The story becomes more complicated when Citigroup and the individual broker sought to challenge the award in state court on the grounds of manifest disregard of law, and bias because two of the arbitrators failed to make required disclosures. It turns out the parties appeared to have settled their dispute before the arbitration was commenced. This the court seizes on without addressing the arbitrator disclosure issue.
I have to admit I was a little concerned about the Arbitration Resolution Services, Inc. business model when I read summaries describing Martin v. Wells Fargo Bank, N.A., No. 12-6030 (N.D. Cal. Dec. 2, 2013). It sounded like the court was saying online agreements to arbitrate were not enforceable. Then I read the actual case. Turns out this case is just about failure of proof.I have to admit I was a little concerned about the Arbitration Resolution Services, Inc. business model when I read summaries describing Martin v. Wells Fargo Bank, N.A., No. 12-6030 (N.D. Cal. Dec. 2, 2013). It sounded like the court was saying online agreements to arbitrate were not enforceable. Then I read the actual case. Turns out this case is just about failure of proof.
State and Federal courts – even in California – seem to have gotten the U.S. Supreme Court’s memo that the Federal Arbitration Act (“FAA”) generally preempts state laws that impinge on arbitration. Two recent cases underscore that trend, but also show that, at least in California, there are limits to FAA preemption, where a party asserts that the arbitration clause is unconscionable.
Several times over the past few months, I’ve discussed in this blog court decisions underscoring my belief that more and more state courts now “get it” on Federal Arbitration Act preemption of state laws impinging on arbitration. Two recent decisions by state supreme courts underscore this now undeniable trend. Washington and Crop Insurance The first…
George Friedman, a member of our Board of Directors, today presented “The Basics Of Securities Arbitration” to Seton Hall Law School’s Investor Advocacy Project. You can preview his presentation here. Friedman is also an adjunct law professor at Fordham University. The Basics of Security Arbitration from Arbitration Resolution Services
One of the major complaints about consumer arbitration is the hassle and expense of a consumer going on a road trip to attend the arbitration hearing to seek a recovery. A recent Second Circuit decision underscored this problem, and prompted me to write this blog post. In Duran v. The Hass Group, L.L.C., no. 12-3568-cv…
Federal Courts on Frivolous Motions to Vacate Arbitration Awards: “I’m as Mad as Hell and I’m Not Going to Take this Anymore!” The other night, I stumbled upon the classic movie, “Network,” starring Faye Dunaway and Peter Finch. At a pivotal juncture in the movie, the increasingly unhinged Finch urges viewers to open their…
Before we know it, a new hockey season will be upon us. In that spirit, I report on a Federal Arbitration Act “preemption hat trick” that was completed August 12th by the Supreme Judicial Court of Massachusetts’ decision in McInnes v. LPL Financial, Inc., SJC-11356. For those not familiar with hockey, a “hat trick” occurs…
Judge Joyner’s August 1st ruling in Goldman Sachs v. Athena Venture Partners, LLC, no. 13-MC-130 (E.D. Pa.), underscored some fairly basic arbitration law: the Federal Arbitration Act requires that arbitrators fully disclose to the parties anything that might cause a reasonable person to question the arbitrator’s impartiality. In Goldman an arbitrator – who was an…
Another generally anti-arbitration court — this one in Massachusetts — seems to have gotten the U.S. Supreme Court’s memo that the Federal Arbitration Act preempts state laws impinging on arbitration. See this excellent analysis of the latest reversal of Feeney v Dell by Deborah LaFetra in the PLF Liberty Blog.