James Pendergast v. Sprint Solutions, Inc.
691 F.3d 1224
11th Cir.2012Background
- Pendergast, Sprint customer from Aug 2001 to Jan 2008, entered into multiple Terms and Conditions with arbitration provisions.
- The May 2001 Terms contained an arbitration clause but no class action waiver; they allowed contract changes with notice and termination rights.
- The June 2004 Terms added an arbitration clause with a class action waiver and non-severability provision; small-claims exception remained.
- The January 2007 Terms expanded dispute resolution to require arbitration, added a class action waiver and non-severability clause; if the waiver is unenforceable, arbitration does not apply.
- The January 2008 Terms retained arbitration, class action waiver, and non-severability; Pendergast sued in district court in 2008 seeking class relief for roaming-fee claims; Sprint moved to compel arbitration under FAA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FAA preempts Florida unconscionability/FDUTPA rules on class waivers. | Pendergast argues Florida law renders the waiver unconscionable, making arbitration unenforceable. | Sprint argues state law either permits waiver or is preempted by FAA. | Preemption; FAA preempts Florida rules that would invalidate the class waiver. |
| Whether non-severability strengthens FAA preemption here. | Non-severability would void arbitration if waiver invalidated. | Non-severability does not permit preserving arbitration if waiver invalidated. | Non-severability reinforces FAA preemption; if waiver fails, arbitration does not operate. |
| Whether Concepcion controls Florida law interpretation here. | Concepcion does not preempt if Florida law would allow class arbitration. | Concepcion preempts state Discover Bank-style rules; class waiver invalidation is preempted. | Concepcion controls; class waiver preemption applies regardless of Florida law specifics. |
| Is the case resolved by Florida law or FAA preemption alone? | Argues Florida law should govern unconscionability analysis. | FAA preemption defeats Florida law if it obstructs arbitration. | FAA preempts Florida law to enforce arbitration according to its terms. |
Key Cases Cited
- AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011) (FAA preempts Discover Bank rule; class waivers may be enforced.)
- Cruz v. Cingular Wireless, LLC, 648 F.3d 1205 (11th Cir. 2011) (Florida law cannot force class arbitration; Concepcion applies.)
- Pendergast v. Sprint Nextel Corp., 592 F.3d 1119 (11th Cir. 2010) (Certification to Florida Supreme Court; Concepcion later governs.)
- Dale v. Comcast Corp., 498 F.3d 1216 (11th Cir. 2007) (Standard of review for order compelling arbitration.)