Cargill, Incorporated v. WDS, Inc. et al
Filing
174
ORDER denying 162 Motion to Stay. Signed by Chief Judge Frank D. Whitney on 12/13/17. (clc)
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION
DOCKET NO. 3:16-cv-00848-FDW-DSC
CARGILL. INC., and CARGILL MEAT )
SOLUTIONS, CORP.,
)
)
Plaintiffs,
)
)
vs.
)
)
WDS, INC., JENNIFER MAIER, and )
BRIAN EWERT,
)
)
Defendants.
)
ORDER
THIS MATTER is before the Court on Defendant Jennifer Maier’s Motion to Stay (Doc.
No. 162). Plaintiff has responded in opposition to the motion (Doc. No. 172), and Defendant Maier
has replied (Doc. No. 173). For the reasons that follow, the Court DENIES the motion to stay.
In a short order, this Court denied Defendant Maier’s “Motion to Dismiss, Transfer, or Stay
or Alternatively to Require More Definite Statement,” Doc. No. 62. (Doc. No. 133). In support
of her motion, Maier submitted a memorandum of law (Doc. No. 63), most of which was dedicated
to her argument the Complaint should be dismissed pursuant to Fed. R. Civ. P. 12(b)(6) for failure
to state a claim. See Doc. No. 63, pp. 7-18. Maier’s short, two-page argument requesting dismissal
or a stay pending arbitration began, “To the extent CMS is pursuing any claims based on purchase
orders that it issued to WDS or that otherwise arise out of or are related to contracts between CMS
and WDS, those claims are subject to mandatory forum selection clauses or arbitration provisions.”
(Doc. No. 63, p. 18 (emphasis added)). Nowhere in her two pages of argument does Maier identify
any specific arbitration provision applicable to the claims against her; and Maier wholly fails to
present any applicable law in support of her request to enforce the arbitration provision. Indeed,
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Maier’s own argument is speculative, at best, as recognized by her use of the language “to the
extent CMS is pursuing claims . . . .” (Doc. No. 63, pp. 18, 20). Moreover, Maier acknowledged
the limited impact, if any, of the arbitration provision in this instant litigation because she explicitly
stated in her brief, “This motion is not to be construed as consent for arbitrating disputes not
otherwise governed by mandatory arbitration provisions.” (Doc. No. 63, p. 20, n. 11). Plaintiffs
responded in opposition to Maier’s motion, arguing the venue and arbitration provisions relied on
by Maier were inapplicable here because Maier was not a party to the arbitration provision.
Plaintiffs also noted Maier had previously specifically admitted “[T]his answering defendant does
not contest that venue is proper in this judicial district.” (Doc. No. 76, p. 6 (citing Maier Answ. ¶
6)). For these reasons, the Court summarily denied Maier’s request to suddenly enforce an
arbitration provision that she had not adequately shown applicable to her either as a matter of fact
or of law. (Doc. No. 133). The Court’s ruling was without prejudice to Maier’s ability to reassert
her arguments at summary judgment in the event sufficient evidence obtained throughout the
discovery process showed the arbitration provision applied to any specific claim against her. Id.
Maier appealed this Court’s order to the Fourth Circuit and now seeks a stay pending
appeal. The Court DENIES her motion to stay for several reasons. First, as noted above and for
the reasons explained in Plaintiffs’ pleadings, Docs. Nos. 76, 172, Maier is not a party to the
arbitration agreement she references, and she has not sufficiently demonstrated she is entitled to
enforce the arbitration provision before this Court or on appeal. As the Supreme Court has
explained:
The principal purpose of the [Federal Arbitration Act (“FAA”)] is to ensure that
private arbitration agreements are enforced according to their terms. This purpose
is readily apparent from the FAA's text. [9 U.S.C. § 2.] Section 2 makes arbitration
agreements valid, irrevocable, and enforceable as written (subject, of course, to the
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saving clause); § 3 requires courts to stay litigation of arbitral claims pending
arbitration of those claims in accordance with the terms of the agreement; and § 4
requires courts to compel arbitration in accordance with the terms of the agreement”
upon the motion of either party to the agreement (assuming that the making of the
arbitration agreement or the failure . . . to perform the same is not at issue). In light
of these provisions, we have held that parties may agree to limit the issues subject
to arbitration, to arbitrate according to specific rules, and to limit with whom a party
will arbitrate its disputes.
AT&T Mobility LLC v. Concepcion, 563 U.S. 333, 344, 131 S. Ct. 1740, 1748–49, 179 L. Ed. 2d
742 (2011) (citations and quotations omitted). This Court recognizes that “a litigant who was not
a party to the relevant arbitration agreement may invoke § 3 if the relevant state contract law allows
him to enforce the agreement.” Arthur Andersen LLP v. Carlisle, 556 U.S. 624, 632, 129 S. Ct.
1896, 1903, 173 L. Ed. 2d 832 (2009). Maier, however, has failed to present facts or applicable
law sufficient to show she is entitled to enforce the arbitration provision in accordance with the
terms of the agreement. Maier simply relies on the fact the addition of Cargill Meat Solutions,
Corporation (“CMS”) as a plaintiff here invoked the mandatory arbitration provision contained in
an agreement between CMS and Defendant WDS, Inc– another defendant here, not represented
by Maier or her counsel. Notwithstanding this assertion, Maier has consistently failed to state with
any particularity the specific claims to be arbitrated or how the specific terms of the arbitration
agreement apply in this instance.
Second, it appears to this Court that Maier is strategically using the arbitration provision to
delay resolution of this case, despite her express acknowledgement that the purported arbitration
agreement possibly affects only a discrete portion of the claims here. Even presuming the
arbitration agreement applies to her, Maier’s briefs in support of her original motion and the instant
motion to stay fail to indicate with specificity any precise claim to be resolved by arbitration or
how arbitration would impact the remaining claims among her and the other parties to this case.
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Using language such as “to the extent CMS is pursuing claims” against WDS is speculative, at
best. It bears repeating Maier expressly concedes the arbitration provision does not entirely divest
this Court of jurisdiction, see Doc. No. 63, p. 20, n. 11, which further indicates a reason for this
Court to proceed with trial as scheduled and not delay a resolution on the merits of the claims at
issue here.
Considering these two reasons collectively, particularly the timing of this last minute
attempt to stay the impending trial, the Court finds Maier’s appeal is a frivolous attempt to avoid
a final disposition of the merits of this case. Levin v. Alms & Assocs., Inc., 634 F.3d 260, 266
(4th Cir. 2011) (“[A]n appeal on the issue of arbitrability automatically divests the district court
of jurisdiction over the underlying claims and requires a stay of the action, unless the district court
certifies the appeal as frivolous or forfeited.). Nothing in the record or governing law provides a
basis for Maier’s enforcement of the arbitration agreement on any claims against her, and this
Court is not inclined to stall this case on the eve of trial while Maier pursues her meritless appeal.
By certifying this appeal as frivolous, a stay is not required. Id. (noting that a stay pending appeal
is required absent a district court ruling that the appeal is frivolous).
IT IS THEREFORE ORDERED that Defendant Maier’s Motion to Stay (Doc. No. 172) is
DENIED.
IT IS SO ORDERED.
Signed: December 13, 2017
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