L. Dotson v. Dillard's, Inc.
472 S.W.3d 599
| Mo. Ct. App. | 2015Background
- Dotson, a former Dillard’s employee, was terminated in Jan 2014 after seven months of employment.
- Dotson filed discrimination/harassment/retaliation charges with the Missouri Human Rights Commission and received a Notice of Right to Sue.
- Dotson filed suit against Dillard’s entities in Jackson County Circuit Court on Oct 14, 2014.
- Dillard’s moved to dismiss and compel arbitration, asserting a signed arbitration agreement with a delegation provision directing arbitrator resolution of arbitrability questions.
- The circuit court overruled the motion, finding lack of consideration and allowing court review of formation issues; the court did not address Rent-A-Center.
- The appellate court held the delegation provision clearly and unmistakably delegated arbitrability to the arbitrator, reversing and remanding to compel arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the delegation provision clearly and unmistakably delegates arbitrability to the arbitrator | Dotson argues delegation fails to expressly exclude courts from arbitrability. | Dillard’s contends the provision grants arbitrator authority to decide arbitrability and is enforceable under FAA. | Delegation provision clearly and unmistakably delegates arbitrability to the arbitrator. |
| Whether Dotson waived challenges to the delegation provision's enforceability | Dotson challenged the overall arbitration agreement formation, not the delegation provision itself below. | Dillard’s argues Dotson waived challenges to the delegation provision by not raising them in the trial court. | Dotson waived challenges to the delegation provision; court nevertheless must enforce delegation if clearly worded. |
Key Cases Cited
- Rent-A-Center, West, Inc. v. Jackson, 130 S. Ct. 2218 (2010) (delegation provisions appoint arbitrator to decide arbitrability; courts enforce if clearly and unmistakably drafted)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995) (who decides arbitrability depends on contract; before arbitration, court review limited)
- AT&T Techs., Inc. v. Communications Workers of Am., 475 U.S. 643 (1986) (arbitration agreement clarity governs arbitrability delegation)
- Baker v. Bristol Care, Inc., 450 S.W.3d 770 (Mo. banc 2014) (distinguishes formation-related disputes from enforceability/applicability challenges in delegation)
- MFA, Inc. v. HLW Builders, Inc., 303 S.W.3d 620 (Mo. App. W.D. 2010) (use of 'may' in delegation provisions can still mandate arbitration when authority to arbitrate is clear)