January Arbitration News
From Thomas P. Valenti, P.C.
January 2008
 
From our house to yours, we wish you a prosperous new year!
 
In This Issue
Featured Article
POA for Healthcare Decisions Has Authority
Court Rejects Allegations of Arbitrator Misconduct
Featured Article
Foreclosure Actions and Construction Liens Arising from an Arbitrable Payment Dispute Are Also Arbitrable
 

A Virgin Islands federal district court has held that payment disputes arising out of a construction contract containing an arbitration agreement are arbitrable, rendering disputes regarding foreclosure actions and liens arising out of the payment dispute arbitrable as well.
 
 
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Power of Attorney for Healthcare Decisions has Authority to Agree to Arbitration, According to Tennessee Court of Appeals
 
A Tennessee appellate court vacated an order denying a motion to compel arbitration, noting that the trial court erred in determining that a nursing home resident's wife did not have authority to execute a nursing home arbitration agreement on the resident's behalf.
 
In Cabany v. Mayfield Rehabilitation and Special Care Center, No. M2006-00594-COA-R3-CV, 2007 WL 3445550 (Tenn. Ct. App. Nov. 15, 2007), Thomas Cabany, Jr. (Thomas) executed a power of attorney designating his wife, Janie Cabany (Janie) as his agent or attorney-in-fact. The agreement stated that it only went into effect when Thomas was not able to make decisions for himself and that his physician and agent would decide when he had reached that point.
 
Court Rejects Allegations of Fraud and Arbitrator Misconduct, Affirms Award
 
A California state appeals court affirmed the confirmation of an arbitration award, despite challenges for procurement by fraud and arbitrator misconduct, where the arbitration record clearly indicated that the award could be sustained on other independent contractual grounds.

In Ray v. Cingular Wireless, LLC, No. B195981, 2007 WL 4100136 (Cal. Ct. App. Nov. 19, 2007), Ray entered into an agreement with AT&T Wireless to sell cellular service in two Central California counties. Ray also entered into an agreement with All American, an AT&T Wireless distributor, to sell cellular services in Los Angeles County. Later, LA Tel acquired All American, and Cingular acquired AT&T Wireless.
 
Core Bankruptcy Proceedings Are Arbitrable Where Arbitration Does Not Conflict with Bankruptcy Code

A Northern District of California bankruptcy court applied Fifth Circuit precedent whereby core bankruptcy proceedings are arbitrable if arbitration would not conflict with the bankruptcy code; and rejected the debtor's unconscionability challenge, noting that the stand alone nature of the arbitration agreement weighed against a finding of procedural unconscionability.
 
 
 
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