Subscribe in a reader

ISSAQUAH LAW GROUP

Issaquah Law Group: Experienced Counsel; Client Focus

PHILOSOPHY: Formed in 2014, Issaquah Law Group is a law firm with one focus: providing businesses and insurers with high quality legal representation with the responsiveness of a smaller firm. ILG was founded on the principle that strong client relationships are the key to successful legal representation and strong relationships are built upon clear and consistent communication. 

LITIGATION: We work closely with our clients to fully and accurately understand their goals, work collaboratively to formulate specific legal strategies, and execute the agreed plan of action utilizing methods most likely to result in the efficient and effective resolution of the matter. ILG attorneys have a broad base of litigation experience to draw on in all Federal and State courts from on-the-ground investigations to Supreme Court appeals in the areas of personal injury and wrongful death, product liability, commercial general liability, labor & employment, construction litigation, and catastrophic losses due to fire and explosion.

BUSINESS LAW: Rarely is the path from point A to point B a straight line, so our role in a business law practice is to find alternatives, devise workable strategies, and keep your business ideas, goals and objectives moving toward realization. ILG’s business attorneys help clients achieve their goals with respect to business formation, intellectual property, labor and employment, CAN-SPAM, copyright and trademark

COMMUNITY: In addition, the Lawyers at Issaquah Law Group remain active in the legal and civic community. A core commitment of our Issaquah Attorneys is community service. Our attorneys' civic involvement includes the King County Civil Rights Commission; the City of Issaquah Planning Policy Commission; the Northwest Screenwriters Guild, service as a pro tem judge. We live and work in the Pacific Northwest, and we aim to make it a better place.

In addition, through The Amateur Law Professor Blog and LinkedIn postings, we share pertinent opinions and decisions of the Washington State Supreme Court, as well as the pertinent opinions and decisions of the Washington State Courts of Appeal so that our clients can be as update to date on cutting legal issues as we are.

WA Court of Appeals: Division III fights the tide on prejudice under arbitration clauses.

Schuster v. Prestige Senior Management LLC

Very interesting case out of Division III this morning. The actual case itself is not really worth discussing. Suffice it to say there was a lawsuit where the underlying contract contained an arbitration clause. 

In the present case, Plaintiffs were in discussion about the case, and no arbitration clause was discussed or invoked by the Defense. After filing suit, the case went on for over a year without any invocation of the arbitration clause, including discovery and responding to motions to compel. 

Unsurprisingly, the Court found waiver and estoppel of the clause.

The interesting part of this case, however, revolved around the issues of prejudice and a seeming rebuking of 9th Circuit precedent by Division III. Why is this important? In this case, the arbitration clause was governed by Federal arbitration law. While the prejudice analysis likely would have played out the same regardless of the discussion of the 9th Circuit, Division III noted the 9th Circuit's seeming view that there could be no real prejudice to a Plaintiff in having an arbitration clause invoked against it because the Plaintiff chose to file the lawsuit knowing the arbitration clause existed. The discussion is worth the read:

The Ninth Circuit Court of Appeals' decision in Fisher v. A.G. Becker Paribas, Inc., conflicts with the tenor of other circuits' decisions. No other circuit has imposed blame on the plaintiff for filing suit, despite the applicability of an arbitration agreement. No other circuit has characterized the cost of litigation to be self-inflicted by the plaintiff who files suit despite being party to an arbitration clause. Blame is more often imposed on a defendant for untimely seeking arbitration. 

It is not often that you have a state Court of Appeals calling out a federal circuit court in such a manner. Even more surprising is, given the Ninth Circuit's usual liberal tone, that they reached this ruling in the first place.

Regardless, the decision is the arbitration clause was waived, and the lawsuit continues. If you have an arbitration clause and wish to enforce it, keep in mind the courts will be looking to pre-litigation conduct on top of the conduct during litigation. As the Court stated at the beginning of the opinion, it is very much a use it or lose it situation. Our Issaquah attorneys are well-versed in the state and federal arbitration law. Allow our Issaquah lawyers to assist you with your claim-handling.

 

Subscribe in a reader

Copyright 2014-2018 by Issaquah Law Group, PLLC. Powered by Squarespace. Background image by jakeliefer.