1. Arbitration Waiver in the Wake of Morgan v. Sundance.
- Author
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Agostini, Samuel, Canna, Rachel, and Lincoln, Jared
- Subjects
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STATE laws , *CONTRACTS , *LEGAL judgments , *DISPUTE resolution , *LEGAL costs , *ARBITRATION clauses (Contracts) , *WAIVER , *COACHING of employees , *EDUCATIONAL coaching - Abstract
This article explores the topic of arbitration waiver in the context of franchise agreements. It discusses the prevalence of arbitration provisions in these agreements and the actions that parties may take before seeking arbitration. The article examines the question of when a party waives its right to compel arbitration and looks at the varying outcomes in federal courts. It focuses on the Supreme Court case of Morgan v. Sundance, which determined that a showing of prejudice is not necessary to claim waiver of the right to arbitrate. The article concludes by evaluating the practical implications of the Morgan decision on franchise law practice. It also discusses the Supreme Court's decision in Morgan v. Smith Barney, which clarified that the Federal Arbitration Act does not allow federal courts to create special procedural rules favoring arbitration. The goal of the Act is to treat arbitration agreements like any other contracts. The article provides examples of how the Eighth and Ninth Circuits have applied the Morgan decision in arbitration waiver cases. It highlights the impact of the Morgan decision on lower courts' approach to waiver in the arbitration context. The article discusses various cases in which courts have analyzed whether a party has waived its right to compel arbitration. The courts focus on the conduct of the party claiming the right to arbitrate and have largely eliminated the requirement of prejudice. Factors such as the party's knowledge of the right to arbitrate and intentional relinquishment of that right are considered. The article notes that these cases are fact-specific and there is no clear rule. It also discusses the concept of waiver in arbitration [Extracted from the article]
- Published
- 2024