2010 Arbitration Case Law: Fifth Circuit

In 2010, the United States Court of Appeals for the Fifth Circuit decided the following arbitration-related cases:

In Hall-Williams v. Law Office of Paul C. Miniclier, PLC, No. 09-30113, (5^th Cir., Jan. 13, 2010), the Fifth Circuit compelled arbitration of a fees dispute between a law firm and a former client. The court held the parties’ arbitration clause was enforceable notwithstanding termination of their services contract. (read more here)

In Institutional Capital Management, Inc. v. Claus, No. 08-20710, (5^th Cir., Feb. 11, 2010), the court held that a National Association of Securities Dealers arbitration panel did not exceed its authority when it awarded attorney’s fees directly to counsel. (read more here)

In Todd v. Steamship Mutual Underwriting Association (Bermuda) Limited, No. 09-30177, (5^th Cir., March 18, 2010), the Fifth Circuit held that nonsignatories to arbitration agreements may be compelled to arbitrate under the New York Convention. (read more here)

In Blaustein v. Huete, No. 09-31078, (5^th Cir., June 18, 2010), the court refused to compel a nonsignatory to arbitrate his individual claims where he signed a legal representation fee agreement acting as a signatory for a limited liability company. The Fifth Circuit did not foreclose the possibility that he could be “held to the arbitration agreement as a non-party beneficiary,” however. (read more here)

In CareFlite v. AFL-CIO, No. 08-10807, (5^th Cir., Jul. 13, 2010), the Fifth Circuit held that a grievance concerning a pilot’s discharge was not subject to the Railroad Labor Act’s mandatory arbitration mechanism where a collective bargaining agreement between the airline and its pilots’ union explicitly excluded the claim. (read more here)

In MC Asset Recovery, LLC v. Castex Energy, Inc., No. 09-10451, (5^th Cir., Aug. 2, 2010), the court held that a defendant waived its right to compel arbitration because its substantial invocation of the judicial process had prejudiced the plaintiff. (read more here)

In Allen v. Regions Bank, No. 09-60705, (5^th Cir., August 11, 2010), the Fifth Circuit held that the question of arbitrability is for an arbitrator to decide where an arbitration agreement existed between the parties and they clearly intended for the issue to be arbitrated based on the wording of the arbitration provision. (read more here)

In Positive Software Solutions, Inc. v. New Century Mortgage Corp., No. 09-10355, (5^th Cir., September 13, 2010), the court held that it lacked inherent authority to impose sanctions for conduct which occurred during arbitration. (read more here)

In Noble Drilling Services, Inc. v. Certex USA, Inc., No. 10-20083 (5^th Cir., September 15, 2010), the Fifth Circuit held a court may not compel arbitration under a theory of direct benefits estoppel where there was no evidence a party had actual knowledge that a contract containing an arbitration clause existed and the party made no attempt to enforce the specific provision which contained the arbitration clause. (read more here)

In Juan Torres v. S.G.E. Management, L.L.C., No. 09-20778, (5^th Cir., October 5, 2010), the court held in an unpublished opinion that an arbitration provision in a multilevel marketing program contract which could be amended at the sole discretion of one party and bound the other party “upon notice” was illusory and unenforceable. (read more here)

In Janvey v. Alguire, et al., No. 10-10617, (5^th Cir., December 15, 2010), the court held that a motion to compel arbitration was not enough to defeat a federal district court’s preliminary injunction. (read more here.)

Disputing will continue its 2010 Year-End Highlights next week.

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