ADR LAW & POLICY UPDATE

Federal Cases

Whether Party Has Waived Right to Arbitrate by Participating in Litigation Is Presumptively a Question for the Court
Ehleiter v. Grapetree Shores, Inc., No. 06-2542, 2007 WL 1029647 (3rd Cir. Apr. 6, 2007)
4/6/2007

In affirming a lower court order denying a motion to compel arbitration, the Fourth Circuit Court of Appeals held that whether a party has waived its right to arbitrate by actively participating in litigation is a question for the court, rather than the arbitrator, unless there is clear and unmistakable evidence of the parties' intent to have an arbitrator decide the question.

In Ehleiter v. Grapetree Shores, Inc., No. 06-2542, 2007 WL 1029647 (3rd Cir. Apr. 6, 2007), Treasure Bay operated a casino on property leased from Grapetree. When Ehleiter, one of the casino dealers, slipped and fell on the premises, he sued Grapetree as the owner of the property... Full Story

Terms in Debt-Elimination Contract Arbitration Clause Render It Unconscionable
Hollins v. Debt Relief of America, No. 8:06CV508, 2007 WL 911883 (D. Neb. Mar. 21, 2007)
3/21/2007

A federal court in Nebraska held that an arbitration agreement in a debt-elimination agreement was unconscionable because it required unsophisticated, indebted consumers in Nebraska to agree to arbitrate all disputes in Texas, therefore essentially shielding the corporation from liability for its actions.

In Hollins v. Debt Relief of America, No. 8:06CV508, 2007 WL 911883 (D. Neb. Mar. 21, 2007), Debt Relief of America (DRA), a Texas corporation offering programs to allow consumers to eliminate debt, advertised its services in Nebraska. Hollins, a Nebraska resident, entered into an agreement with DRA to eliminate his debt... Full Story

Arbitrator Exceeded Powers by Awarding Damages for Time Outside the Scope of the Contract
FedEx Ground Package System, Inc. v. Keller, No. 06 Civ. 6446(DAB), 2007 WL 959298 (S.D.N.Y. Mar. 26, 2007)
3/26/2007

A federal court in New York held that an arbitrator exceeded her powers by issuing an award of damages that exceeded the scope of an employment contract when the award was based on the employer's breach of that contract.

In FedEx Ground Package System, Inc. v. Keller, No. 06 Civ. 6446(DAB), 2007 WL 959298 (S.D.N.Y. Mar. 26, 2007), FedEx terminated Keller after he failed a random drug test. Keller initiated an arbitration alleging wrongful termination, and the arbitrator issued an award in Keller's favor... Full Story

Federal Court in New York Rejects Manifest Disregard and Public Policy Challenges to Arbitration Award
Merrill Lynch, Pierce, Fenner & Smith Inc. v. Savino, No. 06 Civ. 868(LAP), 2007 WL 895767 (S.D.N.Y. Mar. 23, 2007)
3/23/2007

A federal court in New York refused to vacate an arbitration award for manifest disregard of the law when the arbitrators' findings could be justified by at least some evidence.

In Merrill Lynch, Pierce, Fenner & Smith Inc. v. Savino, No. 06 Civ. 868(LAP), 2007 WL 895767 (S.D.N.Y. Mar. 23, 2007), Merrill Lynch fired Savino and other co-defendants (employees) after accusations were made that the employees violated "market timing" policies. The employees brought claims against Merrill Lynch, alleging that they had been defamed. An arbitration panel issued an award in favor of the employees... Full Story

Interstate Commerce Requirement Broadly Construed in Application of FAA
SDD99, Inc. v. ASA Intern., Ltd., No. 06-CV-6089CJS, 2007 WL 952046 (W.D.N.Y. Mar. 29, 2007)
3/29/2007

A federal court in New York determined that the Federal Arbitration Act (FAA) applied to a dispute which, broadly interpreted, involved interstate commerce.

In SDD99, Inc. v. ASA Intern., Ltd., No. 06-CV-6089CJS, 2007 WL 952046 (W.D.N.Y. Mar. 29, 2007), SDD99 filed suit against ASA and its bank, seeking a declaratory judgment that it was entitled to funds held in escrow under the terms of the parties agreement. ASA moved to compel arbitration, but disputed application of the FAA... Full Story

Party Estopped from Arguing That Agreement Did Not Involve Interstate Commerce
Bishop v. Green Tree Servicing, LLC, No. 1:06CV355, 2007 WL 959524 (W.D. N.C. Mar. 28, 2007)
3/28/2007

A federal court in North Carolina held that a party is estopped from claiming that the Federal Arbitration Act (FAA) should not govern a transaction because it does not involve interstate commerce when the agreement expressly states that the transaction does involve interstate commerce and is governed by the FAA.

In Bishop v. Green Tree Servicing, LLC, No. 1:06CV355, 2007 WL 959524 (W.D. N.C. Mar. 28, 2007), Bishop signed an installment contract in connection with his purchase of a mobile home from Southern Showcase Housing. Southern Showcase assigned its rights under the installment contract to Green Tree... Full Story

Court Dismisses Fraud Claim Premised on Arbitration Award
Holmes v. MBNA America Bank, N.A., No. 5:05-cv-16, 2007 WL 952017 (W.D.N.C. Mar. 27, 2007)
3/27/2007

Despite the lenient standards afforded to complaints filed by non-attorneys, a federal court in North Carolina dismissed allegations of fraud that were premised on a credit card company's actions in obtaining an arbitration award in its favor.

In Holmes v. MBNA America Bank, N.A., No. 5:05-cv-16, 2007 WL 952017 (W.D.N.C. Mar. 27, 2007), Holmes claimed that the arbitration award against him for non-payment of credit card debt amounted to "a scheme to defraud him"... Full Story

Federal Court Orders Arbitration of TILA Claim Pursuant to MBNA Cardholder Agreement
MBNA America Bank, N.A. v. Ruhl, No. 4:CV 06-2184, 2007 WL 1031553 (M.D. Pa. Mar. 29, 2007)
3/29/2007

In MBNA America Bank, N.A. v. Ruhl, No. 4:CV 06-2184, 2007 WL 1031553 (M.D. Pa. Mar. 29, 2007), MBNA issued a credit card to Ruhl. The cardholder agreement contained an arbitration clause whereby all disputes between the parties would be submitted to binding arbitration through the National Arbitration Forum... Full Story

Actual Controversy Between Parties Necessary to Seek Declaratory Judgment
Jones v. Sears Roebuck & Co., No. CIVA 5:06CV00345, 2007 WL 964401 (S.D. W. Va. Mar. 28, 2007)
3/28/2007

A federal court in West Virginia dismissed a motion for declaratory judgment prohibiting a party from invoking an arbitration agreement, which prohibited class action, for lack of standing because the arbitration agreement was never invoked.

In Jones v. Sears Roebuck & Co., No. CIVA 5:06CV00345, 2007 WL 964401 (S.D. W. Va. Mar. 28, 2007), Mildred Jones entered into a credit card agreement with Sears. After a dispute arose, Jones sought a declaratory judgment prohibiting Sears from invoking its arbitration agreement... Full Story

Federal Court Follows Majority Rule and Stays Further Proceedings Pending Appeal from Order Denying Arbitration
Express Scripts, Inc. v. Aegon Direct Marketing Services, Inc., No. 4:06-CV-1410, 2007 WL 1040938 (E.D. Mo. Apr. 3, 2007)
4/3/2007

A Missouri federal court has adopted the majority rule that an interlocutory appeal from an order denying a motion to compel arbitration divests the district court of jurisdiction to proceed with the case pending appeal. In adopting this rule, the Court reasoned that the benefits of arbitration could be lost if the district court exercised jurisdiction during the pendency of the appeal.

In Express Scripts, Inc. v. Aegon Direct Marketing Services, Inc., No. 4:06-CV-1410, 2007 WL 1040938 (E.D. Mo. Apr. 3, 2007), the Court denied Aegon's motion to compel arbitration. Aegon appealed that ruling pursuant to section 16 of the Federal Arbitration Act (FAA)... Full Story

Lender Cannot Assign Arbitration Agreement After Settling on Account with Borrower
Koch v. Compucredit Corp., No. 4:06CV00660-WRW, 2007 WL 991070 (E.D. Ark. Mar. 29, 2007)
3/29/2007

A federal court in Arkansas ruled that a lender could not make a valid assignment of an arbitration agreement after settling the account with the borrower because the right to arbitrate no longer existed. Accordingly, a third-party debt collector, the purported assignee, could not invoke the arbitration agreement.

In Koch v. Compucredit Corp., No. 4:06CV00660-WRW, 2007 WL 991070 (E.D. Ark. Mar. 29, 2007), Koch brought a class action against Compucredit for alleged violations of the Fair Debt Collection Practice Act. Compucredit was attempting to collect credit card debt that was originally owed to First North American National Bank (FNB), but which FNB had settled with Koch more than two years earlier... Full Story

No Second Chance for Arbitration of Same Claims
White v. Mayflower Transit, LLC, No. CV 06 6710 CAS PLAX, 2007 WL 926967 (C.D. Cal. Mar. 19, 2007)
3/19/2007

A federal court in California dismissed a party's claims, holding that they could not file a second amended complaint alleging claims subsumed within the scope of the first arbitration award.

In White v. Mayflower Transit, LLC, No. CV 06 6710 CAS PLAX, 2007 WL 926967 (C.D. Cal. Mar. 19, 2007), Zeddrick White contracted with Mayflower for delivery of personal items. White filed suit, alleging various claims. As a contract for the interstate common carriage of goods, the case was remanded to federal court due to the application of the Carmack Amendment, the federal statute exclusively governing such activity. The dispute was submitted to arbitration and an award was issued in favor of Mayflower. This Court granted Mayflower's motion to confirm the arbitration award... Full Story

Arbitration Agreement in ERISA-Governed Contract Enforced
Cleveland v. Oracle Corp., No. C 06-7826 MHP, 2007 WL 915414 (N.D. Cal. Mar. 23, 2007)
3/23/2007

Citing the strong federal policy favoring arbitration, a federal court in California enforced an arbitration agreement in a contract governed by ERISA.

In Cleveland v. Oracle Corp., No. C 06-7826 MHP, 2007 WL 915414 (N.D. Cal. Mar. 23, 2007), Cleveland and other former senior-level executives (employees) brought claims against Oracle, alleging breach of a plan relating to the employees' jobs in the event that control of the company changed. Oracle brought a motion to compel arbitration of the claims, pursuant to an arbitration clause in the plan... Full Story

Northern District of California: Arbitration Permissible in Copyright Disputes
Packeteer, Inc. v. Valencia Systems, Inc., No. C-06-07342 RMW, 2007 WL 707501 (N.D. Cal Mar. 6, 2007)
3/6/2007

A federal court in California affirmed the rights of parties to settle their copyright disputes through binding arbitration, rather than the federal court system.

In Packeteer, Inc. v. Valencia Systems, Inc., No. C-06-07342 RMW, 2007 WL 707501 (N.D. Cal Mar. 6, 2007), Valencia alleged that Packeteer federal violated copyright laws by "reverse engineering" a portion of software code to create a software "patch"... Full Story

Unconscionability Not a Defense Under New York Convention
Khan v. Parsons Global Services, Ltd., No. CIVA 03-1574 RCL, 2007 WL 960115 (D. D.C. Mar. 30, 2007)
3/30/2007

A federal court in the District of Columbia held that a generic choice-of-law provision did not override default arbitration rules, such as are provided in the Federal Arbitration Act (FAA) or New York Convention (NYC) relating to international arbitration; and unconscionability is not a viable challenge to an agreement governed by the NYC.

In Khan v. Parsons Global Services, Ltd., No. CIVA 03-1574 RCL, 2007 WL 960115 (D. D.C. Mar. 30, 2007), Azhar Khan was employed with Parsons, an American company. Mr. Khan was kidnapped while working for Parsons in the Philippines. Both Khan and his wife brought suit against Parsons. When Parsons moved to compel arbitration, both Khans objected, arguing first that under California law, the agreement was unenforceable, and second that Mrs. Kahn was not bound to arbitrate because she was a nonsignatory to the agreement... Full Story

Federal Court Warns Counsel Not to File Frivolous Claims in Attempts to Re-Litigate Issues Settled in Arbitration
Spartan Masonry, LLC v. Hoar Construction, LLC, No. 06-CIV-61033, 2007 WL 951773 (S.D. Fla. Mar. 28, 2007)
3/28/2007

Rejecting an attempt to have an arbitration award vacated as arbitrary and capricious, a federal court in Florida sternly warned the attorney who filed the suit not to bring such "frivolous challenges" in the future.

In Spartan Masonry, LLC v. Hoar Construction, LLC, No. 06-CIV-61033, 2007 WL 951773 (S.D. Fla. Mar. 28, 2007), subcontractor Spartan Masonry (Spartan) and general contractor Hoar Construction (Hoar) each claimed the other party breached their contract. An arbitration panel found that Spartan's failure to complete the work under the contract preceded Hoar's non-payment and ordered Spartan to pay nearly two million dollars in compensatory damages... Full Story

Minor Delay Not Cause for Strict Enforcement of Adverse Selection Clause
Ancon Insurance Co. (U.K.) v. GE Reinsurance Corp., No. 06-2106 CM, 2007 WL 960050 (D. Kan. Mar. 30, 2007)
3/30/2007

A federal court in Kansas ruled that a minor delay was not justification for enforcing an "adverse selection clause" that would have given the other party an opportunity to select both party-appointed arbitrators.

In Ancon Insurance Co. (U.K.) v. GE Reinsurance Corp., No. 06-2106 CM, 2007 WL 960050 (D. Kan. Mar. 30, 2007), Ancon subscribed to reinsurance contracts with GE. The reinsurance contracts contained an arbitration agreement with an adverse selection clause. Under the adverse selection clause, if a party failed to select its party-appointed arbitrator within thirty days of receiving an arbitration demand, the other party could select an arbitrator in their place... Full Story

Federal Court in Massachusetts Refuses to Give Collateral Estoppel Effect to Arbitration Award Due to Lack of Clear Determination of Issues Decided
O'Connell v. Federal Insurance Co., No. 06-10741-RWZ, 2007 WL 923406 (D. Mass. Mar. 27, 2007)
3/27/2007

Because the arbitration record was "devoid of sufficient evidence" to establish an "identicality of issues," a federal court Massachusetts refused to give collateral estoppel effect to an arbitration award.

In O'Connell v. Federal Insurance Co., No. 06-10741-RWZ, 2007 WL 923406 (D. Mass. Mar. 27, 2007), O'Connell was injured in a car accident while riding in a friend's vehicle. Her friend's insurance policy limited O'Connell's recovery to $25,000; however, the driver of the other vehicle owned an insurance policy providing for $500,000 in underinsured motorist coverage through Federal Insurance... Full Story

State Cases

Arbitrator Does Not Exceed Powers by Awarding Damages Where Damages Limitation Was Susceptible to Narrow Interpretation
Spiska Engineering, Inc. v. SPM Thermo-Shield, Inc., No. 24229, 2007 WL 949777 (S.D. Mar. 28, 2007)
3/28/2007

In upholding an arbitration award totaling nearly $5 million, the South Dakota Supreme Court held that the arbitrator did not exceed his powers by awarding damages for wrongful termination of a distribution agreement because the agreement's damages limitation was susceptible to a narrow interpretation that would permit the damages award.

In Spiska Engineering, Inc. v. SPM Thermo-Shield, Inc., No. 24229, 2007 WL 949777 (S.D. Mar. 28, 2007), Spiska and Thermo-Shield entered into a distribution agreement that provided for arbitration in accordance with the rules of the American Arbitration Association (AAA)... Full Story

Lack of Mutuality Does Not Necessarily Invalidate an Arbitration Agreement Under Oregon Law
Motsinger v. Lithia Rose-FT, Inc., No. A128192, 2007 WL 987049 (Or. Ct. App. April 4, 2007)
4/4/2007

In a case arising from an employment dispute, the Oregon Court of Appeals held that a lack of mutuality does not necessarily render an arbitration agreement unconscionable under Oregon law. Instead, unconscionability must be determined on a case-by-case basis, and courts should focus on the agreement's unilateral effect rather than its unilateral application.

In Motsinger v. Lithia Rose-FT, Inc., No. A128192, 2007 WL 987049 (Or. Ct. App. April 4, 2007), Motsinger signed an arbitration agreement when she started working as a receptionist for Lithia Rose-FT (Lithia). The arbitration agreement applied only to claims against Lithia, not to claims against Motsinger... Full Story

California Appellate Court Follows State Supreme Court in Finding No Exception to Mediation Confidentiality in Law or Equity
Fair v. Bakhtiari, No. A100240, 2007 WL 1031708 (Cal. Ct. App. Apr. 6, 2007)
4/6/2007

After being reversed as a matter of law by the state Supreme Court, the California Court of Appeals found no exception to mediation confidentiality either through judicial estoppel or by waiver.

In Fair v. Bakhtiari, No. A100240, 2007 WL 1031708 (Cal. Ct. App. Apr. 6, 2007), Fair sued Bakhtiari, alleging cheating in their business dealings. The parties attended a mediation session that culminated in a handwritten memorandum that included a provision for arbitration, stating, "(a)ny and all disputes subject to JAMS arbitration rules"... Full Story

Disclosure Form Signed by Arbitrator Prior to Arbitration Constitutes Sufficient Disclosure of Subsequent Employment
Markman v. O'Hare, No. G036546, 2007 WL 915108 (Cal. App. Mar. 28, 2007)
3/28/2007

A disclosure form signed by an arbitrator indicating that the arbitrator will entertain employment opportunities with law firms involved in the current dispute is sufficient disclosure to preclude a finding of arbitrator bias, a state court in California held.

In Markman v. O'Hare, No. G036546, 2007 WL 915108 (Cal. App. Mar. 28, 2007), Markman and O'Hare became entangled in a dispute over a real estate sale. The parties submitted their dispute to arbitration, and the arbitrator issued an award granting Markman only a portion of the relief that she requested... Full Story

Connecticut Court Refuses to Vacate Untimely Award: Challenge to Award Was Itself Untimely, and Waived by Party's Conduct
Bowser v. Vilar, No. CV030179644S, 2007 WL 969752 (Conn. Super. Ct. Mar. 21, 2007)
3/21/2007

Declaring that a person should not be "rewarded" for waiting in anticipation of a favorable award, then raising objections of untimeliness only after an unfavorable arbitration award has been issued, a state court in Connecticut has refused to vacate an arbitration award issued in a personal injury case.

In Bowser v. Vilar, No. CV030179644S, 2007 WL 969752 (Conn. Super. Ct. Mar. 21, 2007), Bowser alleged personal injuries suffered in a car accident with Vilar. Both parties subsequently agreed to arbitrate the dispute. Because the agreement contained no explicit time period within which the decision should be rendered, a statutory default time limit of thirty days apparently applied... Full Story

Under Florida Law, Waiver of Right to Arbitrate Does Not Require Showing of Prejudice to the Opposing Party
Coastal Systems Development, Inc. v. Bunnell Foundation, Inc., Nos. 3D06-1188, 3D06-982, 2007 WL 982438 (Fla. Dist. Ct. App. Apr. 4, 2007)
4/4/2007

In affirming a lower court order denying a motion to compel arbitration, the Florida District Court of Appeal applied the Florida rule that waiver of the right to arbitrate does not require a showing of prejudice.

In Coastal Systems Development, Inc. v. Bunnell Foundation, Inc., Nos. 3D06-1188, 3D06-982, 2007 WL 982438 (Fla. Dist. Ct. App. Apr. 4, 2007), Coastal and Bunnell had a profit-sharing agreement. Bunnell brought suit when Coastal refused to provide relevant financial statements... Full Story

Arbitration Panel Exceeded Its Powers by Ignoring Contract Language
First Merit Realty Services, Inc. v. Amberly Square Apartments, L.P., No. 1-05-3556, 2007 WL 942358 (Ill. App. Ct. Mar. 29, 2007)
3/29/2007

The Illinois Court of Appeals held that an arbitration panel exceeded its powers by ignoring the clear language of the parties' written agreement and instead relying on an alleged oral agreement as the basis for its award.

In First Merit Realty Services, Inc. v. Amberly Square Apartments, L.P., No. 1-05-3556, 2007 WL 942358 (Ill. App. Ct. Mar. 29, 2007), FMR managed property for Amberly pursuant to an agreement containing an arbitration clause. After Amberly terminated the agreement, FMR filed an arbitration claim. The arbitration panel issued a summary award in FMR's favor. Amberly filed a motion to vacate the award... Full Story

Massachusetts Supreme Court Upholds Arbitration Agreement Associated with Nursing Home Admission
Miller v. Cotter, SJC-09817, 2007 WL 925792 (Mass. Mar. 30, 2007)
3/30/2007

The Massachusetts Supreme Court held that an arbitration agreement in a nursing home resident's admissions contract was valid and enforceable because admission to the home was not conditioned on agreeing to arbitrate and an employee of the nursing home clearly explained the terms of the agreement.

In Miller v. Cotter, SJC-09817, 2007 WL 925792 (Mass. Mar. 30, 2007), Miller signed an arbitration agreement when admitting his father to a nursing home. The agreement was in a separate document and drafted in clear, unambiguous language... Full Story

Utah Appellate Court Holds That Arbitration Award Not Procured by Fraud When Allegedly Perjured Testimony Could Be Conclusively Corroborated by Evidence on the Record
Fleming v. Simper, No. 20051174-CA, 2007 WL 851589 (Utah Ct. App. Mar. 22, 2007)
3/22/2007

A state court in Utah refused to vacate an arbitration award in a medical malpractice suit after finding no clear evidence that the award was procured through fraud.

In Fleming v. Simper, No. 20051174-CA, 2007 WL 851589 (Utah Ct. App. Mar. 22, 2007), Fleming brought a medical malpractice claim against Simper, alleging that Simper released her too soon after a surgery. An arbitration panel issued an award in Simper's favor. Fleming sought to have the award vacated, arguing that the award was procured by fraud because Simper perjured himself before the arbitration panel... Full Story

ADR Legislation & Regulation

LEGISLATION

AL H 657
AUTHOR: Newton D [D]
TITLE: Mediation Provisions
INTRODUCED: 04/10/2007
DISPOSITION: Pending
LOCATION: House Judiciary Committee
Commentary:
This bill would provide that a mediator in any mediation may not be compelled in an adversary proceeding or a judicial proceeding to testify relating to the mediation or to divulge documents concerning the mediation.

CA A 436
AUTHOR: Salas [D]
TITLE: Medical Records
INTRODUCED: 02/16/2007
LAST AMEND: 04/09/2007
DISPOSITION: Pending
LOCATION: Assembly Health Committee
Commentary:
Generally: Prohibits any entity subject to the Health Insurance Portability and Accountability Act (HIPAA) from disclosing a patient's medical information BUT allows exception if information is requested "by an arbitrator or arbitration panel, when arbitration is lawfully requested by either party, pursuant to a subpoena duces tecum..."

CO H 1307
SPONSOR: Gallegos [D]
TITLE: Seed Act
INTRODUCED: 02/16/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Amends law regarding seed arbitration in the State of Colorado. Changes relate primarily to technical amendments to the composition and procedures of the seed arbitration council.

CO H 1338
SPONSOR: Pommer [D]
TITLE: Homeowner Protection Act of 2007
INTRODUCED: 03/07/2007
LAST AMEND: 03/28/2007
DISPOSITION: To Governor
LOCATION: To Governor
Commentary:
Declares waivers of certain basic statutory rights and remedies—namely, the "Construction Defect Action Reform Act" and the "Colorado Consumer Protection Act"-- by residential property owners in their transactions with construction professionals in arbitration or litigation void as against public policy.

CO S 216
SPONSOR: Veiga [D]
TITLE: Mortgage Loan Fraud Acts Practices
INTRODUCED: 03/06/2007
DISPOSITION: Pending
LOCATION: Senate Appropriations Committee
Commentary:
Declares arbitration clauses requiring the consumer to pay the creditor's attorney fees, or unconscionable liquidated damages clause included in residential mortgage loan contract as "unconscionable."

CT S 74
INTRODUCER: Crisco [D]
TITLE: Pharmacy Benefit Management Plans
INTRODUCED: 01/03/2007
LAST AMEND: 04/02/2007
DISPOSITION: Pending
LOCATION: SENATE
Commentary:
Provides that: "Each pharmacy benefits manager
shall provide the following information to enrollees in its plans at the time of enrollment or at the time the contract is issued, and shall make available upon request or at least annually: ...(3) A description of the method of resolving complaints of covered persons, including a description of any arbitration procedure if complaints may be resolved through a specified arbitration agreement."

CT S 1059
INTRODUCER: Joint General Law
TITLE: New Motor Vehicle Lemon Law
INTRODUCED: 01/30/2007
LAST AMEND: 04/11/2007
DISPOSITION: Pending
LOCATION: HOUSE
Commentary:
Concerning Motor Vehicle Lemon Laws, the Department of Consumer Protection may refer an arbitration dispute to the American Arbitration Association or other arbitration association in accordance with regulations adopted in accordance with the provisions of chapter 54.

DE S 69
PRIMARY SPONSOR: Adams [D]
TITLE: Relating To Arbitration
INTRODUCED: 04/03/2007
DISPOSITION: Pending
LOCATION: HOUSE
Commentary:
This bill would grant jurisdiction to the Court of Common Pleas to enforce and enter judgment on arbitration agreements relating to contracts to provide consumer credit. If an "action for enforcement" is filed in the Court of Chancery, it will be transferred to the Court of Common Pleas.

FL H 1373
COMPARE: FL H 433, FL S 902
IDENTICAL: FL S 2816
AUTHOR: Robaina [R]
TITLE: Community Associations
INTRODUCED: 03/06/2007
DISPOSITION: Pending
LOCATION: House Jobs and Entrepreneurship Council Committee
Commentary:
Some more details have become available about this recently-introduced bill: The bill provides for The Division of Florida Land Sales, Condominiums, Homeowners' Associations, and Mobile Homes of the Department of Business and Professional Regulation to employ full time attorneys to act as arbitrators to conduct the arbitration hearings provided by this chapter (relating to community associations). The division may also certify attorneys who are not employed by the division to act as arbitrators to conduct the arbitration hearings provided by this section.

FL H 1457
SIMILAR: FL S 2488
AUTHOR: Economic Expansion and Infra Council Cmt
TITLE: Recreational Vehicle Dealers and Manufacturers
INTRODUCED: 03/06/2007
LAST AMEND: 04/05/2007
DISPOSITION: Pending
LOCATION: House Second Reading
Commentary:
This bill would limit the ability of a manufacturer/distributor of RVs to "coerce" dealers to "enter into an agreement that requires the dealer to submit its disputes to binding arbitration or otherwise waive rights or responsibilities"

HI HCR 77
AUTHOR: Shimabukuro [D]
TITLE: Predatory Mortgage Lending Practices
INTRODUCED: 03/09/2007
LAST AMEND: 04/03/2007
DISPOSITION: Pending
LOCATION: SENATE
Commentary:
Proposes a study on predatory lending, including mandatory arbitration.

HI S 973
AUTHOR: Ige [D]
TITLE: Public Health
INTRODUCED: 01/19/2007
LAST AMEND: 04/10/2007
DISPOSITION: Pending
LOCATION: Concurrence
Commentary:
Amends state healthcare law for poor: If Medicaid payment dispute involves $10K +, aggrieved party may submit matter to binding arbitration.

HI S 1008
AUTHOR: Taniguchi [D]
TITLE: Annuities
INTRODUCED: 01/19/2007
LAST AMEND: 04/10/2007
DISPOSITION: Pending
LOCATION: Concurrence
Commentary:
Lists as an "unfair claim settlement practice": "Making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration."

HI S 1060
AUTHOR: Hooser [D]
TITLE: Workers' Compensation Law
INTRODUCED: 01/19/2007
LAST AMEND: 04/10/2007
DISPOSITION: Pending
LOCATION: Conference Committee
Commentary:
This bill amends existing worker's compensation law. Among the amendments is a provision for the mediation of worker's compensation disputes.

HI S 1704
AUTHOR: Menor [D]
TITLE: Condominium Laws
INTRODUCED: 01/24/2007
LAST AMEND: 04/05/2007
DISPOSITION: Pending
LOCATION: Concurrence
Commentary:
Relates to condominiums; would mandate the use of "the rules adopted by the commission and chapter 658A; provided that the Condominium Property Regime Rules on Arbitration of Disputes of the American Arbitration Association shall be used until the commission adopts its rules."

IN S 49
AUTHOR: Zakas [R]
TITLE: Probate Administration
PREFILED: 12/18/2006
INTRODUCED: 01/08/2007
LAST AMEND: 04/03/2007
DISPOSITION: Pending
LOCATION: Concurrence
Commentary:
Relates to probate administration; requires party to dispute to agree to "Participate in mediation or submit to arbitration to resolve any dispute concerning the claim or demand."

KS S 333
AUTHOR: Commerce Cmt
TITLE: Fairness in Public Building Construction Act
INTRODUCED: 02/07/2007
LAST AMEND: 04/03/2007
DISPOSITION: To Governor (4/10/07)
LOCATION: To Governor
Commentary:
Creates the Fairness in Public Building Construction Act, amending and repealing previous act. Court or arbitrator should award costs and reasonable attorney fees to prevailing party; sets venue in the county where real property is located, hearing location where real property is located, and requires application of Kansas law.

MA S 2177
AUTHOR: Children and Families
TITLE: Newborn Infant Placement
INTRODUCED: 04/04/2007
DISPOSITION: Pending
LOCATION: Senate Ways and Means Committee
Commentary:
This bill would adopt the Interstate Compact for Juveniles. The Act provides that disputes among compacting states may be settled through mediation or "binding dispute resolution."

MD H 449
CROSSFILED WITH: MD S 502
AUTHOR: Feldman [D]
TITLE: Vehicle Protection Product
INTRODUCED: 02/05/2007
LAST AMEND: 04/03/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Prohibits a vehicle protection product from being sold or offered for sale in the State unless the seller and the warrantor of the vehicle protection product, and warrantor's administrator, comply with the Act; provides that a seller, warrantor, or administrator that complies with the Act is not subject to specified provisions of law. Also provides for "private mediation services" to settle vehicle protection product warranty disputes.

MD S 502
CROSSFILED WITH: MD H 449
AUTHOR: Astle [D]
TITLE: Consumer Vehicle Protection
INTRODUCED: 02/02/2007
LAST AMEND: 04/03/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Similar to HB 449, offers private mediation for vehicle protection product warranty disputes.

MN S 1532
COMPANION: MN H 1515
AUTHOR: Scheid [DFL]
TITLE: Credit Counseling and Debt Management Services
INTRODUCED: 03/05/2007
LAST AMEND: 04/12/2007
DISPOSITION: Second reading 04/17/2007
LOCATION: Senate Judiciary Committee
Commentary:
Regulating the business of credit counseling and debt management services: bans "mandatory arbitration clauses" from agreements.

MT H 409
AUTHOR: Sinrud [R]
TITLE: Motorsport Vehicle Manufacturers Trade Practices
INTRODUCED: 01/22/2007
ENACTED: 04/06/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 152
Commentary:
Prohibits any provisions in a motorsport vehicle manufacturer/dealer agreement that "require that any arbitration proceedings or legal action between the parties take place in a venue other than the state of Montana."

MT H 467
AUTHOR: Peterson K [R]
TITLE: Medical Legal Panel Laws
INTRODUCED: 01/26/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Revising Montana Medical Legal Panel Act. Section 2. Section 27 6 105 provides for the panel's reviewability of all malpractice claims except: "those claims subject to a valid arbitration agreement allowed by law or upon which suit has been filed prior to April 19, 1977."

NC H 1302
SAME AS: NC S 1505
AUTHOR: Glazier [D]
TITLE: New Interstate Compact and Child Placement
INTRODUCED: 04/05/2007
DISPOSITION: Pending
LOCATION: House Children, Youth & Families Committee
Commentary:
Interstate Compact for Placement of Children; provides mediation between compacting states.

NM H 340
AUTHOR: Hall [R]
TITLE: Land Grants
INTRODUCED: 01/22/2007
ENACTED: 04/02/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 2007 145
Commentary:
Relates to land grants; requires zoning disputes to be settled by arbitration;

NV S 553
AUTHOR: Judiciary Cmt
TITLE: Provisions Relating to Construction
INTRODUCED: 03/26/2007
DISPOSITION: Pending
LOCATION: Senate Judiciary Committee
Commentary:
"Relates to the creation of the Contractor Licensing Commission and the Nevada Residential Construction Commission; Establishes the powers and duties of each commission; relates to a voluntary inspection and dispute resolution process with regard to claims brought against contractors and adds to the grounds for disciplinary action against a licensed contractor the willful or deliberate disregard and violation of the inspection and dispute resolution process."

OR H 2384
AUTHOR: Minnis [R]
TITLE: Uninsured Motorist Coverage
INTRODUCED: 01/10/2007
LAST AMEND: 04/04/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Amending act relating to uninsured motorist coverage. Arbitration mention unaffected.

SC H 3831
AUTHOR: Thompson [R]
TITLE: Statewide Database of Deferred Presentment Transactions
INTRODUCED: 04/10/2007
DISPOSITION: Pending
LOCATION: House Labor, Commerce and Industry Committee
Commentary:
This bill would create a database of deferred presentment transactions. Additionally, the bill would render an arbitration clause in a deferred presentment loan contract unenforceable if the contract is unconscionable. In determining if the contract is unconscionable, bill directs the court to consider the circumstances of the transaction as a whole including, but not limited to:

(1) the relative bargaining power of the parties;

(2) whether arbitration is prohibitively expensive to the customer in view of the amounts in controversy;

(3) whether the contract restricts or excludes damages or remedies that would be available to the customer in court, including the right to participate in a class action;

(4) whether the arbitration would take place outside the county in which the licensee is located or another place that is unduly inconvenient or expensive for the customer in view of the amounts in controversy; and

(5) any other circumstances that render the contract oppressive.

UT H 340
AUTHOR: Dunnigan [R]
TITLE: Insurer Receivership Act
INTRODUCED: 01/24/2007
LAST AMEND: 01/31/2007
ENACTED: 03/15/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 309
Provides for arbitration of delinquency proceedings in addition to the already existing provisions providing for arbitration of certain health insurance disputes between the health care provider and patient.

VT H 531
AUTHOR: Health Care Cmt
TITLE: Catamount Health
INTRODUCED: 03/21/2007
LAST AMEND: 04/05/2007
DISPOSITION: Pending
LOCATION: Senate Health and Welfare Committee
Commentary:
This bill would establish outreach and enrollment principles for Catamount Health and state benefit programs. The rules relating to negotiations shall include a nonbinding arbitration process to assist in the resolution of disputes between the commissioner and health care provider bargaining groups.

REGULATION

No new regulations.