ABA Publishes Robert Bartkus Piece on Rejection of Illusory Arbitration Forum

The American Bar Association’s Section of Litigation on March 8, 2018 published an article by Robert E. Bartkus, “Reference to Nonexistent Arbitration Forum Nullifies Arbitration Agreement.”

The piece traces CashCall Inc.’s motions to arbitrate disputes under its agreements in accordance with the substantive and arbitration law of the Cheyenne River Sioux Tribe. A N.J. federal district court held the arbitration clause unenforceable because of a conflict between the designated tribal law and federal as well as New Jersey law. On appeal, the Third Circuit found the arbitration clause unenforceable on other grounds. Offering the AAA and/or JAMS as administrators did not cure the problem, the court said in Consumer Fin. Prot. Bureau v. CashCall, Inc., No. 15-7522, 2018 U.S. Dist. LEXIS 9057, 2018 WL 485963 (C.D. Cal. Jan. 19, 2018).

The Third Circuit also rejected CashCall’s argument that the delegation clause in its loan agreement required the court to defer to an arbitrator to decide the issues.

Bob, of counsel with Anselmi & Carvelli, LLP, concentrates on business and international arbitration and litigation.

Read his article here.