Cunningham & Associates, Plc v. Arag, LLC, 2012 U.S. Dist. LEXIS 11618

Plaintiffs Cunningham & Associates, PLC and Joseph Cunningham contracted to provide legal services to defendants' insureds starting May 2007.
Dispute centers on defendants allegedly underpaying reasonable fees and expenses and terminating the contract without justification.
Plaintiffs filed fraud, misrepresentation, breach of good faith, quantum meruit, unjust enrichment, and DC CPA claims in DC Superior Court.
Defendants removed the action to the District of Columbia federal court, alleging diversity and amount in controversy exceeded $75,000.
Defendants moved to compel mediation in Des Moines, Iowa, or alternatively dismiss certain claims; court granted mediation and stayed case for 45 days.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does the contract require mediation prior to litigation?	Cunningham argues the clause is in effect and enforceable.	ARAG contends the agreement clearly requires mediation in Des Moines, Iowa.	Yes; mediation mandatory under contract.
Is there waiver of the mediation requirement by conduct?	Cunningham claims defendants' silence waived rights to mediation.	ARAG contends no waiver was demonstrated by the contract or conduct.	No waiver found.
Is mediation in Iowa reasonably burdensome or improper?	Iowa location and four hours of mediation are inconvenient and insufficient.	Location and duration are fixed by contract; not unreasonable.	Not improper; enforceable as written.
Should the case be stayed pending mediation?	Not stated separately; implied request to avoid premature litigation.	Court should stay to allow mediation per contract.	Case stayed for 45 days pending mediation.

AFGE, Local 2924 v. FLRA, 470 F.3d 375 (D.C. Cir. 2006) (contract interpretation begins with plain meaning; enforce terms when unambiguous)
Halim v. Great Gatsby’s Auction Gallery, Inc., 516 F.3d 557 (7th Cir. 2008) (stay appropriate to implement dispute resolution mechanism)