2012 Year-in-Review – Fifth Circuit Arbitration Case Law

During 2012, the U.S. Court of Appeals for the Fifth Circuit decided the following arbitration cases:

• In Volvo Trucks N. America, Inc. v. Crescent Ford Truck Sales, Inc. No. 09-30782, (5th Cir. Jan. 5, 2012) the Fifth Circuit held that a district court lacked subject matter jurisdiction to hear a petition to compel arbitration pursuant to Section 4 of the Federal Arbitration Act (“FAA”). Read more here.

• In Carey v. 24 Hour Fitness, USA, Inc. No. 10-20845 (5th Cir. Jan. 25, 2012) the Fifth Circuit held that an agreement was illusory because the defendant retained the unilateral right to modify or terminate the arbitration provision at any time. Read more here.

• In Ballew v. Cont’l Airlines, Inc., No. 11-20279, (5th Cir. Jan. 31, 2012) the Fifth Circuit held that an employee pension plan falls within the scope of the Railway Labor Act (“RLA”) and is subject to its mandatory arbitration procedures. Read more here.

• In Rain CII Carbon, LLC v. ConocoPhillips Co. No. 11-30669 (5th Cir. March 9, 2012) ConocoPhillips Company (“Conoco”) the Fifth Circuit Interprets the Meaning of a Reasoned Arbitral Award. Read more here.

• In Reed v. Florida Metropolitan University, Inc. No. 11-50509 (5th Cir. May 18, 2012) the Fifth Circuit ruled that an arbitrator exceeded his powers by ordering class arbitration without a sufficient contractual or legal basis for doing so. Read more here.

• In International Brotherhood of Electrical Workers, Local Union No. 716, AFL-CIO v. Albemarle Corporation, Inc., No. 11-20883 (5th Cir. June 18, 2012) the Fifth Circuit affirmed the district court’s order to compel arbitration finding that it was the arbitrator’s task to evaluate the scope of the grievance and the CBA. Read more here.

• In Petrofac, Inc., v. DynMcDermott Petroleum Operations Company, No. 1-20141 (5th Cir. July 17, 2012), the Fifth Circuit affirmed the district court’s ruling confirming an arbitration award. Read more here.

• In BP Exploration Libya Ltd., v. ExxonMobil Libya Ltd., v. Noble North Africa Ltd. No. 11-20547 (5th Cir. July 30, 2012), the Fifth Circuit ruled that the district court exceeded its authority under 9 U.S.C. § 5 by not limiting the number of arbitrators appointed to the number agreed to by the parties in the arbitration agreement. Read more here.

• In Dealer Computer Servs. v. Michael Motor Co., No. 11-20053 (5th Cir. Aug. 14, 2012) the Fifth Circuit ruled that arbitrator bias issue must be raised before the arbitration award is rendered. Read more here.

• In Amber Ibarra v. United Parcel Service, No. 11-50714 (5th Cir. Sept. 13, 2012), the Fifth Circuit held that the district court erred when it concluded that UPS’s CBA required Title VII claims to be brought under the CBA’s grievance process. Read more here.

• In Sabrina Kay Taylor v. University of Phoenix/Apollo Group, No. 11-20681 (5th Cir. Sept. 7, 2012), the Fifth Circuit found no reversible error with District Court’s judgment that affirmed an arbitration award in a disability discrimination case. Read more here.

• In Morgan Keegan & Company, Inc., v. Garrett, et al, No. 11-20736 (5th Cir. Oct. 23, 2012) the Fifth Circuit reversed the vacatur of a FINRA Award because it disagreed with the district court’s finding that the award was procured by fraud, or in the alternative, that the arbitration panel exceeded its powers. Read more here.

Stay tuned!