Filed: Jan. 11, 2018
Latest Update: Mar. 03, 2020
Summary: NOT PRECEDENTIAL UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _ No. 17-1991 _ SARA ANN EDMONDSON, Appellant v. LILLISTON FORD INC; JANES AND JOHN DOES 1-10, individually and as owners, officers, directors, founders, managers, agents, servants, employees, representatives and/or independent contractors of LILLISTON FORD, INC.; XYZ CORPORATIONS 1-10 _ On Appeal from the United States District Court for the District of New Jersey (D.C. Civil Action No. 1-13-cv-07704) District Judge: Honorabl
Summary: NOT PRECEDENTIAL UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _ No. 17-1991 _ SARA ANN EDMONDSON, Appellant v. LILLISTON FORD INC; JANES AND JOHN DOES 1-10, individually and as owners, officers, directors, founders, managers, agents, servants, employees, representatives and/or independent contractors of LILLISTON FORD, INC.; XYZ CORPORATIONS 1-10 _ On Appeal from the United States District Court for the District of New Jersey (D.C. Civil Action No. 1-13-cv-07704) District Judge: Honorable..
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NOT PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
___________
No. 17-1991
___________
SARA ANN EDMONDSON,
Appellant
v.
LILLISTON FORD INC;
JANES AND JOHN DOES 1-10, individually and as owners, officers,
directors, founders, managers, agents, servants, employees, representatives
and/or independent contractors of LILLISTON FORD, INC.;
XYZ CORPORATIONS 1-10
____________________________________
On Appeal from the United States District Court
for the District of New Jersey
(D.C. Civil Action No. 1-13-cv-07704)
District Judge: Honorable Renee M. Bumb
____________________________________
Submitted Pursuant to Third Circuit LAR 34.1(a)
December 22, 2017
Before: SHWARTZ, KRAUSE, and RENDELL, Circuit Judges
(Opinion filed: January 11, 2018)
___________
OPINION *
___________
PER CURIAM
*
This disposition is not an opinion of the full Court and pursuant to I.O.P. 5.7 does not
constitute binding precedent.
Sara Ann Edmondson appeals from the District Court’s order denying her motion
to vacate an arbitration award entered against her in favor of Lilliston Ford, Inc.
(“Lilliston”), and granting Lilliston’s cross-motion to confirm the arbitration award and
its application for attorneys’ fees and costs. For the reasons that follow, we shall affirm
the District Court’s order.
In 2013, Edmondson filed a complaint in the District Court raising claims under
the Federal Odometer Act and the Magnuson-Moss Warranty Act, as well as state law
claims for, inter alia, fraud. The claims stem from alleged wrongs related to her purchase
of a used car from Lilliston. In short, pursuant to a Retail Installment Agreement (“the
Agreement”), Edmondson agreed to trade a 2004 Lincoln LS for an $800 credit towards
the purchase of a used Ford Focus. Shortly after the purchase, Edmondson experienced
problems with the Ford Focus. Lilliston refused her attempt to return the car and
demanded title to the Lincoln or reimbursement for the $800 credit she received for the
purchase. After protracted proceedings, including a previous appeal to this Court 1, the
District Court granted Edmondson’s motion to compel arbitration under the Federal
Arbitration Act (FAA).
The parties could not agree on the selection of an arbitrator, or on which party was
responsible for the costs associated with arbitration. Edmondson filed a demand for
arbitration with the American Arbitration Association (AAA). The AAA noted that the
arbitration clause had not been registered through its Consumer Clause Registry; it
1
See Edmondson v. Lilliston Ford, Inc., 593 F. App’x 108 (3d Cir. 2014) (vacating an
order dismissing a motion to compel arbitration).
2
directed Lilliston to register the arbitration clause, and to pay the associated registry and
filing fees. Lilliston refused to mediate before the AAA, stating that it had “severed ties”
with it “years ago”; consequently, the AAA declined to administer the case. Edmondson
then filed a motion for summary judgment, arguing that the arbitration clause was void
because Lilliston had fraudulently represented its intent to arbitrate with the AAA, as
evidenced by its failure to register the arbitration clause with the AAA, and its severance
of ties with the AAA. After a hearing on the motion, the District Court entered an order
directing the parties to show cause why the agreement did not “require the parties to
submit their disputes to arbitration conducted by the AAA or by an individual or
organization authorized by the AAA and the Defendants to pay the costs associated with
the arbitration as set forth in the Consumer Arbitration Rules.” Dist. Court’s March 3,
2016 Op. at 5. Lilliston filed a notice of intent to consent to arbitration with the AAA,
and the arbitration proceedings were held in December 2016.
The AAA arbitrator issued an award dismissing all of Edmondson’s claims and
ordering her to execute documents vesting clear title to the Lincoln to Lilliston within 14
days, or to refund the $800 and remove the Lincoln from Lilliston’s property. In addition
to awarding attorneys’ fees and costs, the award also indicated that Lilliston “shall be
entitled to apply for an Order in a Court of competent jurisdiction granting clear title to
the 2004 Lincoln.” Appellee’s Suppl. App. at 133a.
Edmondson moved to vacate the arbitration award, and Lilliston moved to confirm
it. The District Court entered judgment on April 26, 2017, confirming the arbitration
3
award, awarding fees and costs totaling $10,709.39, and denying the motion to vacate.
This appeal ensued.
We have jurisdiction pursuant to 28 U.S.C. § 1291 and 9 U.S.C. § 16. 2 We review
the District Court’s legal conclusions de novo and any factual findings for clear error.
See Opalinski v. Robert Half Int’l Inc.,
761 F.3d 326, 330 (3d Cir. 2014); Freeman v.
Pittsburgh Glass Works, LLC,
709 F.3d 240, 251 (3d Cir. 2013). Our review of the
underlying arbitration award is “extremely deferential.” Dluhos v. Strasberg,
321 F.3d
365, 372 (3d Cir. 2003). Under the FAA, a court may vacate an arbitration award only if
"(1) it ‘was procured by corruption, fraud, or undue means;’ (2) the arbitrator was
‘partial[] or corrupt[];’ (3) the arbitrator unjustifiably refused to postpone the hearing,
refused to consider ‘evidence pertinent and material to the controversy,’ or engaged in
any other ‘misbehavior’ that prejudiced the rights of a party; or (4) the arbitrator
‘exceeded [his or her] powers, or so imperfectly executed them that a mutual, final, and
definite award upon the subject matter submitted was not made.’" Roadway Package
Sys., Inc. v. Kayser,
257 F.3d 287, 291 n.2 (3d Cir. 2001) (quoting 9 U.S.C. § 10),
2
To the extent the Court’s order was not final when entered, it became final at the time
that the 30-day period for filing the motion for a clear title expired without any action by
Lilliston. See e.g. Batoff v. State Farm Ins. Co.,
977 F.2d 848, 851 n.5 (3d Cir. 1992)
(order becomes final where plaintiff given 30 days to amend complaint, but instead files
notice of appeal within that time). In any event, the arbitration award was confirmed in
its entirety, and was thus immediately appealable. See Virgin Islands Hous. Auth. v.
Coastal Gen. Const. Servs. Corp.,
27 F.3d 911, 913 (3d Cir. 1994); see also 19 J. Moore,
et al., Moore’s Manual: Federal Practice and Procedure, § 203.12[4][a] (2016) (“An
order confirming an arbitration award or denying the confirmation of an award in its
entirety is immediately appealable as of right as a final decision.”).
4
abrogated on other grounds by Hall St. Assoc., L.L.C. v. Mattel, Inc.,
552 U.S. 576
(2008).
On appeal, as she did below, Edmondson appears to argue that the arbitration
award should be vacated on the first two of these bases. She has wholly failed to
establish her contention that Lilliston and the arbitrator are part of a “criminal enterprise”
or that they “were complicit in the intentional misrepresentations and concealments of
material facts on the lease and sales contracts.” Appellant’s Br. at “6.” 3 There is simply
no evidence of fraud or corruption in the record as it pertains to the arbitration award.
The mainstay of Edmondson’s appeal is her argument that the arbitration clause
was invalid, and, therefore, that the contract was void ab initio. The Agreement’s
arbitration provision provides that it “shall be conducted in accordance” with the
Consumer Arbitration Rules (“the Rules”) of the AAA, which, in turn, require the
arbitration to be administered by the AAA. See Am. Arbitration Ass'n, Consumer
Arbitration Rules R-1 (Sept. 1, 2014), http://www.adr.org/consumer. Edmondson argues
that the arbitration clause is void because of Lilliston’s failure to register it with the
AAA, and because Lilliston stated that it had “severed its ties” with the AAA. In
rejecting this argument, the District Court concluded that the fact that Lilliston did not
have a relationship with the AAA at the time of the Agreement “is neither here nor
there.” Dist. Court’s April 26, 2017 Op. at 8 n.6. We agree. The AAA administers
arbitrations where there is no AAA arbitration clause between the parties. See R-3 of the
3
Appellant created her own pagination for her brief; these references are on the page
numbered “6,” which is actually page 10.
5
Rules. Moreover, it was not until September 1, 2014, after the Agreement was executed
and, indeed, after the complaint was filed, that the AAA required businesses to register an
arbitration clause through the AAA’s Consumer Clause Registry. See R-12. In any
event, the Rules make clear that failure to register prior to the filing of a demand for
arbitration is of no moment; rather, the AAA will administer the arbitration once the
business pays the review and registry fees.
Id. That is what occurred here: Lilliston paid
the requisite fees and the AAA agreed to administer the arbitration, just as Edmondson
had repeatedly urged was required by the Agreement. 4 Accordingly, because there was
no basis for invalidating the arbitration clause, and there were no other disputes regarding
its scope, the District Court properly “direct[ed] the parties to proceed to arbitration in
accordance with the terms of the agreement.” 9 U.S.C. § 4.
Finally, the arbitrator determined that Lilliston was entitled to “reasonable
attorney’s fees and costs” incurred in connection with the enforcement of the arbitration
award. 5 Lilliston submitted to the District Court a Certification of fees and costs, which
4
Edmondson makes much of the fact that, in a letter declining to administer the case after
the initial demand for arbitration, the AAA asked Lilliston to remove reference to the
AAA from the consumer arbitration clause that appeared in Lilliston’s lease and sales
agreements, and advised that it may decline to administer future consumer arbitrations
involving Lilliston. This was merely in response to Lilliston’s failure to pay the filing
and registry fees. Once the fees were paid, the AAA agreed to administer the matter, as
permitted by the Rules.
5
“[A]rbitrators derive their powers from the parties’ agreement.” White Springs Agric.
Chems., Inc. v. Glawson Investments Corp.,
660 F.3d 1277, 1281 (11th Cir. 2011). The
Agreement provided that the parties shall bear their own fees and costs, “except when
awarded by the arbitrator under applicable law.” Appellee’s Suppl. App. at 61a.
Accordingly, the District Court had no basis to disturb the arbitration award to the extent
it granted fees and costs. White
Springs, 660 F.3d at 1281 (explaining that courts do not
6
included a detailed breakdown of the hours billed in connection with its efforts to enforce
the arbitration award. Edmondson failed to raise any specific objections to the
Certification. United States v. Eleven Vehicles, Their Equip. & Accessories,
200 F.3d
203, 211-12 (3d Cir. 2000) (noting that a district court may not award less in fees than
requested unless the opposing party makes specific objections to the fee request). The
District Court nevertheless reviewed the Certification, and explained its basis for
concluding that the bill was both reasonable and adequately supported. We find no abuse
of discretion in its determination. See In re Cendant Corp. PRIDES Litig.,
243 F.3d 722,
727 (3d Cir. 2001).
Based on the foregoing, we will affirm the District Court’s order. 6
review the legal merits of the arbitrator’s award where there is a basis for it in the
agreement).
6
Edmondson’s motion for a stay is denied.
7