Source: http://njfirm.com/news/?category=Class+Action
Timestamp: 2019-04-25 12:41:01+00:00

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Today, the U.S. Supreme Court unanimously affirmed an arbitrator's interpretation of an arbitration clause to permit class proceedings. Oxford Health Plans LLC v. Sutter, No. 12-135, 569 U.S. __ (June 10, 2013). The Court considered whether an arbitrator, who found that the parties' contract provided for class arbitration, "exceeded [his] powers" under §10(a)(4) of the Federal Arbitration Act, 9 U. S. C. §1 et seq. Delivering the opinion of the Court and citing Stolt-Nielsen S. A. v. AnimalFeeds Int’l Corp., 559 U. S. 662, 684 (2010), Justice Kagan concluded that the arbitrator’s decision survives the limited judicial review §10(a)(4) allows.
The state court granted Oxford's motion to compel arbitration, and the parties agreed that the arbitrator should decide whether their contract authorized class arbitration. Id. The arbitrator determined that it did. Id. Oxford filed a motion in federal court to vacate the arbitrator's decision on the ground that he had exceeded his powers under §10(a)(4), but the District Court denied the motion, and the Third Circuit affirmed. Id.
The contrast with this case is stark. In Stolt-Nielsen, the arbitrators did not construe the parties’ contract, and did not identify any agreement authorizing class proceedings. So in setting aside the arbitrators’ decision, we found not that they had misinterpreted the contract, but that they had abandoned their interpretive role. Here, the arbitrator did construe the contract (focusing, per usual, on its language), and did find an agreement to permit class arbitration. So to overturn his decision, we would have to rely on a finding that he misapprehended the parties’ intent. But §10(a)(4) bars that course: It permits courts to vacate an arbitral decision only when the arbitrator strayed from his delegated task of interpreting a contract, not when he performed that task poorly. Stolt-Nielsen and this case thus fall on opposite sides of the line that §10(a)(4) draws to delimit judicial review of arbitral decisions.
The Second District held yesterday that a non-noticing party in a deposition, who does not move for an order in the pending case for a determination of the “reasonable rate” a court reporter may charge, may not bring a subsequent action to obtain restitution or obtain injunctive relief. The Las Canoas Company, Inc. v. Kramer, No. B238729, __ Cal. App. 4th. __ (2d Dist. May 7, 2013). The parties in the prior action did not agree on the reasonable rates to be charged for deposition transcript copies, but Las Canoas did not challenge the court reporter’s rate until filing a subsequent class action.
The court further concluded that “absent extraordinary circumstances, the court in the action in which the dispute arises is the only court to resolve the issue.” Slip Op. at 4 (emphasis supplied).

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