Justia U.S. 11th Circuit Court of Appeals Opinion Summaries

Plaintiff, appointed the receiver of six hedge funds that were part of a Ponzi scheme orchestrated by Arthur Nadel, attempted to recover alleged "false profits" in connection with Nadel's fraudulent scheme. Herbert Schneiderman, now deceased, was among the investors who became subject to one of plaintiff's "clawback" suits. Schneiderman's estate moved to compel arbitration and the district court granted the motion. The arbitrator then granted summary judgment to the estate and denied plaintiff's motion for reconsideration. Plaintiff's motion to vacate the arbitrator's decision was denied. The court concluded that clawback actions are not categorically exempt from the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq.; the district court did not err in determining that the parties formed a contract and that questions as to its validity were for the arbitrator to decide; the district court did not err in sending all claims to arbitration; and the arbitrator did not so exceed or imperfectly use his powers that the district court erred in declining to vacate the award. Accordingly, the court affirmed the judgment. View "Wiand v. Schneiderman" on Justia Law

Valensa filed suit against Cyanotech for tortious interference with contract and breach of a confidentiality agreement. Cyanotech then moved to compel arbitration based on two contracts between the parties. The district court denied the motion. The court reversed and remanded where the district court erred when it refused to allow an arbitrator to decide whether their dispute is arbitrable under one of the parties' contracts because the parties clearly and unmistakably incorporated the rules of the American Arbitration Association into their arbitration provisions. View "U.S. Nutraceuticals, LLC v. Cyanotech Corp." on Justia Law

Plaintiff filed suit against CashCall, which then sought to compel arbitration based on the parties' loan agreement. The district court refused to compel arbitration and CashCall appealed. The court held CashCall to the terms of the integral forum selection provision included in plaintiff's loan agreement. Because the selected forum - the Cheyenne River Sioux Tribal Nation - is unavailable, a substitute arbitrator under 9 U.S.C. 5 cannot be appointed under the terms of the contract. Accordingly, the court affirmed the district court's order deciding not to compel arbitration. View "Inetianbor v. Cashcall, Inc., et al." on Justia Law

Plaintiff filed suit challenging the decision of an arbitrator that had denied his claim under a crop insurance policy obtained from ProAg. On appeal, ProAg challenged the district court's grant of plaintiff's motion to vacate the award and motion for summary judgment, vacating the arbitrator's decision. The court concluded that the district court erred in vacating the arbitrator's decision because the arbitrator was entitled to conclude that ProAg had the authority under the policy to set a reasonable deadline for the receipt of necessary documentation in support of the claim; plaintiff's failure to comply with the deadline was an adequate basis for ProAg's denial of his claim; the arbitrator was entitled to make his findings without first seeking a formal opinion of the FCIC; and plaintiff waived any argument based upon the arbitrator's failure to deliver his decision and award within the time limitations provided by the policy. Accordingly, the court reversed and remanded.View "Davis v. Producers Agricultural Ins." on Justia Law

Plaintiff filed suit against KeyBank for overcharging in overdraft fees. At issue was whether KeyBank waived enforcement of the delegation clause. The court concluded that circuit precedent compelled the conclusion that KeyBank waived enforcement of the delegation clause. KeyBank waived its delegation clause argument when it waited to raise the issue until it had asked the district court to decide arbitrability - and lost. Accordingly, the court vacated the district court's order compelling arbitration on the threshold question of arbitrability and remanded for further proceedings. View "Johnson v. Key Bank Nat'l Assoc." on Justia Law

Plaintiffs appealed the district court's order compelling arbitration and dismissing their complaint filed against defendants. At issue was whether the arbitration agreement, which waived an employee's ability to bring a collective action under the Fair Labor Standards Act (FLSA), 29 U.S.C. 201 et seq., was enforceable under the Federal Arbitration Act, 9 U.S.C. 1 et seq. The court concluded that, after examining the FLSA's text, legislative history, purposes, and Supreme Court precedent, it discerned no "contrary congressional command" that precluded the enforcement of plaintiffs' Arbitration Agreements and their collective action waivers. The court concluded that plaintiffs' reliance on the Supreme Court's 1945 decision in Brooklyn Savings Bank v. O'Neil was materially distinguishable from this case. Accordingly, the court affirmed the judgment of the district court. View "Walthour, et al. v. Chipio Windshield Repair, LLC, et al." on Justia Law

Plaintiff, a Honduran citizen who suffered a back injury while employed as a mason aboard one of Carnival's ships, filed suit against Carnival in state court asserting claims of Jones Act, 46 U.S.C. 30104, negligence, unseaworthiness, and failure to provide adequate maintenance and cure. Plaintiff alleged that the physician chosen and paid by Carnival negligently performed his back surgery. Carnival removed to federal court. On appeal, plaintiff appealed the district court's order compelling arbitration of his claims under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (CREFAA), 9 U.S.C. 201-208. Plaintiff argued that his Jones Act claim did not fall within his employment contract ("Seafarer's Agreement") with Carnival and, therefore, was not within the scope of the contract's arbitration clause. The court concluded that the order compelling plaintiff to arbitrate his claims was "a final decision with respect to arbitration," and the court had appellate jurisdiction. The court also concluded that plaintiff's dispute with Carnival clearly arose out of or in connection with the Seafarer's Agreement and was subject to arbitration. Accordingly, the court affirmed the district court's order. View "Martinez v. Carnival Corp." on Justia Law

Plaintiff and other checking account customers filed suit against the Bank for allegedly charging excessive overdraft fees in breach of their account agreement. The district court denied the Bank's renewed motion to compel arbitration. The court concluded that state law applied when courts determined whether a valid arbitration agreement is in effect, and the Federal Arbitration Act's, 9 U.S.C. 1 et seq., presumption did not; under North Carolina law, the Bank Agreement was entirely superseded, and the arbitration agreement in that agreement therefore became ineffective; the district court properly looked to the PNC Agreement to determine whether the parties agreed to arbitrate their disputes; under North Carolina law, the PNC Agreement's silence was insufficient to form such an agreement; based on the terms of the agreement, the PNC Agreement applied retroactively; and because the agreement governing the dispute at hand did not permit the Bank to compel arbitration, the district court properly denied the motion. Accordingly, the court affirmed the judgment of the district court. View "Dasher v. RBC Bank (USA)" on Justia Law

This case involved arbitration proceedings stemming from plaintiff's class action suit alleging, among other things, that SouthernLINC's termination fees were unlawful penalties under Georgia law. SouthernLINC, a wireless provider, appealed the district court's denial of its motion to vacate two arbitration awards. Under the standard set forth by the Supreme Court in Oxford Health Plans LLC v. Sutter, the court concluded that the arbitrator did not exceed his powers under section 10(a)(4) of the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq., either in construing the arbitration clause as he did or in certifying a class. Accordingly, the court affirmed the judgment of the district court. View "Southern Communications Serv. v. Thomas" on Justia Law

Plaintiffs in these five separate putative class actions alleged that Wells Fargo and Wachovia Bank unlawfully charged them overdraft fees for their checking accounts, which were governed by agreements that provided for arbitration of disputes on an individual basis. On appeal, Wells Fargo argued that it did not waive its right to compel arbitration because it would have been futile to move to compel arbitration before the Supreme Court decided AT&T Mobility LLC v. Concepcion. The court concluded that Concepcion established no new law. Because the court concluded that it would have been futile for Wells Fargo to argue that the Federal Arbitration Act, 9 U.S.C. 1 et seq., preempted any state laws that purported to make the classwide arbitration provisions unenforceable, the court affirmed the denial of its motion to compel arbitration. View "Garcia v. Wells Fargo Bank, N.A." on Justia Law