Arbitration/Mediation Archives

Under what circumstances will a non-signatory to an arbitration agreement be bound to arbitrate?

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Arbitration/Mediation on Nov 8, 2017.

Two recent decisions deal with this sometimes perplexing problem.  In Burns v. Sky Zone, the Pennsylvania Superior Court affirmed the trial court’s order denying preliminary objections seeking to enforce an arbitration agreement against an injured party whose spouse had signed an arbitration agreement in his name.  To be bound to arbitrate, the Superior Court ruled, the non-signatory must have had an agency relationship with the signatory based upon (1) express authority, (2) implied authority, (3) apparent authority, and/or (4) authority by estoppel.  Finding no proof of agency under any of these bases, the Superior Court held that the non-signing spouse had no duty to arbitrate. In Scottsdale Ins. Co. v. Kinsale Ins. Co., the United States District Court for the Eastern District of Pennsylvania compelled an insurance company to arbitrate under an arbitration clause in another insurer’s policy.  The Court observed that a non-signatory cannot be bound to arbitrate unless it is bound under traditional principles of contract and agency law to be akin to a signatory of the underlying agreement, and that equitable estoppel in this context arises when a non-signatory to an arbitration clause knowingly exploits the agreement containing the arbitration clause despite having never signed the agreement.  These two cases underscore the complex factual and legal issues to be analyzed in deciding whether and when a non-signatory must arbitrate.

Supreme Court of the United States reaffirmed that the Federal Arbitration Act

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Arbitration/Mediation on May 30, 2017.

On May 15, 2017, the Supreme Court of the United States reaffirmed that the Federal Arbitration Act preempts state laws placing agreements to arbitrate on weaker footing than other types of contracts.  In Kindred Nursing Centers L.P. v. Clark, the Supreme Court found that: “A court may invalidate an arbitration agreement based on ‘generally applicable contract defenses,’ but not on legal rules that ‘apply only to arbitration or that derive their meaning from the fact that an agreement to arbitrate is at issue.’”  A copy of the Kindred case may be found here: https://www.supremecourt.gov/opinions/16pdf/16-32_o7jp.pdf  

DO NOT DISREGARD CONTRACT-MANDATED MEDIATION CLAUSES

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Arbitration/Mediation on Apr 1, 2016.

Many contracts provide that before a party can arbitrate or litigate a dispute, a mediation must occur. Often a party will choose not to submit a dispute to mediation believing that a mediation will not resolve the dispute. Many parties proceed directly to arbitration or litigation, dismissive of the contract language requiring mediation.

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Mediation: What is it and how does it work?

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Arbitration/Mediation on Jan 20, 2016.

Alternative dispute resolution was introduced to the legal system years ago as a way to get cases to final resolution faster and contain costs. While these two objectives are not always accomplished with alternative dispute resolution in the modern system, the idea is still inserted into construction contracts and widely used. The concept is seen in two forms: mediation and arbitration.

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Robert Korn To Conduct Program On Arbitration

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Arbitration/Mediation on Apr 5, 2013.

Robert Korn, a partner in the construction law department at Kaplin Stewart, will be one of 3 featured speakers at a presentation for the Montgomery County Bar Association on Tuesday, April 9, 2013.  The program on the drafting of arbitration clauses is a CLE class aimed at all members of the bar.  Mr. Korn will be joined by two other experienced and respected attorneys, Steve Yusem and Judith Meyer.  Among the topics to be covered are the qualifications and selection of arbitrators, discovery, and enforcing arbitration awards.

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Agreements to Arbitrate are Waiveable In Pennsylvania

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Arbitration/Mediation on Feb 14, 2013.

Construction agreements often contain clauses requiring parties to submit their claims to arbitration. These provisions are favorable to the parties, as arbitration has certain benefits. For example, it may be quicker and more efficient than going through the court system and may be more relaxed than the legal process, thereby encouraging compromise or ongoing business relationships between the parties. An arbitrator or a panel of arbitrators is generally chosen by the parties, which typically results in the selection of someone sophisticated and knowledgeable in the construction industry.

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New Jersey Courts Recognize Arbitration Demands as “First Filings”

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Arbitration/Mediation on May 7, 2012.

A demand for mediation or arbitration based on a contractual agreement may qualify as a “first filed action” according to the Appellate Division in New Jersey. In a matter of first impression, the court considered whether a demand for mediation or arbitration may be viewed as a first filed action in CTC Demolition Company Inc. v. GMH AETC Management/Development, L.L.C.

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