Reinsurance Focus

Following is a summary of five recent opinions of note concerning the interpretation of arbitration agreements and arbitration procedure:

Klein v. Nabors Drilling USA L.P., Case No. 11-30824 (5th Cir. Feb. 26, 2013) (reversing denial of motion to compel arbitration; option in contract to agree to non-binding alternative dispute resolution proceedings did not render mandatory arbitration clause unenforceable).

Noohi v. Toll Bros., Inc., Case No. 12-1261 (4th Cir. Feb. 26, 2013) (affirming denial of motion to dismiss or stay pending arbitration; arbitration clause was unenforceable because it lacked mutuality of consideration under state law, notwithstanding Concepcion).

GGNSC Omaha Oak Grove, LLC v. Payich, Case No. 12-2592 (8th Cir. Mar. 4, 2013) (affirming denial of application to compel arbitration; estate of deceased nursing home resident was not bound by arbitration agreement as a third-party beneficiary where agreement was not executed by decedent’s son in his individual capacity).

Landers v. FDIC, Case No. 27223 (S.C. Feb. 27, 2013) (reversing denial of motion to compel arbitration of claims for slander, emotional distress, illegal proxy solicitation, and wrongful expulsion, in connection with arbitration clause in employment agreement; the “pleadings provide a clear nexus between [plaintiff’s] claims and the employment contract sufficient to establish a significant relationship to the employment agreement”).

MHC Kenworth-Knoxcille/Nashville v. M & H Trucking, LLC, Case No. 2011-SC-000441 (Ky. Feb. 21, 2013) (reversing order denying motion to compel arbitration; state case law holding jurisdiction does not exist for state courts to compel out-of-state arbitration did not apply when arbitration clause provided for choice of law to be the FAA).

This post written by Michael Wolgin.

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