The United States Supreme Court has finally decided whether a collective action ban included in an employer’s arbitration agreement is lawful under the National Labor Relations Act.
Continue reading...On Tuesday, ride-sharing company Uber formally announced it would no longer require sexual harassment and assault victims to arbitrate their claims against the company.
Continue reading...The United States Court of Appeals for the Fifth Circuit has affirmed a district court’s order compelling an independent contractor to arbitrate his Fair Labor Standards Act (“FLSA”) claims against a restaurant food delivery service.
Continue reading...The Supreme Court of Texas has ruled that a contract signatory was erroneously “required to arbitrate its non-contractual claims against non-signatories” in a crop insurance dispute.
Continue reading...Zachary D. Clopton, Assistant Professor of Law at Cornell Law School, and Verity Winship, Professor of Law at the University of Illinois College of Law, have published “A Cooperative Federalism Approach to Shareholder Arbitration,” 128 Yale L.J.F. 169 (2018).
Continue reading...By Brett Goodman Unlike many other jurisdictions, the Texas statutes are silent on the issue of good faith mediation. Perhaps the most pertinent provision within chapter 154 of the Texas Civil Practices and Remedies Code is found at §154.002, stating, “It is the policy of this state to encourage the peaceable resolution of disputes, with special consideration given to disputes involving the parent-child relationship, including the mediation of issues involving conservatorship, possession, and support of children, and the early settlement of pending litigation through voluntary settlement procedures” Tex. Civ. Prac. & Rem. Code Ann. § 154.002 (emphasis added). This “voluntary” requirement implies no good faith requirement, as mandating good faith places a pressure on those involved in the mediation that could surpass a truly voluntary process. Although a good faith requirement would add to the perceived legitimacy of the mediation process and act as a deterrent to unwanted conduct, several other concerns would arise and provide insight why the idea has not been adopted in Texas. Placing the focus on the conduct of parties in mediation acts as a distraction to the main goal underlying the process, encourages frivolous claims over the good faith or lack thereof, and overall could discourage participation in mediation altogether. The case history in Texas shows a firm rejection of a good faith requirement. Shortly after the passage of the Texas ADR Act, the Texas Court of Appeals in Houston ruled void a mediation referral requiring parties to negotiate in good faith because “[a] court cannot force the disputants to peaceably resolve their differences, but it can compel them to sit down with each other.”Decker v. Lindsay, 824 S.W.2d 247, 250 (Tex. App. — Hous. [1st Dist.] 1992, no writ). This has been the norm within the Texas courts, as a Fort Worth court described, “An order requiring ‘good faith’ negotiation does not comport with the voluntary nature of the mediation process and [is] void.” In re Acceptance Ins. Co., 33 S.W.3d 443, 452 (Tex. App. — Fort Worth 2000, no pet.). Because the trial court in that Fort Worth case made an order that was void because of its good faith requirement, the court could not make further inquiry as to whether that court order was adhered to. One exception that could arise concerning good faith deals with filing an objection to mediation, which must be done within ten days of the court ordering a mediation in order to have effect. A Texas court has approved a sanction for a failure to mediate in good faith where the Texas Department of Transportation did not expressly object. See Texas Dept. of Transp. v. Pirtle, 977 S.W.2d 657, 658 (Tex. App.–Fort Worth 1998, pet. denied). In closing, this court declared, “We find that it is not an abuse of discretion for a trial court to assess costs when a party does not file a written objection to a court’s order to mediate, but nevertheless refuses to mediate in good faith.” Given the chance to continue down this path, however, the court of appeals in Austin rejected this mode of thought and declined to follow Pirtle. See Texas Parks & Wildlife Dept. v. Davis, 988 S.W.2d 370, 375 (Tex. App. — Austin 1999, no pet.). In this case, the Texas Parks and Wildlife Department did object to mediation according to proper procedure in a suit where park guest Davis was harmed as the result of a bench collapsing underneath him, but the court overruled the objection. Unlike Pirtle, though, the Department did attend mediation and made an offer, so the Department’s complaint was sustained “as to the trial court’s award of attorney’s fees as a sanction for the Department’s alleged failure to negotiate in good faith.” Given the chance to make exceptions to the lack of a good faith requirement commonplace, Texas courts have not followed that path. The Texas tendency to not require good faith is backed by several sound policy justifications. Requiring good faith would necessitate more judicial intrusion into the mediation process than is currently taking place, thus threatening the fundamental rights of the parties within mediation. In cases when the good faith requirement would come into collision with the confidentiality guarantees so that confidentiality would have to be breached in order to analyze what happened during mediation for good faith or lack thereof, the parties would be greatly hindered. This would almost certainly degrade confidence in mediation and discourage mediation altogether. Because the main goal of mediation should be to resolve the parties’ dispute, a good faith requirement may act as a distraction to the main goal and sidetrack what is really supposed to be achieved. Finally, a good faith requirement may open up the floodgates to frivolous claims of a lack of good faith, further straining the purposes of mediation and hindering the process. See Samara Zimmerman, Judges Gone Wild: Why Breaking the Mediation Confidentiality Privilege for Acting in “Bad Faith” Should be Reevaluated in Court-Ordered Mandatory Mediation, available here. Technorati Tags: law, ADR, arbitration Brett Goodman is a summer intern at Karl Bayer, Dispute Resolution Expert. Brett is a J.D. candidate at The University of Texas School of Law. He holds degrees in Finance, Mathematics, and Spanish from Southern Methodist University.
Continue reading...By Holly Hayes Readers have asked us, “where does ADR fit in health care? It’s a good question and one we have contemplated ourselves. To learn more, we are undertaking an informal survey asking leaders in the field to share their thoughts and experiences on this topic. So far, we have learned that ADR techniques can be applied with the following groups: Physician Practices and Hospitals: As more and more physicians move out of private practice and into salaried positions with hospitals, alternative dispute resolution can help both groups reach agreement on the business model that will work best for them. A recent article from the New York Times, titled, “More Doctors Giving Up Private Practices” states, “As recently as 2005, more than two-thirds of medical practices were physician-owned –a share that had been relatively constant for many years, the Medical Group Management Association says. But within three years, that share dropped below 50 percent, and analysts say the slide has continued.” Physician and Physician: We posted about Dr. Howard Brody’s recommendation (post available here) that physicians take an active role in determining the most effective use of medical procedures to help decrease health care costs. This article from the New York Times, “Law May Do Little to Help Curb Unnecessary Care” states, “To truly change the national chronic overuse of medical care, there will have to be a substantial change in the way patients think about health care, how medicine is practiced and how it is paid for, economists and doctors say.” We believe conflict resolution techniques can greatly benefit this on-going discussion of appropriate medical care. Physician and Hospital: We have written about disruptive physician behavior here and how mediation can be helpful. Staff Member and Manager: The Joint Commission now requires that hospitals develop conflict management systems. See more here. As we learn more about conflict resolution in health care, we will post responses here. This list is not intended to be comprehensive and we welcome your comments. Holly Hayes is a mediator at Karl Bayer, Dispute Resolution Expert where she focuses on mediation of health care disputes. Holly holds a B.A. from Southern Methodist University and a Masters in Health Administration from Duke University. She can be reached at: holly@karlbayer.com.
Continue reading...By Holly Hayes A new study published in the March edition of the Joint Commission Journal on Quality and Patient Safety (the full article is available for purchase here) and reported on American Medical News (available here) found that physicians are less likely than risk managers to tell patients when a medical error occurs. Physicians, however, are more likely to use the word “error” in describing the event and are quicker to say, “I’m sorry” than risk managers. The study reports that these differences in disclosure attitudes could lead to conflict between risk managers and physicians and diminish the effectiveness of disclosing an error. As disclosures increasingly involve collaboration between these two groups, organizations can plan for this potential conflict and develop policies and procedures to resolve disagreements. The study authors recommend, “Programs to train physicians and risk managers in disclosure should include basic conflict resolution skills to reduce the likelihood that such disagreements will impair the disclosure process. In addition, institutional disclosure policies should clearly articulate who in the organization has final authority over whether and how disclosures will take place.” “Historically, the role of the risk manager has been perceived as really geared toward protecting the interests of the hospital, and part of that includes protecting the reputation and financial interests of the institution,” said David J. Loren, MD, lead author of the study. This could result in risk managers being less likely to use the words, “error” and to “apologize” to patients. Physicians, on the other hand, may be embarrassed that the event occurred and concerned about the potential of a malpractice suit and therefore less likely to want to disclose a medical error. The Agency for Healthcare Research and Quality (AHRQ) also reported on the study here. Almost 3,000 risk managers nationwide at health care facilities were surveyed in 2004-05 as part of the study. Physician responses came from nearly 1,300 doctors in Missouri and Washington state who were surveyed in 2003-04. Please send us any comments about this study or any experience you have had with cases about disclosing medical errors. Holly Hayes is a mediator at Karl Bayer, Dispute Resolution Expert where she focuses on mediation of health care disputes. Holly holds a B.A. from Southern Methodist University and a Masters in Health Administration from Duke University. She can be reached at: holly@karlbayer.com.
Continue reading...Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.
To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.
Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.
To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.