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The company responded by arguing that the case should be dismissed because, as part of their employment contract, the plaintiffs had agreed to arbitrate all employment-related disputes.
As a rule, parties to a contractual arbitration provision and their agents or successors in interest are bound to arbitrate.(20) Courts even will go to some lengths to find that the parties have agreed to arbitrate.
The issue of whether an agreement to arbitrate will stand if entered into with an incumbent employee and not supported by additional consideration has rarely been addressed in litigation.
"Consent is especially salient in the context of a bilateral investment treaty, where the treaty is not an already agreed-upon arbitration provision between known parties, but rather a nation state's standing offer to arbitrate with an amorphous class of private investors.
Whether -- and how -- to deal with discovery in arbitration should be confronted when parties are negotiating the agreement to arbitrate. Parties often choose arbitration because they believe it will be less costly and more efficient than domestic litigation.
The court reasoned, "Although parties may agree to arbitrate statutory claims, even ones involving important social policies, arbitration must provide the prospective litigant with an effective way to vindicate his or her statutory cause of action in the arbitral forum." (13)
In Stolt-Nielsen, the parties, a shipping company and a supplier of liquid components used in livestock feed, had stipulated during the litigation that they had not agreed to arbitrate claims on a class basis.
Only if the parties cannot successfully mediate the dispute will they be allowed to arbitrate.
If the duty to arbitrate expired with the contract, the duty could be avoided by simply waiting for the contract to expire.
A recurring question in arbitration law is who is empowered to determine if parties are required to arbitrate a particular matter.
The 4th circuit recently found that a defendant didn't waive its right to arbitrate despite litigating for six-and-a-half months.
The European Commission welcomed, on 17 January, the deal concluded between Croatia and Slovenia on the members of the tribunal to arbitrate on their borderdispute.