Source: https://library.nclc.org/node/2393396
Timestamp: 2020-07-14 17:19:25
Document Index: 418211836

Matched Legal Cases: ['arty\n12', '§ 1', '§ 5', '§ 7', '§ 8', '§ 9', '§ 13', '§ 14', '§ 15', '§ 1639', '§ 1026', '§ 232', '§ 232', '§ 232', '§ 5518', '§ 78', '§ 80', '§ 197', '§ 5567', '§ 1514', '§ 26', '§ 1226', '§ 1']

1.1 All Subscribers Have Access to the Digital Version of This Treatise | NCLC Digital Library
1.1 All Subscribers Have Access to the Digital Version of This Treatise
Chapter 1 Preliminary Issues
1.2 Scope and Organization of This Treatise
1.2.2 The Chapters and Appendices
1.2.3 Companion Material
1.2.4 Authorities Cited in This Treatise
1.3 Definition of Predispute Binding Arbitration Agreement—or “Forced Arbitration” Agreement
1.4 Why Mandatory Arbitration Agreements Unfairly Harm Consumers
1.4.2 One-Sided Nature of Arbitration
1.4.3 Limitations on Class Actions
1.4.4 Concerns About Arbitrators’ Impartiality
1.4.4.1 Repeat Player Bias
1.4.4.2 The Case of the NAF
1.4.5 Secrecy in Arbitration
1.4.6 Limitations on Discovery
1.4.7 Arbitration Fees
1.4.8 Other Concerns
1.4.9 Corporations Avoid Binding Arbitration When It Applies to Them
1.5 Studies of Consumer Arbitration
1.6 Recent Legislative Developments
1.6.1 Congressional Action
1.6.2 State Law
Chapter 2 Threshold Issues for Challenges to Arbitration Clauses
2.2 Do Courts or Arbitrators Decide Enforceability Challenges?
2.2.2 General Rule: Gateway Issues Are for the Court
2.2.3 When Arbitration Agreement Delegates “Gateway” Issues to the Arbitrator
2.2.4 Distinguishing Challenges to the Arbitration Clause Versus the Whole Contract
2.3 Federal Jurisdiction and Venue in Actions to Compel Arbitration
2.3.2 Federal Question Jurisdiction
2.3.3 Federal Diversity Jurisdiction
2.3.3.1 Is There Diversity?
2.3.3.2 Calculating the Amount in Controversy
2.3.4 Should Federal Court Abstain from Ruling on Arbitration Requirement?
2.3.5 Does the Rooker-Feldman Doctrine Prevent a Section 4 Federal Court Action?
2.3.6 Venue
2.3.7 Other Jurisdictional Issues
2.4 Right to Discovery Relating to Enforceability of Arbitration Clause
2.5 Right to Jury Trial to Determine Arbitration Enforceability
2.6 Appeal from Judicial Orders Relating to Arbitration
2.6.2 Interlocutory Federal Appeals of Orders Denying Arbitration
2.6.3 Federal Appeals of Orders Enforcing Arbitration Requirement
2.6.3.1 No Interlocutory Appeal of Order Staying an Action
2.6.3.2 Interlocutory Appeal After Dismissal of Consumer’s Action
2.6.3.3 Is Court’s Action a Stay or a Dismissal?
2.6.3.4 Does Court Have Discretion Whether to Stay or Dismiss an Action?
2.6.3.5 Does Voluntary Dismissal of an Action Allow for Interlocutory Appeals?
2.6.3.6 Petitions for Writ of Mandamus
2.6.4 Pendent Jurisdiction over Orders Compelling Arbitration
2.6.5 Appealability of State Court Arbitration Orders
2.6.5.1 The Consumer’s Appeal
2.6.5.2 The Defendant’s Appeal
2.6.5.3 Deadlines to Appeal
2.7 Class Certification When Only Some Class Members Are Subject to Arbitration Requirements
2.7.2 The Burden Is on the Defendant
2.7.3 When Named Plaintiff Has Opted Out of Arbitration Agreement
2.7.4 Formation of Arbitration Agreement After Filing of a Class Complaint
Chapter 3 Federal Arbitration Act Preemption of State Law
3.2 State Law Regulating Formation and Enforceability of Arbitration Clauses
3.2.1 State Law Regulates the Formation of Arbitration Agreements
3.2.2 When State Law Regulates Agreement’s Enforceability
3.3 FAA Preemption of State Limits on Arbitration’s Enforceability
3.3.2 State Law Singling Out Arbitration Clauses
3.3.2.1 Supreme Court Case Law
3.3.2.2 Lower Court Rulings Finding Preemption
3.3.2.3 Does a State Law Single Out Arbitration?
3.3.3 State Laws Interfering with Arbitration’s Fundamental Attributes
3.3.3.1 Individual Arbitration As a Fundamental Attribute
3.3.3.2 Other Potential Fundamental Attributes
3.3.3.3 Concepcion’s Limits
3.3.3.4 Public Injunctive Relief Does Not Interfere with a Fundamental Attribute
3.3.3.5 Requiring Arbitration Be Conducted Fairly Does Not Interfere with Fundamental Attributes
3.4 Limited FAA Preemption of State Procedural Law
3.4.2 FAA Procedural Provisions Apply Only in Federal Court
3.5 Special Situations in Which the FAA Does Not Preempt State Law
3.5.1 The “Market Participant” Exception
3.5.2 When State Law Allows a Private Party to Sue on Behalf of the State
3.5.3 Claims Regarding Insurance
3.5.3.1 General
3.5.3.2 Was the State Law Intended to Regulate Insurance?
3.5.3.3 Does a State Insurance Law Restrict Enforceability of Arbitration Agreements?
3.5.4 Limits to the FAA’s Scope
3.5.4.1 FAA Applies to Transactions in Interstate Commerce
3.5.4.2 Transactions Outside the FAA’s Scope
3.5.4.3 Applying State Law When FAA Does Not Apply
3.5.5 When Parties Contract to Have State Law Displace the FAA
3.5.6 State Ethical Standards for Arbitrators
Chapter 4 Formation of Agreement to Arbitrate
4.1.2 Checklist of Ways to Challenge the Formation of an Arbitration Agreement
4.2 First Principles
4.2.1 No Presumption That Arbitration Agreement Is Formed
4.2.2 Burden Is on Party Seeking to Enforce Agreement to Prove Arbitration Agreement Validly Formed
4.2.3 State Contract Law Determines Whether Arbitration Agreement Is Validly Formed
4.2.4 Court Decides Whether Agreement Has Been Formed
4.3 Express Assent
4.3.1 Assent by Signing the Agreement
4.3.2 Signature Must Relate to the Arbitration Agreement
4.3.3 Express Assent Must Be Made with Intent to Be Bound to the Agreement
4.3.4 Electronic Assent
4.3.4.2 Click-Wrap
4.3.4.3 Sign-in-Wrap
4.3.4.4 Browse-Wrap
4.3.5 Agreement Not Valid Until Satisfaction of Any Condition Precedent
4.3.6 Agreement Not Valid Unless Both Parties Assent
4.3.7 Impact of Fraud on Arbitration Agreement’s Formation
4.3.7.1 Fraud in the Factum
4.3.7.2 Fraud in the Inducement
4.3.8 Other Defenses to Consumer’s Assent to Contract
4.3.8.1 Duress, Lack of Capacity, and Mistake
4.3.8.2 Unconscionability in Contract Formation
4.4 Implied Assent Based on Conduct
4.4.2 Notice Requirement
4.4.2.2 Notice Must Be Delivered
4.4.2.3 Proof of Notice’s Delivery
4.4.2.4 Notice Must Be Conspicuous
4.4.3 Action Sufficient to Signify Acceptance
4.4.3.2 Continued Use of Card or Continued Employment
4.4.3.3 When Consumer No Longer Uses Credit Card
4.4.3.4 Contract Performance As Acceptance
4.5 Arbitration Clauses Sent Unilaterally After Agreement Reached
4.5.2 Arbitration Clause Unilaterally Sent After Agreement Is Consummated
4.5.3 Company Delivers Product But Claims Transaction Not Final
4.5.4 Arbitration Agreement Added in a Bill Stuffer
4.5.4.1 Change-in-Terms Provisions Do Not Allow the Addition of an Arbitration Clause
4.5.4.2 Contracts Permitting Issuers to Add New Terms
4.5.4.3 Delaware Statute Seeks to Allow Addition of New Terms
4.6 Illusory Agreements
4.7 Mutuality and the Requirement of Consideration
4.8 Arbitration Requirement Must Be Clear and Unambiguous
4.8.1 When Contract Merely Refers to an Arbitration Requirement
4.8.2 Agreement Must Be Clear and Unmistakable
4.8.3 Conflicting, Missing, or Ambiguous Terms in the Agreement
4.9 Jury Trial Waiver Must Be Knowing and Voluntary
4.9.2 The Doctrine and FAA Preemption
4.9.3 Application of the Doctrine
4.9.4 Application of the Doctrine to Waiver of Statutory Rights
4.10 Executed Arbitration Agreements That Are No Longer Binding
4.10.1 TILA Rescission and Other Three-Day Rights to Cancel
4.10.2 Opting Out of an Arbitration Clause
4.10.3 When Arbitration Agreement Superseded by Later Agreement
4.10.4 Expired Contracts; Claims Based on Prior Contracts
4.10.5 Can Assignor Enforce Agreement After Its Assignment
Chapter 5 Arbitration Clause’s Applicability to Particular Claims or Parties
5.2 General Standards of Interpretation
5.3 Application of Purported Federal Policy Favoring Arbitration to Disputes About Agreement’s Scope
5.3.1 Moses H. Cone Memorial Hospital v. Mercury Construction Corp.
5.3.2 Narrow Reading of Federal Policy Favoring Arbitration
5.3.3 When the Federal Policy Is Not Applicable
5.3.4 The Federal Policy Applies Only When Intent Is Ambiguous
5.3.5 Ambiguous Clauses Are Interpreted Against the Drafter
5.3.6 Characterizing Challenges As Relating to Formation and Not Scope
5.4 Whether Particular Claims Fall Within an Arbitration Clause
5.4.1 Does the Court or Arbitrator Decide Scope Issues?
5.4.1.1 Is There a Clear Delegation Provision?
5.4.1.2 Supreme Court Rejects the “Wholly Groundless” Standard
5.4.2 Is the Claim Closely Enough Related to the Arbitration Clause
5.4.2.2 Whether a Clause Is “Broad” or “Narrow”
5.4.2.3 Broad Clauses
5.4.2.3.2 Claims must depend on the existence of the contract or require construction of the contract
5.4.2.3.3 Claims that arise from a duty created by law
5.4.2.3.4 When breach of contract is not an element or supportive of the claim
5.4.2.3.5 The foreseeability test
5.4.2.4 Narrow Clauses
5.4.2.5 Arbitration Clause Does Not Apply to Consumer’s Self-Help Remedies
5.4.3 The Temporal Scope of an Arbitration Provision
5.4.3.1 Application to Events Occurring Prior to Consummation of Arbitration Agreement
5.4.3.2 Application to Events Occurring After the Agreement’s Expiration
5.4.4 Whether One Contract’s Arbitration Clause Applies to Claims Arising from Another Contract
5.4.5 When Some Claims Are Within the Arbitration Clause’s Scope and Some Are Not
5.5 Arbitration Agreement’s Application to Non-Signatories: General Principles
5.5.2 Does Federal or State Law Determine Rights of Non-Signatory?
5.5.3 Equitable Estoppel
5.5.3.2 Equitable Estoppel When Non-Signatory Seeks to Enforce the Arbitration Agreement
5.5.3.2.1 Detrimental reliance of the movant
5.5.3.2.2 Broader application in arbitration cases
5.5.3.2.3 Relationship between signatory-plaintiff’s claims and the underlying contract
5.5.3.2.4 Relationship between non-signatory defendant’s misconduct and a signatory’s misconduct
5.5.3.2.5 Cases against payment processors and originating banks
5.5.3.3 Equitable Estoppel When a Signatory Seeks to Enforce the Arbitration Agreement Against a Non-Signatory
5.5.4 Third-Party Beneficiaries
5.5.5 Agency
5.5.5.1 Implication for Principal When Agent Signs Arbitration Agreement
5.5.5.2 Implication for Agent When Principal Signs Arbitration Agreement
5.6 Application of Arbitration Agreement to Non-Signatories: Specific Situations
5.6.1 Assignees and Successors-in-Interest
5.6.2 Insurers, Manufacturers, Service Contractors, Attorneys, and Owners
5.6.3 Debt Buyers and Debt Collectors
5.6.3.1 Debt Buyer or Collector Must Produce the Arbitration Agreement
5.6.3.2 Debt Buyer’s Right to Enforce Creditor’s Arbitration Agreement
5.6.3.3 Debt Collector’s Right to Enforce Creditor’s Arbitration Agreement
5.6.4 Claims on Behalf of Nursing Facility Residents
5.6.4.1 Background
5.6.4.2 Family Member’s Signature Not Necessarily Binding on Patient
5.6.4.3 Is Resident a Third-Party Beneficiary?
5.6.4.4 Does the Designated Arbitration Forum Handle Nursing Facility Disputes?
5.6.5 Wrongful Death Claims
5.6.6 Guarantors and Sureties
5.6.7 When Some Parties Are Subject to the Arbitration Clause and Some Are Not
5.6.8 Application of Arbitration Agreement to Enforcement Agencies and Contempt Proceedings
5.6.9 When Association or Affinity Group Is the Signatory
Chapter 6 Waiver of the Right to Compel Arbitration
6.2 Does State or Federal Law Apply?
6.3 Waiver Because of Litigation Conduct
6.3.1 Court Decides Whether There Is a Waiver
6.3.1.2 Waiver Is Not a Procedural Issue to Be Left to the Arbitrator
6.3.2 Litigation-Related Actions That Waive the Right to Compel Arbitration
6.3.2.1 The Totality of Circumstances Test
6.3.2.1.1 General
6.3.2.1.2 Factors to consider
6.3.2.1.3 Has party accused of waiver gained an unfair advantage?
6.3.2.1.4 Efficiency in dispute resolution
6.3.2.2 Pre-Complaint Litigation-Related Conduct
6.3.2.3 Debt Collection Lawsuit As Waiver of Arbitration Requirement for Subsequent Consumer Litigation
6.3.2.4 Filing Pleadings
6.3.2.5 Motions to Dismiss or for Summary Judgment or Otherwise Asking the Court to Address the Merits
6.3.2.6 Conducting or Participating in Discovery
6.3.2.7 Delay
6.3.2.8 Waiver in the Class Action Context
6.3.2.9 Other Actions Constituting Waiver
6.3.2.10 Express Indications of Waiver
6.3.2.11 Other Actions Not Constituting Waiver
6.3.3 Is Prejudice a Requirement or Factor to Establish Waiver?
6.3.3.1 Cases Are Divided on Whether Prejudice Is Required
6.3.3.2 Demonstrating Prejudice
6.3.4 No Waiver When Motion to Compel Arbitration Was Futile Prior to Change in the Law
6.3.5 Revival of Right to Compel Arbitration After an Amended Complaint
6.4 Waiver Based on Breach of Arbitration Clause Provisions
6.4.1 In General
6.4.2 Who Decides Whether Failure to Participate Waives the Arbitration Requirement
6.4.3 Failure to Pay Fees or Costs or Otherwise Participate in an Arbitration
6.4.4 Breach of an Arbitration Clause’s Covenant of Good Faith
6.5 Arbitration Agreements Cannot Limit a Court’s Ability to Find Waiver
Chapter 7 Federal Statutes and Rules Limiting Arbitration Requirements
7.1.1 This Chapter’s Scope
7.1.2 Federal Limits on Arbitration Not Examined in This Chapter
7.1.3 Congressional Intent Determines Whether FAA Is Overridden
7.2 Federal Law Prohibits Mandatory Arbitration in Mortgage Loans
7.2.2 Two Separate TILA Requirements Limit Arbitration
7.2.3 Effective Date and Retroactive Effect
7.3 Federal Limits on Arbitration in Manufactured Home Sales
7.3.1 In General
7.3.2 Installment Sales and Other Dealer-Originated Manufactured Home Credit
7.3.3 When the Originating Creditor Is Not the Dealer
7.4 Consumer Credit Involving Active Duty Military Personnel or Their Dependents
7.5 Congress Overrides CFPB Limits on Mandatory Arbitration
7.6 Department of Education Limits on Schools’ Arbitration Requirements
7.6.2 Department of Education Rule in Effect Until July 1, 2020
7.6.3 Substance of the 2016 Rule
7.7 CMS Rule Concerning Nursing Home and Other Long-Term Care Agreements
7.8 The FTC Act
7.9 The Magnuson-Moss Warranty Act
7.9.1 Is Binding Arbitration Inconsistent with Written Warranty Dispute Resolution?
7.9.1.1 General
7.9.1.2 The Text and Structure of the Magnuson-Moss Warranty Act
7.9.1.3 The Act’s Legislative History
7.9.1.4 The FTC Interpretations
7.9.2 Arbitration Requirement Must Be Disclosed in Written Warranties
7.9.2.2 Alabama Courts’ Strange Rejection of the Eleventh Circuit Ruling
7.9.2.3 Significance and Extent of Disclosure Requirement
7.9.2.4 Does the Disclosure Requirement Extend to Service Contracts and Extended Warranties?
7.9.3 Limits on the Designation of an Arbitration Service Provider
7.10 Claims Asserted in Bankruptcy
7.10.2 Conflict Between Bankruptcy Code and FAA
7.10.3 Zimmerman, the 1984 Amendments, and Subsequent Case Law
7.10.4 Court Need Not Require Arbitration of Core Matters
7.10.5 Claims Asserted on Behalf of Bankruptcy Estate
7.10.6 Application to Consumer Cases
7.10.6.1 General
7.10.6.2 Nature of Proceeding, Not the Claim, Determines Whether It Is a Core Proceeding
7.10.6.3 Critiquing In re Mintze
7.10.6.4 Proceedings Related to Automatic Stay or Discharge Injunction Violations
7.10.7 Non-Core Matters Subject to Arbitration
7.10.8 Confirmed Plan Can Bar Enforcement of Arbitration Clause
7.11 No Conflict Between FAA and Credit Repair Organizations Act
7.12 The Carmack Amendment and the FAA
Chapter 8 Unconscionable and Other Unenforceable Arbitration Provisions
8.2 FAA Preemption
8.2.2 FAA Preemption and Unconscionability
8.2.3 FAA Preemption and the Vindication of Federal Statutory Rights
8.3 Who Decides Enforceability Challenge: Court or Arbitrator?
8.3.1 Is the Challenge to the Arbitration Clause Itself?
8.3.2 Is There a “Delegation Clause”?
8.3.3 Is the “Delegation Clause” Clear and Unmistakable?
8.3.4 Is the “Delegation Clause” Itself Valid?
8.4 The Doctrine of Effective Vindication Under Federal Law
8.5 Unconscionability Under State Law
8.5.1 Sources of Unconscionability Law
8.5.2 Relationship Between Procedural and Substantive Unconscionability
8.6 Procedural Unconscionability
8.6.1 Contracts of Adhesion—Enough in Some States, Merely a Factor in Others
8.6.1.1 What Is a Contract of Adhesion?
8.6.1.2 Is a Contract of Adhesion Always Procedurally Unconscionable?
8.6.2 Surprise As a Factor in Procedural Unconscionability
8.6.2.1 Conspicuousness of the Terms
8.6.2.2 Whether the Parties Were Hurried Through the Process
8.6.2.3 Complexity and Ambiguity of the Terms
8.6.2.4 Consumer’s Sophistication or Capacity
8.6.2.5 Importance of a Factual Record
8.6.3 Meaningful Choice As a Factor
8.6.4 Opt-Out Provisions
8.7 Substantively Overreaching Arbitration Provisions
8.7.1.1 Substantive Unconscionability, Effective Vindication, Impossibility
8.7.1.2 General Concepts As to Substantive Unconscionability
8.7.2 Excessive Fees and Costs
8.7.2.2 Precedent Regarding Excessive Arbitration Fees
8.7.2.3 Evidentiary Showing As to Costs
8.7.2.4 Costs Under AAA or JAMS Consumer Rules
8.7.2.5 Determine the Allocation of Fees Between the Parties
8.7.2.6 Evidentiary Showing That Costs Are Unaffordable
8.7.2.7 Imposition of Costs Exceeding Those Required in Court
8.7.3 Loser Pays Attorney Fees
8.7.3.2 Loser Pays Rule Conflicts with Federal Statutes
8.7.3.3 Loser Pays Rule Unconscionable
8.7.4 One-Way or Non-Mutual Arbitration Clauses Are Often Unconscionable
8.7.4.1 Introduction
8.7.4.2 Non-Mutuality Leading to Unconscionability
8.7.4.3 Non-Mutual Clauses That Appear to Be Mutual
8.7.4.4 Non-Mutual Appeal Rights
8.7.5 Waiver of Substantive Rights Under Law
8.7.6 Limits on Consumer Remedies
8.7.6.1 Class Arbitration
8.7.6.2 Limitation on Punitive or Other Types of Damages
8.7.6.2.1 Punitive damages limitations conflicting with federal statutory remedies
8.7.6.2.2 Limitations on punitive damages as unconscionable
8.7.6.2.3 Multiple damages
8.7.6.2.4 Actual damages
8.7.6.3 Limitation on Statutory Attorney Fees
8.7.6.4 Limitation on Injunctive and Equitable Relief
8.7.6.5 Shortened Statute of Limitations
8.7.6.6 High Arbitration Fees Accentuate Problem of Remedy-Stripping Provisions
8.7.7 Inconvenient Venue for Arbitration
8.7.8 Overreaching Arbitrator Selection Process, Arbitration Rules
8.7.8.1 When One Party Controls Selection of the Arbitrator
8.7.8.2 Arbitration Provider Displays Actual Bias in Favor of Corporations
8.7.8.3 Special Case of Tribal Arbitration
8.7.8.4 Financial Incentives and Repeat-Player Bias Lead to Potential Bias
8.7.9 When Designated Arbitration Forum Is Unavailable
8.7.9.1 Introduction
8.7.9.2 Reasons Designated Forum May Be Unavailable
8.7.9.3 When Arbitration Agreement Lists Alternative Forums
8.7.9.4 When Forum’s Unavailability Makes Arbitration Requirement Unenforceable
8.7.9.5 Language Indicating That the Forum Designation Is Integral
8.7.9.6 Language Indicating That the Forum Designation Is Ancillary
8.7.10 Secrecy Provisions
8.7.10.1 Introduction
8.7.10.2 Even Neutral Confidentiality Provisions Put Consumers at a Disadvantage
8.7.10.3 Public Concerns About Secrecy Provisions
8.7.10.4 Unequal Enforcement of Confidentiality Provisions
8.7.10.5 Secrecy As Part of the Nature of Arbitration
8.7.10.6 Arbitrator Ability to Limit Secrecy Provision
8.7.11 Excessive Limitations on Discovery
8.8 Remedies When Part of Arbitration Agreement Is Unconscionable
8.8.2 Severance
8.8.2.1 Overview
8.8.2.2 Application to Arbitration Clauses
8.8.2.2.1 Introduction
8.8.2.2.2 Is the unenforceable term integral to the agreement?
8.8.2.2.3 The number of unenforceable terms in the agreement
8.8.2.2.4 The existence of a severance provision
8.8.2.2.5 Incentivizing drafter overreach
8.8.3 Defendants’ Attempts to Absolve Unfairness After the Fact
8.8.4 Savings Provisions
8.8.5 Challenges During an Arbitration Proceeding
Chapter 9 Conducting Individual Arbitrations
9.1.1 Why Conduct Individual Arbitrations
9.1.1.1 Adequate Client Representation May Require Use of Arbitration
9.1.1.2 The Consumer’s Arbitration Fees Are No Greater Than a Court Trial
9.1.1.3 Discovery Is Often Possible
9.1.1.4 Arbitrators Do Not Always Rule Against the Consumer
9.1.2 Importance in Arbitration of Getting to Know the Client and Witnesses
9.1.3 Additional Resources to Help Arbitrate a Case
9.2 Selecting the Arbitration Forum and Arbitrator
9.2.2 Selecting a JAMS Arbitrator
9.2.3 Selecting an AAA Arbitrator
9.3 Arbitration Forum Rules and Fees
9.3.1 Forum Rules
9.3.2 AAA Minimum Standards for Arbitration Agreements
9.3.3 Forum Fee Schedules
9.4 When Defendant Fails to Pay Fees or Forum Does Not Approve Arbitration Agreement
9.4.1 Non-Payment As Waiver of Arbitration Agreement
9.4.1.2 Instructive Eleventh Circuit Decision
9.4.1.3 Practical Considerations in Seeking Waiver
9.4.1.4 California Law Protects Consumers When Business Fails to Pay
9.4.1.5 Does Waiver of Individual Arbitration Requirement Allow for Class Actions in Court?
9.4.2 Alternatives to Seeking Waiver of Arbitration Requirement for Non-Payment
9.4.3 When Arbitration Agreement Not Registered with AAA
9.5 Starting the Arbitration Process
9.6 Importance of the Preliminary Hearing
9.7 Setting the Scope of the Consumer’s Discovery
9.7.2 Consumer Entitled to Discovery to Vindicate Statutory Rights
9.7.3 Other Bases to Obtain Discovery
9.7.4 Number of Depositions Should Be Tailored to the Needs of the Dispute
9.7.5 Defendant Arguments to Reduce Plaintiff’s Discovery
9.7.6 Deposition of Defendant’s Employees and Agents
9.7.7 Subpoenas
9.8 Preliminary Motions, Disclosures, and Scheduling
9.8.1 Number of Hearing Days; Bifurcation of Liability and Remedies; Payment Schedule
9.8.2 Initial Disclosures
9.8.3 Discovery Motions
9.8.4 Dispositive Motions
9.8.5 Motions in Limine to Exclude Evidence
9.8.6 Pre-Hearing Submissions
9.9 Putting on the Case
9.9.1 Standards for Submission of Evidence
9.9.2 Witnesses
9.9.3 Arbitrator Questioning of Witnesses
9.9.4 Remote and Video Testimony at the Hearing
9.9.5 Documentary Submissions
9.9.6 Use of Affidavits in the Proceeding
9.9.7 Use of Arbitration Awards from Other Proceedings As Evidence
9.9.8 Objections at the Arbitration Hearing
9.9.9 Rebuttal and Completing the Presentation
9.9.10 Arbitration on Written Submissions Only
9.10 Post-Hearing Briefs Instead of Closing Arguments
9.11 Punitive Damages
9.12 Confirming the Arbitration Award
Chapter 10 Arbitration of Claims on a Classwide Basis
10.2 Does Arbitration Agreement Allow Classwide Relief?
10.2.1 Who Construes Whether Agreement Allows for Class Arbitration
10.2.1.2 Arguments for the Court or the Arbitrator to Decide
10.2.1.3 When Agreement Delegates Arbitrability to the Arbitrator
10.2.2 The Parties’ Intent
10.2.2.1 Parties’ Intent Determines Agreement’s Construction
10.2.2.2 Courts Rarely Overturn Arbitrator’s Determination of Intent
10.2.3 Factors Indicating That a Silent Clause Authorizes Class Arbitration
10.2.4 When Arbitration Agreement Appears to Prohibit Class Arbitration
10.2.5 Procedures for Reviewing an Arbitrator’s Determination on the Availability of Class Arbitration
10.2.5.1 Limits to Court Review of the Award’s Merits
10.2.5.2 Will a Court Allow Interlocutory Review?
10.3 Procedures for Arbitration of Class Claims
10.3.1 Importance of the Arbitration Forum
10.3.2 AAA Classwide Arbitration Rules
10.3.3 JAMS Classwide Arbitration Rules
10.3.4 When an Arbitration Agreement Specifies NAF Rules
10.4 Limited Judicial Review of Arbitrator’s Certification Award
10.5 Confirmation of a Class Arbitration Award
Chapter 11 Judicial Review and Effect of the Arbitration Award
11.2 Procedure to Confirm, Vacate, or Modify an Award
11.2.1 The Proper Court
11.2.2 Does State or Federal Law Apply?
11.2.3 Strict Timing Requirements
11.2.3.1 Short Period to Vacate or Modify an Award
11.2.3.2 Longer Period to Confirm an Award
11.2.3.3 Barriers to Vacating an Award at the Confirmation Hearing
11.2.4 Arbitration Agreement Must Be Produced at the Confirmation Hearing
11.2.5 Can the Parties, by Contract, Alter the Nature of Judicial Review?
11.2.5.1 Contract Cannot Limit Court’s Power to Vacate or Modify an Award
11.2.5.2 Arbitration Agreements That Increase the Scope of Judicial Review
11.2.6 Appeals of Trial Court Review of Arbitration Award
11.3 Grounds to Modify or Correct an Award
11.4 Grounds to Vacate Explicitly Set Out by Statute
11.4.2 The Grounds for Vacating an Award Are Not Waivable
11.4.3 When Arbitrators Exceed Their Powers or There is No Arbitration Agreement
11.4.3.2 Manifest Disregard of the Law As Exceeding Arbitrator Powers
11.4.4 Arbitrator’s Evident Partiality or Corruption
11.4.4.2 Consumer Versus Commercial Case Standards
11.4.4.3 California Statutes Requiring Disclosures by Arbitrators
11.4.4.4 Ex Parte Communications
11.4.4.5 Equal Protection in Selection of Arbitrator
11.4.5 Arbitrator’s Misconduct Including Refusal to Postpone the Hearing or to Hear Evidence
11.4.6 Award Procured by Corruption, Fraud, or Undue Means
11.5 Vacating an Award Based on Its Merits
11.5.1 Are There Independent Grounds to Vacate on the Merits?
11.5.2 The Manifest Disregard of the Law Standard
11.5.2.1 General
11.5.2.2 When Arbitrator Does Not Explain the Decision
11.5.2.3 A Different Standard for Statutory Claims?
11.5.3 Must Courts Ensure Arbitration Decision Is Consistent with Public Policy?
11.5.4 Arbitrary and Capricious Awards
11.5.5 Can the Court Re-Examine Evidence?
11.5.6 Review of Award Affecting Individual Not Party to Arbitration Agreement
11.6 Arbitral Immunity
11.7 Protecting the Arbitrator’s Punitive Damages Award
11.7.2 Is a Challenge to a Punitive Damages Award Timely and Brought in the Correct Court?
11.7.3 Does the Award Exceed the Arbitrator’s Powers?
11.7.3.2 Does the Arbitration Agreement Limit the Arbitrator’s Authority to Award Punitive Damages?
11.7.3.3 Do the Rules of the Arbitration Service Provider Limit the Arbitrator’s Authority to Award Punitive Damages?
11.7.3.4 Does State Law Limit the Arbitrator’s Authority to Award Punitive Damages?
11.7.3.4.1 Few state laws limit punitive damages in arbitration
11.7.3.4.2 FAA preempts state law limitations on punitive damages
11.7.3.4.3 Do general state law limits on punitive damages apply in arbitration?
11.7.4 Has the Arbitrator Disregarded the Law or Facts?
11.7.5 Does a Punitive Damages Award Violate Public Policy?
11.7.6 Due Process Challenges to Punitive Damages Awards
11.8 Arbitration and Issue or Claim Preclusion
11.8.2 Arbitration’s Preclusive Effect on Subsequent Court Proceeding
11.8.3 Preclusive Effect of Arbitration or Court Ruling on Subsequent Arbitration
Chapter 12 Creditor’s Use of Arbitration to Collect Consumer Debts
12.2 How Collection Using Arbitration Works
12.3 Options After Receiving a Notice of Arbitration
12.3.1 Doing Nothing
12.3.1.1 In Most States Doing Nothing Is the Worst Choice
12.3.1.2 States Where Doing Nothing Is an Option
12.3.2 Seeking a Stay of Arbitration
12.3.3 Participating in the Arbitration Proceeding
12.3.3.1 Participation May Result in Increased Consumer Liability
12.3.3.2 Objecting to the Arbitration Before the Arbitrator
12.3.3.3 How to Participate in the Arbitration
12.4 Vacatur of an Arbitration Award
12.4.2 Applicable Law, Jurisdiction, and Venue
12.4.3 Grounds for Vacating an Award in a Debt Collection Case
12.4.3.1 No Enforceable Arbitration Agreement
12.4.3.2 Lack of Notice of the Arbitration Proceeding
12.4.3.3 Lack of a Required In-Person Hearing
12.4.3.4 Failure to Follow the Arbitration Agreement or Arbitration Forum Rules
12.4.3.5 Arbitrator Improperly Selected
12.4.3.6 Inconvenient Venue
12.4.3.7 Arbitration Award Is Contrary to the Law or Facts
12.4.3.8 Arbitrator Bias
12.4.3.9 Corruption, Fraud, or Undue Means
12.5 Opposing Confirmation of the Award
12.5.1 The Confirmation Process
12.5.2 Time Period to Vacate Does Not Start Running When Notice of Award Is Defective or Is Not Sent
12.5.3 No Deadline to Challenge the Arbitration Agreement’s Existence or Enforceability
12.5.4 Creditor’s Failure to Produce Arbitration Agreement or Any Applicable Assignment
12.5.5 Corruption, Fraud, or Undue Means Unknown to the Consumer
12.5.6 Consumer’s Failure to Participate May Prevent Confirmation
12.5.7 Defects in the Confirmation Proceeding
12.5.7.1 Creditor’s Petition to Confirm Is Untimely
12.5.7.2 Petition to Confirm Filed in the Wrong Court
12.5.7.3 Party Seeking to Confirm Award Entered on Behalf of a Different Party
12.5.7.4 Seeking an Amount in Excess of the Award
12.5.7.5 Other Defects in the Confirmation Proceeding
12.5.8 Preclusive Effect of Dismissal of Prior Confirmation Action
12.6 Setting Aside a Confirmed Arbitration Award
Appendix A The Federal Arbitration Act
§ 1. “Maritime transactions” and “commerce” defined; exceptions to operation of title
§ 5. Appointment of arbitrators or umpire
§ 7. Witnesses before arbitrators; fees; compelling attendance
§ 8. Proceedings begun by libel in admiralty and seizure of vessel or property
§ 9. Award of arbitrators; confirmation; jurisdiction; procedure
§ 13. Papers filed with order on motions; judgment; docketing; force and effect; enforcement
§ 14. Contracts not affected
§ 15. Inapplicability of the Act of State doctrine
Appendix B Federal Limits on Arbitration
B.1 Prohibition of Arbitrations Involving Residential Mortgage Loans
B.1.1 Truth in Lending Act
15 U.S.C. § 1639c. Minimum standards for residential mortgage loans
B.1.2 Regulation Z
12 C.F.R. § 1026.36 Prohibited Acts or Practices in Connection with Credit Secured by a Dwelling
B.2 Limits on Arbitration Involving Military Personnel
B.2.1 Military Lending Act
B.2.2 Department of Defense Regulations
§ 232.1 Authority, purpose, and coverage.
§ 232.3 Definitions.
§ 232.11 Servicemembers Civil Relief Act protections unaffected.
B.2.3 Department of Defense Interpretations
81 Fed. Reg. 58,840 (Aug. 26, 2016)
B.3 Department of Education Former Regulation Regarding Participating Schools
B.4 Consumer Financial Protection Bureau and Securities and Exchange Commission Authority to Restrict Arbitration
B.4.1 CFPB Authority
12 U.S.C. § 5518. Authority to restrict mandatory pre-dispute arbitration
B.4.2 SEC Authority
15 U.S.C. § 78o. Registration and regulation of brokers and dealers
15 U.S.C. § 80b-5. Investment advisory contracts
B.5 Limits on Arbitration Involving Livestock and Poultry Farmers
7 U.S.C. § 197c. Arbitration
B.6 Limits on Arbitration Involving Whistleblowers
12 U.S.C. § 5567. Employee protection
18 U.S.C. § 1514a. Civil action to protect against retaliation in fraud cases
7 U.S.C. § 26. Commodity whistleblower incentives and protection
B.7 Limits on Arbitration Involving Car Dealers and Their Franchisors
15 U.S.C. § 1226. Motor vehicle franchise contract dispute resolution process
Appendix C Rules of the American Arbitration Association
C.1 Consumer Arbitration Rules
Overview and Listing of Provisions
Filing a Case and Initial AAA Administrative Steps
R-2. Starting Arbitration under an Arbitration Agreement in a Contract
R-3. Agreement to Arbitrate When There is No AAA Arbitration Clause
R-4. AAA Administrative Fees
R-5. Neutral Arbitrator’s Compensation
R-6. Depositing Neutral Arbitrator’s Compensation with the AAA
R-7. Expenses
R-10. Administrative Conference with the AAA
R-11. Fixing of Locale (the city, county, state, territory and/or country where the arbitration will take place)
R-13. AAA and Delegation of Duties
R-15. National Roster of Arbitrators
R-16. Appointment from National Roster
R-17. Number of Arbitrators
R-18. Disclosure
R-19. Disqualification of Arbitrator
R-21. Preliminary Management Hearing with the Arbitrator
R-22. Exchange of Information between the Parties
R-24. Written Motions (except for Dispositive Motions—see R-33)
R-25. Representation of a Party
R-26. Setting the Date, Time, and Place (the physical site of the hearing within the designated locale) of Hearing
R-27. Written Record of Hearing
R-28. Interpreters
R-29. Documents-Only Procedure
R-30. Attendance at Hearings
R-31. Oaths
R-35. Evidence by Affidavit and Post-Hearing Filing of Documents or Other Evidence
R-37. Interim Measures (a preliminary decision made by the arbitrator involving part or all of the issue(s) in dispute in the arbitration)
R-38. Postponements
R-39. Arbitration in the Absence of a Party or Representative
R-40. Closing of Hearing
R-41. Reopening of Hearing
R-42. Time of Award
R-43. Form of Award
R-44. Scope of Award
R-45. Award upon Settlement
R-46. Delivery of Award to Parties
R-47. Modification of Award for Clerical, Typographical, or Mathematical Errors
R-48. Release of Documents for Judicial Proceedings
R-49. Applications to Court and Exclusion of Liability
R-50. Waiver of Rules
R-51. Extensions of Time
R-52. Serving of Notice and AAA and Arbitrator Communications
R-53. Interpretation and Application of Rules
R-54. Remedies for Nonpayment
R-55. Declining or Ceasing Arbitration
Procedures for the Resolution of Disputes Through Document Submission
D-1. Applicability
D-2. Preliminary Management Hearing
D-3. Removal from the Procedures
D-4. Time of Award
C.2 Consumer Arbitration Fees
C.3 Consumer Due Process Protocol
Principles 1—15
C.4 Consumer Debt Collection Arbitrations
Appendix D JAMS Rules
D.1 Consumer Arbitration Minimum Standards
D.2 Comprehensive Arbitration Rules
D.3 Arbitration Schedule of Fees and Costs
Bias re Arbitrator, Arbitration Forum
Construction Allowing Class Arbitration
Consumer Defense of Collection Arbitration
Does Court or Arbitrator Decide
Federal Preemption of State Disclosure Requirements
Limits on Remedies, Non-Mutuality
Method of Arbitration Clause Consummation
Relationship of FAA to Magnuson-Moss Act
Right to Discovery, Hearing on Enforceability
Unconscionability--General
Web Link to Additional Briefs
Statutes, Standards
NCLC State Model Acts
AAA, NAF, JAMS Rules
Information on AAA, NAF
Deposition of AAA, NAF Arbitrator
Affidavits of AAA Officers
Depositions of AAA Officers
AAA Refusal to Arbitrate Case
Minnesota v. NAF
McQuillan Brief and Related NAF Exhibits
Letters Disputing Accuracy of NAF Representations
NAF Marketing Materials
Letters to Prospective NAF Clients
Pleadings Involving NAF
Depositions, Interrogatory Answers re NAF
McQuillan Brief and Related Exhibits
Auto Sales, Finance
Banking, Other Finance
Home, Mortgage Loans
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