First Circuit Enforces Delegation Clause in Arbitration Agreement Sunday, April 25, 2021
On March 30, 2021, in
Bossé v. New York Life Insurance Co. et al., the First Circuit Court of Appeals issued an important decision upholding the enforceability of an arbitration agreement that delegates the arbitrability of claims to an arbitrator, and not a court.
Background
New York Life Insurance Company (New York Life) hired Ketler Bossé as an agent in 2001. In 2004, Bossé was promoted to become a partner at New York Life and he entered into an employment agreement. The employment agreement contained an arbitration clause stating, in part, that the parties “agree that any dispute, claim or controversy arising between them, including those alleging employment discrimination (including sexual harassment and age and race discrimination) … as well as any dispute as to whether such Claim is arbitrable, shall be resolved by an arbitration proceeding.” The employment agreem
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Fla. Ruling Muddles Question Of Who Decides Arbitrability
Law360 (April 23, 2021, 5:20 PM EDT) As a general rule, courts decide questions of arbitrability. In other words, the courts decide whether parties agreed to arbitrate a particular dispute. A court s authority to decide questions of arbitrability, however, can be delegated by contract.
In Fallang Family LP v. PrivCap Cos. LLC, Florida s Fourth District Court of Appeal recently wrestled with the question of whether the incorporation by reference of the American Arbitration Association s rules into an arbitration agreement effectively delegates the question of arbitrability away from the courts and to the arbitrators.[1]
On March 30, 2021, in
Bossé v. New York Life Insurance Co. et al., the First Circuit Court of Appeals issued an important decision upholding the enforceability of an arbitration agreement that delegates the arbitrability of claims to an arbitrator, and not a court.
Background
New York Life Insurance Company (New York Life) hired Ketler Bossé as an agent in 2001. In 2004, Bossé was promoted to become a partner at New York Life and he entered into an employment agreement. The employment agreement contained an arbitration clause stating, in part, that the parties “agree that any dispute, claim or controversy arising between them, including those alleging employment discrimination (including sexual harassment and age and race discrimination) … as well as any dispute as to whether such Claim is arbitrable, shall be resolved by an arbitration proceeding.” The employment agreement also provided that the arbitration clause would “survive termination” of the agreement. In 200
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