Arbitration News

Arbitration News


Robinhood Now Faces Roughly 90 Lawsuits after GameStop Trading Halt - Here's How Customers Might Get Their Day in Court

In the roughly three weeks since Robinhood restricted trading of certain securities, including GameStop, investors have filed more than 90 federal lawsuits generally claiming that the trading app's actions were unfair and unlawful. But consumer advocates and lawmakers worry that users who have filed these suits will not get their day in court, because Robinhood's user agreement contains a clause that requires disputes by users to be settled in arbitration and not in the civil court system.

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New York District Court Judge Affirms Arbitral Award Arising Out of Dispute Over Royalties Owed to Rapper Snoop Dogg

On January 25, 2021, a New York district court judge affirmed a nearly $2 million arbitration award against French cognac distiller Cognac Ferrand SAS (Ferrand) resulting from a dispute over $35,000 in royalties allegedly owed to rapper Snoop Dogg.

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Ninth Circuit Denies Non-Signatory’s Bid to Compel Arbitration of Trademark Infringement Claims

On remand from the U.S. Supreme Court, the Ninth Circuit Court of Appeals in Setty v. Shrinivas Sugandhalaya LLP considered the question of whether non-signatories to an agreement may use state law doctrines, such as equitable estoppel, to compel arbitration. Although the Ninth Circuit recognized that non-signatories may have the power to compel arbitration using equitable estoppel under certain circumstances, it ultimately found that the defendant in this particular case was unable to do so.

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District Court finds it Lacks Personal Jurisdiction where Parties Agreed that Arbitrator would Determine Issues of Arbitrability

In CleanSpark Inc. v. Discover Growth Fund, the Court was faced with two contractual provisions, one establishing personal jurisdiction in the S.D.N.Y. and another requiring arbitration elsewhere, and determined that while questions of arbitrability are ordinarily determined by courts, the parties had presented clear and unmistakable evidence of their intention to arbitrate questions of arbitrability.

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Court Compels Arbitration Because Non-Signatory & "Knowingly Exploited" and Obtained Benefits of Agreement

The Eastern District of Pennsylvania recently compelled arbitration involving a claim by a plaintiff who had not signed a Comcast subscriber agreement on the ground that the plaintiff had used benefits under the agreement and exercised control over the Comcast account. The court held that the plaintiff was therefore equitably estopped from avoiding arbitration.

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New York Federal Court Confirms $2M Arbitral Award to Defunct Liquor Distributor in Dispute Over Royalties Owed to Rapper Snoop Dogg

This royalties dispute arose out of an agreement between Cognac Ferrand a French company that produces and sells various liquors and spirits, and Mystique Brands, a company that imports and markets liquors and spirits in the United States, involving the importation and marketing of Ferrand's cognac in the United States.

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New York Federal Court Grants $12M Foreign Arbitration Award Under New York Convention

In Commodities & Minerals Enterprise, Ltd. v. CVG Ferrominera Orinoco, C.A., the petitioner sought confirmation of an international arbitration award issued in its favor by the Society of Maritime Arbitrators. The New York District Court, having found that the Arbitration Panel had jurisdiction to decide a threshold arbitrability issue, further found that the respondent failed to establish any basis to disturb the award pursuant to the New York Convention on grounds of fraud or corruption.

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In Setty, Ninth Circuit Signals Shift in Arbitration Landscape for Non-Signatories

The US Court of Appeals for the Ninth Circuit in Setty v. Shrinivas Sugandhalaya LLP tackled the question of whether non-signatories to an agreement may use state law doctrines to compel arbitration. Holding that the claims were insufficiently intertwined to permit equitable estoppel and had to be analyzed under federal law (and not state or foreign law), the Court affirmed the denial of a non-signatory's bid to arbitrate its claims for trademark infringement against one of the signatories to a contract.

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Court Grants Motion to Compel Arbitration of Claims of Non-Signatory to Contract

In Shelton v. Comcast Corp., the U.S. District Court for the Eastern District of Pennsylvania granted Comcast's motion to compel arbitration under the terms of its Subscriber Agreement of an FCRA claim brought by the Plaintiff even though the Plaintiff was not a signatory to the Agreement. Plaintiff claimed that Comcast checked his credit without a permissible purpose in violation of the Fair Credit Reporting Act.

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Arbitration Agreement Does Not Bar New York State Division of Human Rights Proceeding

Earlier this month, the federal court for the Western District of New York issued a decision in Charter Communications, Inc. v. Derfert, (W.D.N.Y. Jan. 4, 2021) holding that an employment arbitration agreement did not preclude a hearing before the New York State Division of Human Rights on an employment discrimination claim.

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