Justia U.S. 8th Circuit Court of Appeals Opinion Summaries

Plaintiffs filed a putative class action suit against CMH Homes, Vanderbilt and others in state court. The companies subsequently filed a petition in the district court alleging that plaintiffs' claims were subject to mandatory arbitration. The district court dismissed the petition. The companies argued that the district court erred by concluding that it lacked diversity jurisdiction. The court concluded that the district court correctly reasoned that Vaden undermined Advance America and required the court's departure from that precedent. Following the Vaden approach, the district court properly looked through the arbitration petition to the state court complaint to determine the amount in controversy. Nonetheless, the court remanded for the district court to calculate an amount in controversy and to determine on that basis whether it had jurisdiction over the putative class action under 28 U.S.C. 1332(d)(2). View "CMH Homes, Inc., et al. v. Goodner, et al." on Justia Law

The Unions filed a grievance against Alcan, claiming that Alcan violated a collective bargaining agreement. On appeal, the Unions challenged the district court's order vacating the arbitrator's award of severance pay. The court reversed the judgment because a federal court must defer to the arbitrator's interpretation where the arbitrator was at least arguably construing or applying the collective bargaining agreement. The court denied the Unions' request for attorneys' fees. Alcan acted promptly to seek an order vacating the arbitration award and the company did not act dishonestly or in bad faith. View "Alcan Packaging Co. v. Graphic Communications, et al." on Justia Law

This appeal stemmed from a dispute between the Union and Carlisle over the arbitrability of a grievance concerning disability benefits. The district court granted summary judgment in favor of Carlisle and denied the Union's cross-motion for summary judgment. The court concluded that Carlisle's claim for declaratory judgment was barred by the doctrine of res judicata where there was no basis for the district court to conclude that the Union acquiesced in the splitting of Carlisle's claims. Therefore, the Union did not waive its right to rely on the doctrine of res judicata. Accordingly, the court vacated the order and remanded with directions to dismiss Carlisle's action View "Carlisle Power Trans. Products v. United Steel, etc." on Justia Law

The Union filed a grievance on behalf of a nurse terminated by the Hospital, alleging that the Hospital lacked "just cause" to terminate. The court concluded that the arbitrator did not exceed his authority by awarding reinstatement and back-pay; the manner in which the collective bargaining agreement (CBA) expired had no effect on the arbitrator's authority; the circumstances of the Union's decertification and the CBA's expiration were known to, and expressly considered by the arbitrator in making his award; and there was no basis to conclude that the arbitrator's exercise of his remedial authority failed to "draw its essence" from the CBA. Accordingly, the court affirmed the district court's grant of summary judgment confirming the arbitration award. View "Midwest Division - LSH, LLC v. Nurses United For Improved Patient Care" on Justia Law

AEGIS, an insurer, appealed from the district court's denial of its motion to compel alternative dispute resolution in its dispute with UEC. The court agreed with the district court that by agreeing in the endorsement of the contract to submit to the jurisdiction of Missouri state courts, AEGIS agreed to have any dispute relating to the insurance or to the claim resolved in those courts. Thus, the endorsement entirely supplanted the condition's mandatory arbitration provision. Even if the policy as a whole were ambiguous as to the mandatory arbitration, the court concluded that UEC would still prevail because it would be entitled to have the ambiguity resolved in its favor. Accordingly, the court affirmed the judgment. View "Union Electric Co. v. AEGIS Energy Syndicate 1225" on Justia Law

NSP sought to vacate an arbitration award, arguing that the arbitrator exceeded his authority under a Collective Bargaining Agreement (CBA) with the Union to grant an award after first determining that NSP had just cause for making its termination decision. The court held that the language of the arbitrator's decision was sufficient to show that the arbitrator found the termination was supported by just cause. Having answered the first submitted question in the affirmative, the arbitrator had no authority to address the second question of remedy or to fashion a remedy different than the termination. Therefore, the district court properly vacated the arbitrator's award for reaching beyond his authority under the CBA. View "Northern States Power Co. v. IBEW, Local 160" on Justia Law

After Nada Payich's death, her son, Ivan Payich, sued Sorensen for negligent care of Nada, among other claims. Sorensen subsequently appealed the district court's denial of its application to compel arbitration in the suit filed by Ivan, the Special Administrator for the Estate of Nada Payich. On appeal, Sorensen argued that Nada was a third-party beneficiary of an Arbitration Agreement between Sorensen and Ivan and that the Estate was therefore compelled to arbitrate its claims. The court affirmed the judgment because it found no clear error in the district court's determination that Sorensen failed to prove it executed a valid contract with Ivan. View "GGNSC Omaha Oak Grove, LLC v. Payich" on Justia Law

Plaintiffs, five retail grocers, each attempting to bring class-action antitrust claims against one of two wholesale grocers, appealed the district court's grant of defendants' motion to dismiss plaintiffs claims from the putative class action. The court held that the non-signatory defendants could not use equitable estoppel to compel arbitration of plaintiffs' claims. Since the district court found the equitable estoppel issue dispositive, it did not address the successor-in-interest argument and therefore, the court remanded for the district court to consider this argument in the first instance. The court concluded that the remaining public policy arguments were moot or the court declined to issue an advisory opinion. View "King Cole Foods, Inc., et al v. SuperValu, Inc., et al" on Justia Law

Bristol Care appealed the denial of its motion to compel arbitration in a suit initiated by its former employee asserting claims under the Fair Labor Standards Act (FLSA), 29 U.S.C. 201 et seq., and seeking class action certification. Given the absence of any contrary congressional command from the FLSA that a right to engage in class actions overrides the mandate of the Federal Arbitration Act, 9 U.S.C. 3-4, in favor of arbitration, the court held that arbitration agreements containing class waivers were enforceable in claims brought under the FLSA. Because the court concluded that the Mandatory Arbitration Agreement (MAA) signed by the employee and Bristol Care was enforceable, the court reversed the district court's decision and directed the district court to enter an order granting Bristol Care's motion to stay proceedings and compel arbitration. View "Owen v. Bristol Care, Inc." on Justia Law

Plaintiffs, thirty-five children living near a smelting facility in Peru, alleged that environmental contamination injured them. Plaintiffs claimed that contamination was caused by the owners and operators of the facility. Defendants' associate, Renco, is currently arbitrating related claims with Peru. Defendants moved to stay the proceedings pending the outcome of the arbitration. The court held that the issues in the arbitration could conceivably affect the outcome of this case and the case was properly removed under 9 U.S.C. 205 and that the court did not have pendant appellate jurisdiction over defendants' discretionary-stay claim. The court also held that the issues in this case relate to the arbitration but were not referable to arbitration. Accordingly, the district court properly denied a mandatory stay under 9 U.S.C. 3. View "Sr. Kate Reid, et al v. Doe Run Resources Corp., et al" on Justia Law