In Lubin v. Starbucks Corp., 2024 WL 5113125 (11th Cir. Dec. 16, 2024), the Eleventh Circuit rejected an employer’s attempt to compel arbitration of claims brought by a former employee’s husband, where he had not signed an agreement with the employer and his claims were not sufficiently related to his wife’s employment agreement. The decision…
Divided Panel Affirms Remand of COVID-Related Claims to State Court
A resident of a Florida assisted living facility died shortly after contracting COVID-19. The representatives of her estate brought an action in state court against the owners and operators of the facility, alleging that the defendants failed to prevent the spread of the virus at the facility and asserting only state-law claims. The defendants removed…
Interpretation of Competing “Other Insurance” Clauses Turns on Policy Language, Not Broad Categories or Labels
In Gemini Insurance Co. v. Zurich American Insurance Co., No. 22-13495, __ F.4th__, 2024 WL 4553123, (Oct. 23, 2024), two insurance companies disputed what share of a $2 million settlement each was required to pay under Florida law. The answer turned on the interpretation and interaction of two “other insurance” clauses. Gemini and Zurich both…
In Toxic Tort Cases, Expert Evidence on General Causation Must Establish a Threshold Harmful Exposure Level
In a pair of toxic tort cases arising from the Deepwater Horizon oil spill, the Eleventh Circuit held that general causation expert evidence must establish a minimum level of exposure at which crude oil, its dispersants, or their associated chemicals are hazardous to human beings. In re Deepwater Horizon BELO Cases, 2024 WL 4522690 (11th…
Court Rejects Challenge to International Arbitration Award
Hidroelectrica Santa Rita S.A. (“HSR”) and Corporación AIC, S.A. (“AICA”) were parties to an Engineering, Procurement, and Construction (“EPC”) contract for a power plant to be built in Guatemala. HSR canceled the project, citing force majeure, and the parties brought various claims against each other in arbitration. The arbitration panel issued an award which—among other…
Whether Statute Overrides the Federal Arbitration Act Must Be Decided by a Court, Not an Arbitrator
The Eleventh Circuit again faced the question (becoming increasingly common in the world of arbitration enforcement) of precisely which challenges to “arbitrability” can and cannot be contractually delegated to an arbitrator. The challenge in Steines v. Westgate Palace, L.L.C., 2024 WL 4052630 (11th Cir. Sept. 5, 2024), was based on the Military Lending Act (MLA),…
Post-Removal Intervention Destroys Diversity Jurisdiction
Once a case is removed to federal district court on the basis of the diverse citizenship of the original parties, staying there is not guaranteed. Certain subsequent events can still deprive the court of jurisdiction. One such event, Fed. R. Civ. P. 24 intervention of a non-diverse plaintiff, led to a recent Eleventh Circuit decision…
Be Careful What You Incorporate By Reference
In Calderon et al. v. Sixt Rent a Car, LLC, __ F.4th __, 2024 WL 3823210 (Aug. 15, 2024), the court got a chance to flex its choice-of-law muscles. Putative class representatives from three states alleged breach of contract and violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) against Sixt Rent a…
International Arbitration Award Confirmed Under New Standards
Last year, in Corporación AIC, SA v. Hidroélectrica Santa Rita S.A., 66 F.4th 876 (11th Cir. 2023) (en banc), the court overruled two prior decisions to hold that the grounds for vacatur of an international arbitration award are those set forth in Chapter 1 of the Federal Arbitration Act (“FAA”), not the grounds enumerated in…
No Go for GoDaddy Coupon Settlement
Senior Judge Gerald Tjoflat has a well-earned reputation for lengthy opinions, especially in class actions. His recent opinion disapproving the class-action settlement involving GoDaddy is of epic length, but he could not win the concurrence of the other two panel members, Judges Wilson and Branch. Drazen v. Pinto, 101 F. 4th 1223 (11th Cir. May…