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Court Case Summaries Chapter Fourteen: Alternative Dispute Resolution
In re Atlantic Pipe Corporation
Atlantic Pipe Corporation petitioned the court for a writ of mandamus from the First Circuit Court of Appeals because it believed that the U.S. District Court in the District of Puerto Rico did not have authority to compel APC to participate in and share the financial costs of mediation. Although the First Circuit vacated the district courts mediation order, it nevertheless concluded that the district court possessed the inherent power to order compulsory mediation, subject to various considerations discussed in its opinion.
Estate of John Skalka v. Mark Skalka
Three of four of the deceased's surviving children petitioned the trial court to partition their late father's property when they could not reach a mutually satisfactory agreement. All four siblings attended a pretrial conference with the trial judge, which the judge believed had resulted in a settlement, although no agreement was signed to document that fact. When three of the four siblings balked at signing a document that contained the judge's recollection of the settlement terms, the judge took the matter under advisement and nine months later issued an order based on his prior recollection. The three appealed from this order to the Indiana Court of Appeals, which affirmed the trial court.
Sears Authorized Termite and Pest Control, Inc. v. Shelly J. Sullivan
Sullivan filed suit against Sears alleging that she had suffered personal injury as a result of having been bitten by spiders that Sears was contractually responsible for exterminating. Sears successfully moved the trial court to compel arbitration in conformity with an arbitration clause contained in the pest control agreement entered into by Sears and Sullivan. The state court of appeal reversed, and Sears appealed to the Florida Supreme Court, which reversed the court of appeal and affirmed the trial court's order compelling arbitration.
Ronald Crowell v. Downey Community Hospital Foundation
Doctor Ronald Crowell contracted with the Hospital to work in the Hospital for a two-year period. An arbitration clause was included in their agreement. The parties included a clause that required the arbitrator to prepare findings of fact and conclusions of law in the event of an arbitrated dispute and that the findings and conclusions be supported by "substantial evidence." The parties then purported to confer jurisdiction on an appellate court to review the arbitration transcript and vacate the award if the reviewing court finds that "the award [was] not supported by substantial evidence or [was] based on an error of law." Two years after his dismissal by the hospital, and after the agreement had lapsed, Crowell brought suit against his former employer seeking declaratory relief. He wanted a declaration that the parties were obligated to arbitrate his substantive claims. The trial court dismissed the complaint for lack of subject matter jurisdiction over this private arbitration award. Crowell appealed to the state court of appeals, which affirmed the trial court, holding that the parties to an arbitration agreement cannot confer appellate jurisdiction of arbitration awards by contract.
Allstate Insurance Company v. A. William Mottolese
Judge Mottolese imposed sanctions on Allstate Insurance Company, the insurer of David Distasio, a party to an underlying personal injury action. The court acted after Distasio rejected the non-binding recommendation of a court-annexed arbitrator and insisted on a trial de novo. Allstate alleged on appeal that the judge had used the threat of sanctions to impose a settlement upon Distasio. Allstate successfully sought a writ of error from the Connecticut Supreme Court, which remanded and vacated the sanctions.
Team Design v. Anthony Gottlieb
Country music musicians Michael and Kathie Bonagura (the Bonaguras) had, until the events relating to this lawsuit occurred, been managed by Anthony Gottlieb's Morningstar Management. They subsequently switched to Intersound Entertainment. While they were still with Morningstar, and with Intersound's knowledge, the Bonaguras hired Team Design and Harris Graphics to do design work on one of their upcoming albums. The Bonaguras believed that Intersound was contractually obligated to pay for this design work. Team Design and Harris filed suit against Intersound, Gottlieb, and the Bonaguras to obtain payment of their fees. The trial court awarded judgments to both plaintiffs against the Bonaguras and Intersound. All parties sought de novo appeals in circuit court. The parties accepted the circuit court suggestion that they participate in a "binding mediation" of the dispute. The mediation procedure consisted of the judge meeting separately with each side during a four-hour session. The judge waited a week and then entered orders and awarded various judgments. Intersound filed a motion to vacate the orders claiming that the binding mediation procedures did not comply with the mediation procedures approved by the state supreme court. The trial judge denied the motion and Intersound appealed to the state court of appeals. The appeals court vacated the trial court's orders and remanded the case for further proceedings.
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