Emilio v. Sprint Spectrum L.P.
508 F. App'x 3
2d Cir.2013Background
- Arbitration clause delegates gateway arbitrability questions to the arbitrator under JAMS rules.
- District court vacated the arbitral award to the extent it held the class-action waiver unenforceable, finding the arbitrator exceeded powers.
- Emilio challenged the district court’s vacatur decision, arguing arbitrability was delegated and the arbitrator could decide enforceability.
- Arbitrability questions are normally for courts, but delegation clauses can commit them to the arbitrator, which was found here.
- The court vacated the district court’s vacatur ruling on the enforceability issue, affirmed the portion confirming non-class-wide arbitration, and remanded for consideration of other vacatur arguments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the arbitrator empowered to decide enforceability of the class-action waiver? | Emilio: delegation to arbitrator controls arbitrability. | Sprint: district court decides arbitrability. | Yes; arbitrator authorized to decide arbitrability. |
| Did the district court err in vacating the award on the basis of arbitrator usurping powers? | Arbitrator acted within delegated authority. | District court correctly vacated ultra vires. | District court erred; vacatur reversed in part and remanded. |
| Does the Amex framework govern who decides arbitrability here? | Amex I governs gateway issues for courts absent delegation. | Here, delegation makes arbitrator gateway decision. | Delegation governs; arbitrator decides gateway issue. |
| Is the question of class-action enforceability a gateway issue for arbitration under Amex line? | Yes, as with Amex I/III. | No, district court should decide. | Gateway issue properly delegated to arbitrator. |
| What remains for the district court on remand? | N/A | Address remaining vacatur arguments. | Remand for consideration of other vacatur issues. |
Key Cases Cited
- In re Am. Express Merchants’ Litig., 554 F.3d 300 (2d Cir. 2009) (gateway issue of arbitrability; preclusion context; Amex I)
- In re Am. Express Merchants’ Litig., 667 F.3d 204 (2d Cir. 2012) (Amex III; sustaining Amex I under later decisions)
- Contec Corp. v. Remote Solution Co., 398 F.3d 205 (2d Cir. 2005) (delegation to arbitrator of arbitration scope)
- T.Co Metals, LLC v. Dempsey Pipe & Supply, Inc., 592 F.3d 329 (2d Cir. 2010) (arbitrability questions and gateway issues)
- Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79 (2002) (presumptive rule that arbitrability is a court question absent clear delegation)
- Jock v. Sterling Jewelers Inc., 646 F.3d 113 (2d Cir. 2011) (review of arbitral powers; standard for vacatur)