ALTERNATIVE DISPUTE RESOLUTION UPDATE

Written by Paul J. Dubow^*

In 2024, the U.S. Supreme Court issued three ADR-related decisions, up from the single decision issued in 2023. The California Supreme Court published three decisions, one more than 2023. The Ninth Circuit followed recent patterns and issued fifteen ADR-related decisions, two more than 2023. The Courts of Appeal rebounded from their 2023 low and issued 44 decisions, five more than 2023. Two of these decisions of the Courts of Appeal involved mediation, but neither had a significant impact on mediation practice. A discussion of the significant decisions follows.

THE TRANSPORTATION EXEMPTION

Section 1 of the Federal Arbitration Act¹ exempts "seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce" from its coverage. In Circuit City Stores v. Adams,² the U.S. Supreme Court held that the term "engaged in commerce" is narrower than the more open-ended formulations "affecting commerce" or "involving commerce". Thus, section 1 only applies to transportation workers and not to workers involved in interstate commerce who are not engaged in the transportation of goods.