Hyatt Franchising v. Shen Zhen New World I

876 F.3d 900 (2017)

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Hyatt Franchising v. Shen Zhen New World I

United States Court of Appeals for the Seventh Circuit
876 F.3d 900 (2017)

  • Written by Alexander Hager-DeMyer, JD

Facts

Hyatt Franchising, L.L.C. (Hyatt) (plaintiff) contracted with Shen Zhen New World I, LLC (Shen) (defendant) to renovate a hotel and operate it using Hyatt’s business methods and trademarks. Lynn Cadwalader represented Shen during the negotiations with Hyatt and eventually quit to begin work with DLA Piper, a law firm. A dispute arose between Hyatt and Shen, and Hyatt claimed that Shen violated the agreement. The parties entered arbitration to resolve their dispute, and DLA Piper represented Hyatt in the proceedings. During the arbitration, both parties engaged in discovery. Shen moved to subpoena Cadwalader for a deposition and to disqualify DLA Piper as Hyatt’s representation because Cadwalader now worked for the law firm. The arbitrator denied both motions and concluded the proceedings by issuing an award in favor of Hyatt. Hyatt filed suit in federal district court to enforce the award, and the district court ruled in favor of Hyatt. Shen appealed to the Seventh Circuit to vacate or modify the award, arguing that the arbitrator violated the Federal Arbitration Act (FAA).

Rule of Law

Issue

Holding and Reasoning (Easterbrook, J.)

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