Build Group, Inc v. Indian Harbor Insurance Company

Filing 36

Order by Judge Vince Chhabria granting 21 Motion to Dismiss or Stay.(vclc3, COURT STAFF) (Filed on 8/28/2024)

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA

BUILD GROUP, INC,

Case No. 24-cv-02726-VC

Plaintiff,
ORDER STAYING CASE

v.

Re: Dkt. No. 21
INDIAN HARBOR INSURANCE
COMPANY,
Defendant.
Indian Harbor’s motion to dismiss or stay the case is granted. Indian Harbor and Build
Group have an arbitration agreement that incorporates the AAA’s Commercial Arbitration Rules
which delegate the question of arbitrability to the arbitrator. Build Group argues that the whole
arbitration agreement should not be enforced because it is unconscionable under California law.
Even if this Court wanted to, it can’t weigh in on Build Group’s arguments. Supreme
Court and Ninth Circuit precedent is clear that for a court to consider such an argument, a party
opposing arbitration needs to “specifically reference the delegation provision and make
arguments challenging it,” even if those arguments are the exact same as those it would make
against the whole arbitration agreement. Bielski v. Coinbase, Inc., 87 F.4th 1003, 1011 (9th Cir.
2023); see Rent-A-Center., West, Inc. v. Jackson, 561 U.S. 63, 72 (2010). Build Group fails to
reference the delegation provision or make any argument in its opposition about who should
decide arbitrability.
The case is therefore stayed pending resolution of Indian Harbor’s motion to compel in
the Southern District of New York. The parties must file a status report 14 days after that motion
is decided. If the case is sent to arbitration to decide arbitrability, the parties must file a further

status report 14 days after the arbitrator has decided whether the case is subject to arbitration.
IT IS SO ORDERED.
Dated: August 28, 2024
______________________________________
VINCE CHHABRIA
United States District Judge

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