Justia Arbitration & Mediation Opinion Summaries

Petitioner is a former employee of International Business Machines Corporation (“IBM”) who signed a separation agreement requiring confidential arbitration of any claims arising from her termination. Petitioner arbitrated an age-discrimination claim against IBM and won. She then filed a petition in federal court under the Federal Arbitration Act (“FAA”) to confirm the award, attaching it to the petition under seal but simultaneously moving to unseal it. Shortly after she filed the petition, IBM paid the award in full. The district court granted Petitioner’s petition to confirm the award and her motion to unseal. On appeal, IBM argued that (1) the petition to confirm became moot once IBM paid the award, and (2) the district court erred in unsealing the confidential award.   The Second Circuit vacated the district court’s confirmation of the award and remanded with instructions to dismiss the petition as moot. The court reversed the district court’s grant of the motion to unseal. The court explained that Petitioner’s petition to confirm her purely monetary award became moot when IBM paid the award in full because there remained no “concrete” interest in enforcement of the award to maintain a case or controversy under Article III. Second, any presumption of public access to judicial documents is outweighed by the importance of confidentiality under the FAA and the impropriety of Petitioner’s effort to evade the confidentiality provision in her arbitration agreement. View "Stafford v. Int'l Bus. Machs. Corp." on Justia Law

Plaintiff worked for Tug Hill Operating, LLC, for approximately a year and a half at rig sites in West Virginia. He commenced an action against Tug Hill under the Fair Labor Standards Act (“FLSA”), alleging that while Tug Hill formally classified him as an independent contractor, he actually qualified as an employee for purposes of the FLSA based on the degree of control that Tug Hill exercised over his work. He, therefore, claimed that Tug Hill was required to pay him overtime for those weeks in which he worked more than 40 hours. Tug Hill filed a motion to dismiss Plaintiff’s action on the ground that Plaintiff was contractually required to arbitrate his claim against it. In addition, RigUp itself filed a motion to intervene in order to seek the action’s dismissal in favor of arbitration. The district court granted both motions.   The Fourth Circuit reversed both rulings and remanded. The court explained that the numerous provisions in the Agreement preclude any conclusion that the Agreement was entered into solely or directly for the benefit of Tug Hill, such that Tug Hill could enforce it as a third-party beneficiary. Accordingly, the district court erred in granting Tug Hill’s motion to dismiss and compelling Plaintiff, under the arbitration agreement between him and RigUp, to proceed to arbitration with respect to his FLSA claim against Tug Hill. Moreover, the court explained that because RigUp’s agreement with Plaintiff expressly disclaimed any interest in any litigation, Plaintiff might have with a company in Tug Hill’s position RigUp cannot now opportunistically claim that intervention is necessary. View "Lastephen Rogers v. Tug Hill Operating, LLC" on Justia Law

Plaintiffs are twenty-six former employees of International Business Machines Corporation (“IBM”) who signed separation agreements requiring them to arbitrate any claims arising from their termination by IBM. The agreements set a deadline for initiating arbitration and included a confidentiality requirement. Plaintiffs missed the deadline but nonetheless tried to arbitrate claims under the Age Discrimination in Employment Act of 1967 (“ADEA”). Their arbitrations were dismissed as untimely. They then sued IBM in district court, seeking a declaration that the deadline is unenforceable because it does not incorporate the “piggybacking rule,” a judge-made exception to the ADEA’s administrative exhaustion requirements. Shortly after filing suit, Plaintiffs moved for summary judgment and attached various documents obtained by Plaintiffs’ counsel in other confidential arbitration proceedings. IBM moved to seal the confidential documents. The district court granted IBM’s motions to dismiss and seal the documents. On appeal, Plaintiffs argued that (1) the filing deadline in their separation agreements is unenforceable and (2) the district court abused its discretion by granting IBM’s motion to seal.   The Second Circuit affirmed. The court first wrote that the piggybacking rule does not apply to arbitration and, in any event, it is not a substantive right under the ADEA. Second, the court held that the presumption of public access to judicial documents is outweighed here by the Federal Arbitration Act’s (“FAA”) strong policy in favor of enforcing arbitral confidentiality provisions and the impropriety of counsel’s attempt to evade the agreement by attaching confidential documents to a premature motion for summary judgment. View "In re IBM Arb. Agreement Litig." on Justia Law

This is a putative class action by three truck drivers against their employer, Domino’s Pizza. The court previously affirmed the district court’s denial of Domino’s motion to compel arbitration, holding that because the drivers were a “class of workers engaged in foreign or interstate commerce,” their claims were exempted from the Federal Arbitration Act (“FAA”) by 9 U.S.C. Section 1.   The Ninth Circuit affirmed the district court’s order denying Domino Pizza’s motion to compel arbitration in a putative class action brought by three Domino truck drivers, alleging violations of California labor law. The panel stated that its prior decision squarely rested upon its reading of Rittmann v. Amazon.com, Inc., 971 F.3d 904 (9th Cir. 2020), which concerned Amazon delivery drivers. The panel found no clear conflict between Rittmann and Saxon and nothing in Saxon that undermined the panel’s prior reasoning that because the plaintiff drivers in this case, like the Amazon package delivery drivers in Rittmann, transport interstate goods for the last leg to their final destinations, they are engaged in interstate commerce under Section 1. View "EDMOND CARMONA, ET AL V. DOMINO'S PIZZA, LLC" on Justia Law

Bazemore, a Papa John’s delivery driver, sued under the Fair Labor Standards Act, alleging that the company had under-reimbursed his vehicle expenses. Papa John’s moved to compel arbitration, attaching a declaration from its “Director of People Services” that Papa John’s requires all new employees to sign an arbitration agreement as a condition of employment. She asserted that Bazemore signed the agreement electronically on October 10, 2019, by signing in using a user ID and password, then scrolling through the entire agreement and checking a box in order to sign. Bazemore swore under penalty of perjury that he “had never seen” the agreement and that he had seen his manager login for Bazemore and other delivery drivers “to complete training materials” for them. The court denied Bazemore’s request for targeted discovery as to whether he had actually signed the agreement and granted the motion to compel arbitration.The Sixth Circuit reversed. Under the Federal Arbitration Act, 9 U.S.C. 4, the party seeking arbitration must prove that such an agreement exists. Kentucky law governs whether Bazemore entered into an agreement and provides that an electronic signature is legally valid only when “made by the action of the person the signature purports to represent”—which is a question of fact. Bazemore’s testimony that he never saw the agreement was enough to create a genuine issue as to whether he signed it. View "Bazemore v. Papa John's U.S.A., Inc." on Justia Law

The Supreme Court held that an aggrieved employee who has been compelled to arbitrate claims under the Private Attorneys General Act of 2004 (PAGA), Cal. Lab. Code 2698 et seq., that are "premised on Labor Code violations actually sustained by" Plaintiff maintains statutory standing to pursue PAGA claims arising out of events involving other employees in court.The Supreme Court reversed the judgment of the court of appeals holding that the trial court properly found, among other things, that PAGA claims are not subject to arbitration, holding (1) to have PAGA standing, a plaintiff must be an "aggrieved employee" - i.e., one who was employed by the alleged violator and against whom one or more of the alleged violations was committed; and (2) when a plaintiff brings a PAGA action composed of both individual and non-individual claims, "an order compelling arbitration of the individual claims does not strip the plaintiff of standing to proceed as an aggrieved employee to litigate claims on behalf of other employees under PAGA." View "Adolph v. Uber Technologies, Inc." on Justia Law

Advantage Veterans Services of Walterboro, LLC (“AVSW”) and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International, Local 7898 (the “Union”) dispute the legitimacy of an arbitration award, which stemmed from the discharge of a union-represented employee. The appeal centers on the provisions of the parties’ collective bargaining agreement (the “CBA”). The CBA contains a number of provisions that govern the relationship between AVSW, the Union and the Union’s members who work at AVSW.   The Fourth Circuit reversed the district court’s order affirming the arbitration award and vacated the underlying award. The court explained that its deferential standard for determining whether an arbitrator erred substantively is rooted in the contractual nature of arbitration. If the parties agree to resolve disputes by arbitration, the court defers to the determinations made in the process the parties agreed to. Here, however, the CBA limits the arbitrator’s power. It requires that the arbitrator make the reasonable basis determination. And it premises the legitimacy of any arbitration award on the arbitrator’s compliance with that directive. It even provides that any award that is contrary to the CBA in any way—which includes that directive—“shall be deemed not to draw its essence from the [CBA] and shall be vacated.” The court explained that given this language, it would be paradoxical to use a highly deferential standard of review, which, once again, is rooted in principles of contract, to look past the arbitrator’s failure to follow contractually agreed-upon procedural rules for the arbitration. View "Advantage Veterans Services of Walterboro LLC v. United Steel Paper and Forestry Rubber" on Justia Law

Plaintiff National Nurses Organizing Committee, Missouri & Kansas/National Nurses United filed a grievance and sought arbitration under the grievance procedure set forth in the parties’ collective bargaining agreement (“CBA”). Defendant Midwest Division MMC, LLC refused to arbitrate. Although Plaintiff and Defendant agreed to arbitrate disputes under many provisions of their CBA, the Tenth Circuit Court of Appeal found "with positive assurance" the parties did not intend to arbitrate disagreements related to staffing plans. And, at its core, the dispute between Plaintiff and Defendant was about a staffing plan. The Court applied the presumption of arbitrability “only where a validly formed and enforceable arbitration agreement is ambiguous about whether it covers the dispute at hand.” The Court found parties did not consent to arbitrate the kind of dispute Plaintiff’s grievance asserted and affirmed the grant of summary judgment in favor of Defendant. View "National Nurses Organizing v. Midwest Division MMC" on Justia Law

Plaintiff City of Portsmouth, New Hampshire Police Commission/Police Department (the City) appealed a superior court's denial of the City’s request to modify, correct, or vacate an arbitrator’s award of backpay to Aaron Goodwin, a police officer who was previously employed by the City and who was a member of defendant Portsmouth Ranking Officers Association, NEPBA, Local 220 (the Union). The arbitration arose from a grievance filed by the Union challenging Goodwin’s termination. The arbitrator found that the City wrongfully terminated Goodwin and awarded him approximately twenty-six months of backpay. The superior court confirmed the arbitrator’s termination decision and backpay award. On appeal, the City argued the arbitrator committed plain mistake because she failed to correctly apply the after-acquired-evidence doctrine in determining the amount of the backpay award. Because the New Hampshire Supreme Court agreed with the City that the arbitrator committed a plain mistake of law in reaching the backpay award, it reversed in part, vacated the superior court’s confirmation of the arbitrator’s award, and remanded. View "City of Portsmouth Police Commission/Department v. Portsmouth Ranking Officers Association, NEPBA, Local 220" on Justia Law

Plaintiff was employed from April 2018 to August 2019 by Defendant EmployBridge, LLC, which does business in California as Select Staffing. In March 2018, as part of her employment application, Plaintiff electronically signed an arbitration agreement. The arbitration agreement (1) states it “is governed by the Federal Arbitration Act,” and (2) contains a broad agreement to arbitrate claims. Plaintiff sued EmployBridge Holding Company, a Delaware corporation, solely to recover civil penalties under PAGA for Labor Code violations suffered by her or by other employees. The trial court determined that the agreement to arbitrate specifically excluded PAGA claims. This appeal challenges the denial of a motion to compel arbitration of claims to recover civil penalties.   The Fifth Appellate District affirmed the order denying the motion to compel arbitration. The court concluded that the trial court correctly interpreted the agreement’s carve-out provision stating that “claims under PAGA … are not arbitrable under this Agreement.” This provision is not ambiguous. It is not objectively reasonable to interpret the phrase “claims under PAGA” to include some PAGA claims while excluding others. Thus, the carve-out provision excludes all the PAGA claims from the agreement to arbitrate. View "Duran v. EmployBridge Holding Co." on Justia Law