the arbitration panel had the power to rule on its own jurisdiction. The court therefore found that the scope and validity of the arbitration agreement were properly presented to the arbitators. One justice filed a concurring opinion expressing his view that the United States Supreme Court decision in Hall Street Associates v. Mattel, Inc., 128 S. Ct. 1396 (2008), rendered unenforceable the agreement’s provision allowing for judicial review of legal errors by the arbitrator. The panel opinion had declined to reach that issue since it was included among the arbitrability issues to be decided by the arbitrators. Life Receivables Trust v. Goshawk Syndicate 102 at Lloyd’s, No. 194N 601244/08 (N.Y. App. Div. Oct. 13, 2009).



Notable 2009 U.S. reinsurance arbitration decisions

By natalie • Jan 4th, 2010 • Category: Arbitration News
While 2009 has not been a momentous year for United States case law involving, or having an impact on, reinsurance arbitrations, there have been interesting developments in the following key areas: (1) a party’s ability to challenge arbitration awards arising under the Federal Arbitration Act (the FAA); (2) arbitrator appointment; and (3) enforceability of arbitration agreements. These developments are summarized below.   
Challenging Arbitration Awards

Click to continue reading “Notable 2009 U.S. reinsurance arbitration decisions”