Estoppel: Where the nonsignatory has availed itself of the benefits of the agreement containing the arbitration clause, it generally will be required to arbitrate
under that agreement.
District Court for the District of Columbia, 1997), the court held that an employer cannot require an employee to arbitrate
all disputes and also require the employee to pay all or part of the arbitrator's fees.
Courts have consistently applied this broad federal mandate to order reinsurance disputes to arbitration.(13) For example, the Seventh Circuit directed the parties to arbitrate
a reinsurer's set-off claim with an insolvent insurer, although the right to set-off was created by statute, not by the express terms of the reinsurance agreement that contained the arbitration provision.(14) It reasoned that as a matter of law statutory rights are implied terms of the contract.
Even in states where agencies vigorously enforce state law discrimination claims, state courts have upheld agreements to arbitrate
disputes involving alleged unlawful discrimination.
Public policy in most states favors arbitration over litigation, but only when the parties have agreed to arbitrate
their disputes pursuant to a valid and enforceable arbitration agreement.
1415 ('Unless the parties clearly and unmistakably provide otherwise, the question of whether the parties agreed to arbitrate
is to be decided by the court, not the arbitrator')."
First, should parties include limitations on discovery in their agreement to arbitrate
? Second, in the alternative, are there times when a party should affirmatively stake out a right to discovery in the arbitration clause?
Pursuant to Article 203(3) of the Civil Procedure Law, "The subject matter of the dispute must be defined in the arbitration document or during the course of proceedings even if the arbitrators are authorized to conduct conciliation; otherwise the arbitration shall be deemed null and void." This means that an agreement to arbitrate
may be set out in a contract or separately in an arbitration document.
Courts take into account that the FAA was enacted "to overrule the judiciary's longstanding refusal to enforce agreements to arbitrate
." (4) In Buckeye Check Cashing, Inc.
The parties had contractually agreed to arbitrate
disputes arising under their franchise agreements.
Global Banking News-January 26, 2012--Merrill fined for failing to arbitrate
retention bonuses(C)2012 ENPublishing - http://www.enpublishing.co.uk
However, the Court found that the home fell within the ambit of the statute's definition of "consumer goods." The Court looked at the purpose of the statute, which was to prevent sales contracts from including clauses pre-committing consumers to arbitrate
disputes rather than using Small Claims Court, refusing to pay for goods or other legal remedies available to them.