Recent Developments in Dispute Resolution Newsletter
(Willamette University College Of Law)
April 22, 1998
Arbitration:
Arbitration Agreement Ruled Unlawful Contract Of Adhesion.
Arbitration: Arbitrability Does Not Have To Be Decided
Before An Award
Arbitration: Arbitration Award Is Not Entitled To Collateral
Estoppel
Mediation: Attorney Has Inherent Power To Bind Client
In ADR Proceeding
Article: EEOC Disapproves Mandatory Binding Employment
Arbitration
Article: Critical Path to Mediating High-Tech Disputes
ADR Online: Should A Mediator Also Be An Attorney?
Arbitration:
Arbitration Agreement Ruled Unlawful Contract Of Adhesion
Hooters of America Inc v. Phillips (District Court of South Carolina
3/12/98)
Employer moved
to compel arbitration after employee filed a sexual harassment claim.
Hooters employees signed an arbitration agreement before knowing
all of the terms. The employees were led to believe that not
signing the agreement would be detrimental to their careers.
The terms were later included in the employee handbook. The court
found the employer's failure to distribute the rules to employees
as circumstantial evidence that the employer knew that the employees
would object to the terms. The court denied the employer's
motion to compel arbitration and held the arbitration agreement
to be an unenforceable contract of adhesion.
[Full Decision On Lexis: 1998 U.S. Dist. LEXIS 3962]
Arbitration:
Arbitrability Does Not Have To Be Decided Before An Award
National Association of Broadcast Employees & Technicians
v. ABC (2nd Cir 4/15/98)
NABET appeals
District Court's confirmation of arbitration award in favor of ABC
on two grounds (1) that arbitrator had no power to hear arbitration
and (2) that NABET should get a second hearing because no court
determined prior to the first arbitration hearing that the dispute
was arbitrable. The Court of Appeals affirmed stating that
the proposed rule would frustrate the fundamental goal of mediation
(simple and expeditious alternative to litigation) and that
arbitrability does not have to be decided before an award is made.
The court reasoned that parties can ask the court to enjoin proceedings
or can raise the issue in a judicial conference.
[Full Decision On Westlaw: 1998 WL 174671]
Arbitration:
Arbitration Award Is Not Entitled To Collateral Estoppel
Orrick v. San Joaquin Community Hospital (Cal. App. 5th 4/7/98)
Orrick suffered
complications from surgery and moved to compel surgeon to binding
arbitration under health care contract. Orrick prevailed and
was awarded $241,066. The hospital filed a motion for summary
judgement claiming Orrick was barred from further recovery by collateral
estoppel. The Court of Appeals decided that an arbitration award
is not entitled to collateral estoppel because the public policy
favoring arbitration was not outweighed by the policy disfavoring
litigation of the same issue in a subsequent suit. Although the
(five) threshold requirements for collateral estoppel were met,
the inability of a party to obtain judicial review of the arbitral
award militated against using the results of a prior proceeding
as a sword in subsequent litigation.
[Full Decision On Westlaw: 1998 WL 164789]
Mediation:
Attorney Has Inherent Power To Bind Client In ADR Proceeding
Koval v Simon Telelect, Inc. (Ind. 03/31/98)
Under the Indiana
ADR rules, an attorney for a party can bind his or her client in
an ADR proceeding using an analogous rule for "in court" proceedings.
“[I]n the absence of a communication of lack of authority by the
attorney, as a matter of law, an attorney has the inherent power
to settle a claim when the attorney attends a settlement procedure
governed by the ADR rules."
[Full Decision On Westlaw: 1998 WL 146193]
Article:
EEOC Disapproves Mandatory Binding Employment Arbitration
Louisiana Bar Journal - February 1998
In July 1997,
the Equal Employment Opportunity Commission (EEOC) concluded that
mandatory employment arbitration agreements are inconsistent with
civil rights laws and will disregard those agreements and process
charges against employers. Federal courts have thus far rejected
this claim in every suit brought by the EEOC.
[Full Article On Westlaw: 45 La. B.J. 443]
Article:
Critical Path to Mediating High-Tech Disputes
Practicing Law Institute – Patents, Copyrights, Trademarks, and
Literary Property Course Handbook Series
PLI Order No. G4-4042 - February 1998
Mediation’s
efficiency and flexibility makes it the ideal choice for resolving
disputes in an industry noted for rapid change. Unfortunately
mediators knowledgeable in high-tech issues are in short supply.
Attorneys and clients view the lack of in-depth industry related
knowledge as the greatest bar to entering into mediation.
[Full Article On Westlaw: 507 PLI/Pat 1081]
ADR Online:
Should A Mediator Also Be An Attorney?
Article by Cris M. Currie
"Among the more
hotly debated issues concerning appropriate qualifications for mediators
is the question as to whether it is preferable for mediators to
also be lawyers. In many states, a law degree is a prerequisite
for being listed as a court approved mediator. While most jurisdictions
permit disputants to choose any mediator, non-attorney mediators
are not always considered by court referred disputants. This is
because, for most people, it is just easier to pick a name from
the court approved list than to do their own research."
Details:
http://www.mediate.com/articles/currie.cfm
Recent Developments in Dispute Resolution
Willamette Law Online
- Willamette University
College of Law
Faculty Editor: Ross Runkel - rrunkel@willamette.edu
Student Editor: Kevin Cheatham - kcheatha@willamette.edu
Student Editorial Board: David
Ward, Alison Hohengarten,
Scott Perry
Website: http://www.willamette.edu/law/wlo/dis-res/
(Past Newsletters: Available Online At The Website Under "DR Newsletter")
Revised
by Kevin Cheatham,
Third Year Law Student
Willamette University College of Law, Salem, Oregon 97301
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