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Sunday, December 9, 2018

Uber Drivers--12,500 of Them--Demand Individual Arbitrations, Each Paid for by Uber

Uber's arbitration agreements with its drivers precludes class actions and thus requires individual arbitration. "Amazingly," Allison Frankel writes, "thousands of Uber drivers did just that. Between August and November of this year, about 12,500 drivers, many of whom had been class members in cases in which Uber successfully moved to compel arbitration, served individual arbitration demands on Uber ... These thousands of drivers filed their arbitration demands at JAMS, as mandated in Uber’s contracts."

The drivers argue Uber is required to pay for their arbitration because the terms of service say "In all cases where required by law, the Company will pay the Arbitrator's and arbitration fees."

The drivers allege “As of November 13, 2018, 12,501 demands have been filed with JAMS,” the arbitration organization. : “Of those 12,501 demands, in only 296 has Uber paid the initiating filing fees necessary for an arbitration to commence [...] only 47 have appointed arbitrators, and [...] in only six instances has Uber paid the retainer fee of the arbitrator to allow the arbitration to move forward.”

Jay-Z and Arbitration

Jay-Z persuaded New York Judge Saliann Scarpulla to stay an arbitration because of a lack of black arbitrators. Jay-Z argued that his company's arbitration agreement with Iconix Brand Group violated New York's public policy against discrimination.

Jay-Z (Shawn C. Carter), through his lawyers, argued "When Mr. Carter began reviewing arbitrators on the American Arbitration Association’s Search Platform ... he could not identify a single African-American arbitrator on the 'Large and Complex Cases' roster, composed of hundreds of arbitrators, that had the background and experience to preside over the Arbitration. After repeated requests to the AAA for diverse arbitrators with expertise in complex commercial law, the AAA was able to provide only three neutrals it identified as African-American: two men — one of whom was a partner at the law firm representing Iconix in this arbitration and thus had a glaringly obvious conflict of interest — and one woman."

However, the transcript suggests Judge Scarpulla's skepticism toward Jay-Z's argument and that she only granted a temporary stay of arbitration until the main judge on the case (Judge Barry Ostrager) hears the merits of the case.

Hat tip to Mark Kantor

Monday, December 3, 2018

International Arbitration Program at the World Bank

Three leading international arbitral institutions annually co-sponsor a joint colloquium. Leaders of  the International Centre for Settlement of Investment Disputes (ICSID), the Int'l Chamber of Commerce International Court of Arbitration, and the American Arbitration Association's International Centre for Dispute Resolution will discuss priorities and trends at their respective institutions, in Washington, DC, December 7, 2018.

Other sessions will address practical challenges faced by practitioners—i.e. ethical dilemmas, media scrutiny, compliance with awards—and offer guidance from experts in the field on how to manage these effectively.