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Justia Daily Opinion Summaries

US Court of Appeals for the Fourth Circuit
July 22, 2020

Table of Contents

Gibbs v. Haynes Investments, LLC

Arbitration & Mediation

Gibbs v. Sequoia Capital Operations, LLC

Arbitration & Mediation

Baten v. McMaster

Civil Rights, Constitutional Law, Election Law

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Legal Analysis and Commentary

What Good Is a Treaty That Congress Can Simply Discard? Quite a Bit, as the Creek Nation’s Victory in the Supreme Court Shows

MICHAEL C. DORF

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Cornell law professor Michael C. Dorf comments on the recent decision by the U.S. Supreme Court in McGirt v. Oklahoma, holding that a substantial portion of the state of Oklahoma is an Indian reservation of the Creek Nation. Dorf observes that the majority’s approach in McGirt makes it more likely that courts will find the existence of reservations for other tribes, but there could be collateral consequences in many other contexts.

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US Court of Appeals for the Fourth Circuit Opinions

Gibbs v. Haynes Investments, LLC

Docket: 19-1434

Opinion Date: July 21, 2020

Judge: G. Steven Agee

Areas of Law: Arbitration & Mediation

After a group of borrowers filed suit against two online lenders, the Haynes Defendants filed a motion to compel arbitration. The Fourth Circuit affirmed the district court's denial of the motion to arbitrate, holding that the borrowers sufficiently challenged the validity of the delegation clauses and the district court was correct to consider the enforceability of the arbitration agreements. The court also held that the choice-of-law clauses amount to a prospective waiver such that the arbitration agreements, including the delegation clauses, are unenforceable. Therefore, the court explained that the district court had the authority to decide whether the arbitration agreements were valid, correctly decided they were not, and did not err in denying the motion to compel arbitration.

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Gibbs v. Sequoia Capital Operations, LLC

Dockets: 19-2108, 19-2113

Opinion Date: July 21, 2020

Judge: G. Steven Agee

Areas of Law: Arbitration & Mediation

After a group of borrowers filed suit against two online lenders, the Sequoia Defendants filed a motion to compel arbitration. The Fourth Circuit affirmed the district court's denial of the motion to arbitrate, holding that the borrowers sufficiently challenged the validity of the delegation clauses and the district court was correct to consider the enforceability of the arbitration agreements. Furthermore, because the effect of the choice-of-law provisions is to stymie the vindication of the federal statutory claims that the borrowers seek to enforce, they amount to a prospective waiver and render the delegation provisions unenforceable. The court therefore held that the entire arbitration agreement is unenforceable. The court explained that the district court had the authority to decide whether the arbitration agreements were valid, correctly decided they were not, and did not err in denying the motion to compel arbitration.

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Baten v. McMaster

Docket: 19-1297

Opinion Date: July 21, 2020

Judge: Niemeyer

Areas of Law: Civil Rights, Constitutional Law, Election Law

The Fourth Circuit affirmed the district court's dismissal of an action challenging the "winner-take-all" aspect of South Carolina's process for appointing its nine Electors to the Electoral College. After determining that it has subject matter jurisdiction to address the merits of the appeal, the court held that the winner-take-all process does not violate the Equal Protection Clause, because it does not treat any particular group of voters in the State differently; the winner-take-all process does not violate plaintiffs' First and Fourteenth Amendment rights because it does not burden plaintiffs' right to freedom of association; and the winner-take-all process does not violate Section 2 of the Voting Rights Act. In this case, while plaintiffs allege that Black voters in South Carolina are a minority group sufficiently large and geographically compact to constitute a majority in a single-member district, the court stated that they fail to address what this means in the context of a statewide election.

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