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McLean v. Byrider Sales of Indiana S, LLC
2:13-cv-00524
S.D. Ohio
Sep 5, 2013
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Background

  • 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)
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Case Details

Case Name: McLean v. Byrider Sales of Indiana S, LLC
Court Name: District Court, S.D. Ohio
Date Published: Sep 5, 2013
Citation: 2:13-cv-00524
Docket Number: 2:13-cv-00524
Court Abbreviation: S.D. Ohio