A comprehensive weekly ADR overview from the National Arbitration Forum
Week of April 4, 2008

IN THIS ISSUE

Federal Cases


ADR Legislation & Regulation

 

 

Federal Cases

Arbitrator Exceeded His Powers by Disregarding Parties' Instructions to Apply Wisconsin Law
Edstrom Industries, Inc. v. Companion Life Insurance Co., 516 F.3d 546 (7th Cir. 2008)
2/11/2008

In a case arising from an insurance dispute, the Seventh Circuit Court of Appeals held that the arbitrator exceeded his powers by disregarding a Wisconsin statute and thereby failing to abide by the parties' directive that he apply Wisconsin law. In reaching this holding, the Court distinguished this case from those cases in which the parties have altered the standard of review by creating contractual grounds for vacatur.

In Edstrom Industries, Inc. v. Companion Life Insurance Co., 516 F.3d 546 (7th Cir. 2008), Edstrom Industries (Edstrom) obtained a "stop loss" insurance policy from Companion Life Insurance (Companion). The policy insured Edstrom against any medical expenses exceeding $65,000 that Edstrom would be required to pay under a group health insurance plan for its employees and their dependents...  Full Story


Questions About What an Arbitration Agreement Means are for the Arbitrator to Decide
Dealer Computer Services, Inc. v. Champion Ford, No. 07-13174, 2008 WL 205249 (D. Mich. Jan. 24, 2008)
1/24/2008

A Michigan federal court upheld an arbitration panel's clause construction arbitration award, issued in the context of a putative class arbitration. The Court determined that whether an arbitration agreement forbids class arbitration, or not, is a matter for the arbitrator, not the court, to decide.

In Dealer Computer Services, Inc. v. Champion Ford, No. 07-13174, 2008 WL 205249 (D. Mich. Jan. 24, 2008), Champion Ford and 50 other members of the Ford Dealer Development Program filed a demand for class arbitration against Dealer Computer seeking to arbitrate the underlying dispute as a class rather than individually...  Full Story


New York Federal Court Issues Sanctions Against Party for "Obvious Impropriety" of Third-Party Subpoena Issued During Arbitration
Kenney, Becker LLP v. Kenney, No. 06 Civ. 2975(JSR), 2008 WL 681452 (S.D.N.Y. Mar. 6, 2008)
3/6/2008

A federal district court in New York has awarded sanctions against a litigant for the improper issuance of a third-party subpoena during an arbitration proceeding.

In Kenney, Becker LLP v. Kenney, No. 06 Civ. 2975(JSR), 2008 WL 681452 (S.D.N.Y. Mar. 6, 2008), the Court stayed the original action and compelled arbitration. After the Court's orders were entered, but before the start of the arbitration proceedings, Becker issued a subpoena to a third-party to appear at the arbitration and to produce certain documents. Becker did not provide notice to Kenney of the subpoena until the first day of the arbitration proceedings...  Full Story


E-mailed Arbitration Agreement Enforceable Where Arbitration Agreement Mutually Binds Both Parties
Pennington v. Northrop Grumman Space & Mission Systems Corp., No. 07-2250, 2008 WL 695889 (10th Cir. Mar. 14, 2008)
3/14/2008

An e-mailed employment arbitration agreement is enforceable where the mutual agreement to arbitrate constitutes sufficient consideration, the Tenth Circuit Court of Appeals has held.

In Pennington v. Northrop Grumman Space & Mission Systems Corp., No. 07-2250, 2008 WL 695889 (10th Cir. Mar. 14, 2008), Christine Pennington filed suit against her former employer, Northrop, for alleged sexual discrimination. During the course of her employment, Pennington had received an arbitration agreement in an e-mail. On the basis of this agreement, Northrop moved to compel arbitration of Pennington's claims...  Full Story


Puerto Rico Federal Court Declares Simple Real Estate Transactions With Out-of-State Purchasers Do Not Invoke FAA, But Still Compels Arbitration
Garrison v. Palmas Del Mar Homeowners Ass'n, Inc., Civ. No. 06-2062 (GAG/MEL), 2008 WL 655607 (D.P.R. Mar. 10, 2008)
3/10/2008

Despite its declaration that the Federal Arbitration Act (FAA) does not apply to simple residential real estate transactions involving out-of-state purchasers, a Puerto Rico federal district court has compelled arbitration of claims between a homeowner and an agent of his homeowner's association.

In Garrison v. Palmas Del Mar Homeowners Ass'n, Inc., Civ. No. 06-2062 (GAG/MEL), 2008 WL 655607 (D.P.R. Mar. 10, 2008), a dispute arose between homeowner Garrison, the Palmas Del Mar Homeowners Association (PDMHA), the Palmas Del Mar Architectural Review Board (PDMARB), and certain fellow residents over impeded construction work. PDMARB, citing a dispute resolution agreement within Garrison's property deeds, moved to compel arbitration of Garrison's claims against it...  Full Story


Texas Federal Court Compels Arbitration of Dispute Over Conditions Precedent to Arbitration
SR Intern. Business Ins. Co. Ltd. v. Energy Future Holdings Corp., Civ. A. Nos. 3:07-CV-0908-L, 3:07-CV-0913-L, 2008 WL 657405 (N.D. Tex. Mar. 6, 2008)
3/6/2008

A Texas federal court has compelled a dispute over compliance with conditions precedent to arbitration, holding that the dispute arose out of an interpretation of contractual language within the scope of the arbitration agreement.

In SR Intern. Business Ins. Co. Ltd. v. Energy Future Holdings Corp., Civ. A. Nos. 3:07-CV-0908-L, 3:07-CV-0913-L, 2008 WL 657405 (N.D. Tex. Mar. 6, 2008), SR issued a reinsurance policy to Energy. The policy incorporated by reference an arbitration agreement. After a dispute arose, the parties proceeded to arbitration...  Full Story


Insufficient Evidence of Agreement, Unconscionable Provisions That Cannot be Severed Cause California Court to Refuse Motion to Compel
McManigal v. Medicis Pharmaceutical Corp., No. C07-4874 TEH, 2008 WL 618909 (N.D. Cal. Mar. 3, 2008)
3/3/2008

A California federal court has refused to compel arbitration of employment-related claims, finding insufficient evidence of an agreement between the parties and noting unconscionable, difficult-to-sever cost and venue provisions within the alleged agreement.

In McManigal v. Medicis Pharmaceutical Corp., No. C07-4874 TEH, 2008 WL 618909 (N.D. Cal. Mar. 3, 2008), McManigal accused Medicis of discrimination and sexual harassment during her employment. Medicis moved to compel arbitration of McManigal's claims, maintaining that arbitration agreements within restricted stock and stock option agreements bound the parties to arbitrate employment-related claims...  Full Story


Several Unfair Terms Render eBay Seller's Arbitration Agreement Invalid
Mazur v. eBay Inc., No. C 07-03967 MHP, 2008 WL 618988 (N.D. Cal. Mar. 4, 2008)
3/4/2008

A California federal district court has found an eBay seller's arbitration agreement unconscionable due to its unclear formatting, designation of non-neutral arbitrators, and extreme limitations imposed upon proceedings.

In Mazur v. eBay Inc., No. C 07-03967 MHP, 2008 WL 618988 (N.D. Cal. Mar. 4, 2008), Mazur purchased certain jewelry from merchant HJA on eBay's website. Mazur later filed suit against HJA, alleging that it had misrepresented its merchandise and engaged in fraudulent bidding practices. HJA moved to compel arbitration of Mazur's claims in accordance with an agreement presented to Mazur electronically at the point of purchase...  Full Story


Court Dismisses Unconscionability Claim on Credit Card Arbitration Agreement Because Cardholder Suffered No Injury
Lee v. Capital One Bank, Inc., No. C 07-4599 MHP, 2008 WL 648177 (N.D. Cal. March 5, 2008)
3/5/2008

A federal district court in California determined that since a credit card holder had suffered no injury, he lacked Article III standing to challenge an arbitration agreement on grounds of unconscionability.

In Lee v. Capital One Bank, Inc., No. C 07-4599 MHP, 2008 WL 648177 (N.D. Cal. March 5, 2008), Lee brought suit against Capital One for violations of California consumer protection statutes and fraudulent inducement...  Full Story


California Federal Court Holds That Unconscionable Terms Permeate Entire Wireless Franchise Contract's Arbitration Agreement
AT & T Mobility II, LLC v. Pestano, No. C 07-05463 WHA, 2008 WL 682523 (N.D. Cal. Mar. 7, 2008)
3/7/2008

A California federal court has declared a wireless franchise contract's arbitration agreement unconscionable, specifically noting "oppressive" notice, limitation, fee-splitting, and confidentially terms.

In AT & T Mobility II, LLC v. Pestano, No. C 07-05463 WHA, 2008 WL 682523 (N.D. Cal. Mar. 7, 2008), a dispute arose between franchisor AT & T and franchisee Pestano over monies owed after the termination of the parties' franchise agreement. The last version of the contract contained an arbitration agreement encompassing all of the parties' claims...  Full Story


Opportunity for Award of Attorney Fees Under FACTA Forecloses Unconscionability Challenge
Harris v. DirecTV Group, Inc., No. 07 C 3650, 2008 WL 342973 (N.D. Ill. Feb. 05, 2008)
2/5/2008

A federal court in Illinois held that a potential award of attorney's fees available under the Fair and Accurate Transactions Act (FACTA) means that an arbitration agreement containing a class action waiver is not substantively unconscionable even if the amount of damages claimed is individually small.

In Harris v. DirecTV Group, Inc., No. 07 C 3650, 2008 WL 342973 (N.D. Ill. Feb. 05, 2008), William Harris brought a putative class action suit against DirecTV for allegedly including his credit card expiration date on a computer-generated receipt...  Full Story


Meaningful Opportunity for Consumer to Opt Out of Arbitration Agreement Contained Within Packaging Necessary to Form Binding Agreement
Kaufman v. American Exp. Travel Related Services Co., Inc., No. 07 C 1707, 2008 WL 687224 (N.D. Ill. Mar. 07, 2008)
3/7/2008

A federal court in Illinois held that an arbitration agreement found in the packaging of an American Express gift card was unenforceable because the consumer only agreed to the terms disclosed at point of sale, and because he was not made aware of an opportunity to return the card.

In Kaufman v. American Exp. Travel Related Services Co., Inc., No. 07 C 1707, 2008 WL 687224 (N.D. Ill. Mar. 07, 2008), Saul Kaufman purchased an American Express gift card. A package insert contained additional terms and conditions, including an arbitration agreement at the end of five pages of six-point typeface...  Full Story


 

State Cases

Reference to Arbitration Rules Proves Parties’ Intent to Submit Arbitrability Questions to Arbitrator
McLaughlin v. McCann, Civ. A. No. 3067-VCS, 2008 WL 483457 (Del. Ch. Feb. 21, 2008)
2/21/2008

In compelling arbitration of an arbitrability dispute, a Delaware Chancery Court ruled that party intent to submit arbitrability questions to the arbitrator is established by an arbitration agreement which references a body of arbitration rules authorizing the arbitrator to decide questions of arbitrability, unless the arbitration agreement contains broad and substantial carve-outs or exceptions.

In McLaughlin v. McCann, Civ. A. No. 3067-VCS, 2008 WL 483457 (Del. Ch. Feb. 21, 2008), McLaughlin purchased a business from McCann. The parties executed a company purchase contract that included an arbitration agreement referencing American Arbitration Association (AAA) rules. These rules explicitly authorize the arbitrator to decide questions of arbitrability. See AAA Commercial Arbitration Rule R-7(a)...  Full Story


Alabama Supreme Court: Party's Failure to Timely Appeal Order Compelling Arbitration Bars Its Later Motion to Vacate Resulting Award
Jenks v. Harris, Nos. 1050686, 1050687, 2008 WL 683633 (Ala. Mar. 14, 2008)
3/14/2008

The Alabama Supreme Court has reversed a trial court's order vacating an arbitration award, holding that the opposing party's appeal of the order originally compelling arbitration was untimely under the Alabama Rules of Appellate Procedure.

In Jenks v. Harris, Nos. 1050686, 1050687, 2008 WL 683633 (Ala. Mar. 14, 2008), Jenks entered into a construction contract with homebuilder Dukes. The contract contained an arbitration agreement encompassing any and all related disputes. Later, Dukes was unable to complete the home and hired Harris to complete the job...  Full Story


Florida Appellate Court Strikes Down Contract Limiting Remedies
Woebse v. Health Care and Retirement Corp. of America, No. 2D06-720, 2008 WL 313588 (Fla. Dist. Ct. App. Feb. 06, 2008)
2/6/2008

Reversing a trial court order granting a motion to compel arbitration, a Florida appellate court held an arbitration agreement unconscionable because it limited judicial remedies for victims of nursing home abuse.

In Woebse v. Health Care and Retirement Corp. of America, No. 2D06-720, 2008 WL 313588 (Fla. Dist. Ct. App. Feb. 06, 2008), Kramer resided in Heartland's nursing home where he died on August 4, 2004. Woebse, Kramer's daughter and administrator of his estate, sued Heartland for wrongful death and various violations of Florida nursing home statutes...  Full Story


Award Confirmation Does Not Require a Signed Arbitration Agreement, Only a Written One
Chase Manhattan Bank USA v. Myers, No. 07CA48, 2008 WL 629995 (Ohio Ct. App. Feb. 28, 2008)
2/28/2008

Under Ohio law, an application to confirm an arbitration award need only include the parties' written arbitration agreement, not a signed agreement, according to the Ohio Court of Appeals.

In Chase Manhattan Bank USA v. Myers, No. 07CA48, 2008 WL 629995 (Ohio Ct. App. Feb. 28, 2008), Chase filed a claim against Myers for an unpaid credit card balance in accordance with the parties' arbitration agreement. The arbitrator issued an award in favor of Chase...  Full Story


ADR Legislation & Regulation

LEGISLATION

CA A 1867
AUTHOR: Keene [R]
TITLE: Real Estate Appraisers
DISPOSITION: Passed Judiciary Committee 3/25/08
LOCATION: Assembly Appropriations Committee
Commentary: Amendments to the Business and Professions Code that "Any waiver by a member, including, but not limited to, an agreement to arbitrate a claim, that is required as a condition of submitting a proposal or doing business with a public agency shall be presumed involuntary, unconscionable, against public policy, and unenforceable."

CA A 2359
AUTHOR: Jones [D]
TITLE: Covered Loans
DISPOSITION: Pending
Commentary: A bill to prohibit most forms of arbitration in nontraditional, subprime, and high cost mortgage agreements. The bill, which previously contained no ADR provisions, was amended March 28, 2008 to include: "The Legislature finds and declares that involuntary contractual waiver provisions with respect to a high cost loan, subprime loan, or nontraditional mortgage, including, but not limited to, an agreement to arbitrate a dispute, that limit or purport to limit a borrower's or applicant's access to any administrative complaint or dispute resolution procedure of the State of California or any other public agency, including, but not limited to, the right to file and pursue a complaint against a licensed person or entity, to file and pursue a civil action, or to limit the authority of the State of California or other public agency to investigate and pursue claims alleging violation of law or regulations, imposed as a condition of a loan, are against the public policy of this state."

CA S 1642
AUTHOR: Yee [D]
TITLE: Public Contracts: Claims
DISPOSITION: Pending
Commentary: This bill would provide for a mediation process and binding arbitration process for claim disputes between a contractor and public entity, charter city, or charter county which does not have an alternative dispute process, if those claims remain unresolved after a specified time period.

CO H 1276
SPONSOR: Kerr A [D]
TITLE: Workplace Accommodations for Nursing Mothers
DISPOSITION: To Governor
LOCATION: To Governor
Commentary: Concerns workplace accommodations for nursing mothers. Requires non binding mediation before litigation would commence under this statute.

CT H 5531
INTRODUCER: Joint Judiciary
TITLE: Revised Uniform Arbitration Act
DISPOSITION: Reported favorably out of Committee 3/24/08
LOCATION: Legislative Commissioner's Office
Commentary: This bill would adopt the Revised Uniform Arbitration Act.

CT S 534
INTRODUCER: Joint General Law
TITLE: Cash Advance Contracts and Personal Injury
DISPOSITION: Pending
LOCATION: SENATE
Commentary: Concerns cash advance contracts and plaintiffs in personal injury and wrongful death cases. Outlines several unfair trade practices regarding cash advances made to plaintiffs in personal injury and wrongful death cases. The bill would also prohibit mandatory arbitration agreements in cash advance contracts.

DC B 50
SPONSOR: Mendelson [D]
TITLE: Arbitration Amendments Act of 2007
DISPOSITION: Enacted
LOCATION: Chaptered
Commentary: The Act consists of a modified version of the Revised Uniform Arbitration Act ("RUAA") that (1) prohibits consumer and insurance policyholder arbitration; (2) mandates cost disclosures within consumer arbitration agreements; and (3) requires arbitration administrators to publish, free of charge, information regarding the details and outcome of every consumer arbitration.

FL S 1012
COMPARE: FL H 405
AUTHOR: Banking and Insurance Cmt
TITLE: Health Insurance Claims Payments
DISPOSITION: Pending
Commentary: Relates to health insurance claims payments; amendments include: in regard to a "Leasing, renting, or granting access to a preferred provider or exclusive provider...(7) A health care contract may provide for arbitration of disputes arising under this section."

FL S 1196
AUTHOR: Geller [D]
TITLE: Insurance Rate Standards
DISPOSITION: Pending
LOCATION: Tabled
Commentary: The bill states, in relevant part, "After any action with respect to a rate filing that constitutes agency action for purposes of the Administrative Procedure Act, except for a rate filing for medical malpractice, an insurer may, in lieu of demanding a hearing under s. 120.57, require arbitration of the rate filing. However, the arbitration option provision in this subsection does not apply to a rate filing that is made on or after the effective date of this act until January 1, 2011."

FL S 2076
SIMILAR: FL H 1219
AUTHOR: Deutch [D]
TITLE: Arbitration
DISPOSITION: Pending
Commentary: An act providing "that the Florida Arbitration Code does not apply to certain insurance policies; provides that mandatory binding arbitration is void and unenforceable except as provided by federal law. Provides that a financial or personal interest in the outcome of a proceeding or an existing or past relationship with a party constitutes grounds for removal of the arbitrator." Also requires that an arbitrator must conduct an arbitration in a "fundamentally fair" manner, in addition to other procedural requirements of arbitration. Finally, puts restrictions on activities of arbitral organizations and requires them to publish reports of outlined information and disclosure of arbitration costs.

IA H 2653
AUTHOR: Commerce, Regulation and Labor Cmt
TITLE: Foreclosure Consultants
DISPOSITION: Passed Commerce Committee 3/27/08
LOCATION: SENATE
Commentary: Relates to foreclosure consultants and foreclosure reconveyances. The bill provides that any provision of a foreclosure consultant contract that attempts or purports to require arbitration of a dispute that arises under the bill is void at the option of the homeowner.

ID S 1433
AUTHOR: State Affairs Cmt
TITLE: Floating Homes
DISPOSITION: Pending
LOCATION: Chaptered
Commentary: Amends bill which relates to floating homes. As it relates to arbitration, amendments include a requirement for arbitration of disputes under specific circumstances and provide a procedure for arbitration.

KS S 379
AUTHOR: Ways and Means Cmt
TITLE: Construction Contracts
DISPOSITION: Pending
LOCATION: HOUSE
Commentary: A bill concerning construction contracts. Amended on 3/20/08 to include: "Any litigation, arbitration or other dispute resolution proceeding arising from such contract shall be conducted in this state. Any provision, covenant or clause in such contract that conflicts with the provisions of this subsection shall be void and unenforceable."

LA H 374
AUTHOR: Chandler [D]
TITLE: Child Custody Mediators
DISPOSITION: Pending
LOCATION: HOUSE
Commentary: Provides for the qualifications of child custody mediators.

LA H 1009
AUTHOR: Ellington [D]
TITLE: Cable Television
DISPOSITION: Pending
LOCATION: HOUSE
Commentary: Creates the Consumer Choice for Television Act. Amendments include: "C. Prior to filing suit, the local governmental subdivision or certificate holder shall give the other party written notice of any dispute not resolved in the normal course of business. Representatives of both parties, with authority to settle the dispute, shall meet within thirty calendar days after receipt of such notice, and thereafter as often as reasonably deemed necessary, to exchange relevant information and attempt to resolve the dispute. If the dispute has not been resolved within sixty calendar days after receipt of such notice, either the local governmental subdivision or certificate holder may initiate nonbinding mediation. Good faith participation in and completion of the negotiation and mediation procedures set forth in this Subsection shall be a condition precedent to proceeding with such suit beyond its filing to interrupt the prescriptive period set forth in this Section."

MD H 1557
AUTHOR: Vaughn [D]
TITLE: Home Builder Registration Unit
DISPOSITION: Pending
LOCATION: Senate Rules Committee
Commentary: Amends a statute regarding the Home Builder Registration Unit. Amendments include the requirements to recover from the guaranty fund, which includes pursuing mediation, then arbitration (but only if the parties mutually agreed to an arbitration provider if not, then the claimant has the option of seeking recovery from the fund rather than going to arbitration).

MN S 2822
COMPANION: MN H 3115
AUTHOR: Clark [DFL]
TITLE: Insurance
DISPOSITION: Passed House 3/27/08
LOCATION: Concurrence
Commentary: Relates to insurance; regulates first party good faith insurance practices; provides remedies. Does not allow award of taxable costs to claims subject to contractual or statutory arbitration, and does not allow findings or determinations made in arbitration to be used to recover taxable costs.

OH H 125
SPONSOR: Huffman [R]
TITLE: Health Care Provider Contract Provisions
DISPOSITION: Enacted
LOCATION: Signed by Governor
Commentary: Adds ADR provisions for health care provider (third party payer) contract disputes, which are "subject to a mutually agreed upon arbitration mechanism, which is binding on all parties. The arbitrator may award reasonable attorney's fees and costs for arbitration relating to the enforcement of this section to the prevailing party. The limitation to reasonable attorney's fees and costs shall not apply to disputes regarding breach of contract."

WI A 542
AUTHOR: Lasee [R]
TITLE: Interstate Insurance Product Regulation Compact
DISPOSITION: Failed
LOCATION: ASSEMBLY
Commentary: This bill would enact the Interstate Insurance Product Regulation Compact (compact). The stated purposes of the compact include promoting and protecting the interests of consumers of annuity, life insurance, disability income, and longterm care insurance products (insurance products); developing uniform standards for insurance products; establishing a central clearinghouse for review of insurance products, and advertisements related to insurance products, that are filed with the Interstate Insurance Product Regulation Commission (commission); and giving regulatory approval to insurance products and related advertisements filed with the commission. As it relates to ADR, the Compact would restrict the use of arbitration clauses in such contracts that were not pre approved by rule or pre approved by the Interstate Insurance Product Regulation Commission or which do not conform with the form contracts in use among the compacting states.

WI A 568
AUTHOR: Richards [D]
TITLE: Regulating Foreclosure Reconveyances
DISPOSITION: Failed
LOCATION: ASSEMBLY
Commentary: A bill to regulate foreclosure reconveyances. A foreclosure reconveyance is defined as a transaction under which the mortgagor transfers title to residential real property in foreclosure to a third party, called a foreclosure purchaser in the bill. As it relates to arbitration, the bill provides that any provision in a contract requiring arbitration of any dispute arising under the provisions is void at the option of the foreclosed homeowner. A violation of the statute may be considered criminal fraud.

WI A 604
AUTHOR: Rhoades [R]
TITLE: Cable and Satellite Television System Operators
DISPOSITION: Failed
LOCATION: ASSEMBLY
Commentary: This bill allows a person who creates video programming for cable or satellite television systems (video programmer) to seek arbitration if that video programmer believes that a cable or satellite television system operator has not treated the video programmer in a fair, reasonable, and nondiscriminatory manner concerning the proposed amount to be paid for the addition or renewal of a video channel to the cable or satellite operator's television system.

WI S 294
AUTHOR: Breske [D]
TITLE: Interstate Insurance Product Regulation Compact
DISPOSITION: Enacted
LOCATION: Chaptered
Commentary: This bill would enact the Interstate Insurance Product Regulation Compact (compact). The stated purposes of the compact include promoting and protecting the interests of consumers of annuity, life insurance, disability income, and long term care insurance products (insurance products); developing uniform standards for insurance products; establishing a central clearinghouse for review of insurance products, and advertisements related to insurance products, that are filed with the Interstate Insurance Product Regulation Commission (commission); and giving regulatory approval to insurance products and related advertisements filed with the commission. As it relates to ADR, the Compact would restrict the use of arbitration clauses in such contracts that were not pre approved by rule or pre approved by the Interstate Insurance Product Regulation Commission or which do not conform with the form contracts in use among the compacting states.

WI S 298
AUTHOR: Sullivan [D]
TITLE: Foreclosure Reconveyances
DISPOSITION: Failed
LOCATION: SENATE
Commentary: A bill to regulate foreclosure reconveyances. A foreclosure reconveyance is defined as a transaction under which the mortgagor transfers title to residential real property in foreclosure to a third party, called a foreclosure purchaser in the bill. As it relates to arbitration, the bill provides that any provision in a contract requiring arbitration of any dispute arising under the provisions is void at the option of the foreclosed homeowner. A violation of the statute may be considered criminal fraud.

WI S 343
AUTHOR: Hansen [D]
TITLE: Cable and Satellite Television System Operators
DISPOSITION: Failed
LOCATION: SENATE
Commentary: This bill allows a person who creates video programming for cable or satellite television systems (video programmer) to seek arbitration if that video programmer believes that a cable or satellite television system operator has not treated the video programmer in a fair, reasonable, and nondiscriminatory manner concerning the proposed amount to be paid for the addition or renewal of a video channel to the cable or satellite operator's television system.

WI S 352
AUTHOR: Wirch [D]
TITLE: Residential Mortgage Loans
DISPOSITION: Failed
LOCATION: SENATE
Commentary: This bill would require a number of disclosures to be made in connection with residential mortgage loans, including whether an arbitration agreement is part of the loan documents.

WI S 363
AUTHOR: Hansen [D]
TITLE: Powersports Vehicle Manufacturers
DISPOSITION: Failed
LOCATION: SENATE
Commentary: This bill creates provisions governing the relationship between powersports vehicle manufacturers and distributors, including their agents, officers, factory representatives, and affiliates (collectively referred to as franchisors), and powersports vehicle dealers (dealers). As it relates to arbitration, the bill prohibits arbitration agreements from requiring an arbitration venue outside of the state.


REGULATIONS

Ohio OAC 1301:8-3-03 thru -09, -11 thru -19, -22 thru -24
AGENCY: Department of Commerce/Division of Financial Institutions
TITLE: Second Mortgage Loans
Commentary: Amends rules regarding second mortgage loans. Amendments include a provision that "[t]he registrant may in addition to, or as part of, its loan modification process offer the borrower the option to have the matters under dispute submitted for mediation before an unbiased private third party."


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