{"id":899295,"date":"2021-11-02T14:49:47","date_gmt":"2021-11-02T20:49:47","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899295"},"modified":"2021-11-02T14:49:50","modified_gmt":"2021-11-02T20:49:50","slug":"arbitration-waiver-determination","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-waiver-determination\/","title":{"rendered":"No Waiver of Arbitration Right and Arbitrability Determination for Arbitrator"},"content":{"rendered":"\n<p>Paul C. Besozzi | <a href=\"https:\/\/www.lexology.com\/library\/detail.aspx?g=f4772be0-2c9e-4953-abdc-849c71c88f10&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+General+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2021-08-04&amp;utm_term=\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Squire Patton Boggs<\/a><\/p>\n\n\n\n<p>Many courts have noted the liberal policy in favor of arbitration over litigation. However, even where both parties concede that there is a valid <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-agreement-in-usa\/\" target=\"_blank\" rel=\"noreferrer noopener\">arbitration agreement<\/a>, the right to compel arbitration can be waived. Absent waiver, there remains the question of whether the dispute at issue falls within the scope of the agreement, an inquiry that can be delegated to the arbitrator in the first instance.<\/p>\n\n\n\n<p>These were the issues recently presented in In&nbsp;<em>Jacksen v. Chapman Scottsdale Autoplex<\/em>,&nbsp;<em>LLC<\/em>, 2021 U.S. Dist. LEXIS 136043, United States District Court for the District of Arizona, Case No. CV-21-00087-PHX-DGC, July 21, 2021. Mr. Jacksen bought a car from Chapman Scottsdale Autoplex (CSA) in February 2015, signing a \u201cWaiver of Purchaser\u2019s Right To Sue\/Arbitration Agreement\u201d with a broadly worded arbitration clause. In October of 2015, Chapman began making marketing calls to Jacksen\u2019s cell phone, even though the number was registered on the National Do Not Call Registry. Jacksen asked Chapman to stop calling. Then, in September of 2020 \u2013 5 years after Jacksen\u2019s automotive purchase \u2013 Chapman started anew \u2013 making marketing calls and a text to determine Jacksen\u2019s interest in purchasing a new vehicle.<\/p>\n\n\n\n<p>Jacksen brought a class action TCPA lawsuit in January 2021 and amended her complaint in March, naming in both \u2013 oops!! \u2013 the wrong Chapman auto seller, Chapman\u2019s Automotive Group, LLC (CAG). Thereafter, CAG answered and there was some discovery identifying CSA as the right party and a second amendment corrected the error at the end of April 2021. Two weeks later CSA moved to compel arbitration.<\/p>\n\n\n\n<p>Jacksen argued that CSA had waived its right to seek arbitration by waiting to file the motion until \u201calmost four months after she filed the initial complaint\u201d against CAG. Jacksen also complained that she was \u201cprejudiced by the time and expense spent attending discovery and case management conferences, drafting a joint case management report and engaging in initial discovery.\u201d In addition, the Court noted that CSA was aware of its right to compel arbitration; it was \u201csignatory to the [arbitration] Agreement and represented by the same counsel\u201d as CAG.<\/p>\n\n\n\n<p>Still, faced with the \u201c\u2018liberal federal policy favoring arbitration\u2019\u201d, the Court could not conclude that CSA had \u201cacted inconsistently with its right to arbitrate.\u201d Once it was formally added as a party, it \u201cpromptly moved to compel arbitration. Plus the initial case management and discovery matters \u201cundertaken by CAG\u201d before CSA was made a party \u201cdo not constitute \u2018active litigation\u2019 aimed at taking advantage of being in federal court.\u201d Moreover, Jacksen also \u201cfailed to establish prejudice.\u201d The initial expenses were limited and the Court concluded that Jacksen \u201clikely will benefit from the strategic thinking and information learned in that process, even in arbitration.\u201d So Jacksen \u201chas not shown waiver.\u201d<\/p>\n\n\n\n<p>Next question \u2013 \u201cwhether the arbitration covers the dispute in this case\u201d \u2013 was itself disputed by the parties. But the Agreement provided that \u201cany claim or dispute, \u2018including the \u2026arbitrability of any issue\u2019 shall \u201cbe resolved by neutral, binding arbitration and&nbsp;<em>not by court action.<\/em>\u2019\u201d After dispensing with Jacksen\u2019s assertions that the Agreement was internally inconsistent on the subject, the Court was unequivocal \u2013 \u201cThe Agreement clearly and unmistakably delegates gateway issues to the arbitrator. It states without equivocation that \u2018the interpretation and scope of this clause and the arbitrability of any issue\u2019 are the province of the arbitrator\u2026 As a result, the parties must litigate their disagreement about the scope of the arbitration provision before the arbitrator.\u201d Upholding the terms of the Agreement \u201ccomports with the strong federal policy favoring the resolution of disputes through arbitration.\u201d<\/p>\n\n\n\n<p>Message here: if you want to take advantage of this policy, promptly exercise arbitration rights to avoid arguments that you waived them and carefully draw the responsibilities of the arbitrator in determining arbitrability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paul C. Besozzi | Squire Patton Boggs Many courts have noted the liberal policy in favor of arbitration over litigation. However, even where both parties concede that there is a valid arbitration agreement, the right to compel arbitration can be waived. Absent waiver, there remains the question of whether the dispute at issue falls within&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-waiver-determination\/\">Continue reading <span class=\"screen-reader-text\">No Waiver of Arbitration Right and Arbitrability Determination for Arbitrator<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41],"tags":[9895,10807],"class_list":["post-899295","post","type-post","status-publish","format-standard","hentry","category-arbitration","tag-advise-consult","tag-arbitration-agreement","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No Waiver of Arbitration Right and Arbitrability Determination for Arbitrator - Advise &amp; 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