Overview
On July 1, in Wallrich v. Samsung Electronics America Inc., the US Court of Appeals for the Seventh Circuit held that once an arbitrator terminates mass arbitration proceedings for a failure to pay initial fees, arbitration is complete, and courts cannot order payment of those fees when that issue is delegated to the arbitrator. The decision highlights a fascinating strategic showdown that creates a new avenue to combat mass-filed arbitrations, and the remedies available to mass arbitration filers in the face of nonpayment by the defending party in an arbitration. Companies should evaluate their arbitration provisions in light of Wallrich v. Samsung – and strategically choose the arbitral forum and venue, and the law that applies, to take advantage of case law developments on mass arbitrations.
