Construction Law

Summary Judgment in Arbitration Upheld

By Werner Sabo

The court in Campbell v. American Family Life Assurance Company of Columbus, Inc., 2009 WL 995577 (D.Minn., april 14, 2009), denied a motion to vacate an arbitration award. The plaintiffs had brought an arbitration against an insurance company for which they worked as state sales coordinators. The insurance company terminated their employment and the plaintiffs claimed that this violated an unwritten "two-year rule" under which such an employee could not be terminated unless he had failed to meet a sales target for two years. The panel of arbitrators granted summary judgment for the insurance company, finding that the claim had no merit.

The plaintiffs argued that Section 10 of the Federal Arbitration Act prohibits motions for summary judgment except in limited cases. The also argued that the award should be vacated because the arbitrators failed to hear material evidence by deciding the case on summary judgment. These arguments were rejected.

Full post as published by Construction Attorney Blog on April 17, 2009 (boomark / email).