Federal Cases
Federal Arbitration Act Preempts Oklahoma Law Disallowing Arbitration Agreements in Nursing Home Contracts
Rainbow Health Care Center, Inc. v. Crutcher, No. 07-CV-194-JHP, 2008 WL 268321 (N.D. Okla. Jan. 29, 2008)
1/29/2008
A federal district court in Oklahoma has held that an Oklahoma state statutory prohibition on jury trial waivers in nursing home contracts is preempted by the Federal Arbitration Act (FAA), where the nursing home engages in interstate commerce and the contract specifically invokes the FAA in a choice-of-law provision.
In Rainbow Health Care Center, Inc. v. Crutcher, No. 07-CV-194-JHP, 2008 WL 268321 (N.D. Okla. Jan. 29, 2008), Rainbow sought a declaratory judgment from the Court that Oklahoma's statutory prohibition of jury trial waivers in nursing home admission contracts, contained in Okla. Stat. tit. 63, § 1-1939(E), was preempted by the FAA. Rainbow also sought an injunction prohibiting the Oklahoma State Department of Health from revoking Rainbow's license because of its use of an arbitration agreement in its admission contract... Full Story
Second Circuit Extends Absolute Immunity to Witnesses Testifying at Arbitration Proceedings
Rolon v. Henneman, No. 06-3890-CV, 2008 WL 482468 (2nd Cir. Feb. 25, 2008)
2/25/2008
Affirming a district court judgment on the pleadings holding that absolute immunity barred a suit concerning allegedly false testimony given at arbitration, the Second Circuit Court of Appeals has extended common law absolute immunity granted to witnesses in judicial proceedings to those testifying at arbitration.
In Rolon v. Henneman, No. 06-3890-CV, 2008 WL 482468 (2nd Cir. Feb. 25, 2008), the Acting Police Chief for the Town of Wallkill Police Department suspended police officer Rolon for various disciplinary violations. Rolon responded by suing the police department arguing, among other things, that Henneman had violated his constitutional right to due process. The parties settled the suit except for the issue of back pay, which they voluntarily submitted to arbitration... Full Story
Clarification of Indefinite, Incomplete, or Ambiguous Awards May Be Required to Facilitate Effective Judicial Review
Rich v. Spartis, Nos. 06-1723-CV (L), 06-1814-CV (XAP), 2008 WL 343330 (2d Cir. Feb. 8, 2008)
2/8/2008
While arbitrators are not required to provide a reasoned award, courts may ask arbitrators to clarify an "indefinite, incomplete, or ambiguous" award in a way sufficient to allow effective judicial review of the award, according to the Second Circuit Court of Appeals.
In Rich v. Spartis, Nos. 06-1723-CV (L), 06-1814-CV (XAP), 2008 WL 343330 (2d Cir. Feb. 8, 2008), Rich obtained financial investment services from Spartis. A dispute later arose between the parties, and the parties proceeded to arbitration in accordance with their NASD agreement... Full Story
Alabama Federal Court Upholds Arbitration Agreement with Class Action Waiver
Milligan v. Comcast Corp, No. 7:06-cv-00809-UWC, 2007 WL 4885492 (N.D. Ala. Jan. 22, 2007)
1/22/2007
An Alabama federal court has upheld an arbitration agreement containing a class action waiver, and granted a motion to compel arbitration of a dispute between a cable company and several customers.
In Milligan v. Comcast Corp, No. 7:06-cv-00809-UWC, 2007 WL 4885492 (N.D. Ala. Jan. 22, 2007), Comcast customers Milligan, Meadows, and Acker sued Comcast for charging a fee for which they received no benefit. Specifically, they asserted that Comcast charged a fee for "Cableguard," which covered in-home visits and repairs of video/data reception problems for equipment not owned by Comcast. They asserted that Comcast represented that those customers who did not pay for Cableguard would not receive the service when in fact those customers that did not pay the Cableguard fee also received the service... Full Story
California Federal Court Cites Fairness of FORUM Procedures in Confirming Arbitration Award
Millan v. Chase Bank USA, N.A., No. 2:07-CV-02819-FMC-FF, 2008 WL 375987 (C.D. Cal. Jan. 23, 2008)
1/23/2008
Confirming an arbitration award in a dispute between a credit card company and a cardholder, a California federal court rejected a challenge to the award alleging arbitrator partiality, as the allegations were groundless and unsupported.
In Millan v. Chase Bank USA, N.A., No. 2:07-CV-02819-FMC-FF, 2008 WL 375987 (C.D. Cal. Jan. 23, 2008), a dispute arose over Millan's failure to pay credit card debt owed to MBNA. After Millan failed to pay, Chase filed an arbitration claim with the National Arbitration Forum (FORUM). Millan objected to the FORUM's jurisdiction. The arbitrator concluded that a valid arbitration agreement existed and continued with the arbitration, awarding $4,789.43 to Chase... Full Story
California Federal Court Reaffirms Enforceability of Class Waiver in Denying Motion for Reconsideration
Omstead v. Dell, Inc., No. C 06-6293 PJH, 2008 WL 341099 (N.D. Cal. Feb. 5, 2008)
2/5/2008
In denying a request to move for reconsideration of a motion to compel arbitration, a federal district court in California found that subsequent case law had not changed California law governing the enforceability of class waivers. Accordingly, the Court upheld its earlier ruling that the class waiver in this case was enforceable under Texas law and that the application of Texas law would not violate California public policy.
In Omstead v. Dell, Inc., No. C 06-6293 PJH, 2008 WL 341099 (N.D. Cal. Feb. 5, 2008),
Omstead bought a notebook computer from Dell for approximately $1,200. The purchase was subject to various terms and conditions, including a Texas choice-of-law provision and an arbitration agreement containing a class waiver... Full Story
Illinois Federal Court Holds Court Must Decide Arbitrability
Duthie v. Matria Healthcare, Inc., No. 07C5491, 2008 WL 482364 (N.D. Ill. Feb. 22, 2008)
2/22/2008
Denying an injunction seeking to compel a non-signatory to arbitrate a fraud dispute, an Illinois federal court held that a court must decide whether a dispute is arbitrable unless a party can "clearly and unmistakably" show that the parties agreed to have an arbitrator determine arbitrability.
In Duthie v. Matria Healthcare, Inc., No. 07C5491, 2008 WL 482364 (N.D. Ill. Feb. 22, 2008), a Matria subsidiary merged with another entity. The detailed Merger Agreement contained a dispute resolution agreement, which mandated arbitration of certain disputes while requiring other disputes to be resolved in court. The parties also created an Escrow Fund to satisfy post-closing adjustments. The Merger Agreement stipulated that any disputes satisfied from the Escrow Fund would be resolved through binding arbitration... Full Story
Adjustment of Arbitration Award for "Manifest Disregard" Held an Impermissible Basis for Modification
Grain v. Trinity Health, No. 03-72486, 2008 WL 441060 (E.D. Mich. Feb 14, 2008)
2/14/2008
A federal district court in Michigan has rejected a motion to "adjust" an arbitration award through a motion to confirm, holding that such adjustment amounts to award modification, which is not warranted by manifest disregard of the law.
In Grain v. Trinity Health, No. 03-72486, 2008 WL 441060 (E.D. Mich. Feb 14, 2008), physician Grain and Trinity Health arbitrated several contract disputes. The arbitrator issued an award in favor of Grain, including a provision for some of his attorney's fees, costs, and interest... Full Story
Federal Court Awards Attorney Fees For "Failing to Abide by Arbitrator's Decision Without Justification"
Celsus Shipholding Corp. v. Manunggal, No. 06 Civ. 13598(DLC), 2008 WL 474148 (S.D.N.Y. Feb. 21, 2008)
2/21/2008
Confirming an arbitration award, the United States District Court for the Southern District of New York awarded attorney fees to the party seeking confirmation because the opposing party "refuse[d] to abide by an arbitrator's decision without justification."
In Celsus Shipholding Corp. v. Manunggal, No. 06 Civ. 13598(DLC), 2008 WL 474148 (S.D.N.Y. Feb. 21, 2008), Manunggal chartered Celsus's ship, but failed to pay the amount due under the contract. The parties arbitrated the matter under English law in London pursuant to the contract's arbitration agreement... Full Story
Bringing Motion to Compel Arbitration Naming Administrator as Adverse Party Offends Principle of Arbitral Immunity
Global Gold Mining, LLC v. Robinson, No. 07 Civ. 10492(GEL), 2008 WL 336821 (S.D.N.Y. Feb. 6, 2008)
2/6/2008
A disappointed party cannot bring an action to compel arbitration against the arbitration administrator in a court of law under International Chamber of Commerce (ICC) Rules without offending the principle of arbitral immunity, according to a federal district court in New York.
In Global Gold Mining, LLC v. Robinson, No. 07 Civ. 10492(GEL), 2008 WL 336821 (S.D.N.Y. Feb. 6, 2008), Global entered into a stock purchase contract for the acquisition of an Armenian corporation with its three stockholders. The contract had a provision for arbitration with the International Chamber of Commerce (ICC)... Full Story
Participation in New York Arbitration by Lawyer Not Admitted to the New York Bar Does Not Constitute Unauthorized Practice of Law
Prudential Equity Group, LLC v. Ajamie, No. 07 CIV. 5606(JSR), 2008 WL 510047 (S.D.N.Y. Feb. 27, 2008)
2/27/2008
An attorney not admitted to the New York bar does not violate New York rules on the unauthorized practice of law by participating in an arbitration proceeding in New York State, according to a federal district court in New York.
In Prudential Equity Group, LLC v. Ajamie, No. 07 CIV. 5606(JSR), 2008 WL 510047 (S.D.N.Y. Feb. 27, 2008), attorneys Weiss and Ajamie entered into a fee-sharing agreement for co-representation during arbitration proceedings. After the conclusion of arbitration, Weiss alleged that the fee-sharing agreement with Ajamie was unenforceable because Ajamie rendered services at an arbitration proceeding in New York without being admitted to the New York bar... Full Story
Pennsylvania Federal Court Orders Arbitration but Severs Unconscionable Provision Allowing One Party to Select Arbitrator
Roberts v. Time Plus Payroll Services, Inc., No. CIV.A. 07-4101, 2008 WL 376288 (E.D. Pa. Feb. 7, 2008)
2/7/2008
Granting a motion to compel arbitration of an employment dispute but severing an unconscionable provision allowing the employer to select the arbitrator, a Pennsylvania federal court ordered the parties to arbitrate, as the arbitration agreement's primary purpose was to resolve disputes, not to determine procedures for selecting an arbitrator.
In Roberts v. Time Plus Payroll Services, Inc., No. CIV.A. 07-4101, 2008 WL 376288 (E.D. Pa. Feb. 7, 2008), Roberts worked for Payroll Data Systems for over twenty years. On August 31, 2005, Time Plus acquired Payroll Data Systems. Roberts remained employed as a sales manager and vice-president. On September 1, 2005, Time Plus demoted Roberts to an hourly position until it terminated his employment on September 30, 2005... Full Story
Non-Signatories Are Bound to ICANN Domain Registration Agreement's Forum Selection Clause Under Direct Benefit Estoppel Doctrine
Compana LLC v. Mondial Assistance SAS, Civ. A. No. 3:07CV1293-D, 2008 WL 190522 (N.D. Tex. Jan. 23, 2008)
1/23/2008
A non-signatory to an ICANN domain name registration agreement is bound to the agreement's forum selection clause under the doctrine of direct benefit estoppel when the non-signatory exploits the agreement by initiating proceedings against a registrant, according to a federal district court in Texas.
In Compana LLC v. Mondial Assistance SAS, Civ. A. No. 3:07CV1293-D, 2008 WL 190522 (N.D. Tex. Jan. 23, 2008), Compana registered the domain name mondial.com as an accredited registrar with the Internet Corporation for Assigned Names and Numbers (ICANN). To register, Compana executed a registration agreement that incorporates the Uniform Domain Name Dispute Resolution Policy (UDRP). The UDRP requires that parties submit to a mandatory arbitration proceeding to resolve domain name disputes... Full Story
Arbitration Award Does Not Have Collateral Estoppel Effect Where Award Was Premised on Lack of Jurisdiction
Farmers Insurance Co. of Washington v. Liberty Mutual Insurance Co., No. C07-1363RSL, 2008 WL 336794 (W.D. Wash. Feb. 4, 2008)
2/4/2008
A federal court in Washington held that an arbitral award dismissing the matter on jurisdictional grounds, rather than the merits, does not have a collateral estoppel effect over later litigation.
In Farmers Insurance Co. of Washington v. Liberty Mutual Insurance Co., No. C07-1363RSL, 2008 WL 336794 (W.D. Wash. Feb. 4, 2008), Farmers defended the owner of the car involved in an accident and Liberty defended the driver, both defendants in a car accident. Liberty settled the claim with the plaintiff. Farmers proceeded to defend the owner, and after a jury verdict in favor of the plaintiff, Farmers filed for arbitration seeking a contribution toward the verdict and for attorney fees. Both companies were parties to a Special Arbitration Agreement (Agreement) for intercompany disputes... Full Story
No Collateral Estoppel Effect in Washington State for Award Not Reduced to Judgment
In re Erickson, No. 05-17598, 2008 WL 423415 (Bankr. W.D. Wash. Feb. 13, 2008)
2/13/2008
According to a federal bankruptcy court in Washington State, an arbitration award which is not reduced to a judgment under Washington statute has no collateral estoppel effect in bankruptcy court proceedings.
In In re Erickson, No. 05-17598, 2008 WL 423415 (Bankr. W.D. Wash. Feb. 13, 2008), Erickson had been employed as a tool repair technician by Swift. After allegedly discovering that Erickson had been diverting customers from Swift, Swift brought suit against Erickson for violations of a covenant not to compete. The matter was referred to arbitration by the trial court. The arbitrator entered an award in favor of Swift. Erickson did not appear at the arbitration proceeding, but instead filed for bankruptcy... Full Story
State Cases
Court Affirms Finding that Car Dealership Waived Its Right to Demand Arbitration By Engaging in Litigation
Radillo v. Superior Nissan of Mission Hills, No. B198262, 2008 WL 444439 (Cal. Ct. App. Feb. 20, 2008)
2/20/2008
A California appellate court upheld a lower court's finding that an automobile dealership waived its right to demand arbitration after the parties had engaged in discovery, mediation, and other litigation mechanisms.
In Radillo v. Superior Nissan of Mission Hills, No. B198262, 2008 WL 444439 (Cal. Ct. App. Feb. 20, 2008), Radillo entered into a purchase contract for a new vehicle with Superior Nissan, on the condition that Superior Nissan pay off the balance of Radillo's trade-in vehicle... Full Story
Arbitrators' Statutory Disclosure Duty Under California Law Triggered by Selection, Not Preliminary Proposal
Jakks Pacific, Inc. v. Superior Court, No. B201466, 2008 WL 518748 (Cal. Ct. App. Feb. 28, 2008)
2/28/2008
California's statutory requirement that an arbitrator disclose matters that could reasonably cause a person to doubt the arbitrator's neutrality is triggered by the selection and notification of the arbitrator, not by a proposal that he or she might be selected, according to a California Court of Appeal.
In Jakks Pacific, Inc. v. Superior Court, No. B201466, 2008 WL 518748 (Cal. Ct. App. Feb. 28, 2008), THQ entered into a contract with Jakks to pay a percentage of net sales revenue from the manufacture of video games. A dispute arose over the payment procedure, and the parties agreed to arbitrate the dispute, with the court appointing the arbitrator from lists of individuals proposed by the parties... Full Story
California Appellate Court Finds Arbitration Panel "Acted Well Within Their Authority" in Dismissing Claim
Baker v. American Exp. Financial Advisors, Inc., No. B193400, 2008 WL 223776 (Cal. Ct. App. Jan. 29 2008)
1/29/2008
Affirming a trial court's denial of a motion to vacate an arbitration award pertaining to a securities dispute, a California appellate court held that the arbitration panel's decision to dismiss the claim did not amount to a failure to hear evidence material to the controversy.
In Baker v. American Exp. Financial Advisors, Inc., No. B193400, 2008 WL 223776 (Cal. Ct. App. Jan. 29 2008), the Bakers created a trust for the benefit of their son, Robert Baker. In 2002, Robert Baker sued American Express and its adviser Cohen for breach of contract, breach of fiduciary duty, conversion, fraud, and Violation of the Elder Abuse and Dependant Adult Civil Protection Act... Full Story
FAA Preempts Indiana's Prohibition on Extra-Jurisdictional Arbitration of Real Estate Improvement Disputes
LaSalle Group, Inc. v. Electromation of Delaware County, Inc., No. 18A02-0705-CV-397, 2008 WL 344098 (Ind. Ct. App. Feb. 8, 2008)
2/8/2008
The Federal Arbitration Act preempts an Indiana statute's prohibition on arbitration of real estate improvement disputes at a location outside the state, according to the Indiana Court of Appeals.
In LaSalle Group, Inc. v. Electromation of Delaware County, Inc., No. 18A02-0705-CV-397, 2008 WL 344098 (Ind. Ct. App. Feb. 8, 2008), subcontractor Electromation entered into a construction contract with contractor LaSalle. The contract provided that disputes would be resolved by arbitration or litigation in Michigan at LaSalle's sole discretion... Full Story
Remedial Limitations Render Nursing Home Arbitration Agreement Unenforceable Under Ohio Law
Hayes v. Oakridge Home, No. 89400, 2008 WL 525411 (Ohio Ct. App. Feb. 28, 2008)
2/28/2008
An Ohio state appellate court has found a nursing home agreement unconscionable where the right to attorney's fees, punitive damages, and a jury trial were waived by an aged and allegedly unsophisticated nursing home resident.
In Hayes v. Oakridge Home, No. 89400, 2008 WL 525411 (Ohio Ct. App. Feb. 28, 2008), Hayes was admitted to Oakridge's nursing home facility. Upon admission, Hayes and Oakridge executed two arbitration agreements... Full Story
Pro Se Objections to Arbitration Award Time-Barred by Tennessee's Statutory Deadline for Challenging Arbitration Awards
MBNA America Bank, N.A. v. Hendricks, No. M200700583COAR3CV, 2008 WL 440492 (Tenn. Ct. App. Feb 14, 2008)
2/14/2008
The Tennessee Court of Appeals has refused to hear a disappointed pro se party's objections to an arbitration award, finding them time-barred by Tennessee's 90-day statutory deadline for bringing a motion to vacate an arbitration award.
In MBNA America Bank, N.A. v. Hendricks, No. M200700583COAR3CV, 2008 WL 440492 (Tenn. Ct. App. Feb 14, 2008), Hendricks entered into a credit card contract with MBNA. After Hendricks defaulted, MBNA sought arbitration of the dispute in accordance with the contract. The arbitrator rejected Hendricks's claim that the debt had been satisfied by an alleged "contract of novation," and issued an award in favor of MBNA... Full Story
Utah Law Does Not Allow Appeal from Order Compelling Arbitration and Staying Proceedings Without Court Permission or Certification
Powell v. Cannon, No. 20060776, 2008 WL 495543 (Utah Feb. 26, 2008)
2/26/2008
The Utah Supreme Court has dismissed an appeal of an order to compel arbitration and stay proceedings, holding that such an order is not final and is not immediately appealable without a court's timely grant of permission or certification.
In Powell v. Cannon, No. 20060776, 2008 WL 495543 (Utah Feb. 26, 2008), patient Powell filed suit against physician Cannon, alleging that Cannon was negligent while Powell was giving birth. Cannon moved to compel arbitration and stay proceedings in accordance with an arbitration agreement between the parties... Full Story
ADR Legislation & Regulation
LEGISLATION
AL H 649
AUTHOR: Mitchell [D]
TITLE: Arbitration
DISPOSITION: Pending
LOCATION: House Judiciary Committee
Commentary: Relates to arbitration; adopts a modern revised uniform arbitration act in line with other states. Updates provisions in the Uniform Act.
AZ H 2845
AUTHOR: Driggs [R]
TITLE: Uniform Arbitration Act
DISPOSITION: Pending
LOCATION: House Third Consideration
Commentary: Concerns the Uniform Arbitration Act. Added chapter 21, which includes general provisions regarding definitions relating to arbitration, notice, applicability, effect of agreement to arbitrate/waiver, application for judicial relief, motions to compel or stay arbitration, interim relief, initiation of arbitration, consolidation of separate arbitration proceedings, appointment of, disclosures made by, and immunity of arbitrators, and other issues relating to arbitration/the arbitration process.
CA A 2336
AUTHOR: Nakanishi [R]
TITLE: Contractors: Arbitration Procedures
DISPOSITION: Pending
Commentary: Amends the Contractor's State License Law that establishes an arbitration process to resolve disputes between contractors and consumers. Authorizes the registrar of contractors, after investigating a complaint and finding a possible violation and the concurrence of the licensee and the complainant, to refer the alleged violation and complaint to arbitration if damages or potential damages are greater than the amount of the licensing bond required. Amendments include: "(B) For cases in which the parties have agreed to arbitrate pursuant to subdivision (a) of Section 7085, the licensee may have the project that is the subject of the arbitration proceeding inspected by an expert. The complainant shall allow for the inspection prior to the date of the hearing."
CT H 5166
INTRODUCER: Joint Banks
TITLE: Mortgage Prepayment Penalties
DISPOSITION: Failed
LOCATION: Died
Commentary: Concerns mortgage prepayment penalties. Replaces section to include a provision that "a high cost home loan shall not provide for or include the following: (7) A mandatory arbitration clause or a waiver of participation in a class action".
CT S 21
INTRODUCER: McKinney [R]
TITLE: Mortgage Lending
DISPOSITION: Failed
LOCATION: Died
Commentary: Concerns mortgage lending; implements the Governor's budget recommendations. Amendments in relation to arbitration remove the reference to mandatory arbitration being void, and replace it to read that "a provision requiring the borrower to assert a claim or defense in a forum that is less convenient, more costly or more dilatory for the resolution of a dispute than a judicial forum" is void.
CT S 354
INTRODUCER: Joint Public Safety and Security
TITLE: Public Safety Statutes
DISPOSITION: Pending
LOCATION: Legislative Commissioner's Office
Commentary: Concerns the legislative commissioners' recommendations for technical revisions to the public safety statutes; makes minor technical corrections to the public safety statutes. An entire section was replaced with new language, including: a dispute under this Act "shall be resolved by the parties not later than thirty days after written notice of the dispute by the party asserting noncompliance. If the dispute is not resolved within ninety days of the notice of the claim, either party may request that the dispute be resolved through arbitration. Any such arbitration shall be conducted under the commercial arbitration rules of the American Arbitration Association."
FL H 835 COMPARE: FL H 643, FL S 992
AUTHOR: Brise [D]
TITLE: Mortgage Rescue Fraud
DISPOSITION: Pending
LOCATION: House Jobs and Entrepreneurship Council Committee
Commentary: Amends an act relating "to mortgage rescue fraud; provides requirements for foreclosure consultant contracts and for rescission of such contracts; provides requirements for foreclosure conveyance contracts and for cancellation of such contracts; specifies prohibited activities for foreclosure consultants and foreclosure purchasers." As it relates to arbitration, the bill is amended to state that "(1) Any provision in a contract that attempts or purports to require arbitration of any dispute arising under this act is void at the option of the owner."
FL H 979 COMPARE: FL H 381, FL S 2846
AUTHOR: Randolph [D]
TITLE: Subprime Loans
DISPOSITION: Pending
LOCATION: House Financial Institutions Committee
Commentary: Relates to subprime loans. As it relates to ADR, prohibits mandatory arbitration clauses in subprime home loans where the clause "limits in any way the right of the borrower to seek relief through the judicial process for any and all claims and defenses the borrower may have against the lender, broker, or other party involved in the loan transaction."
FL H 1469 COMPARE: FL S 290
SIMILAR: FL S 2682
AUTHOR: Rivera [R]
TITLE: Department of Lottery and Pari Mutuel Facilities
DISPOSITION: Pending
LOCATION: House Government Efficiency and Accountability Council Committee
Commentary: Relates to department of the lottery and pari mutuel facilities; provides powers and duties of Department of Lottery pertaining to video lottery games to be operated at certain pari mutuel facilities. Specifically designates that disputes over required agreements needed to operate video lottery machines be administered and arbitrated by the American Arbitration Association (AAA).
FL S 290 COMPARE: FL H 1469, FL S 2682
AUTHOR: Geller [D]
TITLE: Electronic Gaming Machines
DISPOSITION: Pending
LOCATION: Senate Regulated Industries Committee
Commentary: Relates to regulation of video lotteries. Requires arbitration in certain instances where establishments that offer off track betting on horse races seek to install video lottery machines.
FL S 1012 COMPARE: FL H 405
AUTHOR: Banking and Insurance Cmt
TITLE: Health Insurance Claims Payments
DISPOSITION: Pending
LOCATION: Senate Health Regulation Committee
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: Senate Banking and Insurance Committee
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 1380
AUTHOR: Finance and Taxation Cmt
TITLE: Electronic Gaming Machines
DISPOSITION: Pending
LOCATION: Senate Special Order Calendar
Commentary: Relates to electronic gaming machines; authorizes electronic gaming machines in certain pari mutuel facilities; prohibits persons under 21 years of age from operating electronic gaming machines; provides for days and hours of operation of eligible facilities; provides for regulatory preemption to the state. As it relates to arbitration, the bill provides for the arbitration of disputes regarding licensure, including procedure for selection of arbitrators and the application of AAA commercial arbitration rules.
FL S 2076 SIMILAR: FL H 1219
AUTHOR: Deutch [D
TITLE: Arbitration
DISPOSITION: Pending
LOCATION: Senate Judiciary Committee
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.
FL S 2214 COMPARE: FL H 643
AUTHOR: Aronberg [D]
TITLE: Mortgage Rescue Fraud Act
DISPOSITION: Pending
LOCATION: Senate Banking and Insurance Committee
Commentary: "Relates to mortgage rescue fraud act; provides requirements for foreclosure consultant contracts; specifies prohibited activities for foreclosure consultants and foreclosure purchasers; specifies certain violations as unlawful practices and provides for remedies under the Florida Deceptive and Unfair Trade Practices Act." As it relates to ADR, the Act makes void at the option of the owner "[a]ny provision in a contract that attempts or purports to require arbitration of any dispute arising under this act".
FL S 2846 COMPARE: FL H 381, FL H 979
AUTHOR: Deutch [D]
TITLE: Subprime Loans
DISPOSITION: Pending
LOCATION: SENATE
Commentary: Relates to subprime loans; prohibits specified terms in subprime loan agreements; requires a certificate of completion for lender to make payments to contractor under a home improvement contract; requires lenders to provide payoff balances within a specified period upon request; requires a lender to disclose to the borrower the terms and costs associated with a fixed rate loan; prohibits charging points and fees in certain refinancing. Precludes enforcement of mandatory arbitration clauses for subprime home loan transactions.
GA H 470
AUTHOR: Parrish [D]
TITLE: Lemon Law
DISPOSITION: Pending
LOCATION: HOUSE
Commentary: Substitute for Georgia Lemon Law, creates motor vehicle arbitration panel, empowers administrator to contract with "public or private entities" to conduct arbitrations.
GA H 979
AUTHOR: Richardson [R]
TITLE: Tax for Local Government
DISPOSITION: Pending
LOCATION: HOUSE
Commentary: Relates, respectively, to revenue and taxation and local government. The bill provides the right to appeal taxation decisions in arbitration and provides for the manner in which such arbitration must be conducted.
IL H 5157
SPONSOR: Hoffman [D]
TITLE: Uniform Arbitration Liabilities
DISPOSITION: Pending
Commentary: Amends the Uniform Arbitration Act. Provides that no agreement to arbitrate any liability arising out of the employment of a seaman, master, vessel crew member, or railroad employee is binding or enforceable.
IL S 2866
SPONSOR: Trotter [D]
TITLE: Payday Loan Finance Charges
DISPOSITION: Pending
Commentary: Would amend the Payday Loan Reform Act to prohibit mandatory arbitration clauses in their entirety, instead of "a mandatory arbitration clause that is oppressive, unfair, unconscionable, or substantially in derogation of the rights of consumers."
IN S 159
AUTHOR: Gard [R]
TITLE: Third Party Health Service Agreements
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary: Specifies terms under which a third party may obtain a contractor's rights and responsibilities concerning a provider's delivery of health care services. As it relates to arbitration, a health care contract may provide for arbitration of disputes arising under the bill.
IN S 190
AUTHOR: Ford [R]
TITLE: Title 15 Recodification
DISPOSITION: Enacted
LOCATION: Signed by Governor
Commentary: Recodifies existing law relating to seed arbitration.
KY H 709 BR: 1754
SPONSOR: DeWeese [R]
TITLE: Amendments to the Constitution
DISPOSITION: Pending
LOCATION: House Elections, Constitutional Amendments and Intergovernmental Affairs Committee
Commentary: Proposes amendments to the Constitution of Kentucky relating to medical malpractice; would allow the General Assembly to create provisions requiring non binding alternative dispute resolution of med mal claims.
MD H 577
AUTHOR: Simmons [D]
TITLE: Right to Jury Trial Act
DISPOSITION: Pending
Commentary: Amends the Right to Jury Trial Act. Provides that any provision in a contract with a consumer that requires the waiver of a trial by jury is void and unenforceable unless preempted by federal law. A recent amendment to this bill limited its scope to insurance.
MN S 833 COMPANION: MN H 635
AUTHOR: Olson M [DFL]
TITLE: Telecommunications
DISPOSITION: Pending Carryover
Commentary: Enacts the Minnesota Wireless Telephone Consumer Protection Act. Includes "Subd. 6. Consumer remedies may not be limited. A wireless carrier may not limit by contract the right of a subscriber to bring complaints or the rights and remedies available to a subscriber by law, including class actions, in any state or federal court or agency of competent jurisdiction. A wireless carrier may not by contract hold subscribers liable for carrier legal costs resulting from complaints before the commission, the courts, or another agency. A contract between a wireless carrier and a customer may not require that disputes under the contract be submitted to arbitration."
MO H 2332
SPONSOR: Parson [R]
TITLE: Construction Contract Agreements
DISPOSITION: Pending
LOCATION: HOUSE
Commentary: Provides that certain agreements, provisions, covenants, or clauses in construction contracts are unenforceable. Includes unenforceability of any provision with a choice of law or venue selection outside the state, including extra jurisdictional arbitration proceedings.
MO S 1077
SPONSOR: Goodman [R]
TITLE: Construction Work Contracts
DISPOSITION: Pending
LOCATION: Senate Small Business, Insurance, and Industrial Relations Committee
Commentary: Relates to the treatment of indemnification and hold harmless clauses within construction work contracts. Amendments include: "5. All provisions, covenants, or clauses, in a construction work contract, pursuant to which a substantial portion of the construction work is to be performed in the state of Missouri, shall be made subject to the laws of this state. Any litigation, arbitration, or other dispute resolution proceeding arising from the contract shall be conducted in this state. Any provision, covenant, or clause, in a construction work contract that conflicts with the provisions of this section shall be void and unenforceable."
NY S 7117
SPONSOR: Libous [R]
TITLE: Motor Vehicle Franchisor Conditions
DISPOSITION: Pending
LOCATION: Senate Transportation Committee
Commentary: Limits the conditions which a motor vehicle franchisor may impose upon motor vehicle dealers; states that arbitration may only be used to settle franchise disputes where all parties agree to arbitrate in writing after the dispute arises.
OH H 125
SPONSOR: Huffman [R]
TITLE: Health Care Provider Contract Provisions
DISPOSITION: To Governor
LOCATION: House Consideration of Senate Amendments
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."
VA H 408
AUTHOR: Oder [R]
TITLE: Foreclosure Rescue Services
DISPOSITION: Enacted
LOCATION: Became Law Without Governor's Signature
Commentary: Amends law relating to foreclosure. Amendments include: "[a]ny provision in an agreement with the owner of such residential real property that requires the owner to submit to mandatory arbitration shall be null and void, and notwithstanding any such provisions, the owner of such residential real property shall have the rights and remedies under this chapter."
WA S 6776
AUTHOR: Kline [D]
TITLE: State Whistleblower Protections
DISPOSITION: Pending
LOCATION: Concurrence
Commentary: Modifies state whistleblower protections. As it relates to arbitration, "(11) Instead of filing with the commission, a complainant may pursue arbitration conducted by the American arbitration association or another arbitrator mutually agreed by the parties, with the cost of arbitration shared equally by the complainant and the respondent."
WI S 294
AUTHOR: Breske [D]
TITLE: Interstate Insurance Product Regulation Compact
DISPOSITION: Pending
LOCATION: Eligible for Governor
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.
REGULATIONS
Texas 33 TEXREG 1687
AGENCY: Finance Commission/Office of Consumer Credit Commissioner
TITLE: Retail Installment Sales Contract Provisions
PROPOSED: 02/15/2008
CITATION: 7 TAC 2.84.H.84.801 -.807, .809
Commentary: Affirmatively states that arbitration provisions are allowable in motor vehicles installment sales contracts in Texas. See Sec. 804.807(44).
Texas 33 TEXREG 1919
AGENCY: Securities Board
TITLE: Real Estate Programs
PROPOSED: 02/19/2008
CITATION: 7 TAC 7.117.117.1 -.9
Commentary: Establishes new rules concerning administrative guidelines for registration of real estate programs. Prohibits enforcement of mandatory arbitration agreements between real estate program sponsors and particpants, except in the case of a termination of a sponsor, which requires AAA arbitration of the dispute if the parties cannot settle the termination dispute.
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