Category: Arbitration: Delegation

International Arbitration, Gateway Issue, Delegation, Scope: Ninth Circuit Holds That Incorporation Of ICC Rules Delegates Issue Of Scope Of Arbitration To The Arbitrator

Ninth Circuit Joins Second And First Circuits.         In Portland General Electric Company v. Liberty Mutual Insurance Company, et al., No 16-35628 (9th Cir. 7/10/17) an opinion authored by Senior District Judge Jed S. Rakoff, the 9th Circuit joins the 2nd and 1st Circuits to conclude that "incorporation of the rules of the ICC [International […]

Arbitration, Delegation, PAGA: In Two Lawsuits Brought By Uber Drivers, Ninth Circuit Holds Issue Of Arbitrability Was Delegated To The Arbitrator, But PAGA Claims Go To District Court In One Of The Lawsuits

How Will This Ultimately Play Out?      In Mohamed v. Uber Technologies and Gillette v. Uber Technologies, Nos. 15-16178 and 16181 (9th Cir. 9/7/16), cases in which district court judge Edward M. Chen found arbitration clauses between Uber and its drivers to be unenforceable, the 9th Circuit panel has affirmed in part and reversed in […]

Arbitration Gateway And Delegation Issues: In A 4-3 Decision, California Supreme Court Rules That Deciding Whether Arbitration Agreement Permits Classwide Arbitration Is The Arbitrator’s Decision To Make

Dissent Argues That Classwide Arbitrability Is A Gateway Question The Court Should Get To Decide.      The courts have treated gateway arbitrability issues concerning the existence of an arbitration agreement and the scope of the agreement as  “gateway” issues for the courts to decide, whereas so-called procedural issues are to be resolved by the arbitrator.  […]

Public Policy: Trial Court’s Confirmation Of Arbitrator’s Attorney’s Fees Award Is Reversed Because Law Firm Simultaneously Represented Adverse Parties In Unrelated Matters.

Under California Law, Where Party Challenges An Entire Contract As Illegal Or In Violation Of Public Policy, The Question Of Enforceability Is For The Court To Decide.      A substantial fee dispute between Sheppard, Mullin, Richter & Hampton, LLP and its client J-M Manufacturing Co., Inc., resulted in an arbitrator’s award to Sheppard, Mullin that […]

Arbitration, Class, Severability, Delegation, Class Action: Court Of Appeal Holds Arbitration Clause Enforceable, Except For Severable Fees And Costs Provision In Consumer Arbitration

Fees And Costs Provision In Consumer Arbitration Was Unconscionable Here.      This case involves a common scenario in which a business sells a good or service that is financed, the business is unable to fully perform, and the lender seeks to enforce an arbitration provision when it gets sued.  Here, the Court of Appeal held […]

Arbitration, Delegation, AAA Rules, Gateway Issues: Agreement To Conduct Arbitration Under AAA Rules Constitutes Clear And Unmistakable Evidence of Intent That Arbitrator Decides Whether To Permit Arbitration Of Class Claims

Incorporation By Reference Of AAA Rules Is The Key Here.       Plaintiffs, who worked as armed security guards, brought an employment class action against their employers Universal Protection Service, LP and Universal Services of America, Inc. (UPS).  After the trial court denied UPS’ motion to compel individual arbitration, while staying the suit pending arbitration, UPS […]

Choice of Law; Delegation: Delegation Clause And Agreement Arbitration Disabling Application Of California Law In Employment Dispute Are Found To Be Substantively Unconscionable

“Exotic” Choice Of Law Clause Is The Key To This Case.      Stained glass in Neiman Marcus store, San Francisco.  Carol M. Highsmith, photographer.  2012.  Library of Congress.      Neiman Marcus drafted an ingenious choice of law clause that the First District, Division Four, describes as “exotic” – perhaps a euphemism for “too clever by […]

Arbitration, Class Action, Delegation, Collateral Estoppel, Standard Of Review: Federal Order Vacating Arbitration Award Binds State Court

“Manifest Disregard Of The Law” Federal Standard For Vacating Award Worked To Employee’s Advantage Here.      Our next case involves arbitration issues addressed in three forums:  a Labor Management Committee, state courts, and federal district court.  Plaintiff/Petitioner Wawock petitioned for a writ of mandate, seeking an order directing the superior court to deny defendant CSI’s […]

Arbitration, Delegation, Gateway Issues: Parties’ Reference To AAA Rules Constitutes Clear And Unmistakable Evidence The Arbitrator Decides Whether Agreement Permits Arbitration of Class Or Representative Claims

Agreement to AAA’s Employment Rules Necessarily Includes Agreement To AAA Class Action Rules.      On February 28, 2015, I posted about an unpublished case holding that a reference to AAA Commercial Rule R-7 ambiguously delegates power to the arbitrator, because it gives the power to rule to the arbitrator, without saying that a trial judge […]

Arbitration, Delegation, Unconscionability: AAA Rule Delegating To Arbitrator Power To Rule On Jurisdiction And Existence, Scope Or Validity Of Arbitration Agreement Is Held To Be Ambiguous

AAA Delegation Rule Did Not Preclude Trial Court From Ruling On Unconscionability, But Trial Court Is Reversed, Because The Arbitration Agreement Is Not Unconscionable.      After her criminal law professor allegedly said, “"Many women in the field look like dykes, just like you, Anna," Anna Eakins sued Corinthian Colleges, its college president, and her professor. […]