{"id":637,"date":"2012-06-25T13:20:18","date_gmt":"2012-06-25T19:20:18","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=637"},"modified":"2012-06-25T13:20:18","modified_gmt":"2012-06-25T19:20:18","slug":"parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/","title":{"rendered":"Parties can Waive Arbitration, Despite a \u201cNo Waiver\u201d Clause in Contract"},"content":{"rendered":"<p>June 1, 2012<\/p>\n<p>The Sixth Circuit easily affirmed a district court\u2019s finding that the defendant had waived its right to arbitration by participating in litigation for eight months. Johnson Assoc. Corp. v. HL Operating Corp., __ F.3d __, 2012 WL 1861675 (6th Cir. May 23, 2012). Plaintiffs had filed suit in late December of 2009 and a discovery deadline was set for August 26, 2010. The defendant did not assert its right to arbitrate in its answer, engaged in judicial settlement conferences, and participated in discovery. Then, the day before the discovery deadline, the defendant moved to compel arbitration. The court found that the defendant\u2019s behavior was inconsistent with its right to arbitrate. Furthermore, it found the plaintiffs were prejudiced by the defendant\u2019s behavior, largely because they \u201cengaged in more discovery than would be permitted in arbitration.\u201d<\/p>\n<p>Neither of those rulings is especially surprising, but the court also had to address an interesting argument by the defendant. It argued that it could not have waived arbitration, because the contract at issue stated \u201cno waiver by either party of any provision of this Agreement or of any breach or default shall constitute a continuing waiver of such provision or of any other provisions of this Agreement.\u201d In essence, the defendant was hoping it had contracted around federal case law holding that parties can waive their arbitration rights. The Sixth Circuit made clear that a \u201cno waiver\u201d clause will not affect courts\u2019 analysis of whether a party waived its right to arbitrate. It quoted reasoning from the Second Circuit:<\/p>\n<p>\u201c[T]o allow the \u2018no waiver\u2019 clause to preclude a finding of waiver would permit parties to waste scarce judicial time and effort and hamper judges\u2019 authority to control the course of the proceedings\u201d and allow parties to \u201ctest[] the water before taking the swim\u201d by delaying assertion of their right to arbitration until the litigation is nearly complete.<\/p>\n<p>I don\u2019t usually associate arbitration with swimming, but the policy point here is right on target.<\/p>\n<p>via <a href=\"http:\/\/www.lexology.com\/library\/detail.aspx?g=ccff95e3-bdbc-4a13-8edb-256038cb3ebf&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+Federal+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2012-06-05&amp;utm_term=\">Parties can waive arbitration, despite a \u201cno waiver\u201d clause in contract &#8211; Lexology<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>June 1, 2012 The Sixth Circuit easily affirmed a district court\u2019s finding that the defendant had waived its right to arbitration by participating in litigation for eight months. Johnson Assoc. Corp. v. HL Operating Corp., __ F.3d __, 2012 WL 1861675 (6th Cir. May 23, 2012). Plaintiffs had filed suit in late December of 2009&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/\">Continue reading <span class=\"screen-reader-text\">Parties can Waive Arbitration, Despite a \u201cNo Waiver\u201d Clause in Contract<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41],"tags":[42],"class_list":["post-637","post","type-post","status-publish","format-standard","hentry","category-arbitration","tag-arbitration-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Parties can Waive Arbitration, Despite a \u201cNo Waiver\u201d Clause in Contract - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Parties can Waive Arbitration, Despite a \u201cNo Waiver\u201d Clause in Contract - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"June 1, 2012 The Sixth Circuit easily affirmed a district court\u2019s finding that the defendant had waived its right to arbitration by participating in litigation for eight months. Johnson Assoc. Corp. v. HL Operating Corp., __ F.3d __, 2012 WL 1861675 (6th Cir. May 23, 2012). 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Johnson Assoc. Corp. v. HL Operating Corp., __ F.3d __, 2012 WL 1861675 (6th Cir. May 23, 2012). Plaintiffs had filed suit in late December of 2009&hellip; Continue reading Parties can Waive Arbitration, Despite a \u201cNo Waiver\u201d Clause in Contract","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/","og_site_name":"Advise &amp; Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2012-06-25T19:20:18+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Parties can Waive Arbitration, Despite a \u201cNo Waiver\u201d Clause in Contract","datePublished":"2012-06-25T19:20:18+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/"},"wordCount":351,"commentCount":55,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["arbitration"],"articleSection":["Arbitration"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/parties-can-waive-arbitration-despite-a-no-waiver-clause-in-contract\/","name":"Parties can Waive Arbitration, Despite a \u201cNo Waiver\u201d Clause in Contract - Advise &amp; 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