A divided Supreme Court held this week that the Federal Arbitration Act (FAA) that a states requirement of the availability of classwide arbitration interferes with the fundamental attributes of arbitration and thus creates a scheme inconsistent with the FAA. AT&T Mobility LLC v. Concepcion, No. 09-893, U.S. Supreme Court (April 27, 2011). The case was brought by a California couple who objected to a $30 charge for what was supposed to be a free cellphone. The agreement that they signed… Continue

Carol Whitworth signed a Sales Manager Employment Contract (“Employment Contract”) with McBride & Son on June 30, 2005.  The Employment Contract had a binding arbitration clause but did not describe the procedures or guidelines for arbitration.  The Employment Contract was also signed by the employer.  About one week later Whitworth was asked to complete an application for employment (“Application”).  The Application which was signed by Whitworth, but not by the employer, also contained…

Continue

If you happened to read The New York Times today (March 24, 2011) nestled in the Business Section were two articles related to arbitration. One article was “Sheen Loses Bid to Block Arbitration” and the other was “Chief of American Apparel Faces 2nd Harassment Suit.” The Sheen article related to none other than the American icon, Charlie Sheen. The news was that Judge Jacqueline A. Conner of Los Angeles Superior Court turned down a last-minute request for a temporary restraining order that…

Continue

In a Missouri Court of Appeals decision this week an arbitration provision was held to be unconscionable and unenforceable.  Manfredi v. Blue Cross and Blue Shield of Kansas City, No. WD71150 (Mo. App. W.D. 2011).  In this case Manfredi, a licensed chiropractor, entered into an Allied Provider Network Agreement (the “Agreement”) with Blue Cross and Blue Shield of Kansas City and its affiliates (“BCBS”).  The Agreement was on a form contract drafted by BCBS and presented to Manfredi on…

Continue