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Proskauer’s perspective on developments and trends in commercial litigation.

Category Archives: Arbitration

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Pivot to Arbitration: China Embraces Arbitration to Promote Investment

In the past several months, China has adopted new arbitration rules and unveiled a new arbitration center to help resolve the inevitable international disputes arising from the development of The Silk Road Economic Belt and 21st-Century Maritime Silk Road, commonly referred to as the One Belt One Road Initiative. Although China is a signatory to … Continue Reading

Venezuela Mines for a Reversal in Federal Appeals Court

Venezuela is taking its fight over a $1.4 billion arbitral award to the District of Columbia’s federal court of appeals. The award capped a bitter dispute between Venezuela and Crystallex International Corporation, a Canadian mining company. The fight began in 2002, when Crystallex acquired the rights to develop the Las Cristinas gold deposits in Venezuela. … Continue Reading

Arbitration Clauses Extending to Non-Signatory Affiliates: Are They Enforceable?

A recent decision of the New Jersey Appellate Division considered the enforceability of arbitration agreements by non-signatories. In Foti v. Toyota Motor Sales, U.S.A., Inc., the plaintiff filed a putative class action complaint against defendant alleging violations of New Jersey’s Truth-In-Consumer Contract, Warranty and Notice Act (“TCCWNA”), as well as the state’s Lemon Law (N.J.S.A. … Continue Reading

Think Your Arbitration Award Is Final? Maybe “Look Through” It Again

The question of federal court jurisdiction over arbitration proceedings has historically led to different conclusions. A few years ago, the  United States Supreme Court clarified in Vaden v. Discover Bank that Section 4 of the Federal Arbitration Act (“FAA”) authorizes a federal court to “look through” to the underlying controversy to determine if there is federal court … Continue Reading

SCOTUS Puts an End to Ecuador’s Appeal of $96 Million Arbitration Award in Favor of Chevron

A long-running dispute between Chevron and Ecuador appears to have reached its end after the Supreme Court declined to take up Ecuador’s question of whether United States courts had jurisdiction to confirm a $96 million arbitration award in favor of Chevron. The case arose out of a decades-long contractual dispute between Ecuador and Texaco Petroleum. In … Continue Reading

Hague Court Finds Arbitration Panel Has No Jurisdiction Against Russia Pursuant to Unratified Treaty

The District Court of the Hague overturned a record $50 billion in damages awards issued by the Permanent Court of Arbitration (“PCA”), to the former controlling shareholders of the Yukos Oil Company on the grounds that Russia had not submitted itself to the PCA’s jurisdiction. In 2014, the PCA awarded the former Yukos Oil Company … Continue Reading

First Department Finds Forum Selection Clause in Earlier Agreement Valid Despite Later Agreement Providing for Arbitration

In a 3-2 split decision, a New York appellate court determined that a forum selection clause providing for litigation in New York courts had not been explicitly terminated and thus trumped agreements to submit to arbitration in London provided in later contracts that cancelled the previous one. Thus, the appellate panel for the First Department … Continue Reading

Express Yourself! Ongoing Split Over Class Arbitration Points to Importance of Clear Provisions

Despite the numerous Supreme Court decisions limiting class arbitrations, one central issue remains undecided: who decides whether an arbitration agreement permits class arbitration, the courts or the arbitrators? Entities that want to avoid class arbitration want the question to be decided by the courts, where the appeal process ensures at least one level of review. … Continue Reading

Proposed Legislation Would Set Back Corporations’ Use of Arbitration Clauses

The Restoring Statutory Rights Act of 2016, sponsored by Democratic Senator Patrick Leahy, was sent to congressional committee on February 4, 2016 for consideration. The bill would place restrictions on companies’ use of arbitration clauses in agreements with consumers. Mandatory arbitration clauses have become a common — and controversial — feature of many consumer contracts. … Continue Reading
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