Showing posts with label Arbitration. Show all posts

Don't Like Arbitration Award? Have District Court Confirm It First.


This is a pretty clever resolution to an arbitration problem that was just affirmed by the 11th Circuit.

Problem was some monies were not properly credited to one of the arbitrating parties because the issue was not discovered until after the arbitration award.

What to do?

According to the 11th Circuit, the procedure adopted by the district court was kosher -- move for a judgment confirming the arbitration award, then seek to have the judgment modified under Rule 60(b)(5).

Huh?

It actually makes some sense, and I urge everyone to read the thoughtful opinion.

I told you we had some smart judges within the 11th Circuit!

Arbitrate or not?

The Supreme Court rendered an interesting decision in a case where an employer sued a local union for alleged violations of the no strike provisions of a collective bargaining agreement and an international union for tortious interference with the CBA. The local union claimed there was no violation of the CBA because it was not ratified as of the time of the alleged violation of the no strike clause. The 7 member majority opinion (Thomas) held the ratification date issue was one for a court to decide, rather than an arbitrator. A unanimous court refused to extend "federal common law" to include tortious interference with a contract  as a claim cognizable under LMRA § 301. But the really interesting part is after the jump.
The majority opinion seems straight forward. The arbitration clause covered all disputes "arising under" the CBA. The Court's majority notes there is no CBA until ratification. The union asserted the ratification occurred after the actions complained of by the employer, and that as a result the no strike clause did not bar the strike. The Court's majority found the issue of whether ratification occurred was one of formation of the agreement, thus subject to judicial determination. The dissent (Sotomayor) persuasively notes that it is undisputed that the parties reached a binding agreement in December of 2004, which by its terms was made retroactive to the May 2004 expiration of the prior agreement. The dispute surely "arises under" the CBA. The employer consistently argued the case involved a formation dispute, and the union failed to raise its counter argument until its merits brief.
Indeed, by declining to consider the plain terms of the parties’ agreement, the majority offers little more than “an opinion advising what the law would be upon a hypothetical state of facts.”  Aetna Life Ins. Co. v. Haworth, 300 U. S. 227, 241 (1937).  In view of the CBA’s effective date, I would hold that the parties agreed to arbitrate the no-strike dispute, including Local 287’s ratification-date defense, and I would affirm the judgment below on this alternative ground. 

Activist Board considering class action issue

What an activist the NLRB has become. It seems ready to consider finding a ban on class action claims enforced by a mandatory arbitration agreement violates the NLRA. It has solicited briefs on the following:
Did the Respondent violate Section 8(a)(1) of the Act by maintaining and enforcing its Mutual Arbitration Agreement, under which employees are required, as a condition of employment, to agree to submit all employment disputes to individual arbitration, waiving all rights to a judicial forum, where the arbitration agreement further provides that arbitrators will have no authority to consolidate claims or to fashion a proceeding as a class or collective action?
Pending case D. R. HORTON, INC. 12-CA-25764. Searchable here.

Hooray -- It's Arbitration Fairness Day!


Yawn.

Rights shmights, I agree with Justice Thomas -- you and your whiny "right" to buy luxury items like a telephone or air conditioning -- what's wrong with you people? That's not what this country is about!

As usual, I think Archie Bunker summed it up best:
Archie Bunker: That ain't the American Way, buddy. No, siree. Listen here, professor. You're the one who need an American History lesson. You don't know nothin' about Lady Liberty standin' there in the harbor, with her torch on high screamin' out to all the nations in the world: "Send me your poor, your deadbeats, your filthy." And all the nations send 'em in here, they come swarming in like ants. Your Spanish P.R.'s from the Caribboin, your Japs, your Chinamen, your Krauts and your Hebes and your English fags. All of 'em come in here and they're all free to live in their own separate sections where they feel safe. And they'll bust your head if you go in there. *That's* what makes America great, buddy.
[exits Stivic house]
Mike Stivic: [to Gloria] I think we just heard Archie Bunker's Bicentennial Minute.
Still, if you are concerned with having no access to court when you buy anything, even something as high-falutin' as a telephone, somebody is trying to do something about that today:

A coalition of 67 consumer groups, including Public Citizen and Consumers Union, will escort dozens of victims of the high costs and low awards rate of arbitrations to visit with their congressmen tomorrow during “Arbitration Fairness Day.” The all-day activities will include the unveiling of a survey of Americans who don’t like the idea of giving up their rights to court.

Arbitration advocates will no doubt come back with their own examples to show the opposite. The Chamber’s Institute for Legal Reform underwrote a 2005 poll of 609 adults who used arbitration and liked it. Two-thirds said they would be likely to use it again. But it tells little about the suckers who have the choice made for them. Only 19 percent of the people in the poll were required by contract to use arbitration, and those are the cases under fire.

Forced Arbitration

That notion seems to be lost even on members of the Supreme Court, which earlier this month ruled that a group of building- services workers who had been demoted couldn’t override mandatory arbitration to take their age-discrimination case to court. Among the arguments by Justice Clarence Thomas was that the streamlined procedures of arbitration are not a basis to consider the forum inadequate, and that arbitration’s informality “is one of the chief reasons that parties select arbitration.”

Wrong, Mr. Justice. “The parties” don’t select arbitration in these disputed cases. Only one party does.

My favorite local arbitrator, by the way, is former Chief Justice Arthur England, who is unfailingly pleasant and highly professional.

Then again, at $650 an hour, he better be.

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