James Webb v. Farmers of North America, Inc.
Opinion
*968 Farmers of North America, Inc. ("Farmers") brings this interlocutory appeal of the district court's 1 rulings interpreting an arbitration agreement in an employment contract. As discussed herein, we do not reach the merits of the appeal and dismiss for lack of jurisdiction.
I. Background
James Webb sued Farmers for an alleged breach of the employment contract that he and Farmers had signed, along with some other related employment matters. Webb's employment contract with Farmers included an arbitration clause. The district court, upon review of the contract, found that the parties' dispute is subject to arbitration pursuant to the arbitration clause. Accordingly, the district court granted Farmers's motion compelling arbitration and stayed the proceeding pending the outcome of that arbitration.
The arbitration clause states that the American Arbitration Association (AAA) rules will govern the arbitration. The parties agree to that general statement, but they disagree as to the effect of designating the AAA rules. Farmers asserts that the contract's inclusion of the AAA rules mandates that the AAA must also administer the arbitration.
2
Webb disagrees. He avers that the contract only requires AAA rules be applied, which a non-AAA arbitrator could do consistent with the contract. Reaching an impasse, Webb's lawyer wrote a letter to the district court (copying opposing counsel) seeking clarification on this question. The district court agreed with Webb's position and found that agreeing to arbitrate by AAA rules did not necessitate that AAA itself arbitrate the dispute. The court decided the contractual language in the arbitration clause was ambiguous "at the very least."
Webb v. Farmers of N. Am., Inc.
, No. 4:16-cv-00080,
Farmers filed this interlocutory appeal, arguing that the AAA rules, as applied through its contract with Webb, mandate that the AAA administer this arbitration. We decline to weigh in on the merits of Farmers's argument, however, because we lack jurisdiction over the appeal. Subject matter jurisdiction is a prerequisite for every appeal. For the reasons explained below, none of Farmers's asserted bases for jurisdiction suffice to enable this court's jurisdiction.
II. Discussion
Farmers asserts three bases for our jurisdiction: (1) the district court's order compelling arbitration was a final order pursuant to the Federal Arbitration Act (FAA),
A. 16(a)(3) "Final Decision"
Farmers first asserts jurisdiction exists pursuant to § 16(a)(3) of the FAA, which states "[a]n appeal may be taken
*969
from ... a final decision with respect to an arbitration that is subject to this title." The Supreme Court has ruled that a "final decision with respect to an arbitration" under this statute is "a decision that ends the litigation on the merits and leaves nothing more for the court to do but execute the judgment."
Green Tree Fin. Corp.-Ala. v. Randolph
,
B. 16(a)(1)(B) Denial of Petition to Arbitrate
Second, Farmers argues appellate jurisdiction exists under "
Farmers relies heavily on
Luigino's Inc. v. Kostal
,
C. Collateral Order Doctrine
Lastly, Farmers asserts that the collateral order doctrine provides jurisdiction to appeal the district court's October 10th order instructing the parties to work together to select an arbitrator, even if that arbitrator does not come from the AAA. The collateral order doctrine confers appellate jurisdiction to review interlocutory "decisions 'which finally determine claims of right separate from, and collateral to, rights asserted in the action, too important to be denied review and too independent of the cause itself to require that appellate jurisdiction be deferred until the whole case is adjudicated.' "
Midland Asphalt Corp. v. United States
,
*970
Alpine Glass, Inc. v. Country Mut. Ins. Co.
,
Although we suspect that the district court's October 10th order fails to qualify under any of the three prongs of our test, it need only fail one.
See
Lauro Lines s.r.l. v. Chasser
,
The district court's order sending the parties to arbitration is not effectively unreviewable. If Farmers is dissatisfied with the final result of arbitration and an order confirming that award by the district court, it would at that time have an appropriate remedy to seek review on appeal through
III. Conclusion
Accordingly, we dismiss Farmers's interlocutory appeal for lack of jurisdiction under any of the three raised grounds.
The Honorable Fernando J. Gaitan, Jr., United States District Judge for the Western District of Missouri.
There is no question the AAA could administer the arbitration.
In
Luigino's
, a panel of this court determined who should arbitrate a matter when the employee and employer had two separate arbitration provisions in the employment agreement based on the nature of the dispute.
Reference
- Full Case Name
- James WEBB, Plaintiff - Appellee v. FARMERS OF NORTH AMERICA, INC., a Delaware Company, Defendant - Appellant James Mann, Defendant
- Cited By
- 4 cases
- Status
- Published