Edwards v. Doordash, Inc.
888 F.3d 738
| 5th Cir. | 2018Background
- DoorDash requires independent contractors (Dashers) to sign an Independent Contractor Agreement (ICA) containing an arbitration clause and an AAA-rules incorporation that waives class/collective actions and includes a delegation provision.
- Edwards, a Dasher, sued DoorDash in federal court alleging FLSA violations and moved for conditional nationwide collective certification.
- DoorDash moved to stay certification and to compel individual arbitration and dismiss; the magistrate and district court prioritized arbitrability and granted DoorDash's motion, dismissing Edwards's claims for court resolution.
- Edwards appealed, arguing the court should have ruled on conditional certification first and that the arbitration/ICA were unenforceable (illusory, unconscionable, and class-waiver invalid).
- The Fifth Circuit considered jurisdiction, whether arbitrability was properly decided before certification, and whether a valid delegation clause and arbitration agreement exist.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Appellate jurisdiction | Appeal is interlocutory | Order dismissed Edwards' claims so appeal is final | Court has jurisdiction under 9 U.S.C. § 16(a)(3) (final as to Edwards) |
| Whether court should decide arbitrability before conditional certification | District court should rule on certification first | Arbitrability is a threshold issue; decide it first | Affirmed: arbitrability decided first (Reyna precedent; national policy favoring arbitration) |
| Formation/enforceability of arbitration agreement (contract formation) | ICA was not a formed contract: DoorDash didn’t sign, didn’t deliver a copy, and retained unilateral modification power | Arbitration agreement formed; DoorDash performed; California law allows enforcement despite no DoorDash signature or retention of copy; modification power limited by good-faith limits | Court held an agreement was formed under California law; signature and delivery arguments fail |
| Delegation clause & scope (who decides arbitrability) | Whole-agreement challenges (unconscionability, class-waiver invalidity) make delegation unenforceable | ICA incorporates AAA rules (Rule 7) creating clear delegation; absent a specific attack on delegation, arbitrability delegated to arbitrator | Delegation clause valid via AAA incorporation; whole-contract challenges reserved for arbitrator; arbitration compelled |
Key Cases Cited
- Green Tree Servicing, L.L.C. v. Charles, 872 F.3d 637 (5th Cir.) (defining when an arbitration decision is final for appeal)
- Green Tree Financial Corp.-Ala. v. Randolph, 531 U.S. 79 (Supreme Court) (finality concept for arbitration appeals)
- Reyna v. Int'l Bank of Commerce, 839 F.3d 373 (5th Cir.) (arbitrability is a threshold question decided before conditional certification)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (Supreme Court) (national policy favoring arbitration and enforceability of arbitration agreements)
- Rent-A-Center, W., Inc. v. Jackson, 561 U.S. 63 (Supreme Court) (severability of delegation clauses and that specific delegation challenges must be made to court)
- Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440 (Supreme Court) (arbitration provision separable from contract-wide challenges)
- Kubala v. Supreme Prod. Servs., Inc., 830 F.3d 199 (5th Cir.) (two-step inquiry: formation of arbitration agreement and whether a delegation clause exists)