Collado v. J. & G. Transport, Inc., 820 F.3d 1256

Collado sued J. & G. Transport under the FLSA alleging overtime violations after being classified as an independent contractor; he sought relief for himself and similarly situated drivers.
After discovery closed and shortly before trial, Collado sought leave to file a second amended complaint adding state-law claims for breach of contract and quantum meruit based on disclosed pay records and an addendum to the agreement.
The district court granted leave to amend, finding the breach-of-contract theory was not discoverable until J & G’s post-discovery disclosure of haul revenue and its later interrogatory response limiting application of the addendum.
J & G had litigated the FLSA claim and conceded it had waived arbitration for that claim, but moved to compel arbitration of the newly pleaded state-law claims, arguing the amendment unexpectedly changed the scope/theory of the case and revived its arbitration right.
The district court denied the motion to compel arbitration; the Eleventh Circuit reviewed de novo and considered whether waiver of arbitration as to the FLSA claim extended to state-law claims first pleaded after waiver.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether J & G waived the right to compel arbitration of state-law claims added after J & G litigated the FLSA claim to the point of waiver	Collado: amendment did not unexpectedly change the case; waiver should continue to bar arbitration of these claims	J & G: the second amended complaint unexpectedly broadened the scope/theory and thus revived its right to insist on arbitration of the newly pleaded state claims	Held: Waiver as to the FLSA claim did not extend to the state claims first pleaded after waiver; J & G may compel arbitration of the state-law claims

Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (U.S. 1983) (federal policy strongly favors enforcement of arbitration agreements)
Krinsk v. Sun-Trust Banks, Inc., 654 F.3d 1194 (11th Cir. 2011) (an amended complaint may revive a right to arbitrate when it unexpectedly changes the scope of the litigation)
Dickinson v. Heinold Sec., Inc., 661 F.2d 638 (7th Cir. 1981) (a defendant does not waive arbitration for unpleaded state claims when the original complaint reasonably appeared to raise only non-arbitrable federal claims)
Morewitz v. West of England Ship Owners Mut. Prot. & Indem. Ass’n, 62 F.3d 1356 (11th Cir. 1995) (waiver requires substantial participation in litigation inconsistent with intent to arbitrate and resulting prejudice)
Brown v. ITT Consumer Fin. Corp., 211 F.3d 1217 (11th Cir. 2000) (prompt demand for arbitration after filing preserves arbitration rights)