Over in Outsourcing Justice, Professor Imre Szalai discusses various recent developments related to arbitration.
In Lawsuit Challenges Agency Rule Banning Arbitration in Nursing Home Agreements, Professor Szalai discusses a lawsuit filed by various trade groups challenging the recent rule enacted by the Center for Medicare and Medicaid Services banning nursing homes receiving federal funding from requiring residents to sign pre-dispute arbitration agreements (for previous coverage by ArbitrationInfo.com on this topic see here.) Based on his research on the history of the Federal Arbitration Act, Prof. Szalai opines that because the FAA was never intended to apply to take-it-or-leave-it contracts involving consumers, “the FAA should not preempt the federal agency’s rule because the FAA was intended to have a narrow scope of application.”
In Third Circuit Invalidates Employment Arbitration Clause, Prof. Szalai discusses a recent decision by the Third Circuit US Court of Appeals striking down an arbitration clause in an employment contract (Scott v. Education Management Corporation, No. 15-2177, 3rd Cir. Oct. 18, 2016). The article discusses the possible tension between the court’s decision in this case and the US Supreme Court decision in Concepcion.