Posted: November 19th, 2022

Arbitration of Civil Cases

Arbitration of Civil Cases
Project description
Greg negotiates an agreement with the Atlanta Braves. He agrees that he will pitch for the Braves for 5 years in exchange for $25,000,000. The agreement is never put into writing. The day before the baseball season starts, the Savannah Savages, another baseball team, offer Greg $26,000,000 to pitch for them. Greg accepts. The Braves sue Greg for breach of contract and the parties agree to arbitrate the lawsuit.

At the arbitration hearing, Greg's attorney, Tom, points out that under the Statute of Frauds, contracts that cannot be completed within one year are unenforceable unless they are in writing. However, the arbitrator, Heather, sneers contemptuously and replies, "Oh, please! Greg knew exactly what he was doing and it would be totally unfair for this contract to be unenforceable based on a crummy technicality." Heather then rules in favor of the Braves and awards them $5,000,000 in damages.

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The Braves sue Greg in Fulton County Superior Court to have the arbitration award confirmed. Greg argues that since the arbitrator did not follow the law, the award should not be confirmed. The Braves argue that judges in general have discretion to enforce contracts on fairness grounds and so Heather's decision should be upheld and that, in any case, Heather is not bound by the strict letter of the law. You are a clerk for the Fulton County Superior Court judge.

Please prepare an IRAC-style essay discussing whether Heathers actions as an arbitrator are appropriate and why her decision should be upheld or not upheld. Please refer to appropriate case law and/or statutory law. It is best to use case and statutory law that is binding in the state of Georgia

Justification for Arbitration of Civil Cases
Heather’s actions are not justified on many grounds as an arbitrator and therefore her decision to maintain the provision of award for the Braves should not be upheld under whatever the circumstances prevailing. First of all, the establishment of an arbitration that is not in writing is outlawed in the arbitration provisions in the state of Georgia. Her actions to arbitrate this civil dispute is therefore a contravention of the LAW OF GEORGIA ON PRIVATE ARBITRATION Chapter 1 article 1 which states as follows:
“A civil dispute which has arisen between persons shall, in agreement of the parties proper, be submitted for the consideration to the permanent or created for this dispute temporary private arbitration (hereinafter arbitration). An agreement for submitting a dispute to the arbitration (the arbitration agreement) shall be made in writing.” (Boohaker, 2004).
The last statement of this article requires that only contracts that are put in writing meet the threshold of arbitration. In the time of agreement between the disputing parties, that is, the Greg and the Braves, nothing about the agreement was written down.
Article two of this piece of law requires that the written agreement contain the details of the names of the parties making the agreement, their places of residences and the official addresses among other things. The article reads as follows:
“The arbitration agreement shall include: the names, the places of residence or legal addresses of the parties; the subject-matter of the dispute; the date and place of the agreement.” (Boohaker, 2004).
Moreover, her decision should not be upheld as it violates the provisions of article 42 which states as follows:
“An arbitrage award which has not been executed voluntarily shall be enforced on the basis of the enforcement inscription on the coming into force of arbitrage award made by the chairman of the arbitration.”(Boohaker, 2004).
Since Greg is not in agreement with Heather’s decision to award the Braves the sum stated of $5000000, the arbitration case should be handed over to the Chairman of arbitration whose decision or advice is to be taken in consideration on Greg’s claim that the case does not meet the threshold of arbitration. The claim that her decision as an arbitrator is final also violates this article which gives the chairman of arbitration the last word over such civil cases. Article 43 provides that such a case may be contested in a court and changed if it is found to violate the Code of administrative offenses.
A similar case was Southland Corp. et al. v. Keating et al., 465 U.S. 1 (1984). For this case, franchisees of 7-Eleven stores (Keating) recorded suit against the proprietor of 7-Eleven stores (Southland) in California state court for some cases including one under the California Franchise Investment Law. Southland's movement to urge mediation as per their assertion understanding, which expressed that government law secured their agreement, was conceded "but to those cases on the Franchise Investment Law." On claim from the California Supreme Court, the U.S. Preeminent Court decided that the California Franchise Investment Law "straightforwardly clashes with 2 of the Federal Arbitration Act and disregards the Supremacy Clause," in this way holding that the FAA acquired the clashing California state law.
References
Boohaker, D. (2004). Addition of the Manifest Disregard of the Law Defense to Georgia's Arbitration Code and Potential Conflicts with Federal Law, The. Ga. St. UL Rev., 21, 501.
Rogers, N. (2011). Arbitration: Federal and Georgia.