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Keywords

arbitrationdiscoveryappealregulationarbitrator
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Related Cases

France v. Bernstein, 43 F.4th 367

Facts

The case involves a dispute between two sports agents, Jason Bernstein and Todd France, regarding allegations of client poaching. Bernstein represented NFL player Kenny Golladay, who terminated his agreement with Bernstein shortly after participating in an autograph-signing event that France allegedly organized. Bernstein filed a grievance against France, claiming he violated NFLPA regulations by inducing Golladay to switch agents. The arbitration ruled in favor of France, but subsequent evidence revealed that France had committed fraud by concealing his involvement in the signing event.

Issue

Did the district court err in confirming the arbitration award despite evidence of fraud committed by Todd France?

Did the district court err in confirming the arbitration award despite evidence of fraud committed by Todd France?

Rule

Under the Federal Arbitration Act (FAA), an arbitration award can be vacated if it was procured by fraud, which must be proven with clear and convincing evidence. The party seeking to vacate the award must demonstrate that the fraud was not discoverable through reasonable diligence and that it was materially related to the arbitration issue.

Analysis

The court found that Todd France committed fraud by lying under oath and withholding evidence during the arbitration process. The evidence that surfaced after the arbitration demonstrated that France was involved in the signing event, contradicting his claims. Bernstein exercised reasonable diligence in seeking discovery, and the fraud was not discoverable prior to the arbitration. The court concluded that the fraud was materially relevant to the case, as it undermined the basis of the arbitrator's decision.

Conclusion

The Court of Appeals reversed the district court's confirmation of the arbitration award and remanded the case for vacatur due to the fraud committed by Todd France.

Because the arbitration award was procured by France's fraud, we will reverse the District Court's order confirming the award and will remand with the instruction to vacate it.

Who won?

The prevailing party in this case is Jason Bernstein, as the Court of Appeals ruled in his favor by reversing the district court's confirmation of the arbitration award. The court recognized that the fraud committed by Todd France was significant enough to warrant vacating the arbitration award, thus allowing Bernstein to pursue his claims against France.

The prevailing party in this case is Jason Bernstein, as the Court of Appeals ruled in his favor by reversing the district court's confirmation of the arbitration award. The court recognized that the fraud committed by Todd France was significant enough to warrant vacating the arbitration award, thus allowing Bernstein to pursue his claims against France.

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