AT&T Mobility LLC v. Bernardi et al

Filing 18

ORDER staying arbitration. Signed by Judge Charles R. Breyer on 9/9/2011. (crblc2, COURT STAFF) (Filed on 9/9/2011)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

United States District Court
For the Northern District of California

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No. C 11-03992 CRB

AT&T MOBILITY LLC,

ORDER STAYING ARBITRATION

Plaintiff,
v.
LESLIE BERNARDI, et al.,
Defendants.

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AT&T Mobility LLC (“AT&T”), filed a Complaint and request for preliminary

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injunction in this case on August 12, 2011, requesting that this Court enjoin pending

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arbitrations filed against AT&T. Dkt. 1. On September 6, 2011, Deborah Schroeder and

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Astrid Mendoza filed a Petition to Enforce Arbitration Agreements in Case No. 11-4412. On

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September 8, 2011, the Court related Case No. 11-4412 to this case. Dkt. 15. On September

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9, 2011, Defendants moved to Compel Arbitration in this case. Dkt. 16.

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The parties’ central disagreement in both actions is whether the arbitration demands

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brought by Schroeder and Mendoza, as well as Laura Barrett and Leslie Bernardi (hereinafter

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“customers”) exceed the scope of the arbitration agreements each customer signed with

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AT&T. The customers’ arbitration demands challenge the proposed merger between AT&T

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and T-Mobile under the Clayton Act, 15 U.S.C. §§ 18 and 26. Whether the claims in the

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arbitration exceed the scope of the arbitration agreements will be the focus of the Court’s
hearing between the parties already scheduled for Friday, October 14, 2011.

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The Court hereby stays any and all pending arbitrations between AT&T Mobility and

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the customers, which also bars dismissal of such arbitrations, pending further order of this

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Court. The Court finds such relief warranted by the standard of Alliance for the Wild

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Rockies v. Cottrell, 632 F.3d 1127, 1131 (9th Cir. 2011). In particular, both the dismissal

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and prosecution of the arbitrations at issue, prior to a determination of the scope of the

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arbitration agreements by this Court, will cause both parties irreparable harm. Moreover,

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temporary maintenance of the status quo benefits the public interest given the broad national

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impact of the proposed merger between AT&T Mobility and T-Mobile, which the customers

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are challenging in their demands for arbitration.

United States District Court
For the Northern District of California

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AT&T Mobility must post a bond of $7000 by noon on Tuesday, September 13, 2011.

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The bond shall be filed with the Clerk’s Office and be deposited into the registry of the

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Court. If said bond is not posted by the aforementioned date and time, this Order shall be

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dissolved.

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IT IS SO ORDERED.

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CHARLES R. BREYER
UNITED STATES DISTRICT JUDGE

Dated: September 9, 2011

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G:\CRBALL\2011\3992\Order Staying Arbitration.wpd

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