Arbitration
Manifest Disregard of Contract Termination Clause: Arbitration Award Vacated
January 27th, 2017
Arbitration awards are difficult to overturn, but the Rhode Island Supreme Court has ruled, in a 3-2 split decision, that an arbitrator manifestly disregarded the parties’ contract in his decision, and has vacated that award. The underlying project…
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Two Instances Where One Party Could Not Compel a Non-Party to Arbitrate
December 2nd, 2016
The Maryland Court of Special Appeal has recently issued decisions in two separate matters, reaching similar conclusions on very different sets of facts. The outcomes were (1) a related non-party could not be compelled to arbitrate, nor (2) could a p…
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Undocumented Oral Agreement Came Within Scope of Written Arbitration Clause
November 16th, 2016
A hauling company submitted bids for removal of three different types of construction debris, and the parties agreed on and signed a contract covering two of those categories. Later, by oral agreement the third category initially bid on was added at…
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State Supremacy over the Federal Arbitration Act?
July 16th, 2016
Okay, so the New Hampshire Supreme Court did not actually say its state arbitration law trumped the federal act. But the NH court did say that its state courts would not be obligated to follow certain terms of the Federal Arbitration Act. Interpretin…
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Categories: Arbitration
Divided Court Strikes Arbitration Clause based on Unconscionable Remedies
July 8th, 2016
Concluding that a dispute clause left homeowners with no effective remedy, a divided South Carolina Supreme Court has stricken an arbitration clause in a home construction contract. The dissent, citing recent US Supreme Court decisions, argued that t…
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It’s Not About Football, But . . . Arbitrator’s Decision Vacated, then Upheld, on Issue Not in Original Reference
May 25th, 2016
Football fans on either side of Deflategate will see the corollaries here. Over a span of years, a drywall company made several attempts to withdraw from the contractors’ association that bargains with particular unions. The company ended up in arb…
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Agreement to Arbitrate May Not Require a Written Contract
April 18th, 2016
From two different courts in two different states on two very different claims come the same concept: an agreement to arbitrate may be binding even without a signed contract. One comes via an unsigned law firm partnership agreement, and the other via…
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Categories: Arbitration
Legality of contract with arbitration clause is to be determined by court and not by arbitrator
February 23rd, 2016
One party argued throughout an arbitration proceeding that the agreement containing the arbitration clause was illegal and void as against public policy. The other side had obtained an order compelling arbitration, and then prevailed in front of the…
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Categories: Arbitration
Reference to AAA Construction Industry Rules means that parties agreed to have arbitrator determine arbitrability
January 28th, 2016
A Florida Court of Appeal has concluded that an arbitration clause incorporating the AAA Construction Industry Arbitration Rules means that the parties intended to submit issues of arbitrability to the arbitrator and not to the courts. The parties ha…
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Arbitrators were not authorized to award attorneys’ fees in situation where court could have done so
January 8th, 2016
An arbitration panel applying the AAA commercial arbitration rules awarded one party its attorneys’ fees, on the grounds that “substantially all of the defenses [of the other party] were wholly insubstantial, frivolous and not advanced in good fa…
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Categories: Arbitration