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Articles Posted in Arbitration

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U.S. Supreme Court Upholds Pennsylvania Law Holding Corporations Accountable

Any contract you’ve signed with a company (including the “Terms of Service” most of us don’t read before clicking the box next to “I agree that I have read and agree to the terms”) has included a clause about where you and that company can resolve legal disputes. In some…

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Federal Court Ruling Finds Amendments to Click-Wrap and Terms of Service Unenforceable

In today’s society, license agreements are everywhere. With the advent of Software as a Service (SaaS) and web-based services, click-wrap or clickthrough agreements—agreements where the licensee agrees to the terms of the license agreement by clicking a button or ticking a box—are commonplace. The software and online services industries depend…

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Seventh Circuit Denies Request to Compel Arbitration in Trade Secret Misappropriation Dispute

The United States Court of Appeals for the Seventh Circuit recently decided a case concerning the enforceability of an arbitration clause in a trade secret dispute. In its decision, the Court affirmed the district court’s ruling that denied a defendant’s motion to enforce an arbitration clause in a software license…

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Seventh Circuit Short Circuits Attempt to Avoid Enforcement of Arbitration Award

In a recent decision, the Seventh Circuit federal court of appeals reaffirmed the limited role courts have in reviewing arbitration awards. The decision also provides a lesson to litigants about the need for a clearly written and well-reasoned arbitration decision. The case stems from a fallout between a technology company…

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Court Rules Disgruntled Customer Must Arbitrate Claims against Used Car Dealer

Arbitration has been a hot topic in legal circles and court opinions over the last decade. The U.S. Supreme Court and Federal Appeals courts have issued a number of high-profile decisions addressing issues of the enforceability of arbitration agreements, who gets to decide the threshold issue of arbitrability, and whether…

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Seventh Circuit Rules that Employer Cannot use Arbitration Agreement to Escape Shareholder Suit over Retirement Plan

The Seventh Circuit in a recently issued decision held that an employer cannot invoke an arbitration provision to evade a shareholder class-action lawsuit seeking broad relief under the Employee Retirement Income Security Act (ERISA), a federal law aimed at protecting participants in private employer retirement plans. In its decision, the…

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Seventh Circuit Rebuffs Software Company’s Attempt to Enforce Arbitration Agreement in Third Party User Agreement

It is not at all uncommon for a company to require individuals to agree to its Terms of Use when they sign up for an online service or when creating an account on a website or mobile app. It is also not uncommon for that service, website, or app to…

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Injured Spectator Able to Sue Baseball Team After Getting Hit in the Face at Game

After a spectator at a Chicago Cubs game, who was hit in the face by a baseball, sued, the team and MLB moved to compel arbitration. The Illinois trial court rejected the motion, finding that the arbitration provision was procedurally unconscionable and therefore unenforceable. The Illinois appellate court agreed, pointing…

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Illinois Appellate Court Rules MLB Cannot Enforce Arbitration Agreement against Fan Struck by Foul Ball at Wrigley Field

Major League Baseball’s efforts to end a lawsuit filed by a woman struck by a foul ball at Wrigley Field hit a snag when an Illinois appellate court ruled recently that the injured fan can move ahead with her lawsuit. In its ruling affirming the decision of the trial court,…

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Corporation Not Entitled to Discovery Assistance for Private Foreign Arbitration

Two corporations agreed to arbitrate a dispute in front of a foreign arbitration panel in Birmingham, England, under the terms of their agreement. After they agreed to arbitrate, one of the parties filed an ex parte application to a U.S. district court asking the court to issue a subpoena compelling…

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