Thomas Wootten v. Fisher Investments, Inc.
688 F.3d 487
8th Cir.2012Background
- Wootten entered a LOA with Fisher Investments containing Delaware choice-of-law and arbitration provisions.
- Arbitrator dismissed Missouri statutory claims under Delaware law and sua sponte barred a federal securities claim.
- Wootten filed federal suit challenging the LOA and re-alleged dismissed claims; district court stayed/arbitration ongoing and dismissed claims without prejudice.
- Arbitration provision provides Delaware law governs substantive rights and disputes are decided by JAMS, with express arbitration of enforceability.
- District court applied complete arbitration rule, delaying federal review until arbitration completes.
- Court addresses challenges to jurisdiction, arbitrability, enforceability, waiver, public policy, and provisional remedies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction under complete arbitration rule | Wootten asserts district court has jurisdiction notwithstanding ongoing arbitration. | Fisher argues complete arbitration rule deprives district court until arbitration ends. | District court correctly deferred to arbitration; no jurisdiction while arbitration is incomplete. |
| Scope and effect of arbitrator's ruling on Missouri/federal claims | Arbitrator's Delaware-governed scope allows federal/Missouri claims in court notwithstanding arbitration. | Arbitrator's interpretation is interim and bound by complete arbitration rule. | Complete arbitration rule applies; must arbitrate fully before court reviews arbitrator's scope ruling. |
| Enforceability of LOA arbitration provision | LOA enforceability should be decided by court rather than arbitrator. | Rent-A-Center requires arbitrator to decide arbitrability where parties so provide. | Arbitrability to be decided by arbitrator; district court properly declined to rule on enforceability. |
| Waiver by Fisher Investments of right to arbitrate | Fisher's alleged misconduct constitutes waiver of arbitration rights. | Continued participation in arbitration shows no waiver. | No waiver; Fisher did not act inconsistently with right to arbitrate. |
| Public policy and statutory rights | LOA precludes Missouri/federal statutory rights in court. | Complete arbitration rule preserves ability to arbitrate and vindicate rights via arbitration. | Enforceability upheld; must complete arbitration before court can adjudicate statutory claims. |
Key Cases Cited
- Rent-A-Center, West, Inc. v. Jackson, 130 S. Ct. 2772 (2010) (arbitrability decision may be delegated to arbitrator when parties concur)
- Local 36, Sheet Metal Workers Int'l Ass'n. AFL-CIO v. Pevely Sheet Metal Co., 951 F.2d 947 (8th Cir. 1992) (complete arbitration rule factors for finality)
- Green v. SuperShuttle Int'l., Inc., 653 F.3d 766 (8th Cir. 2011) (deference to arbitration when litigation coincides with arbitration)
- Hudson v. ConAgra Poultry Co., 484 F.3d 496 (8th Cir. 2007) (interpretation of arbitration provisions de novo)
- Fallo v. High-Tech Inst., 559 F.3d 874 (8th Cir. 2009) (clear expression to leave arbitrability to arbitrator)