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Ninth Circuit's Mixed Ruling In TMZ/Starline Arbitration Dispute
A California federal appeals court panel refused to broaden disclosure requirements for alternative dispute resolution organizations and called for court precedent to be revisited in a case over a soured partnership between entertainment news company TMZ and a Los Angeles celebrity tour bus company. EHM Productions Inc. v. Starline Tours of Hollywood Inc., 20-55426.
In its decision, the three-judge panel of the U.S. Court of Appeals for the Ninth Circuit indicated the case was proof that the court's 2019 decision over arbitration disclosures would lead to an onslaught of litigation.
After a bus tour deal between Starline Tours of Hollywood Inc. and TMZ's parent company fell apart, Starline Tours sought to vacate an arbitration award in favor of TMZ. The tour bus company claimed that a JAMS arbitrator ought to have conducted a conflicts check after the media company's counsel at the time, Caldwell Leslie, merged with Boies Schiller during proceedings. The case manager noted that JAMS and the parties were advised of the law firm substitution in April 2017 and the arbitrator "had nothing further to disclose."
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