Eversheds Sutherland 11th Circuit Business Blog
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Eleventh Circuit Joins Majority of Circuits in Holding That FAA Prohibits Pre-Hearing Discovery From Non-Parties

After twenty years of litigation in Managed Care Advisory Group, LLC v. Cigna Healthcare, Inc., 2019 WL 4464301 (Sept. 18, 2019), the Eleventh Circuit issued a per curiam opinion reversing the enforcement of arbitral summonses and holding that the FAA implicitly withholds the power to compel documents from non-parties without summoning them to testify. Beginning in 1999, medical...

SCOTUS Business Cases This Term (Part 2 – Arbitration)

The Court has several arbitration-related cases before it this term.  Lamps Plus, Inc. v. Varela concerns whether the FAA permits a state-law interpretation of an arbitration agreement that finds a contractual basis for class arbitration without class arbitration’s being specifically mentioned.  New Prime, Inc. v. Oliveira involves the FAA’s exception for “contracts...

Availability of Class Arbitration Is a “Question of Arbitrability” to Be Decided by a Court Absent a “Clear and Unmistakable Intent” to Delegate Arbitrability Questions to an Arbitrator

For the second time in as many months, the Eleventh Circuit addressed the question of who—a court or an arbitrator—decides whether an arbitration agreement allows for class arbitration. The court faced this question just last month in Spirit Airlines, Inc. v. Maizes, 899 F.3d 1230 (11th Cir. 2018), but its more recent decision in JPay, Inc. v. Kobel, 2018 WL 4472207 (11th Cir. Sept....

Spirited Court Widens Circuit Split Over Who Decides Class Arbitrability

In Spirit Airlines, Inc. v. Maizes, 2018 WL 3866335 (11th Cir. Aug. 15, 2018), the Eleventh Circuit concluded that an arbitration agreement providing that the rules of the American Arbitration Association (“AAA”) will cover all disputes constitutes clear and unmistakable evidence that the parties intended for an arbitrator to decide whether class arbitration is available. Members of a...

A Default in Proceeding with Arbitration Does Not Necessarily Authorize a Default Judgment in Federal Court

In Hernandez v. Acosta Tractors Inc., 2018 WL 3761126 (11th Cir. Aug. 8, 2018), the Eleventh Circuit held that a party’s default in proceeding with arbitration after requesting it did not necessarily warrant entry of default judgment against that party in federal court. Julio Hernandez sued his former employer, Acosta Tractors, and two of its officers under the Fair Labor Standards...

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