Last week, the stock market had its worst week since October, but if you had GameStop stock, you were feeling pretty good. It grew 400 percent, fueled by the Reddit page r/WallStreetBets, where members bought stocks of companies that appeared on the way down, inflating their prices and putting the hedge fund managers who had shorted the stock in a bad position.
Read more2020 International Arbitration Overview: Demand for Dispute Settlement Up, Despite COVID-19 Struggles
Despite the challenges of 2020, major international arbitration institutions reported a record number of new registered cases. As travel restrictions inhibited cross-border travel, lockdowns were issued around the globe, and many industries began working remotely, arbitral bodies adeptly transitioned to fully electronic filing systems, organized remote hearings, and issued COVID-19 guidance. These changes enabled parties to continue resolving their disputes without major disruption and have set the institutions up for another busy year in the dispute resolution world.
Read morePennsylvania hospital, union must arbitrate dispute over nurse assignments, court rules
Heritage Valley Health System, which owns and operates a hospital in Beaver, Pa., must arbitrate its dispute with a union over whether the hospital breached their collective bargaining agreement by assigning registered nurses to work as patient care assistants, a federal appeals court said in an unpublished opinion.
Read morePredictions for the New Year in Commercial Disputes, International Arbitration, and Judgment Enforcement
First Tuesday Update is our monthly take on current issues in commercial disputes, international arbitration, and judgment enforcement.
As we focus on the New Year and a new Biden administration, we make a prediction in each area we cover. In commercial disputes, we believe that a Biden administration is likely to suspend the private right to bring claims under the Helms-Burton Act. In international arbitration, despite some of Biden's statements to the contrary during the campaign, we believe there are likely to be more trade deals and perhaps some reform to the system of settling investment disputes, but international arbitration is here to stay. Finally, in judgment enforcement, we predict that with the continued presence of COVID-19, the states and perhaps even the federal government will limit or preclude certain judgment enforcement tools intended to protect consumers, but the limits could have broader implications.
Read moreSingapore introduces default procedure for multi-party arbitration appointments
The Singapore government has amended its International Arbitration Act (SIAA) to introduce a default procedure for appointment of arbitrators in multi-party arbitrations.
The amendments also give Singapore-seated arbitral tribunals and the Singapore High Court the power to enforce confidentiality obligations.
Read moreCompromise - it’s not a dirty word
During mediation my heart sinks whenever I hear a party say they can’t give anymore without compromising their ethics or values. Why has compromise become a deal-breaker with such a negative association of giving up or giving in? It doesn’t have to be like that – and parties in mediation should be encouraged to embrace compromise as a worthy strategy.
Read moreou Better Watch Out: Extensions of Time for Challenging Arbitration Awards
In the recent case of The Federal Republic of Nigeria v Process & Industrial Developments Limited [2020] EWHC 2379 (Comm), the High Court granted an extension of time to bring challenges to an arbitral award made under Sections 67 and 68 of the Arbitration Act 1996.
The unusual aspect of this decision was that it had been several years since the arbitral award was made. The court found that the applicant had established a strong prima facie case of fraud affecting both the underlying contract and the arbitral proceedings, of which it had reasonably been unaware. This, along with other factors, merited the grant of an unprecedented extension.
Read moreArbitration clauses and class actions: the cross-border dialogue continues in light of recent SCC and SCOTUS jurisprudence
The policy rationales that underpin enforcing arbitration agreements may potentially be at odds with those underpinning the class actions regime (see our previous posts here and here). These policy rationales collide when confronting the question of whether plaintiffs can waive their right to participate in a class action through a mandatory arbitration clause and, if so, when this is permissible. Canada and the United States continue to have different approaches to the question of who decides whether a dispute is arbitrable – the arbitrator or the court? With respect to enforcement in the class action context, courts in the United States tend to enforce arbitration clauses such that class actions are precluded. However, in Canada an arbitration clause that acts as a barrier to dispute resolution may be unenforceable and precluded by certain legislation.
Read moreThe EEOC Abruptly Concludes ACT Mediation Pilot But Keeps Some Of The Popular Changes
After the U.S. Equal Employment Opportunity Commission (EEOC) recently announced that it had extended its ACT Mediation pilot program, the EEOC reversed course yesterday and abruptly concluded pilot programs relating to the EEOC’s conciliation and mediation efforts. The ACT Mediation pilot, which launched on July 6, 2020, expanded the categories of charges eligible for mediation, generally allowed for mediation to take place throughout an investigative process (rather than only before the investigation begins as is traditionally the case outside the pilot), and expanded the use of technology to hold virtual mediations.
Read moreWhat the draft International Arbitration Rules, published by the Arbitration Foundation of Southern Africa, means for arbitrating parties
In 2017 South Africa adopted a new arbitration law for International Arbitrations, the International Arbitration Act (IAA). The passing of the IAA was a significant development for both South Africa and the region. Many parties choose arbitration in their international agreements; however, this is only desirable if an arbitration is seated in a jurisdiction where courts give support when needed, but otherwise do not interfere. The IAA which is based on the UNCITRAL Model Law entrenches this approach. The IAA provides a familiar framework for administering an arbitration, clarity of process and procedure, and certainty that foreign arbitration agreements and awards will be recognised and enforced within the jurisdiction.
Read moreWhat’s in Santa’s sack: what matters are caught by an arbitration clause?
Parties agree to arbitrate because they consider that to be the most appropriate method for finally resolving disputes that might arise out of their legal relationship. A positive choice to include an arbitration agreement in your contract will (in most cases) bring with it a further choice, namely to exclude the substantive jurisdiction of the national courts which would otherwise be able to hear claims between the parties. As you know, arbitration agreements are construed widely. English law takes the view that businessmen want all claims arising from one contract to be resolved before one tribunal.
Read moreSixth Circuit Reverses Order Finding Employment Arbitration Agreement Void Due to Coercion
An employee sued her former employer and coworkers in the Eastern District of Michigan for sexual harassment, defamation, and for subjecting her to a hostile work environment. The employer argued that the employee’s claims fell within the scope of an arbitration agreement, but the district court held that the agreement was void because the employee had been coerced into signing it.
Read moreArbitration Update: A Summary of Recent Developments
In this update, we summarise some of the key cases and developments in the London arbitration market during the second half of 2020.
We highlight: i) the impact of Brexit on international arbitration; ii) two Supreme Court cases that have brought clarity to the law governing arbitration agreements and arbitrator impartiality; iii) two important decisions relating to ICSID proceedings and/or the enforcement of ICSID awards; iv) updates which have been made to the arbitration rules of the ICC and the LCIA to increase efficiency and transparency; and v) other notable cases relating to challenges to arbitration awards and the English Court's pro-arbitration stance in the context of anti-suit injunction applications.
Read moreHK remains a leading hub for international arbitration, says Justice Secretary
Hong Kong's Secretary for Justice Teresa Cheng Yeuk-wah said Hong Kong will continue to serve as an international legal hub for deal-making and dispute resolution services, and to clarify misconceptions and misunderstanding through concerted efforts in promotion and explanation.
Writing on her official blog, Cheng said today that Hong Kong excels as a leading arbitration center, with the arbitral service well known for its flexibility, and the enforceability of awards in over 160 jurisdictions.
Read moreLandlords and Tenants Encouraged to use Dispute Resolution Services of RAB
Landlords and tenants are being encouraged to utilise the dispute resolution services of the Rent Assessment Board (RAB) within the Ministry of Housing, Urban Renewal, Environment and Climate Change.
“The purpose of the RAB is to serve as an unbiased party in settling disputes between tenants and landlords as guided by the Rent Restriction Act. I want to encourage landlords and tenants who are having a dispute to contact the Rent Assessment Board. We are a quasi-judicial body and that means the Board has both judicial hearings (twice per month) and mediation sessions for landlords and tenants in dispute,” Director in the Rent Service Unit, Shenese Williams-Headlam, told JIS News.
Read moreThe most effective leaders do these 5 things when conflict arises
They say diamonds are made under pressure. Well, amazing leaders too. And that pressure often comes in the form of interpersonal conflict.
“Managing conflict can be a tricky thing. Leaders must act responsibly to be respected and confront conflict head-on. Acting responsibly in the face of conflict is a sign of a great leader,” says executive coach, best-selling author and host of the WholeCEO podcast Lisa Goldenthal.
Companies Consider Excluding Hong Kong From Legal Contracts: FT
International companies operating in Asia are considering leaving Hong Kong out of legal contracts amid concerns about China’s growing control, the Financial Times reported, citing people it didn’t identify.
Read moreSurvival of alternative dispute resolution clauses in the event of fraud
Verbal and written contracts are an essential part of everyday life. Contracts embody the security that parties rely on, to enforce the performance of obligations arising out of the contracts. Parties enter into contracts for a myriad of reasons, which are informed by impressions, undertakings or even formal representations made by the parties. A classic case of misrepresentation occurs when a party enters into a contract on the basis of an impression that later turns out to be false. This renders the contract voidable at the instance of the misled party.
Read moreFrance: Entry Into Force Of The New ICC Arbitration Rules And ICC Note To Parties And Arbitral Tribunals
The International Chamber of Commerce (the "ICC") has unveiled a revised version of its Rules of Arbitration (the "Revised Rules"). This new version, which came into force on January 1, 2021, applies to arbitration proceedings initiated on or after that date, unless otherwise agreed by the Parties. Although it does not introduce major substantive changes, this revision corresponds to the stated objective of the ICC President to "mark a further step towards greater efficiency, flexibility and transparency."
Read moreUK Commercial Disputes: Winter Newsletter
2020 was a difficult and uncertain year, with unprecedented challenges across the globe, changing the world as we know it. At the start of 2021, the country remained in lockdown and Brexit materialised - with a deal - posing a further seismic shift. It remains unclear what the full effect of either will be on the economy. On the plus side, the active vaccination programme may offer us a route out of the pandemic. But one thing is clear, lawyers are resilient and our flexible fee structures and case funding options prove more important than ever. We are here, ready to help.
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