Green v. Supershuttle International, Inc.
653 F.3d 766
| 8th Cir. | 2011Background
- Green and other shuttle drivers alleged MFLSA violations, arguing misclassification as franchisees.
- SuperShuttle removed to federal court under CAFA; district court granted arbitration and forced individual arbitration due to a class waiver.
- UFAs incorporated AAA rules, giving arbitrator authority to determine threshold arbitrability questions.
- District court held FAA transportation-worker exemption threshold question could be decided by arbitrator; allowed staying or dismissal.
- District court dismissed the federal action without prejudice; Green appealed challenging arbitrability, class-waiver enforceability, and dismissal posture.
- Court affirm arbitration grant and class-waiver enforcement; reverse dismissal order and remand for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Threshold arbitrability under FAA exemption | Green argues FAA transportation-worker exemption applies. | SuperShuttle and district court hold arbitrator decides threshold issues under AAA. | Arbitrator may decide threshold issue per AAA incorporation. |
| Enforceability of class action waivers under state law | Minnesota law renders waivers unenforceable. | FAA preempts state-law challenges to class waivers (Concepcion); waivers enforceable. | FAA preempts state-law challenges; waivers enforceable. |
| Dismissal vs. stay pending arbitration | Case should be stayed pending arbitration. | District court may dismiss if all issues are arbitrable. | Remand for proceedings; district court erred in dismissing without prejudice. |
Key Cases Cited
- Rent-A-Center West, Inc. v. Jackson, 130 S. Ct. 2772 (U.S. 2010) (gateway arbitrability questions may be decided by arbitrator under AAA rules)
- Fallo v. High-Tech Inst., 559 F.3d 874 (8th Cir. 2009) (arbitrability threshold questions may be delegated to arbitrator)
- AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (U.S. 2011) (FAA preempts state-law unconscionability challenges to class waivers)
- Lloyd v. HOVENSA, LLC, 369 F.3d 263 (3d Cir. 2004) (plain-language approach to FAA fosters arbitration efficiency)
- Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79 (U.S. 2000) (stability of arbitration process; stay vs. dismissal context)
- Jann v. Interplastic Corp., 631 F. Supp. 2d 1161 (D. Minn. 2009) (district court discretion in arbitration-related dismissal)
- Alford v. Dean Witter Reynolds, Inc., 975 F.2d 1161 (5th Cir. 1992) (embedded vs. independent proceedings; stay considerations)
- Sparling v. Hoffman Construction Co., 864 F.2d 635 (9th Cir. 1988) (arbitration-related stay/dismissal considerations)
- United States v. Sabri, 326 F.3d 937 (8th Cir. 2003) (statutory interpretation guidance for FAA)