Sullivan v. Feldman: Recent Developments In "The Bleak House Of Arbitration"

Despite its promise, arbitration is not always cheaper and faster than litigation, especially when class arbitration is involved. In Sullivan v. Feldman, the Fifth Circuit encountered what it called "the Bleak House of arbitration."¹ The case involved nine overlapping proceedings over five years before nine different arbitrators, leading to four inconsistent awards.² There was even an attempt, after the appeal was filed, to initiate a tenth arbitration.³ Two of the awards reached different results on class arbitration: one allowed class arbitration, while the other did not.⁴ Constrained by the parties' arbitration agreement and broad delegation clause, the court affirmed the confirmation of all four awards.⁵On March 11, the Fifth Circuit ordered the U.S. District Court for the Southern District of Texas, on remand, to stay the litigation while the parties initiate an eleventh arbitration to reconcile the conflicting awards.⁶