Skip to content

Menu

ChannelsPublishersSubscribe
LexBlog, Inc. logo
LexBlog, Inc. logo
ProductsSub-MenuBlogsPortalsTwentySyndicationMicrositesResource Center
Join
Search
Close
Join the Movement. Blog 4 Good

Eighth Circuit Jurisdictional Ruling Offers a Lesson in Drafting Arbitration Agreements

By Patrick Smith
May 31, 2019
EmailTweetLikeLinkedIn

My Fredrikson & Byron colleague Brandon Underwood is the author of today’s guest-post:

On May 31, 2019, in Webb v. Farmers of North America, Inc. (No. 17-3456), the Eighth Circuit dismissed an employer’s appeal challenging how the lower court had read an arbitration agreement.  The employer, citing the agreement with its employee, had actually persuaded the lower court to require the employee to arbitrate his case.  So why the employer’s appeal?

After the district court ordered him to arbitrate his case, the employee challenged who would arbitrate it, and the court sided with him.  The Eighth Circuit then tossed the employer’s appeal, holding that it lacked jurisdiction, primarily because the case wasn’t yet final.  Federal appellate courts don’t ordinarily review non-final—or, “interlocutory”—orders.

But this is an employment law blog, and those are procedural points. Webb contains a lesson for employment lawyers (any lawyer who reads or writes contracts, really) because its underlying dispute was about an arbitration agreement’s wording.

Under the agreement, the parties agreed to arbitrate their claims under “the rules” of the American Arbitration Association, a well-known arbitral body.  Even so, the plaintiff contended this provision didn’t require the AAA to be the arbitrator; a non-AAA arbitrator could preside, as long as it applied the AAA’s rules.  The district court agreed, finding that if the employer had meant for all the parties’ disputes to be submitted to the AAA, it could have said so.  So the dispute would be arbitrated—just not necessarily before the AAA.

It’s worth emphasizing that the Eighth Circuit’s opinion in Webb doesn’t address the merits of the district court’s ruling.  Its correctness will have to be reviewed, if ever, in a later appeal.

But the case highlights the importance of specifically designating who will arbitrate employee disputes, rather than assuming that a reference to a particular body’s rules is enough.  If the arbitration agreement in Webb had specified that the arbitration would be administered by the AAA (or another body) under its rules, the district court would have lacked grounds to find the agreement ambiguous.  Indeed, construction-industry contracts between contractors often contain this term or one similar to it.  These contracts may supply useful models for designating an arbitral body.  By specifying a particular arbitrator, parties can avoid having to reach agreement on mutually acceptable arbitrator, as the district court in Webb directed.

Patrick Smith

Patrick Smith represents public and private employers in a broad spectrum of employment law matters, including employment discrimination, retaliation, wage and hour issues, FMLA, whistle-blower claims, defamation, and union related issues.

Patrick is an experienced litigator and trial lawyer. He regularly appears in…

Patrick Smith represents public and private employers in a broad spectrum of employment law matters, including employment discrimination, retaliation, wage and hour issues, FMLA, whistle-blower claims, defamation, and union related issues.

Patrick is an experienced litigator and trial lawyer. He regularly appears in state and federal trial courts throughout Iowa, as well as before the Iowa Supreme Court, Iowa Court of Appeals, and United States Court of Appeals for the Eighth Circuit. He practices before administrative agencies with jurisdiction over employers, including the Equal Employment Opportunity Commission (EEOC), Iowa Civil Rights Commission, and National Labor Relations Board (NLRB). Patrick litigates cases involving single plaintiffs, multiple plaintiffs, class actions, and collective actions.

Although a frequent litigator, one of Patrick’s goals is to help his clients avoid litigation. To that end, his practice includes consulting with employers on legal compliance, HR audits, drafting employment policies and handbooks, management training, and internal investigations. He is a frequent presenter on a wide range of employment law topics and publishes this blog.

Read more about Patrick SmithEmail Patrick's Twitter Profile
Show more Show less
  • Posted in:
    Employment & Labor
  • Blog:
    Iowa Employment Law Blog
  • Organization:
    Fredrikson & Byron, P.A.
  • Article: View Original Source

Stay Connected

Facebook LinkedIn Twitter RSS
Real Lawyers

Company

  • About LexBlog
  • Careers
  • Press
  • Contact LexBlog
  • Privacy Policy
  • Editorial Policy
  • Disclaimer
  • Terms of Service
  • RSS Terms of Service

Products

  • Products
  • Blogs
  • Portals
  • Twenty
  • Syndication
  • Microsites

Support

  • 1-800-913-0988
  • Submit a Request
  • Support Center
  • System Status
  • Resource Center

New to the Network

  • Global Trade Law Blog
  • The Quick Take
  • Consumer Privacy World
  • Energy Law Report
  • Litigators at Work
Copyright © 2021, LexBlog, Inc. All Rights Reserved.
Powered By LexBlog