Recent Developments in Dispute Resolution
Date: 11/27/97
Willamette University Dispute Resolution Information Service -
#9718
Willamette Law Online - Willamette University College of Law
*
Family Law Essay Contest Held by Hofstra School of Law
* Arbitration Award Vacated Because Employer Urged Board To Disregard
Law
* FAA Does Not Confer Subject Matter Jurisdiction On Federal Courts
* Court Can Fill In Name Of Arbitrator
* Franchisee Required To Arbitrate In Forum Stated In Arbitration
Provision
Family
Law Essay Contest Held by Hofstra School of Law
The
Family and Conciliation Courts Review of Hofstra School of Law
is holding its annual Law School Essay Contest. The contest
invites essays on various family law topics. The winning
essay receives a stipend of $400 and is published in the Review.
For more information, contact Editor Andrew Schepard at the Hofstra
School of Law. Mr. Schepard’s email is: LAWAZS@hofstra.edu
Arbitration Award Vacated Because Employer Urged Board To Disregard
Law
Montes v. Shearson Lehman Brothers (11th Cir. 11/24/97)
Montes
sought overtime pay under the FSLA; Shearson denied her pay, maintaining
Montes was exempt. Shearson’s attorneys urged the arbitration
board not to follow the FSLA if the board determined Montes was
not exempt. The board found in favor of Shearson.
The court vacated the award because it found the award “in manifest
disregard of the law.” In the award, the board had referenced
Shearson’s argument and made no indication it was following the
FSLA. In addition, the court determined that the record
indicated Montes was not exempt from the FSLA.
[Full Decision: Request 197181]
FAA
Does Not Confer Subject Matter Jurisdiction On Federal Courts
Baltin v. Alaron Trading Corp. (11th Cir. 11/25/97)
Investors
Baltins brought action to vacate, modify, or correct an arbitration
award. The District Court in Florida had granted permissive
jurisdiction, but dismissed after finding the forum selection
clause mandated an Illinois forum. The Circuit Court affirmed
the dismissal on different grounds: the federal court lacked subject
matter jurisdiction to hear the case. The court followed
other circuits in ruling that sections 10 and 11 of the FAA do
not grant federal courts subject matter jurisdiction; rather,
a federal court must have an independent basis of jurisdiction
to entertain a matter under the FAA. In this case, no federal
question was implicated and the amount in controversy did not
meet the requirements of diversity jurisdiction.
[Full Decision: Request 297182]
Court
Can Fill In Name Of Arbitrator
United Association of Journeymen v. Bechtel Construction Co. (9th
Cir. 11/3/97)
Pipefitters
union sued Ironworkers union to compel arbitration of jurisdictional
dispute. The project agreement provided for submission of
disputes “to _____, who will act as arbitrator.” The unions
failed to fill in the blank. Ironworkers argued that the
omission left the agreement vague, which excused them from arbitrating.
The court disagreed. Following 3rd and 5th Circuit decisions,
the court held that the District Court could hold the parties
to the agreement and fill in the blank for them: “Preservation
of labor peace requires that district courts have some flexibility
in fashioning decrees to enforce agreements to arbitrate labor
disputes.”
[Full Decision: 297183]
Franchisee
Required To Arbitrate In Forum Stated In Arbitration Provision
Management Recruiters Int’l v. Bloor (6th Cir. 11/19/97)
Bloor,
a Washington resident, signed a franchise agreement with MRI,
of Ohio. The arbitration clause specified Cleveland as the
forum, unless a Washington statute required arbitration to take
place in Washington. The court rejected Bloor’s argument
that a Washington Securities Administration’s Franchise Interpretive
Statement evinced a requirement that Washington be the forum.
The court also noted in dicta that, had Washington law clearly
required arbitration in that state, the clause would not have
been valid because it would have been in conflict with the FAA.
9 U.S.C. sec. 2.
[Full Decision: 297184]