Mohammad Alim v. KBR, Incorporated
570 F. App'x 417
5th Cir.2014Background
- Alim, employed by KBR, agreed to Halliburton DRP requiring arbitration of employment claims.
- Alim filed an arbitration demand with AAA alleging discrimination, retaliation, and breach of contract.
- Texas appellate court vacated an arbitration award due to evident partiality of the arbitrator.
- Alim amended his state court petition adding UAE labor law, Title VII, breach of arbitration agreement, and fraud claims; KBR removed to federal court within 30 days of the amended petition.
- District court denied remand, granted KBR’s motion to compel arbitration, and stayed Alim’s Title VII claim.
- Arbitration awarded in KBR’s favor on certain claims; Alim moved to vacate; district court denied; final judgment entered.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of removal | Removal was untimely because KBR knew of Title VII claim earlier. | Removal period began when a pleading with a removable claim was first received; timely within 30 days of amended petition. | Timely removal affirmed. |
| Enforceability of the DRP and arbitration clause | DRP unenforceable due to fraud/ bias (Colvin study); invalidates arbitration. | Texas law governs enforceability; no basis shown to invalidate; Colvin study insufficient. | DRP and arbitration clause enforced; arbitration compelled. |
| Vacatur of the arbitration award | Second arbitrator was evidently partial; award tainted by fraud or undue means. | No evidenceJustifying vacatur; arguments waived and unfounded. | Affirmed district court’s denial of vacatur; award upheld. |
Key Cases Cited
- Am. Heritage Life Ins. Co. v. Lang, 321 F.3d 533 (5th Cir. 2003) (enforceability defenses may invalidate arbitration without contravening FAA §2)
- Jones v. Halliburton Co., 583 F.3d 228 (5th Cir. 2009) (strong federal policy favoring arbitration in employment disputes)
- FirstMerit Bank, N.A. v. Inre, 52 S.W.3d 749 (Tex. 2001) (unconscionability standard for arbitration agreements under Texas law)
- Randall v. Arabian Am. Oil Co., 778 F.2d 1146 (5th Cir. 1985) (jurisdiction questions involving foreign agreements)
- Petrofac, Inc. v. DynMcDermott Petroleum Operations Co., 687 F.3d 671 (5th Cir. 2012) (extremely deferential review of arbitration awards)