Schroeder et al v. AT&T Mobility LLC

Filing 9

ORDER re 4 Staying Arbitration. Signed by Judge Charles R. Breyer on 9/12/2011. (crblc2, COURT STAFF) (Filed on 9/12/2011)

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1 2 3 4 5 6 7 8 IN THE UNITED STATES DISTRICT COURT 9 FOR THE NORTHERN DISTRICT OF CALIFORNIA United States District Court For the Northern District of California 10 11 DEBORAH L. SCHROEDER, et al., 12 Plaintiffs, 13 No. C 11-04412 CRB ORDER STAYING ARBITRATION v. 14 AT&T MOBILITY LLC, 15 Defendant. / 16 17 AT&T Mobility LLC (“AT&T”), filed a Complaint and request for preliminary 18 injunction in Case No. 11-3992 on August 12, 2011, requesting that this Court enjoin 19 pending arbitrations filed against AT&T. On September 6, 2011, Deborah Schroeder and 20 Astrid Mendoza filed a Petition to Enforce Arbitration Agreements in this case. On 21 September 8, 2011, the Court related this case to Case No. 11-3992. Dkt. 6. On September 22 8, 2011, Plaintiffs in this case filed an ex parte application for an Order to Show Cause 23 regarding the payment of arbitration fees. Dkt. 4. On September 9, 2011, Defendants moved 24 to Compel Arbitration in Case No. 11-3992. 25 The parties’ central disagreement in both actions is whether the arbitration demands 26 brought by Schroeder and Mendoza, as well as Laura Barrett and Leslie Bernardi (hereinafter 27 “customers”) exceed the scope of the arbitration agreements each customer signed with 28 AT&T. The customers’ arbitration demands challenge the proposed merger between AT&T and T-Mobile under the Clayton Act, 15 U.S.C. §§ 18 and 26. Whether the claims in the 1 arbitration exceed the scope of the arbitration agreements will be the focus of the Court’s 2 hearing between the parties already scheduled for Friday, October 14, 2011. 3 The Court hereby stays any and all pending arbitrations between AT&T Mobility and the customers, which also bars dismissal of such arbitrations, pending further order of this 5 Court. The Court finds such relief warranted by the standard of Alliance for the Wild 6 Rockies v. Cottrell, 632 F.3d 1127, 1131 (9th Cir. 2011). In particular, both the dismissal 7 and prosecution of the arbitrations at issue, prior to a determination of the scope of the 8 arbitration agreements by this Court, will cause both parties irreparable harm. Moreover, 9 temporary maintenance of the status quo benefits the public interest given the broad national 10 United States District Court For the Northern District of California 4 impact of the proposed merger between AT&T Mobility and T-Mobile, which the customers 11 are challenging in their demands for arbitration. 12 IT IS SO ORDERED. 13 14 15 CHARLES R. BREYER UNITED STATES DISTRICT JUDGE Dated: September 12, 2011 16 17 18 19 20 21 22 23 24 25 26 27 28 G:\CRBALL\2011\4412\Order Staying Arbitration.frm 2

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