Harvey v. Hooten
35,685
| N.M. Ct. App. | Feb 20, 2017Background
- Hooten appeals a district court order denying his motion to dismiss and to compel arbitration.
- Court proposed summary affirmance; Hooten opposed but court remained unpersuaded and affirmed.
- Hooten raised four docketing issues; issues (2) and (3) were deemed abandoned for lack of response.
- Issue (1) concerned whether the delegation clause required the arbitrator, not the district court, to decide arbitrability, but preservation was not shown.
- Court held Hooten waived arbitration by his two-year, eight-month litigation conduct and extensive judicial participation before seeking arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Preservation of delegation clause ruling | Hooten preserved delegation challenge via district court ruling | No preservation of delegation issue by Hooten | Delegation issue not preserved; not addressed |
| District court authority to decide arbitrability under delegation clause | Delegation clause implicates district court subject matter jurisdiction | Delegation issue waivable; arbitrator may decide | Waived; district court not required to decide arbitrability |
| Waiver of arbitration by Hooten | Hooten’s extensive litigation and discovery imply waiver | No waiver by Hooten; timely arbitration invocation | Waiver established; arbitration rights extinguished |
| Prejudice to plaintiffs from delay in arbitration | Prejudice shown by trial preparations and reliance on litigation | Prejudice not shown or outweighed by other factors | Prejudice found; supports waiver |
| Overall waiver determination | Strong public policy favoring arbitration, but waiver due to conduct prevails | No waiver given the circumstances and timing | District court did not err; Hooten waived arbitration |
Key Cases Cited
- Wood v. Millers Nat’l Ins. Co., 96 N.M. 525, 632 P.2d 1163 (N.M. 1981) (point of no return reached when court action tested; arbitration waiver triggered)
- The Architects, 1985-NMSC-102 (N.M. (Supreme Court of New Mexico) 1985) (timing and trial preparation impact waiver analysis)
- AFSCME v. City of Albuquerque, 2013-NMCA-049 (N.M. Ct. App. 2013) (preference for arbitration and prejudice requirement for waiver)
- Bernalillo Cty. Med. Ctr. Emps’ Ass’n v. Cancelosi, 1978-NMSC-086 (N.M. 1978) (arbitration not waived where no prior testing of judicial waters)
- Rent-A-Center, W., Inc. v. Jackson, 561 U.S. 63 (Supreme Court 2010) (delegation clause and gateway questions in arbitration)