Arbitrators have an affirmative duty to reveal potential conflicts of interest, especially when such a disclosure is expressly required by the forum in which they serve, and may taint the entire panel via inadequate disclosures. That was the lesson in Charles Schwab & Co., Inc. v. Guerrero, No. 21-2-05414-1-SEA (Wash. Super. Ct., Kings Cty., Oct. 26,…
Having just heard argument in this term’s only arbitration-related case on the oral argument docket, SCOTUS on November 15 granted Certiorari in another case involving arbitration. As reported in SAA 2021-41 (Nov. 4), with a full complement of Justices, oral argument took place November 2 before the Supreme Court in the arbitration-centric Badgerow v. Walters, No. 20-1143. With no other arbitration-related…
Years ago I penned a blog post on Thanksgiving and arbitration. It still rings true. So, without further ado, here’s my Thanksgiving blog post, updated. The other day, I stumbled on a television show that debunked some commonly-held misperceptions about Thanksgiving. Who knew the Pilgrims didn’t wear black and white clothes and sport buckles? This got…
We reported in SAA 2021-41 (Nov. 4) that the Public Investors Advocate Bar Association (“PIABA”) announced in an October 28 Press Release that Michael Edmiston of Jonathan W. Evans & Associates was elected President at its just-concluded annual meeting. As promised, we interviewed Mr. Edmiston about his priorities for this upcoming year. The Alert congratulates Mr. Edmiston and thanks him for agreeing…
With Halloween behind us, I thought it might be an interesting break from our usual serious scholarly fare for your author to share some humorous horror stories drawn from decades in the alternative dispute resolution field. Some names have been changed or eliminated – not mine – to protect the guilty. Babe in the Woods I entered the alternative…
The Supreme Court has eschewed for now the opportunity to review whether California’s Private Attorneys General Act is preempted by the Federal Arbitration Act. But another Certiorari Petition involving the issue remains pending. We have reported many times on Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal.4th 348, 327 P.3d 129 (Calif. 2014), cert. den., 135…
The North American Securities Administrators Association (“NASAA”) has released for public comment draft model rules to address the lingering problem of unpaid fines and arbitration awards. Just as we were putting SAA 2021-37 (Oct. 7) to bed, NASAA issued an October 5 Press Release, NASAA Seeks Public Comment on Proposed Model Rules to Combat Unpaid Arbitration Awards and…
PIABA’s third report in over five years says the problem of unpaid FINRA awards is getting worse, not better. The Report, FINRA Arbitration’s Persistent Unpaid Award Problem, was announced in a September 29 Press Release, PIABA – 30% of 2020 FINRA Arbitration Awards Went Unpaid, and via a 24-minute Zoom event. The headlines? “The percentage of unpaid customer awards in FINRA arbitration…
A split Ninth Circuit has finally ruled on the validity of AB-51, which would restrict predispute arbitration clauses (“PDAA”) in employment relationships. The mandatory PDAA preclusions in the new law withstand Federal Arbitration Act (“FAA”) preemption scrutiny, but the criminal and civil penalties for mandatory PDAA use do not. We sometimes wonder whether courts read…
FINRA Dispute Resolution Services (“DRS”) on September 17 announced an updated COVID-19 vaccination policy. Effective October 4, all in-person participants must be fully vaccinated to attend hearings. There will be a “proof of negative PCR test” exception through November 19, except in Florida – where the exemption will continue indefinitely. Here is the policy in its entirety (footnotes are…