Contract analysis

Section 15.1, captioned "Agreement to Arbitrate," provides in relevant part: Except as otherwise expressly provided herein, any and all disputes, controversies, or claims arising out of or relating to this Agreement, the Contractor's engagement with [SLG], or the termination of such engagement, including but not limited to claims arising under the Fair Labor Standards Act, state wage and hour laws, Title VII of the C

Section 15.2, captioned "Class/Collective Action Waiver," provides in relevant part: The Contractor agrees to bring any and all claims against [SLG] exclusively in an individual capacity. The Contractor expressly waives the right to participate as a plaintiff, class member, collective action member, or representative in any class action, collective action, or representative proceeding of any kind. This waiver applies

Section 15.3 contains a delegation clause providing that all questions of arbitrability—including whether a particular dispute falls within the scope of the arbitration agreement, whether any defense to arbitration applies, and whether the arbitration clause is enforceable—shall be determined by the arbitrator, and not by any court: The Contractor and [SLG] agree that any question or dispute regarding the existence,

Section 15.4 specifies the governing law and arbitration forum. The FAA governs the enforceability and interpretation of the arbitration clause itself, while Texas law governs the interpretation of all other contractual terms. (Ex. A at § 15.4.) Arbitration proceedings are to be administered by the American Arbitration Association ("AAA") under its Employment Arbitration Rules and Mediation Procedures then in effect.

Section 15.5 addresses consideration and cost allocation. The mutual promises to arbitrate serve as the consideration for the arbitration agreement. (Ex. A at § 15.5.) SLG agrees to bear all arbitration filing fees and arbitrator compensation in excess of the amount that would be required as a court filing fee in the applicable jurisdiction. (Id.) The arbitration clause further provides that the driver retains the ri

Section 15.6 addresses the continued engagement of existing drivers and provides that execution of ICOA v3.0 and the arbitration provisions therein is a condition of continued engagement with SLG. (Ex. A at § 15.6.) Existing drivers were provided with at least thirty (30) days' written notice of the new agreement and the arbitration provisions, and were given the opportunity to review the agreement, consult with an a

I. THE FAA MANDATES ENFORCEMENT OF THE ICOA v3.0 ARBITRATION AGREEMENT A. The Strong Federal Policy Favoring Arbitration The Federal Arbitration Act establishes a "liberal federal policy favoring arbitration agreements." Moses H. Cone Mem'l Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24 (1983). Section 2 of the FAA provides that a written agreement to arbitrate a dispute "shall be valid, irrevocable, and enforceable,

II. THE COLLECTIVE ACTION WAIVER IS ENFORCEABLE UNDER *Granite Harbor Systems. v. LEWIS* A. *Ridgeway Services Inc.* Resolved the Question of Whether the FAA Permits Collective Action Waivers in Employment-Related Arbitration Agreements Plaintiff's proposed collective action seeks to aggregate the claims of approximately 1,187 drivers under the FLSA's collective action mechanism, 29 U.S.C. § 216(b). However, approxim

III. THE FAA § 1 TRANSPORTATION WORKER EXEMPTION DOES NOT APPLY TO SLG'S DRIVERS A. The Narrow Scope of the FAA § 1 Exemption The primary argument likely to be raised in opposition to this motion is that SLG's drivers fall within the transportation worker exemption codified in FAA § 1. Section 1 of the FAA exempts from the statute's coverage "contracts of employment of seamen, railroad employees, or any other class o

IV. THE ARBITRATION AGREEMENT IS NOT UNCONSCIONABLE A. Texas Law Governs Unconscionability Analysis Under FAA § 2, an arbitration agreement may be invalidated on "such grounds as exist at law or in equity for the revocation of any contract." 9 U.S.C. § 2. Unconscionability is one such generally applicable contract defense. However, the defense must be applied in a manner that does not single out arbitration agreement