In “2nd Circ. Ruling Is A Cautionary Tale On Arbitration Motions” (Law360, Expert Analysis, January 17, 2023) Raphael Janove discusses the Zachman v. Hudson Valley Federal Credit Union decision by the U.S. Court of Appeals for the Second Circuit reversing the U.S. District Court for the Southern District of New York's denial of a motion to compel arbitration and effectively created a new pro-arbitration rule.
As Rafi explains, “In essence, Zachman now requires district courts — if they are inclined to deny a motion to compel arbitration — to give defendants a second chance. They can provide new evidence to avoid a potential denial of the motion.”
Further, he posit’s that, “Zachman is on shaky legal grounding. Its second-chance rule for defendants seeking to compel arbitration does not gel well with the Supreme Court's recent clarification in Morgan v. Sundance that there is no federal policy that puts its thumb on the scale in favor of arbitration.”
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