DARRIN P. GAYLES, District Judge.
This case presents the sequel to McCullough v. Royal Caribbean Cruises, Ltd., et al., Case No. 16-20194 (S.D. Fla. Jan. 15, 2016) ("McCullough").
AIG moved to compel arbitration based on the terms of Plaintiffs' insurance policy (the "Policy"). Id. The Policy's Disputes Clause states that:
Id. at *1; see also [ECF No. 1 ¶ 18]. This Court denied AIG's motion and held that the McCulloughs could not subjected to arbitration because they were not signatories to the Policy. See McCullough, 2019 WL 2076192, at *4. The Court then stayed McCullough to await a determination on coverage. Id. AIG appealed the Court's Order, which remains pending, and initiated arbitration against Plaintiffs in Hong Kong to determine the Policy's applicability and limits.
Plaintiffs then brought this action against AIG seeking a declaration that arbitration is not required under the Policy and that AIG is required to resolve the dispute in this Court. [ECF No. 1]. Plaintiffs argue that a separate provision of the Policy applies, the Global Liberalization Clause, and that under its terms arbitration in Hong Kong is not mandatory:
[ECF No. 1 ¶ 19]. Plaintiffs also sought an anti-suit injunction to prevent the Hong Kong proceedings from moving forward. [Id. ¶¶ 57-75].
A flurry of motions followed. AIG moved for sanctions, arguing that the suit is frivolous under the Policy's terms. [ECF No. 11]. Plaintiffs then filed an Expedited Motion for Preliminary Anti-Suit Injunction. [ECF No. 12]. The McCulloughs moved to intervene under Federal Rule of Civil Procedure 24. [ECF No. 17]. And AIG moved to dismiss and compel arbitration. [ECF No. 30].
The Court first considers whether the McCulloughs should be granted leave to intervene under Federal Rule of Civil Procedure 24.
Notably, an interest in economic recovery is not the same as a legally protectable interest required by Rule 24. Mt. Hawley Ins. Co. v. Sandy Lake Properties, Inc., 425 F.3d 1308, 1311 (11th Cir. 2005). A legally protectable interest is instead "an interest that derives from a legal right." Id. (quoting United States v. South Fla. Water Mgmt. Dist., 922 F.2d 704, 710 (11th Cir. 1991) ("What is required is that the interest be one which the substantive law recognizes as belonging to or being owned by the applicant.").
The McCulloughs seek to intervene based on their settlement with Plaintiffs in McCullough —a settlement that potentially exceeds sixty million dollars. They have identified no other interest in this action. As such, their interest is purely economic and does not warrant intervention under this circuit's precedent. See Mt. Hawley, 425 F.3d at 1311.
Nor have they persuaded the Court that Plaintiffs would not adequately protect their interests in this litigation, as the parties have the same goals and strategy. See Georgia River Network v. U.S. Army Corps of Eng'rs, No. 4:10-CV-00267, 2011 WL 3320514, at *3 (S.D. Ga. Aug. 1, 2011) (proposed intervenors "need only show that there exists between it and the plaintiffs a reasonable divergence or disunity of litigation strategy, if not ultimate objective"). Indeed, Plaintiffs have a compelling reason to adequately litigate this matter: an outcome not in their favor could result in their payment of the entire settlement. The Court shall therefore deny the McCullough's Motion.
Next, the Court takes up AIG's Motion to Dismiss the Insureds' Complaint for Declaratory Relief and to Compel Arbitration. Notably, the parties agree that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 9 U.S.C. §§ 201-08 (the "Convention"), governs here because there is an agreement in writing between AIG and Plaintiffs and all of the Convention's other prerequisites are satisfied. See Bautista v. Star Cruises, 396 F.3d 1289, 1294 (11th Cir. 2005) (outlining prerequisites for arbitration under the Convention). Solely at issue is whether the Policy requires arbitration. The Court agrees that it does.
"[A] party cannot be required to submit to arbitration any dispute which he has not agreed so to submit." Id. (quoting United Steelworkers of Am. v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582 (1960)). In determining the validity of an agreement to arbitrate, the Supreme Court has noted that, in most circumstances, "a court should decide `certain gateway matters, such as whether the parties have a valid arbitration agreement at all. . . .'" Id. (quoting Green Tree Fin. Corp. v. Bazzle, 539 U.S. 444, 452 (2003)). This "[question of arbitrability], is `an issue for judicial determination [u]nless the parties clearly and unmistakably provide otherwise.'" Id. (citing Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79, 83 (2002)).
Here, the Court is prohibited from resolving whether the Global Liberalization Clause requires litigation before this Court because the Policy "clear[ly] and unmistakabl[y]" delegates threshold arbitrability matters to HKAIC. Jones v. Waffle House, Inc., 866 F.3d 1257, 1264 (11th Cir. 2017) (noting that parties may agree to confer jurisdiction to the arbitrator to determine threshold issues of arbitrability); see also Jones v. Pro Source Servs., Inc., No. 8-13-cv-1311-T-30EAJ, 2013 WL 37766889 (M.D. Fla. July 17, 2013) (holding that where an arbitration agreement incorporated the AAA's Employment Arbitration Rules, jurisdiction over issues of arbitrability were conferred to the arbitrator instead of the court). The Disputes Clause specifically states that "any dispute regarding any aspect of this Policy or any matter relating to cover thereunder" shall first go to mediation, then arbitration, before HKAIC. [ECF No. 1 ¶ 18]. That is as clear a delegation as it gets.
Plaintiffs argue that the Disputes Clause governs "except as otherwise provided." [ECF No. 1 ¶ 18]. Plaintiffs point out that the Global Liberalization Clause "otherwise provide[s]" for alternative litigation options because it incorporates terms of more "favourable" policies to govern claims arising in a foreign jurisdiction where a different insurance policy has been issued. [Id. ¶ 19]. While Plaintiffs argue that a "favourable" policy may exist that would require litigation here, they provide no evidence of such a policy. Nor have they affirmatively requested such evidence through limited discovery. Even so, whether the Global Liberalization Clause would apply to bar arbitration is itself a question of the scope of arbitrability—a question that the Policy expressly refers to HKAIC. Accordingly, the Court agrees that arbitration is warranted because the Policy specifically delegates threshold arbitrability matters to the HKAIC.
AIG has also moved to dismiss based on lack of personal jurisdiction and forum nonconveniens. The Court need not reach these issues based on the foregoing. Additionally, given AIG's extensive litigation in this and McCullough without a reservation of rights, the Court could reasonably infer waiver of personal jurisdiction. See Matthews v. Brookstone Stores, Inc., 431 F.Supp.2d 1219, 1225 (S.D. Ala. 2006) ("The more active a defendant has been in litigating a case, the more likely it is that the defendant will be deemed to have waived defects in personal jurisdiction and impliedly consented to a court's jurisdiction.").
The Court shall deny Plaintiffs' Motion for Temporary Anti-Suit Inunction, as they have no likelihood of success on the merits following the Court's ruling on AIG's motion to compel. The Court shall also deny AIG's Motion for Sanctions, as the Court finds issues sufficiently in dispute such that the Motions were not "objectively frivolous" in light of the facts and law. Worldwide Primates, Inc. v. McGreal, 87 F.3d 1252, 1254 (11th Cir. 1996).
Accordingly, it is