Category: Arbitration: Federal Arbitration Act

Arbitration, FAA, Transportation Workers: SCOTUS Holds FAA Transportation Worker Exemption Applies To Airline Workers Who Load Cargo

The FAA Exempts Interstate-Transportation Workers And Others Like Them From Arbitration.         On June 6, 2022, in an 8-0 opinion authored by Justice Clarence Thomas, SCOTUS held that Latrice Saxon, a ramp supervisor for Southwest Airlines, was exempted by the Federal Arbitration Act from having to arbitrate. Southwest Airlines v. Saxon, No. 21-309 (S. Ct. […]

Arbitration, Waiver: US Supreme Court Holds Prejudice Is Not Required To Find Waiver Of Right To Arbitrate

Arbitration Agreements Must Be Placed On Equal Footing With Other Contracts — So Courts Can't Make Up Special Procedural Rules That Apply Only To Arbitration.         In a unanimous opinion penned by Justice Elena Kagan, the Supreme Court holds that courts cannot create arbitration-specific federal procedural rules, such as the rule that prejudice is necessary […]

Arbitration, Delegation, Choice Of Law: Sixth District Affirms Denial Of Motion To Compel Arbitration Because There Was No Agreement To Arbitrate

Whether An Arbitration Agreement Exists Was A Gateway Issue For The Court To Decide.         Agreeing with the trial court that there was no agreement express or implied to arbitrate, the Court of Appeal affirms the trial court's order denying employer's motion to compel arbitration in a putative class action wage and hours case brought […]

Employment, Legislation, FAA Preemption: Can California Protect Employees From Mandatory Pre-Dispute Arbitration Agreements And Avoid Federal Preemption?

Paul Dubow And Marc Alexander Have Published An Article About FAA Preemption And California's AB 51.         The article, entitled Can California Protect Employees From Entering Into Mandatory Pre-Dispute Arbitration Agreements?, appears in California Litigation, Vol. 34, No. 3 (2021). Paul Dubow is a seasoned mediator and arbitrator in the Bay Area, and Marc Alexander […]

Pending Case, PAGA, FAA: Viking Cruises, Inc. v. Moriana Is A Case To Watch

The United States Supreme Court Granted Cert On December 15, 2022.         The issue: "Whether the Federal Arbitration Act requires enforcement of a bilateral arbitration agreement providing that an employee cannot raise representative claims, including under the California Private Attorneys General Act."         Readers of this blog will know that California courts have repeatedly ruled, […]

Arbitration, FAA, Transportation: 9th Circuit Agrees Domino’s Drivers Transporting Pizza Ingredients To Franchisees Intrastate Are Engaged In Interstate Commerce

Engaged In Interstate Commerce, Domino's Drivers Delivering Pizza Ingredients Intrastate Are Exempt From Requirements of Federal Arbitration Act. 9 U.S.C § 1.     How Domino's Makes Its Pizza ↑ Downtown LA Pizza. Carol Highsmith, photographer. 2012. Library of Congress. ↑ Jon Stewart Deep Dish Pizza Rant. ↓               […]

Arbitration, FAA Preemption: Ninth Circuit Holds Federal Arbitration Act Does Not Preempt AB 51, Which Forbids Employers From Requiring Arbitration As Condition Of Employment

Judge Sandra S. Ikuta Dissents.         Section 432.6 of the California Labor Code, which was added by AB 51, forbids employers from requiring an arbitration agreement as a condition of employment, or threatening to retaliate against an employee for refusing to sign an arbitration agreement. A Ninth Circuit panel, by a two person majority, holds […]

Arbitration, FAA, Waiver: Ninth Circuit Holds In-State Trucker Delivering Goods That Once Crossed State Lines Is Exempt From Federal Arbitration Act

Delivery Truck Driver  Had To Arbitrate Anyway.         Section 1 of the FAA exempts from the Act’s coverage all “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” In Romero v. Watkins and Shepard Trucking,  No. 20-55768 (9th Cir.  8/19/21) (Fisher, Watford, Bumatay),  the court […]

Arbitration, Employment, Choice Of Law, FAA: Second Dist., Div. 7 Holds Choice Of California Law Incorporates Substantive Law But Not Procedural Limitations On Arbitration In Contract Governed By FAA

Parties Could Have Specifically Incorporated Arbitration Limitations In California Labor Code Instead Of Generally Choosing California Law — In Theory.         California Labor Code §229 provides, in part, that actions to collect due and unpaid wages may be maintained without regard to the existence of any private agreement to arbitrate. And parties to an employment […]

Arbitration, FAA, Employment: Ninth Circuit Agrees Uber Workers Are Subject To Mandatory Arbitration

Uber Workers Are Not  Engaged In Interstate Commerce Says The Court.         Can Uber compel mandatory arbitration of disputes with its drivers? To answer this question, the Ninth Circuit in Capriole v. Uber Technologies, No. 20-16030 (9th Cir.  8/2/21) (Wardlaw, Nguyen, Eaton) had to confront whether Uber drivers are exempt from Federal Arbitration Act requirements […]