US Supreme Ct argument on class action arbitration
September 28, 2009 by Ross Runkel at LawMemo
The US Supreme Court announced today the schedule for oral arguments in Stolt-Nielsen S.A., et al. v. AnimalFeeds International Corp. - December 9 at 10:00 a.m. Eastern time.
The parties in this case are parties to international maritime contracts that contain arbitration clauses. The contracts are silent as to whether arbitration is permissible on behalf of a class of contracting parties. A panel of arbitrators, tasked with deciding whether that silence permitted or precluded class arbitration, received evidence and briefing from both sides. The arbitrators issued an award deciding that the contracts permit class arbitration.
Stolt-Nielsen petitioned the United States District Court to vacate the award. That court did vacate the award on the ground that the award was made in manifest disregard of the law.
The 2nd Circuit reversed. The 2nd Circuit applied the rule that courts vacate arbitration awards in the rare instances in which "the arbitrator knew of the relevant [legal] principle, appreciated that this principle controlled the outcome of the disputed issue, and nonetheless willfully flouted the governing law by refusing to apply it." Using this principle, the court found that the arbitration panel did not manifestly disregard a rule of federal maritime law, and did not manifestly disregard New York State law.
The official "Question Presented" is:
In Green Tree Financial Corp. v. Bazzle, 539 U.S. 444 (2003), this Court granted certiorari to decide a question that had divided the lower courts: whether the Federal Arbitration Act permits the imposition of class arbitration when the parties’ agreement is silent regarding class arbitration. The Court was unable to reach that question, however, because a plurality concluded that the arbitrator first needed to address whether the agreement there was in fact "silent." That threshold obstacle is not present in this case, and the question presented here--which continues to divide the lower courts--is the same one presented in Bazzle:Whether imposing class arbitration on parties whose arbitration clauses are silent on that issue is consistent with the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq.
The briefs are collected here.
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Class action suit against National Arbitration Forum
September 17, 2009 by Ross Runkel at LawMemo
A class action suit has been filed against National Arbitration Forum.
Text of complaint: Magnone v. Accretive LLC, United States District Court, Central District of California
A press release from the law firm filing the complaint:
New York, NY — September 15, 2009 — The law firm of Milberg LLP has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of all persons who used NAF's arbitration services during the period from June 1, 2006 to the present, inclusive (the “Class Period”). The complaint is available from the Court or can be viewed at Milberg LLP’s website at www.milberg.com.Until recently, NAF held itself out as a leading forum for consumer arbitrations, which is how many consumer debt disputes are resolved. An arbitration forum must above all be impartial, so that consumers can be confident that their disputes with creditors (e.g., banks, credit card companies, phone companies, etc.) will be heard fairly, as would be the case if the dispute was resolved by a court of law. The class action lawsuit filed against NAF and related parties alleges that NAF has misled consumers for years in this regard because it was owned by and/or beholden to a debt collection agency and debt collection law firm, such that in reality it was a debt collector, not a neutral forum for resolving disputes by the debt collection industry against consumers. The result of these alliances was near perfect success rates by debt collectors against consumers in NAF arbitrations.
More specifically, the complaint alleges that NAF, National Arbitration Forum, LLC (“NAF LLC”), Mann Bracken, LLP (“Mann Bracken”), Accretive LLC (“Accretive”), Agora Fund I GP, LLC, Axiant, LLC, and Forthright Solutions (collectively “Defendants”), falsely held NAF out to be independent and unaffiliated with any persons or entities within or outside the collections industry and falsely presented its arbitration services as neutral. According to the complaint, Mann Bracken is a law firm that claims to specialize in consumer debt collection matters, but is a debt collector in its own right. NAF and Mann Bracken are both owned by Defendant Accretive who owns and controls both NAF and Mann Bracken, and their related entities. According to the complaint, NAF is now “under siege by local and state prosecutors for working alongside creditors, rubber-stamping illegitimate arbitration awards against consumers, deceiving the courts and the public, and undermining the integrity of the arbitration system.”
The complaint specifically alleges that NAF maintained a near perfect success rate -- ruling in favor of business entities -- by engaging in improper, deceptive and corrupt acts, including: (a) establishing incentives for arbitrators to favor debt collectors over consumers; (b) disregarding consumers’ evidence and/or arguments; (c) overlooking and violating its own Code of Procedure to benefit debt collectors, and ultimately, large creditors; (d) disregarding creditors’ lack of evidence; and (e) failing to provide the bona fide arbitration services it promised to consumers. The complaint also alleges that NAF breached its contractual obligation to provide arbitration services to consumers, and that NAF directly benefitted from, and was unjustly enriched by the contractual breaches.
Thanks to Disputing, where you can find more interesting background.
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Federal Service Impasses Panel appointments
September 16, 2009 by Ross Runkel at LawMemo
The President has named seven highly-qualified individuals to the Federal Service Impasses Panel – Federal Labor Relations Authority:
Mary Jacksteit, Chair, Federal Service Impasses Panel – Federal Labor Relations Authority
Mary Jacksteit has over 20 years of experience in mediation, facilitation and negotiation working for non-profit organizations, government agencies and community organizations. Jacksteit previously served on the Federal Service Impasses Panel for seven years during the Clinton Administration. She began her legal career as a labor attorney for the American Federation of Government Employees, AFL-CIO, where she later served as Deputy General Counsel. In the late 1980’s she began practicing as a labor arbitrator in the public and private sectors, serving on panels of the American Arbitration Association, Federal Mediation and Conciliation Service, and U.S. Postal Service. For 10 years, she worked at Search for Common Ground - a conflict resolution organization. Since 2007 she has been associated with the Public Conversations Project in Watertown, Massachusetts and has maintained a private practice focused on community, public policy, organizational planning, and conflict management. Jacksteit has a law degree from Georgetown Law School, an M.S. from George Mason University’s Institute for Conflict Analysis and Resolution, and a B.A. from the University of Pittsburgh.
Martin H. Malin, Member, Federal Service Impasses Panel – Federal Labor Relations Authority
Martin H. Malin is a Professor of Law and the Director of the Institute for Law and the Workplace at Chicago-Kent College of Law, Illinois Institute of Technology. He teaches courses in labor law, collective bargaining, arbitration, public sector labor law, employment law, contracts and jurisprudence. Malin has published five books, including Public Sector Employment: Cases and Materials (West 2004), the leading law school casebook on public sector labor law; and more than 60 articles on labor law and dispute resolution. An active arbitrator and mediator since 1984, Malin just completed a three-year term on the Board of Governors of the National Academy of Arbitrators and is a fellow of the College of Labor and Employment Lawyers. He also serves on the Executive Committee of The Labor Law Group and is a past chair of the Association of American Law Schools Section on Labor Relations and Employment Law. From 2004 - 2008, Malin served as Reporter for the Association of Labor Relations Agencies’ Neutrality Project. He was the principal drafter of ALRA’s Neutrality Report, a mini-treatise on labor board and mediation agency impartiality. During the mid 1980s, he served as a consultant to Illinois’ public employment labor boards and drafted the regulations implementing Illinois’ newly-enacted public sector labor relations acts. Malin joined the Chicago-Kent faculty in 1980, after teaching at Ohio State University and serving as Law Clerk to U.S. District Judge Robert DeMascio in Detroit. He holds a J.D. from George Washington University and a B.A. from Michigan State University.
Barbara B. Franklin, Member, Federal Service Impasses Panel – Federal Labor Relations Authority
Barbara B. Franklin is an arbitrator and mediator in Washington, D.C. She serves on arbitration rosters administered by the Federal Mediation and Conciliation Service, the American Arbitration Association and the Financial Industry Regulatory Authority. She is a mediator for the U.S. Court of Appeals and District Court for the District of Columbia. Since 1999, she has served as a Public Member of the D.C. Police and Firefighters Retirement Board, a position that is appointed by the Mayor of D.C. Prior to her retirement from the Federal Government in 1997, Ms. Franklin was Chief Counsel to Members Pamela Talkin and Donald S. Wasserman of the Federal Labor Relations Authority. From 1977 to 1989, she served as a staff attorney and then supervisory attorney for the National Labor Relations Board in the Office of General Counsel (Division of Advice). Franklin received her J.D. from The Catholic University of America’s Columbus School of Law, where she was Associate Editor of the Law Review, and her B.A. from Northwestern University.
Marvin E. Johnson, Member, Federal Service Impasses Panel – Federal Labor Relations Authority
Marvin E. Johnson is a nationally recognized mediator and arbitrator of public and private disputes. Johnson serves on the rosters of the JAMS Resolution Experts, the International Institute for Conflict Prevention and Resolution, the American Arbitration Association, and Accormend Associates. He served 16 years as Assistant and Associate Professor of Labor Relations, Business Law and Conflict Management at Bowie State University where he founded the Center for Alternative Dispute Resolution. Johnson’s previous appointment to the Federal Service Impasses Panel by a Democratic President and his appointment to the Foreign Service Grievance Board by a Republican Secretary of State are testaments to his impartiality and his dispute resolution expertise. In addition, he was appointed by the Governor of Maryland to serve on the Maryland State Labor Relations Board and by the Chief Judge of the Maryland Court of Appeals to serve on the Maryland Alternative Dispute Resolution Commission. Johnson is a member of the International Academy of Mediators, the ABA Section of Dispute Resolution, the Association for Conflict Resolution, the American College of Civil Trial Mediators, the Society of Labor and Employee Relations Professionals and Mediators Beyond Borders. He received his J.D. degree from Catholic University, his M.S. degree in Industrial Relations from the University of Wisconsin, and his B.B.A. degree from Kent State University.
Thomas E. Angelo, Member, Federal Service Impasses Panel – Federal Labor Relations Authority
Thomas Angelo began his career as an attorney with the Solicitor’s Office at the U.S. Department of Labor, in Washington D.C. He joined the National Treasury Employees Union in 1972, serving as Associate General Counsel in Washington D.C. and San Francisco. In 1981, he was named Regional Attorney for the San Francisco Region of the Federal Labor Relations Authority. Angelo became a full time arbitrator in 1983 and is a member of the National Academy of Arbitrators. He serves as a panel arbitrator for many private and public sector parties. Angelo is a graduate of Willamette University and Willamette University College of Law.
Edward F. Hartfield, Member, Federal Service Impasses Panel – Federal Labor Relations Authority
Edward F. Hartfield is the Executive Director of the National Center for Dispute Settlement (NCDS). He has devoted his entire 36-year career to serving as an impartial party as mediator, arbitrator, facilitator, election administrator, trainer, neutral convener, and ombudsman. Hartfield has served as Commissioner with the Federal Mediation and Conciliation Service and State Mediator for the New Jersey Office of Dispute Settlement. He was previously appointed by President Clinton to the Federal Service Impasses Panel, a seven-person panel established to resolve disputes in the Federal Government. Hartfield has also served as the International President of the Society of Professionals in Dispute Resolution (SPIDR) and currently is Vice President of the Detroit Chapter of the Labor and Employment Research Association (LERA). Hartfield serves on the Michigan State Court Administrative Office Task Force on Mediation Confidentiality and previously served on the Michigan Supreme Court Task Force on Mediation. He received a Masters in International Relations from the University of Detroit and B.A. from Oberlin College.
Don Wasserman, Member, Federal Service Impasses Panel – Federal Labor Relations Authority
Don Wasserman has been a labor relations professional his entire career. Since 2001, he has been an arbitrator/mediator, specializing in all levels of the public sector. He is a Member of the D.C. Public Employee Relations Board (DC PERB) and the Metropolitan Washington Airports Authority Employee Relations Council (MWAA-ERC). Wasserman is also on the labor rosters of the American Arbitration Association, Federal Mediation and Conciliation Service and National Mediation Board. In December 1995, he was appointed by former President Clinton as a Member and then as Chairman of the Federal Labor Relations Authority (FLRA), where he served until 2001. Wasserman began his career at the Communications Workers of America and then the International Association of Machinists. From 1967 until his appointment to FLRA, Wasserman held various top positions at the American Federation of State, County and Municipal Employees where he served as Director of the Department of Collective Bargaining and Assistant to the President. His major responsibilities included serving as chief negotiator in establishing initial collective bargaining agreements with several state governments and large local governments. He frequently testified before legislative bodies on key collective bargaining issues such as bargaining unit structure and impasse resolution procedures, as well as matters including government reinvention/redesign and civil service reform. Wasserman received an M.B.A from the University of Pennsylvania and a B.S. from Temple University.
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