Filed: Dec. 17, 2019
Latest Update: Mar. 03, 2020
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS DEC 17 2019 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT NED FLORES, individually and on behalf No. 18-55959 of all others similarly situated, D.C. No. Plaintiff-Appellee, 2:15-cv-00076-AB-PLA v. MEMORANDUM* ADIR INTERNATIONAL, LLC, Defendant-Appellant. Appeal from the United States District Court for the Central District of California Andre Birotte, Jr., District Judge, Presiding Submitted December 10, 2019** Pasadena
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS DEC 17 2019 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT NED FLORES, individually and on behalf No. 18-55959 of all others similarly situated, D.C. No. Plaintiff-Appellee, 2:15-cv-00076-AB-PLA v. MEMORANDUM* ADIR INTERNATIONAL, LLC, Defendant-Appellant. Appeal from the United States District Court for the Central District of California Andre Birotte, Jr., District Judge, Presiding Submitted December 10, 2019** Pasadena,..
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NOT FOR PUBLICATION FILED
UNITED STATES COURT OF APPEALS DEC 17 2019
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
NED FLORES, individually and on behalf No. 18-55959
of all others similarly situated,
D.C. No.
Plaintiff-Appellee, 2:15-cv-00076-AB-PLA
v.
MEMORANDUM*
ADIR INTERNATIONAL, LLC,
Defendant-Appellant.
Appeal from the United States District Court
for the Central District of California
Andre Birotte, Jr., District Judge, Presiding
Submitted December 10, 2019**
Pasadena, California
Before: O’SCANNLAIN, PAEZ, and OWENS, Circuit Judges.
Defendant-Appellant Adir International, LLC (Adir) appeals the district
court’s denial of its motion to compel arbitration in an action brought by Plaintiff-
Appellee Ned Flores (Flores). “We review de novo the district court’s denial of a
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
**
The panel unanimously concludes this case is suitable for decision
without oral argument. See Fed. R. App. P. 34(a)(2).
motion to compel arbitration, including its determination that a party has waived
the right to arbitrate.” Newirth, by & through Newirth v. Aegis Senior Cmtys.,
LLC,
931 F.3d 935, 939 (9th Cir. 2019). As the parties are familiar with the facts,
we do not recount them here. We have jurisdiction pursuant to 28 U.S.C. § 1291.
We affirm.
As a preliminary matter, Adir argues that the district court failed to
adequately consider that the “heavy burden” of establishing waiver of the right to
compel arbitration lies with Flores. However, a party may overcome this “heavy
burden” by demonstrating: (1) knowledge of an existing right to compel
arbitration; (2) intentional acts inconsistent with that existing right; and
(3) prejudice to the party opposing arbitration resulting from such inconsistent acts.
Newirth, 931 F.3d at 940.1
Adir argues that the district court incorrectly determined that: (1) Adir
engaged in conduct inconsistent with its right to arbitrate and, (2) Flores was
prejudiced by such conduct.2 Contrary to Adir’s contentions, by filing two motions
to dismiss and defending an appeal, Adir “indicate[d] a conscious decision . . . to
seek judicial judgment on the merits of [the] arbitrable claims” – conduct
1
To the extent Adir argues for remand so the district court can apply the federal
test, remand is unnecessary because Adir waived its right to arbitration under any
standard.
2
Adir does not dispute that it knew it had a right to compel arbitration.
2
inconsistent with a right to arbitrate.
Id. at 941 (second alteration in original)
(citation and internal quotation marks omitted). Furthermore, Adir “made an
intentional decision to refrain from filing a motion to compel arbitration” until
after this court’s reversal of the district court’s prior dismissal.
Id. Adir’s year-
and-a-half delay further emphasizes its “strategic decision to take advantage of the
judicial forum” in a manner inconsistent with its right to arbitrate.
Id. Considering
Adir’s acts, Flores satisfied his heavy burden as it pertains to the second prong of
the analysis.
Regarding prejudice, a plaintiff is not prejudiced by “[a]ny extra expense
incurred as a result of the [plaintiff’s] deliberate choice of an improper forum,”
such as preparing the complaint and litigating non-merits issues. Fisher v. A.G.
Becker Paribas Inc.,
791 F.2d 691, 698 (9th Cir. 1986); see also
Newirth, 931 F.3d
at 943–44. However, a plaintiff may demonstrate prejudice by pointing to costs
incurred in defending against actions taken inconsistent with the right to arbitrate,
by having to “relitigate an issue on the merits on which [he] already prevailed in
court,” or by showing that a defendant received an advantage from litigating in the
federal forum.
Newirth, 931 F.3d at 944 (citation and internal quotation marks
omitted). Here, in defending against two motions to dismiss and appealing the
district court’s dismissal of his complaint, Flores incurred costs “directly traceable”
to Adir’s acts that were inconsistent with its known right to arbitrate. See
id. In
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addition, directing Flores to arbitration at this late stage in the game would be akin
to forcing Flores to “relitigate . . . key legal issue[s]” that this court already decided
in his favor. See
id. (citation and internal quotation marks omitted). Moreover,
granting Adir’s motion to compel would give Adir two bites at the apple – “an
advantage from litigating in federal court that [it] would not have received in
arbitration.” See
id. (citation and internal quotation marks omitted).
Considering the totality of Adir’s actions, the district court correctly
determined that Adir waived its right to compel arbitration.
AFFIRMED.
4