GARLAND E. BURRELL, Jr., Senior District Judge.
Defendant Engineered Control Systems, Inc. ("ECS") moves to "[c]ompel [a]rbitration of the disputes between the parties to this litigation" under, inter alia, the Federal Arbitration Act ("FAA"), and to stay the action pending arbitration. (ECS's Mem. of P.&A. in Supp. of Mot. ("Mot.") 1:21-27.) Defendant Travelers Casualty and Surety Company of America joins the motion. Plaintiff opposes the motion, arguing ECS has waived its right to arbitration. For the following reasons, the motion to compel arbitration and stay the action pending arbitration will be granted.
Plaintiff and ECS entered into a contract to modify the Butte County Jail's security system (the "Contract"), which contains the following arbitration clause: "All questions arising under this article shall be decided by the County, subject to arbitration, notwithstanding final payment." (Contract, Attachment III, section 13(aa), attached as Ex. A to Michael Stratton's Aff. filed in Supp. of ECS's Opp'n, ECF No. 27-2.)
Plaintiff alleges three claims against ECS (breach of contract, breach of implied warranty, and negligence), which concern ECS's performance under the contract. (Compl., ECF No. 1.)
ECS argues the FAA compels arbitration in this matter because the Contract "contains a written arbitration clause [and] plainly involved and/or affected interstate commerce." (Mot. 3:17-19, 4:2-8, 6:20-21.) ECS further argues the arbitration clause is enforceable and encompasses each of Plaintiff's claims against it since all of the claims "are rooted in its contractual relationship with ECS[.]"
Plaintiff rejoins, "[ECS] has waived its right to arbitrate" by knowing of its right to compel arbitration, "making two separate formal inspection demands[,]" "receiv[ing] the benefits of" Plaintiff's discovery, and waiting approximately fifteen months to move to compel arbitration. (Pl.'s Opp'n ("Opp'n") 1:27-28, 2:17, 2:27-3:8, 5:9-12.) Plaintiff further argues that it would be prejudiced if the motion is granted because "[Plaintiff] will have limited discovery rights" in arbitration, and Plaintiff spent numerous hours and dollars in completing discovery and other tasks that would not have been necessary had ECS "promptly requested arbitration."
ECS replies that Plaintiff "has failed to meet its heavy burden to show that a waiver of [the mandatory arbitration provision] has occurred." (ECS's Reply 2:3-5.) ECS argues that it "has acted consistent with its right to arbitration . . . [by] tak[ing] a defensive posture to date in response to [Plaintiff's] conscious decision to disregard the parties' express arbitration provision."
Plaintiff does not dispute ECS's contention that its claims against ECS are subject to mandatory arbitration under the FAA. Therefore, the issue to be decided is whether ECS has waived its right to demand arbitration. "The right to arbitration, like any other contract right, can be waived. However, [the Ninth Circuit] ha[s] emphasized that `waiver of the right to arbitration is disfavored because it is a contractual right, and thus any party arguing waiver of arbitration bears a heavy burden of proof.'"
"Even assuming [ECS's] actions were somehow inconsistent with [its] attempt to seek arbitration, [P]laintiff has shown no prejudice."
Further, Plaintiff has not provided any authority to support its conclusory argument that "[i]f the matter is sent to arbitration, [it] will have limited discovery rights." (Opp'n 4:2-3.) Therefore, Plaintiff has not met its "heavy burden" of showing that ECS waived its right to compel arbitration, and ECS's motion to compel arbitration is GRANTED. This action is stayed under 9 U.S.C. § 3 pending arbitration of Plaintiff's claims against ECS.
A status conference is scheduled to commence at 9:00 a.m. on January 14, 2013. A joint status report shall be filed fourteen (14) days prior to the status conference, in which the parties shall explain the status of the arbitration proceeding if arbitration is ongoing; however, if arbitration is completed by the status report due date, information concerning how the case should be scheduled shall be included in the status report. Further, if arbitration is completed before the status report is due, a notice of completion shall be filed immediately upon determination that arbitration has been completed.