Latest 3 Cases: VIP, Inc. v. KYB Corp. (Arbitration & Mediation), Madej v. Maiden (Civil Procedure), Lee v. Ohio Education Association (Civil Rights)

How to Spot a Nation in Freefall

JOSEPH MARGULIES

Cornell law professor Joseph Margulies points out that when a nation doesn’t have the money to fix its roads but does give money away to help the rich get richer, that is a sign of a nation in collapse. Margulies describes the shift to neoliberal thinking under Nixon that has produced record levels of economic inequality and explains why the Trump administration’s proposed economic policies would benefit only the rich.

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VIP, Inc. v. KYB Corp.

Docket: 19-1150

Opinion Date: February 24, 2020

Judge: Richard Allen Griffin

Areas of Law: Arbitration & Mediation, Civil Procedure

Plaintiffs purchase KYB shock absorbers from KAC through “buying groups.” There is no arbitration provision in the buying group agreements nor in the invoices reflecting specific purchases between the plaintiffs and KAC. Beginning in 2016, the buying group agreements provided that the individual plaintiffs agreed to accept a rebate from KAC in exchange for servicing consumer warranty issues. The agreement requires the plaintiffs, in exchange for that allowance, to honor the terms of the KYB limited warranty, which mandates arbitration in accordance with American Arbitration Association Commercial Rule 7(1), which delegates to the arbitrator the power to determine his jurisdiction. The plaintiffs filed a putative class action, alleging anticompetitive activities in the auto parts industry. The defendants move to dismiss, citing the Federal Arbitration Act, 9 U.S.C. 1. The Sixth Circuit affirmed the denial of the motion. Before referring a dispute to arbitration, the court must determine whether a valid arbitration agreement exists; if a valid agreement exists and delegates the arbitrability issue to the arbitrator, the court may not decide arbitrability. In this case, the parties did not form an agreement to arbitrate. The warranty’s arbitration provision applies only to original retail purchasers, a group that does not include the plaintiffs.

Madej v. Maiden

Docket: 18-4132

Opinion Date: February 24, 2020

Judge: Murphy

Areas of Law: Civil Procedure, Personal Injury, Real Estate & Property Law

Since 1997, the Social Security Administration has found Madej completely disabled and entitled to benefits. In addition to her other ailments, her doctors say she has “multiple chemical sensitivity,” which is not a disease recognized by the World Health Organization or the American Medical Association. She goes to great lengths to avoid everyday materials that she believes will trigger harmful reactions like burning eyes and throat, dizziness, or nausea. Madej fears that the use of asphalt on a road near her home will cause more harm. She sued to stop the roadwork, alleging violations of the Fair Housing Amendments Act and the Americans with Disabilities Act. Applying the “Daubert” standard, the district court excluded the opinions of Madej’s experts that the asphalt would injure her. Without expert causation evidence, the claims could not withstand summary judgment. The Sixth Circuit affirmed, stating that “as far as we are aware, no district court has ever found a diagnosis of multiple chemical sensitivity to be sufficiently reliable to pass muster under Daubert.” The court also questioned whether Madej had cognizable claims under the cited federal statutes. It is not obvious that the roadwork amounts to a “provision of services” “in connection with” the Madej home under 42 U.S.C. 3604(f)(2)

Lee v. Ohio Education Association

Docket: 19-3250

Opinion Date: February 24, 2020

Judge: Richard Allen Griffin

Areas of Law: Civil Rights, Constitutional Law, Labor & Employment Law

Lee, a public-school teacher, was required to either join the union or pay fair-share fees as a non-member because the collective bargaining agreement between the school district and the union included a fair-share clause. Lee paid fair-share fees. Anticipating that the Supreme Court would overrule its precedent endorsing fair-share fees (Abood), Lee filed a putative class action, asserting that the union and state actors had violated her constitutional rights by imposing compulsory fair-share fees as a condition of employment. She sought a declaration that provisions of Ohio law were unconstitutional and damages. Two days later, the Supreme Court issued its "Janus" decision, reasoning that fair-share fees resulted in non-members being “forced to subsidize a union, even if they choose not to join and strongly object to the positions the union takes in collective bargaining and related activities,” thereby violating the free speech rights of non-members. Lee dismissed her claims against the state officials and the school district. The Sixth Circuit affirmed the dismissal of the claims against the union. The union, as a private actor sued under 42 U.S.C. 1983, was entitled to rely on its good faith in following existing Ohio law and Supreme Court precedent. The state-law conversion count failed to state a plausible claim for relief.