Oved & Oved Victorious in Defending Moving Company Client; Court Sends Class Action Plaintiffs Packing
The firm was successful in obtaining yet another Court victory on behalf of its nationwide moving company client, Roadway Moving. This time, one of Roadway’s former moving truck drivers, filed a class action on behalf of Defendant’s current and former employees. On behalf of Roadway, the firm moved to compel arbitration of the action by presenting an Arbitration Agreement Plaintiff signed during the course of his employment that was expressly governed by the Federal Arbitration Act (“FAA”). While Plaintiff argued that FAA did not apply to “contracts of employment” for interstate transit workers like Plaintiff, and that the filing of a class action is protected activity under New York Labor and thus needed to proceed in Court, the firm countered by noting that a standalone arbitration agreement is not a “contract for employment” within the meaning of the FAA just because it was executed in the employment context, and that even if the Arbitration Agreement was governed by the FAA and Plaintiff fell within the FAA’s exclusions for interstate employees, Defendant could still compel arbitration under the New York law.
In the attached 13-page opinion, the Court adopted the firm’s arguments, holding that that even though the Arbitration Agreement was governed by the FAA, the FAA is still only “one of two separate independent mechanisms” available to enforce the Arbitration Agreement, and that the Arbitration Agreement may still be compelled under New York law. The Court also adopted the firm’s argument that because the Arbitration agreement explicitly references the Rules of the AAA, any of Plaintiff’s challenges related to the scope or validity of the arbitration agreement, were expressly delegated to an arbitrator.
Oved & Oved attorneys, Darren Oved, Andrew Urgenson and Jennifer Pierce successfully represented Roadway Moving in this matter.