The opinion of the court was delivered by: Peter G. Sheridan, U.S.D.J.
This matter is before the Court on Plaintiffs' Motion for Reconsideration of this Court's Order (ECF No. 243) and to certify an interlocutory appeal (ECF 237). In the Order under consideration, defendants were permitted to assert arbitration as a defense, and individuals (rather than a class) were compelled to arbitrate. Based on the legal precedent presented, the court shall reconsider. As stated above, the Order "compelled individual arbitration" which requires re-evaluation.
Since this memorandum is for the parties, there is no need to review all the facts; however, the language of the arbitration clauses is important. Since each plaintiff acquired title insurance from different defendants and each policy contained an arbitration clause, the arbitration clauses are presented below*fn1 .
A. Chicago Title Insurance Company
Exhibit 1 Hereto: Paragraph 13 of the Conditions and Stipulations Section of the 1992 ALTA Loan Policy, the same type issued in connection with the Hoffman, Meredith I and Meredith II, Oster, and Scrimer Transactions.
Unless prohibited by applicable law, either the Company or the Insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American arbitration Association, Arbitrable matters may include, but are not limited to, any controversy or claim between the company and the insured arising out of or relating to this policy, any service of the Company in connection with its insurance or the breach of a policy provision or other obligation. As arbitrable matters when the Amount of Insurance $1,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbitrable matters when the amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to boy both the Company and the Insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or at the option of the Insurance, the Rules in effect at Date of Policy shall be binding upon the parties. the award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys" fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof.
The law of the place of the land shall apply to an arbitration under the Title Insurance Arbitration Rules.
A copy of the rules may be obtained from the Company upon request.
Exhibit 2 Hereto: Paragraph 13 of the Conditions Section of the 1987 ALTA Residential Title Insurance Owner's Policy, the same type issued in connection with the Meredith I, Oster, and Scrimer Transactions
If it is permitted in your state, you or the Company may demand arbitration.
The arbitration shall be binding upon both you and the Company. The arbitration shall decide any matter in dispute between you and the company.
The arbitration award may:
* include attorney's fees if allowed by state law. * be entered as a
judgment in the proper court.
The arbitration shall be under the Title Insurance Arbitration Rules of the American Arbitration Association. You may choose current Rules or Rules in existence on Policy Date.
The law used in the arbitration is the law of the place where the property is located. You can get a copy of the Rules from the Company.
Exhibit 3 Hereto: Paragraph 14 of the Conditions and Stipulations Section of the 1992 ALTA Residential Title Insurance Owner's Policy, the same type issued in connection with the Hoffman Transaction
[Not repeated, same as clause in Exhibit 1]
Exhibit 4 Hereto: Paragraph 13 of the Conditions and Stipulations Section of the loan title Insurance policy issued in ...