McLean v. Byrider Sales of Indiana S, LLC
2:13-cv-00524
S.D. OhioSep 5, 2013Background
- McLean applied for a Byrider management position and completed an employment application containing an arbitration clause.
- The company’s Employee Dispute Resolution Plan is incorporated by reference into the arbitration provision.
- McLean would need to miss one Friday per month for Army National Guard duties, which led Byrider not to hire him.
- McLean filed suit in state court alleging claims arising from the employment process, which Byrider removed to federal court.
- Defendants moved to dismiss or stay proceedings and compel arbitration under the Federal Arbitration Act (FAA).
- The court reviews four-factor arbitral gateway questions and concludes all asserted claims fall within the arbitration agreement and that dismissal with prejudice is proper.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the parties formed an arbitration agreement | McLean argues no enforceable agreement | Byrider contends the application and Plan create mutual obligation | Agreement to arbitrate established for all parties and agents |
| Scope of the arbitration clause | Claims may exceed arbitration coverage | Clause covers claims arising from application/candidacy | Arbitration covers the asserted claims (USERRA and state law) |
| Whether USERRA claims are arbitrable | USERRA may be nonarbitrable | USERRA claims can be arbitrated | USERRA claims are arbitrable under controlling Sixth Circuit law |
| Whether to stay or dismiss when all claims are arbitrable | Court should stay proceedings | If all claims are arbitrable, dismissal is proper | Court dismissed with prejudice and ordered arbitration |
Key Cases Cited
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (U.S. 1995) (gateway question on arbitrability for court decision)
- John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543 (U.S. 1964) (court decides whether arbitration agreement survived merger)
- Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79 (U.S. 2002) (procedural questions presumptively for arbitrator; gateway issues for court)
- Landis v. Pinnacle Eye Care, LLC, 537 F.3d 559 (6th Cir. 2008) (USERRA claims arbitrable under Sixth Circuit)
- Inland Bulk Transfer Co. v. Cummins Engine Co., 332 F.3d 1007 (6th Cir. 2003) (inquiry into contract enforceability and incorporation)
- Stout v. J.D. Byrider, 228 F.3d 709 (6th Cir. 2000) (arbitration agreements and enforceability principles)
- United Steelworkers of Am., AFL-CIO-CLC v. Saint Gobain Ceramics & Plastics, Inc., 505 F.3d 417 (6th Cir. 2007) (arbitration scope and arbitrability in complex disputes)
