JEFFREY T. MILLER, District Judge.
Defendants Charter Communications, Inc., Charter Communications Holding Company, LLC, Time Warner Cable Inc., and Time Warner Cable Information Services (California), LLC (collectively, "Defendants" or "Charter") move the court, pursuant to the Federal Arbitration Act ("FAA"), 9 U.S.C. § 1
Defendants operate one of the nation's largest cable companies. (Doc. No. 1-3 at 7, ¶ 11.) Plaintiff has subscribed to Defendants' television, internet, and voice services for approximately two years. (
The first page of the Agreement states, in capitalized text: "THIS AGREEMENT CONTAINS A BINDING `ARBITRATION CLAUSE,' WHICH SAYS THAT YOU AND [DEFENDANTS] AGREE TO RESOLVE CERTAIN DISPUTES THROUGH ARBITRATION . . . YOU HAVE THE RIGHT TO OPT OUT OF THESE PORTIONS OF THE AGREEMENT." (
In section 15, entitled "
Plaintiff did not opt out.
On November 9, 2016, Plaintiff filed a complaint in San Diego Superior Court alleging that Defendants unlawfully charge California customers a surcharge of $8.75 per customer per month. The complaint contains five causes of action: (1) breach of contract; (2) for declaratory and injunctive relief; (3) violation of California's unfair competition law, Cal. Bus. & Prof. Code § 17200
Though he did not style his complaint as a class action, Plaintiff asserts that he "brought the lawsuit to put an end to Charter's unlawful actions, not only for his benefit but also for the benefit of millions of California consumers whom Charter continues to target with this illegal and fraudulent scheme." (
The FAA applies to arbitration provisions found in written agreements that evidence a transaction involving commerce. 9 U.S.C. § 2. An agreement to arbitrate is "valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract."
The court must grant a motion to compel arbitration if a valid agreement to arbitrate exists and the dispute at issue falls within the scope of that agreement.
If the court refers the matter to arbitration, it must then stay the proceedings pending the outcome of that arbitration. 9 U.S.C. § 3.
According to Defendants, Plaintiff's complaint is a clever attempt to evade the Agreement's arbitration clause. Rather than seek money damages at this stage, Plaintiff has limited his demand to injunctive and declaratory relief, as well as attorneys' fees and costs. Defendants argue that, despite his cabined prayer for relief, four of Plaintiff's five claims are actually legal rather than equitable in nature, and once he successfully sidesteps arbitration, Plaintiff can and will seek to amend his complaint to "conform to proof to add prayers for monetary relief" on those claims. In response, Plaintiff contends that because he only seeks injunctive and similar relief "at this stage," (Doc. No. 13 at 17), his claims are properly before the court. He argues that he may draft his complaint however he sees fit.
Put simply, the parties dispute the arbitrability of Plaintiff's claims—specifically his first, third, fourth, and fifth causes of action.
The question, then, is "who has the primary power to decide arbitrability" of Plaintiff's claims?
Here, the Agreement states: "Only claims for money damages may be submitted to arbitration; claims for injunctive orders or similar relief must be brought in a court (
In sum, the court agrees with Defendants that if "Plaintiff is correct that his claims are not arbitrable, then the arbitrator will so decide." (Doc. No. 16 at 8.) But "Plaintiff's confidence in his own creative drafting does not permit him [or the court] to stand in the shoes of the arbitrator or ignore the parties' arbitration agreement." (
For the foregoing reasons, the court grants Defendants' motion to compel arbitration and stay the proceedings in this case. The arbitrator must determine whether Plaintiff's first, third, fourth, and fifth causes of action belong in court or arbitration. If the arbitrator determines that those claims belong in court, this case will proceed at that time. If the arbitrator determines that those claims belong in arbitration, the court will continue to stay the proceedings on Plaintiff's second cause of action until the arbitration concludes, because the result of that arbitration will "streamline subsequent proceedings before this court."