The Federal Courts of Appeals have issued the following FAA opinions in recent days:
1) Aviles v. Russell Stover Candies, No. 12-11227 (5th Cir. Apr. 4, 2014) (click here for a copy of the decision) – As a result of the arbitration agreement’s broad delegation clause and the Supreme Court’s Rent-A-Center decision, an arbitrator, not a court, must decide whether the arbitration agreement is illusory because the employer may unilaterally modify the agreement.
2) Russell v. Citigroup, No. 13-5994 (6th Cir. Apr. 4, 2014) (click here for a copy of the decision) – Because the arbitration agreement used the present tense and covered disputes that “arise” between the employee and employer (as opposed to “arose” or “have arisen”), the arbitration clause governs only disputes that begin in the present or future. As a result, the arbitration agreement did not cover lawsuits that had already been pending before the arbitration agreement was signed.
3) Ball v. Stylecraft Homes, No. 13-1946 (4th Cir. Apr. 3, 2014) (click here for a copy of the decision) – lower court properly dismissed motion to vacate an arbitration award because of lack of federal subject matter jurisdiction.
4) Wetzel’s Pretzels, LLC v. Johnson, No. 12-56716 (9th Cir. Apr. 3, 2014) (click here for a copy of the decision) – affirming denial of motion to vacate an arbitration award. The arbitrator’s award in connection with a franchise dispute was not “completely irrational” or in “manifest disregard of the law” because the arbitrator’s award merely enforced the terms of the franchise agreement.