Archive for July, 2009

Things Don’t Look Good for the NAF

Thursday, July 23rd, 2009

Recently, I noticed the Minnesota Attorney General had filed a lawsuit against the National Arbitration Forum (NAF) and others.  Knowing how lawsuits can sometimes drag along, this came as something of a surprise:

“Two major arbitration firms are backing away from the business of resolving disputes between customers and their credit-card and cellphone companies, throwing into disarray a controversial system that prevents unhappy consumers from filing lawsuits.

The American Arbitration Association said Tuesday it will stop participating in consumer-debt-collection disputes until new guidelines are established. Its decision came two days after another big group, the National Arbitration Forum, said it would stop accepting new cases as of Friday.”

It appears the Minnesota AG accused the NAF of not being sufficiently neutral, and the NAF took some drastic measures.  A nice little chart helps illustrate the alleged scheme.

The timing of this settlement may be especially interesting.  The Arbitration Fairness Act hasn’t moved much recently, which makes sense in light of all the other concerns in Congress.  But if this story makes it into the traditional media, it may provide the impetus to push the Act and other similar statutes across the country.

Quinn Smith

And now for the award…

Wednesday, July 22nd, 2009

It’s not very often an arbitration award makes it on the front page of the New York Times (or at least in the little breaking news update on the front page), but today is an exception.

An arbitration tribunal sitting under the rules of the Permanent Court of Arbitration at the Hague ruled on a boundary dispute between two different groups of people in Sudan. The Government of Sudan and the Sudan People’s Liberation Movement disputed boundaries established under a 2005 peace accord. Recently, the two groups had clashed in violent fashion, and they identified the boundary dispute as the source of the battles.  Instead of letting the dispute play out on the ground, the parties chose to arbitrate.

The arbitration generated a good deal of publicity for a number of reasons. The mere idea that warring parties would give their disputes to an independently administered arbitral tribunal was noteworthy. But the tribunal also attracted top talent both as counsel and arbitrators. And the PCA decided to record and broadcast the proceedings, making them public in a way far greater than just the issuance of the award. Watching the proceedings, one can get a masterclass in legal argument.

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Taking a Proactive Posture

Monday, July 20th, 2009

Today my little update came in from the Global Arbitration Review, and I noticed a little by-line about a 5th Circuit decision moving the place of arbitration out of Venezuela due to political conditions.  “Sounds interesting,” I thought, “and maybe worth looking up.” (more…)

A Different Kind of Legal Problem

Monday, July 13th, 2009

Here’s something that doesn’t happen everyday:

“On July 5, officials from China’s Ministry of State Security took four employees of the Anglo-Australian mining giant Rio Tinto into custody here. Rio Tinto was not told what happened to the employees; neither were their families. One of the four was a high-ranking executive and an Australian citizen. But the Australian government was also in the dark.”

It appears the iron ore industry in China has posed quite a challenge to the Chinese and a hazard to some executives. While most individuals at MIAS practice in the field of arbitration, it might help to have some general knowledge in the field of criminal law.

Quinn Smith

Real Change?

Wednesday, July 8th, 2009

French President Nicolas Sarkozy and Brazilian President Luiz Inacio Lula da Silva have a recent article on the Huffington Post about their vision for the world’s future. While the article is short on specifics, it is noteworthy:

“The present mechanisms for global governance are unsuited to deal with the systemic character and the interrelation of the myriad challenges which we face. The scale of this economic crisis presents us with a unique opportunity to set about comprehensively reforming the international institutions.”

This may be an arbitration blog, but government policy affects development and increases the likelihood of international trade. Here’s to hoping for a stronger developing world, and some more legal work coming our way.

U.S. “Public Policy” As Basis to Nullify Arbitration Agreement: Beyond the Bounds of Mitsubishi?

Wednesday, July 8th, 2009

by Marc J. Goldstein

The U. S. Court of Appeals for the Eleventh Circuit has held that an arbitration agreement between a foreign seaman and his U.S. employer, proving for arbitration outside the U.S. under foreign law, was null and void becuase it prospectively waived the seaman’s rights under the federal Seamen’s Wage Act. Thomas v. Carnival Corp., 2009 U. S. App. LEXIS 14406 (11th Cir. July 1, 2009).
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