Blogs

Posts Categorized: Arbitation, Mediation and Other ADR

Posted: September 22, 2014

Federal Arbitration Act Does Not Apply to California Insurance Law Requiring Arbitration Agreements to be Filed With State

On September 11, 2014, the First Department issued a decision in Matter of Monarch Consulting, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA., 2014 NY Slip Op. 06158, addressing the interplay between the Federal Arbitration Act’s preemption of state rules invalidating arbitration agreements and the McCarran-Ferguson Act, 15 U.S.C. § 1011, which prevents... Read more »

Posted: August 25, 2014

New York Choice of Law Clause Not Sufficient To Invoke New York Rule Against Punitive Damages Awards In Arbitration

On August 14, 2014, the First Department issued a decision in In re Flintlock Construction Services, LLC v. Weiss, NY Slip Op 05818, ruling (by a 3-2 vote) that a choice of law provision providing that the parties’ agreement was to be “construed and enforced” in accordance with the law of New York was not... Read more »

Posted: August 12, 2014

First Department Addresses Scope of Federal Arbitration Act

On August 7, 2014, the First Department issued a decision in Cusimano v. Schnurr, 2014 NY Slip Op. 05702, addressing two issues that arise frequently in the context of commercial arbitration: (1) whether the parties’ arbitration agreement is covered by the Federal Arbitration Act (FAA), in which case threshold issues, such as the timeliness of the claims,... Read more »

Posted: August 3, 2014

Petition to Stay Mandatory Mediation Dismissed

On July 25, 2014, Justice Schmidt of the Kings County Commercial Division issued a decision in Matter of Albee Development LLC v. Casino Development Group, Inc., 2014 NY Slip Op. 31959(U), dismissing a petition to stay a mandatory mediation. In Matter of Albee Development LLC, the respondent initiated an arbitration with the petitioner regarding a contract dispute. The... Read more »

Posted: July 31, 2014

Motion for Stay in Favor of Arbitration Denied When Complete Identity of Parties Lacking

On July 10, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in Interventure 77 Hudson LLC v. Falcon Real Estate Investment Co., LP, 2014 NY Slip Op. 31878(U), denying motions to compel arbitration. In Interventure 77 Hudson LLC, three defendants moved for a stay in favor of arbitration “on the... Read more »

Posted: July 10, 2014

Opportunity to Comment on Proposed Change to Joint Rules of the Appellate Division

The Office of Court Administration has asked for public comment on a proposed change to the Joint Rules of the Appellate Division. The proposed new rule would require law firm engagement letters to inform clients about the ADR programs available on the Unified Court System’s website. E-mail comments to rulecomments@nycourts.gov by September 8, 2014. NOTE:... Read more »

Posted: June 17, 2014

“Payday” Loan Recipients Compelled To Arbitrate RICO Claims

The strong federal presumption in favor of enforcing arbitration clauses is well known. In Moss v. BMO Harris Bank, N.A., 13 CV 5438 (JFB)(GRB), Judge Bianco reaffirmed just how strong it is. The case is a putative class action asserting civil RICO claims based on defendants’ alleged role in facilitating “payday” loans, which are short-term,... Read more »