TracFone Wireless, Inc. v. Simply Wireless, Inc. et al

Filing 199

ORDER denying Motion to Enjoin Arbitration and Granting in Part Motion to Stay and Placing Case in Civil Suspense. Closing Case. Signed by Judge Federico A. Moreno on 11/21/2017. (lfs) NOTICE: If there are sealed documents in this case, they may be unsealed after 1 year or as directed by Court Order, unless they have been designated to be permanently sealed. See Local Rule 5.4 and Administrative Order 2014-69.

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UNI TED STATES DI STRI COURT FOR THE CT SOUTHERN DI STRI OF FLORI CT DA M im iDi son a vii C as N um be 1 24565- V - 0 % N 0 e r: 5C1 M TRACFONE W I RELESS, l C. N , Pl ntf , ai if V S. SI PLY W I M RELESS, I ,aVig ni NC. ri a c por ton,d/ / SHOPCELLDEALS, a or ai ba nd SI PLY W I M RELESS OF M I I l ,a AM , NC. Fl i c por ton, orda or a i Def nda s e nt . / ORDER DENYI M OTI TO ENJO I AR BI NG ON N TM TI AND GR ANTI I PART ON NG N M OTI TO STAY AND PLACI CASE I CI L SVSPENSE ON NG N VI Plitf i rq e tn t a ti Co r e j n a abi ain p o e dn wh r De e d n s an if s e u si g h t h s u t noi n r t to r c e ig ee fn a t r Si y W iels of M im i I ,a Si y W ie e s l . ofVigi a,al wih a tona mpl r es a , nc. nd mpl r l s , nc r ni ong t ddii l pa tes fld a m yrad of cai s Tr c ri , ie i lm . a Fone m ai ai t ta bir ton i i onsse wih t s nt ns ha r ta i s nc it nt t hi Co r' p iro d r a d c ud itree wih t i Co r' j rs cin. Th sCo r prvo l u ts ro r e s n o l n efr t h s u ts u idito i u t e iusy compe ld t ee of Tr c le hr a Fone' cl ms t a bir ton, whih Tr cFo chos not t pur ue i s ai o r ta i e a ne e o s n a bir ton. Alhough Tr c r ta i t a Fone di not fl a a bir ton demand o t e ca ms t d ie n r ta i n hos li , he De e nt a ie t m s l oft a bir f um by flng t i own cli t r . Tr Fone f nda s va ld he eves he r tal or ii her a ms he e ac cli st y a e no e il t do s , t rcai sa e notar ta e,a t r ol ton oft e am he r t ntted o o hei l m r bir bl nd he es u i hos cams c ul itre e wih t i Co r' j rs ito o e Trc n ' rmanig cams h r li o d nefr t hs u ts u idci n v r a Fo e s e i n li ee . Unde t a bir ton agr e e bet en Tr Fone a Si y W iels of M im i I . t r he r ta i e m nt we ac nd mpl r es a , nc, he a bir t ha t a hort t e m i t a bir ton de r taor s he ut iy o xa ne he r tai mand a de de on t s ope of t nd ci he c he pr e ng be or hi . Thi C o tw ilnots e i o t a bir t ' r e t e m i w he he t oce di f e m s ur l t p nt he r t a or s ol o xa ne t r he cams ae p o e l rie i ta p o e dn a d c ranl,t s Co r wiln t e j n te li r r p ry asd n h t r c e ig, n e ti y hi u t l o noi h a bir t fom f fli hi dute . Be aus t a bir t ha s ta fna he rng i lt Fe u r r taor r ' ilng s i s c e he r ta or s e i l a i n a e br a y ul 201 t s Cour de m s i a o i t t e er a br e s a t a l t pa tes t ar ta e. 8, hi t e t ppr pra e o nt i f t y o low he r i o bir t F lo n tec n l in oft eabi ain, h Co r wila j diaeTr c n ' camsi t s o lwig h o cuso h r t to t e u t l du c t a Fo e s li n hi r Case. T S CAUS c me b f r t Cou tu o Pli tf sM oin t En on te Ar i ain HI E a e oe he r p n anif t o j i h bt to o r ( E. 1 , fld on June 9.201 a Defndan ' Moton t St ( E. 1 fl on D. 34) ie 7 nd e ts i o ay D. 68) ied Septem ber 5.2017. THE COU RT ha cons de e t m otons r pons s or l a gum e , t peri nt s i r d he i , es e, a r nt he tne pori oft r or a beng ot wief l a s i t pr m ie ,i i tons he ec d, nd i her s uly dvied n he e s s t s ADJ UDGED t a temo int e j i teabtain i DENI a dt emo int sa h t h to o n on h r irto s ED n h to o ty t ltga i i GRANTED i pa t The Cour t m por rl sa t ca e pe ng r s uton of he ii ton s n r. te a iy t ys he s ndi e ol i t a bir ton i Fe u y 201 he r ta i n br ar 8. 1. Backaround On J nua y 26, 201 t s Cour c pele a bir ton of t e c a m s i Tr cFone' a r 7, hi t om l d r ta i hr e l i n a s Se cond A m e d Com pl i . Count 5- of Tr c nde a nt s 7 a Fone' Se ond A m e d Com pl i alege s c nde a nt l d fa i t i e nt of t Trnston Agee nt ( rud n he nduc me he a ii r me Count 5) br ch of t Trnston , ea he a ii Ag e me t( u t6 ,a d u j te c me t ( u t 7 . Co n s 5 7 na d alDe e d n s re n Co n ) n nus mi h n Co n ) u t - me l fn a t, Si y W iels ,I ,M obie Now,l (t mpl W iee s Vigi a e iis),a Si y mpl r e s nc. l nc, tsi y rls r ni ntte' nd mpl W iel s ,I ofM i m i Thes w e et o y c r e s nc. a . e r he nl ount i t c pl ntast Si pl W iel s l s n he om ai o m y r es , nc. ofM i m i who had a a bir i n a r e e w ih Tr Fo . The ot r D e enda s t Si pl a , n r tato g e m nt t ac ne he f nt , he m y W iel s V igi a e ii s di notha a a bir i a ee e . The Cour a r e s r ni ntte , d ve n r taton gr m nt t dopt d M agi ta e e sr t J udgeO ' li sr c me ton a yi t doc rne ofequia e esoppe la co peli Su lvan' e om nda i ppl ng he ti t bl t l nd m lng a bir to on t e t e c r tai n hes hr e ount be wee Tr c s t n a Fone,Si pl W iel s ofM i m i I a t nonm y r es a , nc. nd he s gna or e t t a bir ton ag ee e , t Si pl W iel s V igi a e ii s N eihe s de i t i s o he r t a i r m nt he m y r e s r ni ntte . t r i o jce t t i r c mme d to a d t e Co r c mp le abtain o t e Se o d Ame d d be td o h s e o n ain n h u t o eld r irto f h c n ne Com pl nts Count 5ai ' s 7. Tr c a Fone di not pur ue c d s ount 5- i a bir ton. I t d, Si pl W iel s of M i i s 7 n r tai ns ea m y r es nm , l . Si y W iees ,l ( r ni ,aong wih a to lpa tes W iees Pat r Norh, nc, mpl rl s nc. Vigi a) l t ddiina ri , r l s rne s t l . a W iels Pa t r So h,l ,fl a Ar ta i n Demand on M a c 1 201 The nc, nd r e s rne s ut nc. ied n bir to r h 4, 7. de nd r f r nce t 2011Agr me be we n Si y W ie e sofM im i l ,a Tr c ma e e e s he ee nt t e mpl r l s a , nc. nd a Fone, whi h c a ne t a bir ton pr s on. The a bir ton de and c a ne t f l i c ont i d he r t a i ovi i r tai m ont i d he olow ng cams ( )Br a ofConta t( l et Pa Rembure nt) Saes Re i Commisons li : 1 e ch rc Faiur o y i s me s, l , sdual si , a Crdis;( Ope Ac ount( iur t Pa Rembure s Sals a Cr t) ( Br c nd e t) 2) n c Fal e o y i s ment, e , nd edis; 3) ea h ofContac ( l e t t Augus 6,201 Pa ntf W iels Tee r t Reatd o he t 5 yme or r e s lphone wih Pur ha e s t c sd Aitme ;( Br c of Conta t( ae t J y 1 201 Voi Aitme;() Br c of ri ) 4) ea h r c Reltd o ul 0, 5 ded ri 5 ea h Conta t( QVC Show) ( Brac ofConta t( ri Blckout;( Br c ofConrc rc The ; 6) e h rc Aitme a ) 7) ea h ta t ( birton Pr sonl ( Frud a or Frud i t l e nt ( ae t Pur s of Ar tai ovii ; 8) a nd/ a n he nduc me Reltd o cha e Ait ) ( )F a d ( ltd t Vod d Ait ) ( 0 F a ( ltdt Pr d c Ca c lai n ; ri ; 9 r u Reae o ie ri ; 1 ) rud Reae o o u t n elto ) me me ( 1 Co v rin ( ie Ait ) ( 2 ri u I tree c ( Newo k ) ( 3 Un u t 1 ) n e so Vod d ri ; 1 )To to s ne fr n e TV t r s; 1 ) j s me Enrc nt(le tvet e e sconr tcli ) a ( 4)Contac l idi Fac.Asnot ihme atmai o xpr s tac ams; nd 1 r t mple n t ed, Tr Fo di not fl t a bir ton de nd and t r o e t s ope oft de a was not ac ne d ie he r ta i ma he ef r , he c he m nd lm ie t Tr c i t d o a Fone' c ai s t t t Cour ha c pe l d t a bir ton. Thi a bir to s l m ha he t d om le o r t a i s r tai n 1J geO ' lva noedt te tbl esoppelpr de anexc pton t t r et tt c l non-i t i a e ud Suli n t ha quia e t ovi s e i o he ul ha ypialy sgnaores r notboundt a a ee e .Heemphasze t tequiabl e t o n gr m nt i d ha t e soppelalowsanon- t t a a e e con ani a l pary o n gr em nt t i ng n abir ton clus t compe abirton t r aparyt ac r c r s alegai ofs tntaly i er pe nt r tai a e o l r ta i ç e whe t o onta t aies l tons ubsa i l nt de nde a c re m iconduc by t nonpa t a a herpa t t t co r c . Bec eCount 5- r e r t t e nd once td s t he ry nd not ry o he nta t' ' aus s 7 efred o hes Defndan sc lci y,a wer s tntaly i e de e t ole tvel nd e ubsa i l ntr pende ,her nt ecomm ende c peli abir in oft s d om lng r tato he e cl m sast a1 De e t ai o l f ndans. d ma dg v rs t Trc o e sMo int Enoi Ar i ai nu d rt eA1 W rt Ac, 8U. C. e n a e ie o a F n ' to o j n bt to n e h l is t 2 S. r j1 . 651 Trc o esmo ina g e teCo r s o l e j i te abtai n b c u e i ifi e o a F n ' to r u s h u t h ud n on h r i to e a s t n rng s n r t e Co r' j rs ito Th Dee d ns a s r t e a btao s o l d cd t s o e o t e h u ts u idcin. e fn a t s e t h r i t r h u d e i e he c p f h r a bir ton, not t Cour . l s a gui t Def nda s a s r t s Cour ' or r m e e y r ta i he t n o r ng, he e nt s e t hi ts de rl c ompel d a bir ton oft et e c s butdi no lm i t ra lt t fl t rown cli s le r ta i hos hr e ount , d t i t hei biiy o ie hei am i a bir ton. De e n r tai f ndant ar s ki t Cour sa t s ltga i bec us t ar taor ha s e ee ng he t t y hi ii ton a e he bir t s pr de a Fe ua y 201 tnalhe rng da e. ovi d br r 8i ai t II. A nal s vsi Thepe ngmotonsi vet fderlsauts t Al W rt Ac, U. C.j1 () ndi i nvol wo e a tt e ,he 1 is t28 S. 651a , a dteF d rlAr i ain Ad, U. C. 1 Tr c n s e st e j nt abtain u d rt e n h e ea bt to r 9 S. j . a Fo e e k o noi he r i t n e h r o Al W rt A c a Def nda s s e t s a t ltga i unde t Fe r Ar ta i A c . The 1 is t nd e nt e k o t y he ii ton r he de al bir ton t o to s b fr t e Co r ae t e j i t abtain sa te l iain,o alw b t t p in e o e h u t r o non he r irto , ty h i g to r lo oh he t a bir ton a ltga i t pr ee G i n t s r f de a polc i f vor of a bir ton,t s r ta i nd ii ton o oc d. ve he t ong e r l i y n a r t a i hi Co r d cie t e j i t e ab tain a d wilb ity sa t e c s p ndn te pate ' u t e l s o non h r irto , n l rel ty h a e e ig h ris n co pl ton oft ar t a i pr e ng i Fe ua y 201 m ei he bir t on oc edi n br r 8. A.Moto t Enoi Ar taton in o j n bir i TheAl W rt Ac,28U. C.j1 ( ,al f rlc t t çsueal wrt ne esay 1 is t S. 651a) lows edea ours o t s 1 is c sr i ora opraei ai oft i r pe tvej iditons ..' l alowsc t t i aeg dnotonl ppr it n d her es ci urs ci . . t l ours o f f uar ' s y o oi pr e ngs but pot nta f ur pr edi , a wel a alea is or r a ng ng oce di , e il ut e oce ngs s l s r dy-s ued de s nd j d me t. fie t M u.I s Co v Av n u a En ' ( Co s.Cop. 5 4 F.S p 2 1 9 , u g n s' b ry t n . . . e tr g g f n t r , 3 ' u p. d 2 0 1 24 ( D.Fl.2008 ( i Kly v Unie He t ou I . 376 F.d 1 3 S. a ) quotng a . td alhgr p, nc, 3 092,11 1 ( 1h 09- 0 1 t Ci. 0 4 An ij n to u e t eA1 W rt Ac d fesfo ata iina ij n to be a s r 2 0 $. n u cin nd r h l is t ifr r m rdto l n u cin c u e i i s smpy p itt s meo on p o e dn , rs mep s o d ro j d me t t eitg i t ç t i l on o o ng ig r c e ig o o a t r e r u g n , h ne rt mu y 4 of w hi h i be ng t ea e d by s e c s i hr t ne om one e s ' a ton or be vi .' Kl 376 F. a 11 l e s ci ha or ' ay, 3d t 00. Noa l Splo e d n si oh rc u t t a iv l tes mef csa ar a y is e j d me t tby,i r c e i g n t e o rs h t n ove h a a t s le d su d u g n s g a d o d r ,o t t c u d rs l i t is a e o a i c nsse tj dg n ,tr ae t e n r e s r ha o l e ut n he su nc f n n o itn u me t h e tn h j rs ito o t edititc u t n u ht warn a ij ncin'1 .a 1 0 . Th Al W rt Ac u idcin f h src o r e o g o ra t n nu to . d t 1 4 e 1 i t ' s i ç r i uals ur of a ho iy t is wrt t t a e notot r s cove ed by t saut . s $ esd a o ce ut rt o sue is ha r he wie r he t t e W he e asa ut s c fc l a e s st pa tc a i s a ha , i i t ta hor t and nott r tt e pe ii aly ddr s e he riulr s ue t nd t s ha ut iy, he A l W rt Ad ,t ti c r lng. 1 . at 1100. l is ha s ontoli ' d ' Dee t ur t sCour t enoi t abir tonbe us t Si y W iees Vigi a fndans ge hi to j n he r tai ca e he mpl r l s r ni e tte a enotpari st t a bir ton agr e e ,and t s Co tonl c pele a bir ton of n iis r te o he r tai e m nt hi ur y om ld r ta i t e c s bewe Tr c hr e ount t en a Fone a t Def nda s I s r i howe ,t s Cour di not nd he e nt . n o ulng, ver hi t d lmi t s ope oft a bir ton t Tr c i t he c he r tai o a Fone' t e cli s a ce t i y,t Co tsor rdi s hr e am , nd ranl he ur' de d no lmi t De e nt fom flng t i own c am si a bir ton. Thepe ii ne si abir to t i t ht f nda s r ii he r l i n r ta i tto r n r tai n brng dif r ntc us sofa ton,f dif r thar ,and i veaddii pari t ta enoti i fe e a e c i or fe en ms nvol tonal tes ha r n t s c e. W ih t s ba r p,t Cour c n onl deer i t tTr cFone i r ue tng t s hi as t hi ckd o he t a y t m ne ha a s eq si hi Co r e j i teabtao fo d cdn wh a dwh ti rg tul wi i hss o e u t n on h r irtr r m e i ig o n a s ih f ly t n i c p . h Thepari si t sc e ha a e t tt a bir t s d de de t s ope oft c e te n hi as ve gr ed ha he r taor houl ci he c he as be or hi . The a bir ton a ee nt c ai a c a e i c tng t t t Rul s of t f e m r ta i gr me ont ned l us ndi a i ha he e he Ame ia Ar tai Asocai (' ' goven t abirton pr e ng. AAA Rul 8a) rc n bir ton s iton ' AAA' ) r he r tai oc edi e ( E r v d s ta $th abtao s alh v te po rt r l o hi o h ro j rs ito ' o ie h t gl e r irtr h l a e h we o ue n s r e wn u id cin, p i ldn a y o j cins wih r s e tt te e itn e s o e o v l iy o t e a btain ncu ig n be to t e p c o h x se c , c p r ai t f h r i to d r a e m e . Te mi x I e n.Co. LP v.Pal r Ranc Lt Parne s p,43 F. 1 gr e nt' r ni ntr ' , me h d. t r hl 2 3d 327,1331 ( 1h Ci. 2005) ( i Am.Ar tai As ' Comme cal Ar tai Rul ) J# Go 1t r quotng birton sn, ri bir ton es; Wie e s l .v AT& T M obii I LLC. No.1120930- V- ORENO,2011 W L 2607099, *2 r l s nc . lt L y , Cl M ( D.Fl J 30,201 ) By i or ai t AAA Rul i o t ra e me , t partes S. a. une 1. nc portng he es nt hei gre nt he i ag ee t a bir t s d de de whehert a bir ton a ee r d he r taor houl ci t he r ta i gr mente om pas e t c a m s nc s s he l i be o ehi Te mi x, 4 2 F.da 1 3 . Rah rta e j nt eabtai n t eCo r wilalw f r m. r ni 3 3 t 3 2 te h n noi h r irto , h u t l lo t a bir t rt de i on t s pe oft m a trbe or hi . Thi Cour wilnotse i o t he r ta o o cde he co he te f e m s t l tp nt he a bir t ' s r ta ors hoesby e uatng t a bir ton dema t de e newhe he i wa pr ry fl d val i he r ta i nd o t nni t r t s ope l ie by t pari a wha ca ms c ul pos i y co lc wih t s ltga i . Ce ti y, an he tes nd t li o d sbl nfit t hi ii ton ra nl ij n to i n ts p re i t i c n e t I i e d, Tr Fone i rghtt tt cl m s i t nu cin s o u po td n hs o tx . f nd e ac s i ha he ai n he a bir ton de a ar no ar tabl , t s Cour r t ns t aut iy unde t Fede a r ta i m nd e t bir e hi t eai he hort r he rl Ar ta i Ac t vac t a a r whe e t a bir t exc eds hi aut iy. bir ton t o a e n wa d r he r taor e s hort 9 U. C.j S. 1 a( ;Kly,376F. a 111 ($ti prciey be aus abirtng nonabir ecai i s 0()4) a 3d t 3 $ s e s l c e r tai 1 r tabl l ms s uch a poi ls ende vor t i doe nott e t n or unde ne et r t dititc r ' exitng nte s a hat t s hr a e nni ihe he src ou ts si o d ro i j rs it n o e tep n i c s s'. r e r t u idci v r h e dng a e .) s o ' Trc o eas ag e a ij n to i p o rt s c r t Co r' j rs ito b c u eof a F n lo r u s n n u cin s r pe o e u e he u ts u id cin e a s t hypot tca rs of i onssentr i . At or l a gume , Tr Fone onl i ii d a he he i l ik nc it ulngs a r nt ac y dentfe hypot tca i onsse y se i fom t r ol i oft is ofbt i a unbundl he i l nc itnc t mm ng r he es uton he s ue mdlng nd i ng cel a phoneswih ari e Addr s ig t s lul r t itm . e sn he nme t re pr s nt i Tr cFone' moton, t heo is e e ed n a s i he Elve h Cicui not d t ta bir ton pr e ngsgene a l do notgi rs t a c e t t e nt r t e ha r tai oc edi r ly ve ie o onc m ha te Co r' j rs ito i tr ae e b c u e o c ltr le tp l i onsit r i ,or h u ts u idcin s h e tn d e a s f ol ea so pe, nc sent ulngs a smia r sj dc t c n e s Kly 3 6 F.d a 1 1 - 1 lf e smpl fc ta l iain i lr e u iaa o c m . a , 7 3 t 1 0 1 . d' i e a t h t i g to -h t i vi t s m e is s i occ rng co ure l i a he f u does not s t i nty nvol ng he a s ue s uri nc r nty n not r or m ufk e l tz ae t ec u tsj rs ito a t warn a ij n to u d rt Al W rt Ac 'Al ssi v. h e tn h o r' u idcin s o ra t n n u ci n n e he l is t' ha d . Ba ko n fAm.N A. No 1 - 0 8 - V, 01 W L 25 1 5 ,a * ( D.Fl J 9,201 . The , , . 4 2 4 4 C1 2 4 835 t 1 S a. une 4) . A1 W rt Ac d e n ta t o iet sfd rlc u t oe j i t eabtain a e te ta r iay 1 is t o s o u h rz hi e ea o r t no n h r irto bsn xr o dn r cr um sa e ,a t s Co tdoe no gr e t tt hy he i a rs of i ic tnc s nd hi ur s ta e ha he pot tc l ik nconssintr lngs ij u i e ! : w a r nt S h a ac i t sca e. r a s uc n t n hi s ! #. M oto t St y Lii i i n o a tgaton The Fe r A r t a i ' ,9 U. C.j3, ovi t ti t eae is i i ve i a de al bir ton Act S. pr des ha f her r sues nkol d n si ta aesbett abtain t e Co r s alsa tej dca a to u tlte1r tain ut h t r u jc o rirto , h u t h l ty h u iil cin n i h I bi to a r ! prce di i hadi a or nc wiht tr oft a e me .1 Defnda sha ctd t s o e ng s n cc da e t he ems he gre nt d. e nt te ie hi I pr vi i i s o s on n uppor of t i r que t t s a t ltga i t he r e s o t y he ii ton. B e a e t s Cour I evi l c us hi t pr ous y I i c mp le c rancamst abtaina d gv nt eabi ao h sstafn lh a igi F b u r o eld e ti li o r irto n ie h r t t r a e i a e rn n e r ay r ! - 201 t sCour fndsi a opraeunde 9U. C.j 3t tmporrl sa t s tpe ngt 8,hi t i t ppr it r S. o e aiy ty he ui lndi he ; tna a bir ton he rng. Acc di y,i i i l r tai ai or ngl t s ADJUDGED t t ha : ! I I Th Clr o t sCo r s almakt i c u ea co e f rsaitc l u!p s sa d e ek f hi u t h l r h s a s s l s d o ttsia p t o e n : plcet m at ri ac vi s pe efl a he te n i l us ns ie. 1. l Th Co r s al eanj rs ito a dt c s s alb r so e t t ea t e u t h lrti u id ci n n he a e h l e e tr d o h ci ve I doc tupo moton ofapa t i cic sa sc nges t tt sac i! ma ke n i ry f r um t nce ha o ha hi tqn y I pr e t fnaldiposton. oce d o i s ii 11. 1 Thso d rs al o p eu ieterg t o t ep rist ti l iain.j i r e h l n t rj dc h ih s f h a t o h s i g to e t I AJ. Plitf S anif HALL n tf t Co r b M a c 1 2 8, ftec re tsausof h o iy he u t y r h . 01 o h u rn ti t e ! a bir ton pr e ng. r ta i oce di : I DONE AND ORDERED i Cha be s a M im i Fl i t s n m r t a , orda, hi ! mber ofl ove N A , , Copi f ni he t es ur s d o: Couns lofRe d e cor FED E OA NO UN I ---' TED A TES D I STRICT JUD G E .. . ,.' .' ' 7

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