| Volume 143 Number 51 |
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The People’s Lawyer’s Tip of the Day
Are you tempted to play “The Circle Game,” join a “Blessing Loom,” or jump on a “Money Board”? These are some of the names for an online scam that’s making the rounds at a time when millions of people are out of work and scraping for cash. It promises a big return for a modest investment. Don’t fall for it. You’re virtually guaranteed to lose your money, or pull in friends and family who will lose theirs. Click here for more.
Roads and airports may be empty this Memorial Day weekend
This Memorial Day weekend, the official kickoff to summer, will be unlike almost any other, with the coronavirus (COVID-19) still keeping most people at home.
There are expected to be so few cars on the road and passengers in airports that AAA has decided -- for the first time in 20 years -- not to issue a Memorial Day weekend travel forecast. Even though a growing number of states have slowly lifted restrictions, AAA expects fewer people will travel. Click here for more.
Your Money
One essential component of your financial plan involves designating power of attorney to someone you trust in case you are incapacitated or unable to complete a task on your own. Generally, power of attorney applies to legal and financial matters, but a separate document can also allow a proxy to make health care decisions for you if you are incapacitated. The rules for designating power of attorney vary from state to state, so it's important to know your own state's laws. Here's what to know about power of attorney, including more information on these topics: Click here for more.
For the Lawyers
Arbitrator’s decision to conduct class arbitration cannot be vacated. If a federal court decides the class arbitration issue, then the proponent of class arbitration should lose, unless the arbitration agreement explicitly provides for class arbitration. But if the arbitration agreement commits that “gateway” issue to an arbitrator and the arbitrator permits class arbitration, then the parties almost certainly will be held to that decision, even if the decision is later demonstrated to be wrong. An hourly employee of Sun Coast Resources, initiated an arbitration proceeding against Sun Coast under the Fair Labor Standards Act (FLSA), claiming he was denied overtime pay. Under the terms of an arbitration clause in the employment agreement between Mr. Conrad and Sun Coast, he brought his FLSA claim on behalf of a class of similarly-situated employees. After an arbitrator was appointed, he issued a “clause construction award,” in which he concluded that “the agreement ... clearly provides for collective actions.” Sun Coast then filed an application with the Southern District of Texas, seeking to vacate the award under Section § 10(a)(4) of the Federal Arbitration Act (FAA) (9 U.S.C. § 10(a)(4)). The district court denied the application, ruling that the arbitrator did not exceed his powers because he simply interpreted the contract. Sun Coast appealed and the Fifth Circuit affirmed. The key point, according to the Fifth Circuit, was that the parties’ arbitration agreement authorized the arbitrator to interpret the agreement, and that is what he did. Whether he was correct (or not) was beside the point: “The correctness of the arbitrator’s interpretation is irrelevant so long as it was an interpretation.” Sun Coast Resources, Inc. v. Conrad, 956 F.3d. 335 (5th Cir. 2020). Click here for more.