Federal Cases
8th Circuit: Dispute over Whether Arbitration Clause Is Enforceable Falls Under Contract's "Exceptions" to Arbitrable Issues
Enderlin v. XM Satellite Radio Holdings, Inc., No. 06-3420, 2007 WL 1138368 (8th Cir. Apr. 18, 2007)
4/18/2007 12:00:00 AM
The 8th Circuit Court of Appeals has ruled that although a consumer's claim that an arbitration clause is void falls within the agreement's broad range of arbitrable issues, the "plain language" setting forth exceptions to that range make the issue of arbitrability one for the courts to decide.
In Enderlin v. XM Satellite Radio Holdings, Inc., No. 06-3420, 2007 WL 1138368 (8th Cir. Apr. 18, 2007), Enderlin claimed that an arbitration agreement which he entered into through a purchase from XM Satellite Radio Holdings, Inc. (XM Radio) was void because it lacked mutuality, was unconscionable, and violated public policy. XM Radio argued that the issue of arbitrability was for the arbitrator alone to decide... Full Story
Bankruptcy Court Orders Arbitration of TILA Claim Because Arbitration Would Not Conflict with Bankruptcy Code
In re Dawsey, No. 07-1011-DHW, 2007 WL 1140358 (Bankr. M.D. Ala. Apr.16, 2007)
4/16/2007 12:00:00 AM
A federal bankruptcy court in Alabama has ruled that a debtor's claim under the Truth in Lending Act (TILA) was subject to arbitration – even if the claim constituted a "core proceeding" – because arbitration of the claim would not "inherently conflict with the underlying purposes of the Bankruptcy Code."
In re Dawsey, No. 07-1011-DHW, 2007 WL 1140358 (Bankr. M.D. Ala. Apr.16, 2007) concerned a dispute between the Dawseys, who financed a new car purchase through defendant Citifinancial Auto Corp. (CAC) and later declared bankruptcy... Full Story
No Finding of Partiality of Arbitrator Absent Showing of Actual Bias
White v. Mayflower Transit, LLC, No. CV 06-6710 CASPLAX, 2007 WL 1113681 (C.D. Cal. Jan. 02, 2007)
1/2/2007 12:00:00 AM
A federal court in California held that absent a showing of actual bias, there can be no finding of partiality on behalf of an arbitrator.
In White v. Mayflower Transit, LLC, No. CV 06-6710 CASPLAX, 2007 WL 1113681 (C.D. Cal. Jan. 02, 2007), Zeddrick White contracted with Mayflower for delivery of personal items. A dispute between the parties was submitted to arbitration and an award was issued in favor of Mayflower. Upon granting Mayflower's motion to confirm the award, the Court directed White to file a second amended complaint including claims undecided by the award. The claims were dismissed with prejudice. See White v. Mayflower Transit, LLC, No. CV 06 6710 CAS PLAX, 2007 WL 926967 (C.D. Cal. Mar. 19, 2007). However, White alleged bias on behalf of the arbitrator, seeking a modification of the award. Mayflower moved to confirm the award... Full Story
Uncontested Confirmation Proceedings Should Be Treated As Unopposed Motion for Summary Judgment, Not Default, Holds New York Federal Court
Herrenknecht Corp. v. Best Road Boring, 2007 WL 1149122 (S.D.N.Y. Apr. 16, 2007)
4/16/2007 12:00:00 AM
A federal court in New York cited Second Circuit precedent in ruling that uncontested confirmation proceedings should be treated as an unopposed motion for summary judgment rather than a motion for default judgment. Accordingly, the Court examined the party's submissions in deciding whether to confirm the award.
In Herrenknecht Corp. v. Best Road Boring, 2007 WL 1149122 (S.D.N.Y. Apr. 16, 2007), Herrenknecht leased equipment to Best Road. When Best Road stopped making payments, Herrenknecht recovered the equipment and filed an arbitration claim for breach of the lease. Best Road failed to appear at arbitration, and an award was issued in Herrenknecht's favor. Herrenknecht moved to confirm the award and for default judgment... Full Story
Ninth Circuit Implicitly Adopts Rebuttable Presumption of Procedural Unconscionability, but Only for Employee Contracts
Davis v. O'Melveny & Myers, No. 04-56039, 2007 WL 1394530 (9th Cir. May 14, 2007)
5/14/2007 12:00:00 AM
In holding that an employer's arbitration agreement was unconscionable and therefore unenforceable, the Ninth Circuit Court of Appeals effectively ruled that procedural unconscionability will be presumed whenever a sophisticated employer requires prospective or current employees to sign an arbitration agreement. Since the Federal Arbitration Act does not permit laws that single out arbitration agreements for disfavored treatment, this presumption necessarily extends to all terms and conditions of employment.
In Davis v. O'Melveny & Myers, No. 04-56039, 2007 WL 1394530 (9th Cir. May 14, 2007), Davis, a paralegal, sued O'Melveny & Meyers (O'Melveny), her former employer, alleging discrimination and wrongful termination. O'Melveny filed a motion to compel arbitration pursuant to a dispute resolution program (DRP) that was implemented during O'Melveny's employment. The district court granted the motion... Full Story
Federal Court in California Finds Class Action Waiver Unconscionable in Cell Phone "Dirty Numbers" Dispute
Bradberry v. T-Mobile USA, Inc., No. C 06-6567 CW, 2007 WL 1241936 (N.D. Cal. Apr. 27, 2007)
4/27/2007 12:00:00 AM
A federal district court in California has refused to compel arbitration of a dispute after finding a class action waiver in a cell phone contract unconscionable.
In Bradberry v. T-Mobile USA, Inc., No. C 06-6567 CW, 2007 WL 1241936 (N.D. Cal. Apr. 27, 2007), Bradberry purchased cell phone service from an authorized T-Mobile USA, Inc. (T-Mobile) dealer. He was allegedly assigned a "dirty number" – a previously used number that was encumbered with pre-existing monthly subscriptions to services... Full Story
Dispute Over Settlement Agreement Falls Within Scope of Arbitration Agreement
Trustmark Insurance Co. v. Transamerica Occidental Life Insurance Co., No. 06-C-5561, 2007 WL 1266070 (N.D. Ill. May 1, 2007)
5/1/2007 12:00:00 AM
Citing the "extremely broad" language of the arbitration agreement and the policy of resolving any ambiguities in favor of arbitration, a federal court in Illinois ruled that a dispute over a purported settlement agreement fell within the scope of the parties' arbitration agreement.
In Trustmark Insurance Co. v. Transamerica Occidental Life Insurance Co., No. 06-C-5561, 2007 WL 1266070 (N.D. Ill. May 1, 2007), Trustmark Insurance (Trustmark) and Transamerica entered into an agreement whereby Transamerica would provide administrative services to Trustmark and another insurance company. The agreement contained a broadly worded arbitration clause... Full Story
Enforceability of Punitive Damages Limitation Is for Arbitrator to Decide
Faust v. Command Center, No. 4:07 CV 00039, 2007 WL 1290586 (S.D. Iowa May 03, 2007)
5/3/2007 12:00:00 AM
Where a disputed issue falls within the scope of a valid arbitration agreement, the issue is arbitrable despite arguments that remedy limitations render the arbitration agreement unenforceable. Both the substantive dispute and the arbitration agreement enforceability question are issues for the arbitrator to decide.
In Faust v. Command Center, No. 4:07 CV 00039, 2007 WL 1290586 (S.D. Iowa May 03, 2007), Faust alleged sex discrimination against her former employer, Command Center. The employment contract contained an arbitration agreement. Faust alleged that the arbitration agreement was unenforceable because its limitation on the awarding of punitive damages violated public policy, contract law, and congressional intent underlying Title VII... Full Story
Federal Court in Mississippi Denies Motion to Arbitrate, Finds No Evidence of "Voluntary and Knowing" Waiver of Right to Trial
Robertson v. J.C. Penney Co., Inc., No. 2:06cv3-KS-MTP, 2007 WL 1200103 (S.D. Miss. Apr. 19, 2007)
4/19/2007 12:00:00 AM
In denying a motion to compel arbitration, a federal district court in Mississippi found no evidence of a "voluntary and knowing" waiver of the right to trial. The Court also found that the "mailbox rule" was inapplicable because the party seeking arbitration failed to make the requisite showing.
In Robertson v. J.C. Penney Co., Inc., No. 2:06cv3-KS-MTP, 2007 WL 1200103 (S.D. Miss. Apr. 19, 2007), the Robertsons held a credit card account with J.C. Penney for over twenty years, when the account was sold to Monogram Credit Card Bank (Monogram)... Full Story
Pennsylvania Federal Court Dismisses Confirmation Proceeding for Lack of Jurisdiction, Finds "Default Judgment" Request Improper
Chase Bank USA, N.A. v. Hillis, Civil Action No. 07-273, 2007 WL 1276905 (W.D. Pa. Apr. 30, 2007)
4/30/2007 12:00:00 AM
A federal district court in Pennsylvania has dismissed without prejudice a motion for default judgment seeking confirmation of an arbitration award. The Court not only found a lack of federal jurisdiction, but also that the use of "default judgment" was an improper mechanism to achieve confirmation.
In Chase Bank USA, N.A. v. Hillis, Civil Action No. 07-273, 2007 WL 1276905 (W.D. Pa. Apr. 30, 2007), Chase won an arbitration award against Hillis, and sought to have it confirmed in Federal Court... Full Story
Federal Court in Texas Strikes Attempted Use of "Voluntary Dismissal" As "Legal Legerdemain;" Confirms Award in Long-Running Construction Dispute
Alstom Power, Inc. v. S & B Engineers & Constructors, Ltd., Civil Action No. 3:04-CV-2370-L, 2007 WL 1284968 (N.D. Tex. Apr. 30, 2007)
4/30/2007 12:00:00 AM
Facing a party's attempt to employ the Federal Rules of Civil Procedure in a way that would have effectively allowed the loser of a $1.36 million dollar arbitration award to pay nothing, a Federal District Court in Texas struck down a Rule 41 "Voluntary Dismissal" motion as being "improvidently filed," and proceeded to confirm the award.
In Alstom Power, Inc. v. S & B Engineers & Constructors, Ltd., Civil Action No. 3:04-CV-2370-L, 2007 WL 1284968 (N.D. Tex. Apr. 30, 2007), Alstom Power, Inc. (Alstom) lost in arbitration to its subcontractor S & B Engineers & Constructors, Ltd. (S & B). However, because the award was smaller than either party had anticipated, S & B moved to vacate, while Alstom sought immediate confirmation... Full Story
Summary Judgment Standard Applies to Uncontested Application for Confirmation of Arbitration Award
Smartprice.com, Inc. v. Long Distance Services, Inc., 2007 WL 1341412 (W.D. Tex. May 4, 2007)
5/4/2007 12:00:00 AM
Because a motion to confirm or to vacate an arbitration award must be accompanied by a written record, and because such actions are initiated by motion or petition and not by complaint, uncontested motions to confirm or to vacate should be decided under the summary judgment standard rather than by default, according to a Texas federal court.
In Smartprice.com, Inc. v. Long Distance Services, Inc., 2007 WL 1341412 (W.D. Tex. May 4, 2007), Smartprice filed an Application for Confirmation and sought an award of costs after it won an arbitration award against Long Distance Services (LDS). LDS was served with a summons and received a copy of the Application for Confirmation. LDS failed to respond and Smartprice moved for default judgment... Full Story
State Cases
Presumption in Favor of Arbitration Does Not Extend to Jury Trial Waivers
Mikey's Houses LLC v. Bank of America, N.A., No. 2-05-397-CV, 2007 WL 1299332 (Tex. App. May 3, 2007)
5/3/2007 12:00:00 AM
In applying a presumption against the contractual waiver of the right to a jury trial, the Texas Court of Appeals held that the presumption in favor of arbitration does not extend to jury trial waivers because there are several differences between arbitration agreements and jury trial waivers, including the public policy in favor of arbitration and state and federal statutes requiring the enforcement of arbitration agreements.
In Mikey's Houses LLC v. Bank of America, N.A., No. 2-05-397-CV, 2007 WL 1299332 (Tex. App. May 3, 2007), Mikey's Houses entered into a contract to buy a house and lot from Bank of America. After the sales contract was signed, Bank of America presented Mikey's Houses with an addendum containing various provisions, including a waiver of the right to a jury trial. Both parties signed the addendum... Full Story
Ohio Supreme Court Preserves Arbitration Agreement by Severing Provision for Heightened Review
Ignazio v. Clear Channel Broadcasting, Inc., 865 N.E.2d 18 (Ohio May 9, 2007)
5/9/2007 12:00:00 AM
In addressing the enforceability of an arbitration agreement that provided for heightened judicial review, the Ohio Supreme Court held that the provision for heightened review, though unenforceable under Ohio law, did not render the entire agreement unenforceable because (1) the agreement contained a severability clause and (2) the provision for heightened review was not essential to the agreement.
In Ignazio v. Clear Channel Broadcasting, Inc., 865 N.E.2d 18 (Ohio May 9, 2007), Ignazio sued Clear Channel, her former employer, for discrimination and wrongful termination... Full Story
California Appeals Court Orders Arbitration for Non-Signatories Through Estoppel, Incorporation
Diamond Environmental Services, LLC v. Valenta, No. D048414, 2007 WL 1113994 (Cal. Ct. App. Apr. 16, 2007)
4/16/2006 12:00:00 AM
Declaring that a party cannot use one clause of an agreement against a non-signatory, and at the same time "deny them the benefit of the arbitration clause that is contained in that same agreement," a California Appeals Court ordered all parties into arbitration.
In Diamond Environmental Services, LLC v. Valenta, No. D048414, 2007 WL 1113994 (Cal. Ct. App. Apr. 16, 2007), Diamond Environmental Services (DES) agreed to purchase portable restroom equipment from Portosan, LLC. The purchase agreement, signed by DES and Portosan, contained a broadly worded arbitration agreement... Full Story
California Appeals Court Rules Allegation of Unenforceable Mediation Settlement Satisfies "Good Cause" Exception to Rule Requiring Case Dismissal
Irvine v. Regents of University of California, No. G036259, 2007 WL 1113727 (Cal. Ct. App. April 16, 2007)
4/16/2007 12:00:00 AM
The California Court of Appeals has ruled that a rule designed to improve case management cannot be used to make substantive judgments on a disputed mediation settlement, but that an allegation that the settlement is unenforceable does satisfy the "good cause" exception to the rule requiring dismissal of a case.
In Irvine v. Regents of University of California, No. G036259, 2007 WL 1113727 (Cal. Ct. App. April 16, 2007), Ms. Irvine had spent several years on a waiting list for an organ transplant, after allegedly being pushed down the donor priority list for business reasons by Defendant the University of California at Irvine Medical Center (UCI-MC)... Full Story
Massachusetts Supreme Court Upholds Broad Reading of Tobacco Settlement Arbitration Agreement, Denies State Effort to Litigate Payment Amount
Commonwealth v. Philip Morris Inc., No. SJC-09889, 2007 WL 1168384 (Mass. April 23, 2007)
4/23/2007 12:00:00 AM
Citing both the broad language of the agreement, and the practical necessity of a unitary dispute resolution process for resolving disagreements over payment of tobacco settlement fees, the Supreme Judicial Court of Massachusetts has affirmed a decision giving broad effect to an expansively phrased arbitration provision.
The dispute in Commonwealth v. Philip Morris Inc., No. SJC-09889, 2007 WL 1168384 (Mass. April 23, 2007) arose from a decision by tobacco companies to withhold certain funds from their annual payments due to the states under a "Master Settlement Agreement" (MSA), which ended a host of lawsuits by states against those companies... Full Story
North Carolina Appeals Court Finds Home Inspection Arbitration Agreement Signed After Inspection Not Enforceable
Edwards v. Taylor, No. COA06-883, 2007 WL 1119395 (N.C. Ct. App. April 17, 2007)
4/17/2007 12:00:00 AM
A North Carolina Court of Appeals has ruled that a home inspection arbitration agreement signed after the inspection had been completed and paid for was unenforceable.
In Edwards v. Taylor, No. COA06-883, 2007 WL 1119395 (N.C. Ct. App. April 17, 2007), Edwards contracted to buy a home from Taylor, and arranged by phone to have co-defendant Smith–sole shareholder of The Home Inspector, Inc.–conduct a pre-purchase inspection of the home... Full Story
"Failure to Read" Defense Rejected in Enforcement of Arbitration Agreement
Robert J. Denley Co., Inc. v. Neal Smith Const. Co., Inc., slip copy, No. W2006-00629-COA-R3-CV, 2007 WL 1153121 (Tenn. Ct. App. Apr. 19, 2007)
4/19/2007 12:00:00 AM
In enforcing an American Institute of Architects form arbitration agreement, an appellate court in Tennessee held that the parties mutually assented to arbitration and found no fraudulent inducement.
In Robert J. Denley Co., Inc. v. Neal Smith Const. Co., Inc., slip copy, No. W2006-00629-COA-R3-CV, 2007 WL 1153121 (Tenn. Ct. App. Apr. 19, 2007), Denley and Smith, parties to a construction contract, disputed the validity of their arbitration agreement. The arbitration agreement was contained within the "general conditions," incorporated into the main A101 contract by reference... Full Story
California Appeals Court Enforces Express Exclusion of Patient Bill of Rights Claim from Arbitration Agreement, Also Allows Non-Signatory Heirs to Sue
Fitzhugh v. Granada Healthcare and Rehabilitation Center, LLC, No. A115123, 2007 WL 1272221 (Cal. Ct. App. May 2, 2007)
5/2/2007 12:00:00 AM
A California Appellate Court has enforced a Patient Bill of Rights (PBR) exception to an arbitration clause and has also allowed the wrongful death claims of the deceased patient's heirs to go to trial because they were not parties to the arbitration agreement.
In Fitzhugh v. Granada Healthcare and Rehabilitation Center, LLC, No. A115123, 2007 WL 1272221 (Cal. Ct. App. May 2, 2007), 83-year-old Ruth Fitzhugh was admitted to Granada Healthcare and Rehabilitation Center, LLC (Granada) to convalesce following hip surgery. Within three months, she had broken her leg and died... Full Story
California Appeals Court Finds No Arbitrator Bias in Undeclared Relationship with a Bank That Acquired a Party to the Dispute
Hayden v. Robertson Stephens, Inc., Nos. A113878, A114188, 2007 WL 1228632 (Cal. Ct. App. Apr. 27, 2007)
4/27/2007 12:00:00 AM
The fact that an arbitrator's employing organization provides services to a bank that acquired a corporate party to a dispute before a final judgment was entered did not lead to culpable arbitrator bias, according to a California Court of Appeals.
In Hayden v. Robertson Stephens, Inc., Nos. A113878, A114188, 2007 WL 1228632 (Cal. Ct. App. Apr. 27, 2007), Hayden created an ISP company that went public in the late 1990s, made and lost a fortune in the dot-com bubble and burst, and ultimately defaulted on a $25 million loan from his brokerage firm, Robertson Stephens, Inc. (RSI)... Full Story
New York Appellate Court Finds "High-Low" Agreement Enforceable As "Settlement"
Cunha v. Shapiro, 2007 WL 1295844 (N.Y. App. Div. May 1, 2007)
5/1/2007 12:00:00 AM
A New York appellate court has ruled that, once triggered by a jury verdict, a "high-low" agreement is a settlement for enforcement purposes. Accordingly, the Court disallowed an attempt to collect interest that would have been due had the award been considered a judgment.
In Cunha v. Shapiro, 2007 WL 1295844 (N.Y. App. Div. May 1, 2007), Cunha sued the estate of Shapiro seeking damages for personal injuries. Before the issue of damages was presented to the jury, the parties agreed to a "high-low" settlement whereby Cunha would obtain no less than $75,000 and no more than $325,000... Full Story
Court Cannot Compel Arbitration When Contract Vests Decision to Arbitrate in Architect
Lopez v. 14th Street Development, LLC, 2007 N.Y. Slip Op. 04027, 2007 WL 1364665 (N.Y.A.D May 10, 2007)
5/10/2007 12:00:00 AM
When a contract requires the architect to determine whether a claim should go to arbitration, the court cannot compel arbitration, according to a New York appellate court.
In Lopez v. 14th Street Development, LLC, 2007 N.Y. Slip Op. 04027, 2007 WL 1364665 (N.Y.A.D May 10, 2007), construction worker Lopez sued the owners of the condominium unit where he was injured. The owners brought a third-party indemnification claim against contractor Kelleran. Kelleran moved to compel arbitration under the construction contract... Full Story
Ohio Court Holds That State Law Requires a Hearing Where Party Opposes Award Confirmation
MBNA America Bank, N.A. v. McArdle, No. L-06-1319, 2007 WL 1229214 (Ohio Ct. App. Apr. 27, 2007)
4/27/2007 12:00:00 AM
The Ohio Court of Appeals held that state law "clearly contemplates a hearing" upon the filing of an application to confirm an arbitration award, and thus remanded a case in which the trial court confirmed an award without holding a hearing.
In MBNA America Bank, N.A. v. McArdle, No. L-06-1319, 2007 WL 1229214 (Ohio Ct. App. Apr. 27, 2007), MBNA filed an arbitration claim against McArdle for the balance allegedly owing on an MBNA credit card. The arbitrator awarded MBNA nearly $17,000... Full Story
Remedial Limitations and Lack of Mutuality Render Arbitration Agreement Substantively Unconscionable
Post v. ProCare Automotive Service Solutions, No. 87646, 2007 WL 1290091 (Ohio Ct. App. May 3, 2007)
5/3/2007 12:00:00 AM
Ruling that an employer's arbitration agreement both limited available remedies and lacked mutuality, the Ohio Court of Appeals found the agreement substantively unconscionable but remanded the case for a hearing to determine procedural unconscionability.
In Post v. ProCare Automotive Service Solutions, No. 87646, 2007 WL 1290091 (Ohio Ct. App. May 3, 2007), ProCare Automotive Solutions (ProCare) was sued for wrongful termination by six former employees. One of them, Anderson, had recently signed a new contract offering him a raise and bonus opportunities. The contract contained an arbitration agreement... Full Story
Texas Appeals Court Finds Mediated Divorce Settlement "Immediately Binding" and Enforceable Although Spouse Died Before Divorce Became Final
Spiegel v. KLRU Endowment Fund, No. 03-06-00593-CV, 2007 WL 1237978 (Tex. App. Apr. 26, 2007)
4/26/2007 12:00:00 AM
Though she died the day before the divorce was finalized, a Texas appeals court ruled that a mediated settlement agreement was enforceable, and effectively deprived the deceased's would-be ex-husband of assets he would have received as a beneficiary of her will.
The issues raised in Spiegel v. KLRU Endowment Fund, No. 03-06-00593-CV, 2007 WL 1237978 (Tex. App. Apr. 26, 2007) arose from Robert and Martha Spiegel's impending divorce. Through court-ordered mediation, the two agreed to a comprehensive property settlement. However, before it could be incorporated into a final divorce decree, Martha died... Full Story
Washington Appellate Court Finds Agreement to Arbitrate "All Disputes" Does Not Include Dispute over Arbitrability
Tacoma Narrows Constructors v. Nippon Steel-Kawada Bridge, Inc., 156 P.3d 293 (Wash. Ct. App. April 24, 2007)
4/24/2007 12:00:00 AM
Relying on a narrow reading of an agreement to arbitrate "all disputes," an appellate court in the state of Washington has ruled that issues raised in a dispute between subcontractors fell outside the scope of the arbitration agreement.
The underlying dispute in Tacoma Narrows Constructors v. Nippon Steel-Kawada Bridge, Inc., 156 P.3d 293 (Wash. Ct. App. April 24, 2007) involved the alleged failure of Nippon Steel-Kawada Bridge (NSKB) to provide promised material and services to General Contractor Tacoma Narrows Constructors (TNC) in a public works project to build a second span of the Tacoma Narrows Bridge... Full Story
Alabama Supreme Court Narrowly Rules Third Party Signing Nursing Home Agreement As "Next Friend" Does Not Bind Estate, Representatives to Arbitrate
Noland Health Services, Inc. v. Wright, No. 1060061, 2007 WL 1300721 (Ala. May 4, 2007)
5/4/2007 12:00:00 AM
Because one who comports to act merely as "next friend" of a mentally incompetent person is "wholly without authority to make any contract that would bind her (or) her estate," the Supreme Court of Alabama, in a 5-4 decision, has ruled that a daughter-in-law's signature on a nursing home admission agreement did not bind the estate to arbitration.
In Noland Health Services, Inc. v. Wright, No. 1060061, 2007 WL 1300721 (Ala. May 4, 2007), Noland Health Services, Inc. (Noland) owned and operated a nursing home in which 86-year-old Dorothy Willis died, allegedly of neglect and medical malpractice... Full Story
ADR Legislation & Regulation
LEGISLATION
AL H 940
AUTHOR: Newton D [D]
TITLE: Limited Partnerships
INTRODUCED: 05/17/2007
DISPOSITION: Pending
LOCATION: House Judiciary Committee
Commentary:
Repealing existing law, Alabama Limited Partnership Act of 1997, and enacting the Uniform Limited Partnership Act of 2008. Under SECTION 10 9C 803. (b) In winding up its activities, the limited partnership: ...may settle disputes by mediation or arbitration.
AZ S 1546
AUTHOR: Cheuvront [D]
TITLE: Condominium Recovery Fund
INTRODUCED: 01/29/2007
DISPOSITION: To Governor
Commentary:
Condo recovery fund (protecting consumers) includes arbitration awards by AAA rules "or another recognized arbitration body" in definition of "judgment" for purposes of the Act.
CO H 1249
SPONSOR: Primavera [D]
TITLE: Movers of Household Goods
INTRODUCED: 02/01/2007
DISPOSITION: To Governor
Commentary:
Creates a binding arbitration process for the resolution of disputes between a customer (shipper) and a mover. Makes the use of binding arbitration optional for the shipper. If the shipper chooses binding arbitration, requires the mover to participate in the process in good faith and to abide by the terms of the arbitrator's award. Applies to moving and accessorial services provided on or after July 1, 2007.
CO S 57
SPONSOR: Veiga [D]
TITLE: Debt Settlement
INTRODUCED: 01/11/2007
DISPOSITION: To Governor
Commentary:
Enacting the "Debt-Settlement Services Act: " notes that provisions to arbitrate must comply with Sec. 2 of the FAA.
CO S 216
SPONSOR: Veiga [D]
TITLE: Mortgage Loan Fraud
INTRODUCED: 03/06/2007
LAST AMEND: 05/03/2007
DISPOSITION: To Governor
Commentary:
The amended version of this bill removes a previous provision that would have declared 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 H 7024
INTRODUCER: Joint Public Safety and Security
TITLE: Intrastate Mutual Aid System
INTRODUCED: 02/01/2007
DISPOSITION: To Governor
Commentary:
Creates an intrastate mutual aid system for municipalities. Any dispute between political subdivisions regarding reimbursement 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.
CT H 7431
INTRODUCER: Cafero [R]
TITLE: Property Tax Relief and Accountability in Education
INTRODUCED: 04/16/2007
DISPOSITION: Failed
LOCATION: Died
Commentary:
Concerns property tax relief and accountability in education; bans use of 10% budget reserve for use in payment of "any matter" subject to arbitration; also, requires extensive reporting of rationale for awards made by arbitrators.
DE H 92
PRIMARY SPONSOR: Hudson [R]
TITLE: Arbitration Procedure
INTRODUCED: 03/22/2007
LAST AMEND: 05/16/2007
DISPOSITION: Pending
LOCATION: SENATE
Commentary:
Creates a system for arbitration between insurance carriers and health care providers; covers any disputes over reimbursement; program will be administered by the Department of Insurance. A 5/16/07 amendment to the bill removed from the scope of the legislation long-term care facilities and hospitals, with the rationale that those facilities already have adequate arbitration mechanisms in place.
FL H 311
IDENTICAL: FL S 1936
AUTHOR: Safety and Security Council Cmt
TITLE: Probate
INTRODUCED: 03/06/2007
DISPOSITION: To Governor
Commentary:
Permits clauses in wills, other than the validity of all or part of the will, to be subject to arbitration.
FL H 7107
COMPARE: FL H 253, FL H 1571, FL S 1682, FL S 1996
SIMILAR: FL S 2870
AUTHOR: Healthcare Council Cmt
TITLE: Child Support Enforcement
INTRODUCED: 04/02/2007
DISPOSITION: To Governor
Commentary:
Deceptive and Unfair Trade Practices in auto sales industry: clarifying role for arbitrator in determining improper imposition of attorney fees.
GA S 19
AUTHOR: Whitehead [R]
TITLE: Department of Transportation
INTRODUCED: 01/09/2007
ENACTED: 05/11/2007
DISPOSITION: Enacted
LOCATION: Chaptered
ACT: 12
Commentary:
Amending the Official Code of Georgia Annotated, relating to the authority of the Department of Transportation to pay costs of removal, relocation, or adjustment of certain utility facilities. Outlines procedures for implementing mediation boards.
IN S 49
AUTHOR: Zakas [R]
TITLE: Probate Administration
INTRODUCED: 01/08/2007
ENACTED: 05/10/2007
DISPOSITION: Enacted
LOCATION: Chaptered
PUBLIC LAW: 202
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."
MD S 371
AUTHOR: Muse [D]
TITLE: Interstate Compact for Juveniles
INTRODUCED: 02/01/2007
ENACTED: 05/17/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 500
Commentary:
Implements the Interstate Compact for Juveniles and allows for mediation of disputes between compacting states.
MD S 502
CROSSFILED WITH: MD H 449
AUTHOR: Astle [D]
TITLE: Consumer Vehicle Protection
INTRODUCED: 02/02/2007
VETOED: 05/17/2007
DISPOSITION: Vetoed
LOCATION: Vetoed by Governor
Commentary:
Similar to HB 449, offers private mediation for vehicle protection product warranty disputes.
NC H 1671
AUTHOR: England [D]
TITLE: Negligent Health Care Actions
INTRODUCED: 04/19/2007
LAST AMEND: 05/17/2007
DISPOSITION: Pending
LOCATION: HOUSE
Commentary:
Amending an act to provide for arbitration of wrongful death and personal injury claims. The amendments would make any preexisting agreement to arbitrate void, and only allow for post dispute agreements to arbitrate. The bill also attempts to make the Revised Uniform Arbitration Act inapplicable to this article.
NE L 373
AUTHOR: Schimek [NP]
TITLE: Medical Care Evidence
INTRODUCED: 01/12/2007
DISPOSITION: To Governor
Commentary:
This bill would make apologies inadmissible in litigation and arbitration of medical malpractice claims.
OH S 168
SPONSOR: Miller [D]
TITLE: Ohio Health Care Plan
INTRODUCED: 05/15/2007
DISPOSITION: Pending
LOCATION: Senate Health, Human Services and Aging Committee
Commentary:
Enacting and revising statutes to establish and operate the Ohio Health Care Plan to provide universal health care coverage to all Ohio residents. Revisions include: (F) The seven regional health advisory committees shall oversee the management of consumer and provider complaints originating in their respective regions and shall hold a hearing on all such complaints. The regional health advisory committees shall offer assistance to resolve consumer and provider disputes and shall seek the agreement of all parties to the dispute to submit the dispute to negotiation or binding arbitration.
OR H 2007
AUTHOR: Elections, Ethics, and Rules Cmt
TITLE: Same Sex Relationships
INTRODUCED: 03/06/2007
ENACTED: 05/09/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 99
Commentary:
Same Sex Unions; allows government funds (from registration fee) to be used for "conciliation/mediation" of couples, through private provider if necessary.
OR S 330
AUTHOR: Courtney [D]
TITLE: Intrastate Mutual Assistance Compact
INTRODUCED: 01/12/2007
ENACTED: 05/07/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 97
Commentary:
This bill creates an intrastate mutual assistance compact among local governments to allow local governments maximum flexibility to share law enforcement resources and streamlines the process by which local government can request assistance from another local government under certain circumstances. Provides for arbitration of disputes arising under the Compact using the American Arbitration Association.
PA H 1343
AUTHOR: Reichley [R]
TITLE: Medical Care Availability Act of 2002
PREFILED: 05/18/2007
DISPOSITION: Pending
LOCATION: HOUSE
Commentary:
Amends the Medical Care Availability and Reduction of Error (Mcare) Act of 2002. Provides for mandatory arbitration.
TX H 1038
AUTHOR: Ritter [D]
TITLE: Residential Construction Commission
INTRODUCED: 02/01/2007
LAST AMEND: 05/15/2007
DISPOSITION: Pending
LOCATION: SENATE
Commentary:
Relates to the operation of the Texas Residential Construction Commission: Makes strict requirements for placing/signing arbitration agreements:
(c) If a contract described ... contains a clause that requires the parties to submit a dispute arising under the contract to binding arbitration, the owner must acknowledge acceptance of the clause in writing by signing the contract in a space provided for that purpose immediately adjacent to the clause. The clause must be conspicuously printed or typed in a size equal to at least 14 point bold type.
A May 15, 2007 amendment to the bill replaced the 14-point type requirement with a 10-point type requirement, and eliminated the signature requirement.
TX H 1886
AUTHOR: Callegari [R]
TITLE: Political Subdivision Procurement Methods
INTRODUCED: 02/23/2007
LAST AMEND: 05/16/2007
DISPOSITION: Pending
LOCATION: SENATE
Commentary:
Relating to procurement methods for the construction of civil works projects; protects work product (designs) of unsuccessful bidders offering arbitration for disputes. A 5/16/07 amendment to the bill has eliminated any reference to arbitration.
TX H 2278
AUTHOR: Deshotel [D]
TITLE: Business and Commerce Nonsubstantive Revisions
INTRODUCED: 03/01/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Relates to a nonsubstantive revision of statutes relating to business and commerce; includes conforming amendments. Amendments include: "(b) If a contract contains a provision making the contract or any conflict arising under the contract subject to another state's law, litigation in the courts of another state, or arbitration in another state, that provision is voidable by the party obligated by the contract to perform the construction or repair. (Bus. & Com. Code, Sec. 35.52(a); [and] Sec.273.002.NOTICE OF APPLICABLE LAW OR FORUM. If a contract contains a provision making the contract or any conflict arising under the contract subject to another state's laws, litigation in the courts of another state, or arbitration in another state, that provision must be set out conspicuously in print, type, or other form of writing that is boldfaced, capitalized, underlined, or otherwise set out in such a manner that a reasonable person against whom the provision may operate would notice the provision."
WA H 2135
COMPANION: WA S 5968
AUTHOR: Wood [D]
TITLE: Lemon Law Coverage
INTRODUCED: 02/09/2007
ENACTED: 05/11/2007
DISPOSITION: Enacted
LOCATION: Signed by Governor
Commentary:
Expands lemon law coverage to out of state consumers, including arbitration board.
WA S 5050
AUTHOR: Weinstein [D]
TITLE: Motor Vehicle Lemon Law
INTRODUCED: 01/09/2007
ENACTED: 05/11/2007
DISPOSITION: Enacted
LOCATION: Signed by Governor
Commentary:
Dealers may not be made parties to arbitration board proceedings under state motor vehicle lemon law.
REGULATION
No new regulations.
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