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 would have blocked the dispute between Charlie Sheen, Warner Brothers and the producer, Chuck Lorre from being sent to arbitration by JAMS/Endispute. The request for arbitration was made by Warner, invoking what it said it believed to be a contractual right.
According to papers filed by Charlie Sheen’s lawyer, Mr. Sheen had been notified that JAMS would unilaterally put an arbitrator on the case if Mr. Sheen did not select one by 5 p.m. on Wednesday. The application for a restraining order argued, among other things, that Mr. Sheen had no agreement to arbitrate with Mr. Lorre and that the crew of his show, “Two and a Half Men,” on whose behalf Mr. Sheen is suing, also had no such agreement.
The second article involved a new lawsuit filed yesterday alleging sexual harassment by American Apparel’s chief executive and founder, Dov Charney. Wednesday’s lawsuit was the second to be filed in the last month against Mr. Charney and American Apparel alleging sexual harassment. As stated in the article, Mr. Charney is known for prompting his American-made T-shirts and leggings in provocative ads that feature young women.
The judge in the first case is expected to decide in the next few weeks whether the plaintiff will be required to settle the case in arbitration. Mr. Charney’s lawyer in reference to the recently filed case was quoted as follows, “The allegations are false, I think this is an effort to shake down American Apparel. These claims should be resolved in confidential arbitration.”
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