After concluding that the most natural reading of an arbitration agreement did not cover the dispute in Calderon v. Sixt Rent a Car, LLC, 2021 U.S. App. LEXIS 20854 (11th Cir. July 14, 2021), the Eleventh Circuit held more broadly that the Federal Arbitration Act’s strong presumption of arbitrability applies only if “the dispute in…
Tag: Federal Arbitration Act (FAA)
FCRA Class Action Foiled by Comcast Arbitration Agreement
A Comcast arbitration agreement by which a former subscriber to the cable service agreed to arbitrate “any claim or controversy related to Comcast” was enforced by the court in Hearn v. Comcast Cable Communications, LLC, 992 F.3d 1209 (11th Cir. 2021), overturning a contrary decision by the Northern District of Georgia. The arbitration agreement was…
Employee Arbitration Award Stands Despite Arbitrators’ Alleged Misinterpretation of the Contract
The Eleventh Circuit refused to vacate an employee’s arbitration award for nearly $4 million for wrongful termination based on the employer’s claim that the arbitration panel misinterpreted the parties’ employment and arbitration agreements in Gherardi v. Citigroup Global Markets Inc., 2020 WL 5553255 (11th Cir. Sept. 17, 2020). The employee brought several claims in arbitration,…
Eleventh Circuit Joins Majority of Circuits in Holding That FAA Prohibits Pre-Hearing Discovery From Non-Parties
After twenty years of litigation in Managed Care Advisory Group, LLC v. Cigna Healthcare, Inc., 2019 WL 4464301 (Sept. 18, 2019), the Eleventh Circuit issued a per curiam opinion reversing the enforcement of arbitral summonses and holding that the FAA implicitly withholds the power to compel documents from non-parties without summoning them to testify. Beginning…
SCOTUS Business Cases This Term (Part 2 – Arbitration)
The Court has several arbitration-related cases before it this term. Lamps Plus, Inc. v. Varela concerns whether the FAA permits a state-law interpretation of an arbitration agreement that finds a contractual basis for class arbitration without class arbitration’s being specifically mentioned. New Prime, Inc. v. Oliveira involves the FAA’s exception for “contracts of employment of seamen, railroad…
Availability of Class Arbitration Is a “Question of Arbitrability” to Be Decided by a Court Absent a “Clear and Unmistakable Intent” to Delegate Arbitrability Questions to an Arbitrator
For the second time in as many months, the Eleventh Circuit addressed the question of who—a court or an arbitrator—decides whether an arbitration agreement allows for class arbitration. The court faced this question just last month in Spirit Airlines, Inc. v. Maizes, 899 F.3d 1230 (11th Cir. 2018), but its more recent decision in JPay, Inc….
Spirited Court Widens Circuit Split Over Who Decides Class Arbitrability
In Spirit Airlines, Inc. v. Maizes, 2018 WL 3866335 (11th Cir. Aug. 15, 2018), the Eleventh Circuit concluded that an arbitration agreement providing that the rules of the American Arbitration Association (“AAA”) will cover all disputes constitutes clear and unmistakable evidence that the parties intended for an arbitrator to decide whether class arbitration is available….
A Default in Proceeding with Arbitration Does Not Necessarily Authorize a Default Judgment in Federal Court
In Hernandez v. Acosta Tractors Inc., 2018 WL 3761126 (11th Cir. Aug. 8, 2018), the Eleventh Circuit held that a party’s default in proceeding with arbitration after requesting it did not necessarily warrant entry of default judgment against that party in federal court. Julio Hernandez sued his former employer, Acosta Tractors, and two of its…
Survey of 2017 Eleventh Circuit Decisions Published
The Mercer Law Review recently published its annual survey of noteworthy Eleventh Circuit decisions. The Class Actions article, authored by our own Tom Byrne and Stacey Mohr, analyzes the court’s 2017 decisions on CAFA jurisdiction, the impact of arbitration agreements on class actions, the preclusive effect of prior actions, class action settlements, and class certification disputes….
Court Compels Individual Arbitration of Consumer Class Action
In Larsen v. Citibank FSB, 871 F.3d 1295 (11th Cir. Sept. 26, 2017), the Eleventh Circuit reversed the Southern District of Florida’s denial of a motion to compel arbitration of a consumer debt class action. The plaintiff, David Johnson, filed a putative class action alleging that Defendant KeyBank had improperly changed the sequence of debit…