Category: Arbitration

Marleny Vega v. 21st Century Insurance Co. (Superior Court of New Jersey, Appellate Division)

The Superior Court of New Jersey, Appellate Division, recently held that an insurer’s timely letter rejecting an arbitration award was sufficient to trigger its right to nullify an arbitration award, and found that the insurer did not need to explicitly demand a trial in order to nullify the award.

In the underlying action, Marleny Vega, claimed to have been injured in a hit-and-run car accident. She made a claim with her …

Klehr v. Illinois Farmers Ins. Co.
(Ill. Ct. App. Jan. 22, 2013)

In a matter of first impression in Illinois and nationally, an Illinois Appellate Court recently held that interlocutory rulings by arbitrators are not ripe for judicial review until the arbitration process is complete.

The plaintiff was injured in a hit-and-run accident. She filed a claim with her insurance carrier for uninsured motorist coverage and demanded arbitration under the arbitration provision in her insurance policy. The matter was referred to the American Arbitration Association …

White Spring Agric. Chems., Inc. v. Glawson Invs. Corp.  (11^th Cir. Fla. Oct. 17, 2011)

White Springs Agricultural Chemicals, Inc. (“White Springs”), a mining company, appealed the confirmation by the United States District Court for the Middle District of Florida of an arbitration award in favor of Glawson Investments Corp. (“Glawson”), a land owner, granting attorneys’ fees, expert fees, and prejudgment interest.  White Springs sought to vacate or modify the arbitration award under sections 10 and 11 of the Federal Arbitration Act (“FAA”).

White …

Lawson v. Life of the South Insurance Co. (11^th Cir. (Ga.) Aug. 10, 2011)

The Eleventh Circuit recently rejected an insurer’s attempt to arbitrate a putative class action lawsuit charging the insurer with failing to refund unearned premiums to policyholders that paid off loans early.

Plaintiffs Barbara and Jerry Lawson purchased a used 2000 Chevrolet Blazer from a Georgia car dealership. The couple financed the purchase by entering into a loan agreement that granted them the right to pay off the loan early. The …

B/E Aeropsace, Inc., v. Jet Aviation St. Louis (S.D.N.Y., July 1, 2011)

Plaintiff sought a temporary restraining order and preliminary injunction staying its upcoming arbitration with defendant.  The arbitration is administered by defendant The American Arbitration Association (“AAA”) and stems from a dispute involving allegedly incorrect engineering data plaintiff provided to defendant.  The crux of plaintiff’s complaint is that the arbitrators selected by defendants do not meet the requisite qualifications for arbitrators of disputes between plaintiff and defendant as set forth in the arbitration …

Virginia Surety Company, Inc. v. Certain Underwriters at Lloyd’s, London, Case No. 1-10-1753 (App. Ct. Ill. Apr. 20, 2011)

Virginia Surety (“VS”) demanded arbitration against Lloyd’s relating to payments allegedly due from Lloyd’s under two insurance treaties, a 1996 and a 1998 Treaty, in which Lloyd’s agreed to reinsurer VS’s risk on certain automobile extended warranty contracts. The parties’ arbitration agreement did not require a reasoned award, but the parties agreed that they would prefer such an award if the panel was willing …

AT&T Mobility LLC v. Concepcion, (U.S. Supreme Court, April 27, 2011)

Although arbitration provisions have generally been upheld by the courts, certain clauses have been closely scrutinized.  One such clause is a class-action waiver which requires arbitrations to be conducted on an individual basis.  The Supreme Court has now addressed the propriety of such clauses in arbitration provisions and whether state law can void the clause.

In AT&T Mobility LLC v. Concepcion, customers brought a putative class action suit against a cellular telephone …

W & J Harlan Farms, Inc. v. Cargill, Inc. (S.D. Ind. April 21, 2011)

The parties entered into a grain storage contract whereby plaintiff sold defendant a specific amount of corn at set prices for three years and defendant delivered a storage system at no charge.  When floods destroyed 2,400 acres of plaintiff’s corn and plaintiff sought to postpone delivery under the contract, defendant informed plaintiff that it charged $1 per bushel carrying charge to carry the contract over one year.  Plaintiff sought to cancel …