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Ninth Circuit Addresses Enforceability of Foreign Arbitration Clauses in the United States

Posted on August 25, 2009 by Littler Mendelson
In a recent unpublished opinion, the U.S. Court of Appeals for the Ninth Circuit denied a multinational employer's request to compel arbitration and have its employees' claims heard by an arbitrator in Mumbai, India.  The employer had filed motions to compel arbitration under the United Nations Convention on the Recognition and Enforcement of International Arbitral Awards, which has been adopted as part of the Federal Arbitration Act.  

In light of this opinion, Vedachalam v. Tata America International Corp., No. 08-15521 (9th Cir. July 31, 2009), multinational employers may need to review their arbitration agreements. In their ASAP "Blocks in the Road to Enforcing Foreign Arbitration Clauses in the United States," John C. Kloosterman and Sarah R. Nichols analyze the court's decision and make recommendations for employers regarding their arbitration agreements.

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