Horne v. Los Alamos National Security, L.L.C.
296 P.3d 478
N.M.2013Background
- Horne, LANL employee, subject to arbitration for grievances related to CREM incident.
- Arbitration awarded Horne wages/benefits and costs; LANL sought dismissal based on arbitration scope.
- Horne filed eight-facet state court lawsuit in 2008 alleging broad claims.
- District court granted summary judgment for LANL under arbitration scope
- Court of Appeals reversed, finding dispute over scope unresolved; NM Supreme Court reversed to uphold LANL.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether summary judgment was proper based on arbitration scope | Horne: scope unresolved; cannot dismiss | LANL: scope defined by arbitration agreement; claims within scope | Summary judgment proper; scope required arbitration ruling |
| Obligation to obtain arbitrator ruling on scope before litigation | Horne failed to obtain arbitrator scope ruling | Arbitrator must decide scope if clearly reserved | Horne obligated to seek arbitrator scope ruling; failure justified dismissal |
| Effect of allegedly narrow arbitration demand form on scope | Demand form narrowed scope unilaterally | Scope determined by contract and arbitrator; form not controlling | Scope determined by arbitration agreement, not demand form alone |
Key Cases Cited
- AT&T Technologies, Inc. v. CWA, 475 U.S. 643 (U.S. 1986) (arbitrability decided by arbitrator when parties clearly reserved it)
- Lewis v. Circuit City Stores, Inc., 500 F.3d 1140 (10th Cir. 2007) (explicit objections needed to preserve arbitration issues)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (U.S. 1995) (forceful objections required to question arbitrator jurisdiction)
- United Technology & Resources, Inc. v. Dar Al Islam, 115 N.M. 1, 846 P.2d 307 (NM 1993) (declined to entertain merits absent timely challenge to arbitration)
- Town of Silver City v. Garcia, 115 N.M. 628, 857 P.2d 28 (NM 1993) (arbitration principles limit district court relitigation of arbitral issues)
- K.L. House Constr. Co. v. City of Albuquerque, 91 N.M. 492, 576 P.2d 752 (NM 1978) (arbitration scope interpretation guided by contract principles)
- Santa Fe Techs., Inc. v. Argus Networks, 131 N.M. 772, 42 P.3d 1221 (NMCA 2002) (broad arbitration interpretation favored; scope context dependent)