Britt v. IEC Corporation

CourtDistrict Court, S.D. Florida
DecidedAugust 16, 2022
Docket0:20-cv-60814
StatusUnknown

This text of Britt v. IEC Corporation (Britt v. IEC Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Britt v. IEC Corporation, (S.D. Fla. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 20-cv-60814-ALTMAN

KAREEM BRITT, et al.,

Plaintiffs,

v.

IEC CORP., et al.,

Defendants. ________________________________/

OMNIBUS ORDER On September 13, 2021, we granted FCC’s Motion to Compel Arbitration (the “Motion to Compel”) [ECF No. 70]. See Order Granting the Motion to Compel Arbitration (the “Order”) [ECF No. 143]. Unhappy with our ruling, the Plaintiffs have now filed both a Motion for Reconsideration under Rule 59(e) (the “Motion for Reconsideration”) [ECF No. 144] and a Motion to Certify the Order Compelling Arbitration for Interlocutory Review (the “Motion to Certify”) [ECF No. 145]. But, because the Plaintiffs are really just looking for a “second bite at the apple,” O’Neal v. Kennamer, 958 F.2d 1044, 1047 (11th Cir. 1992), their motions fail to justify the “extraordinary” relief they’ve requested. The motions are DENIED. BACKGROUND

The Plaintiffs, Kareem Britt and Sharon Henry, are former students at the Florida Career College (“FCC”). When they enrolled, both Britt and Henry agreed to arbitrate any claims they might later have against the school. See Britt Enrollment Agreement [ECF No. 70-2] at 4; Henry Enrollment Agreement [ECF No. 70-4] at 4. In 2016, the Department of Education (“DOE”) promulgated several regulations that required schools participating in a federal student-loan program to refrain from enforcing any pre-dispute arbitration agreements or class-action waivers they’d signed with their students. See 81 Fed. Reg. 75,926 (Nov. 1, 2016) (codified in scattered sections of 34 C.F.R.) (the “Old Regulations”). To comply with the Old Regulations, FCC sent its students a notice updating their enrollment agreements (the “Notice”) [ECF No. 81-2]. In the Notice, FCC waived its right to arbitrate—and made clear that its waiver would “apply to your arbitration agreement with [FCC] for any period of time during which these regulations are in effect.” Notice at 3. In July 2020, while this case was pending, a new set of regulations took effect. See 84 Fed. Reg. 49,788 (Sept. 23, 2019)

(codified in scattered sections of 34 C.F.R.) (the “New Regulations”).1 The New Regulations removed the Old Regulations’ requirement that participating schools waive their arbitration agreements and class-action bans. On this crucial issue, it provided as follows: “Under final § 685.300, paragraphs (d) through (i) finalized in the 2016 final regulations covering . . . class action bans [and] pre-dispute arbitration agreements . . . are removed from the regulations.” Id. at 49,907. When the New Regulations came into effect, we allowed FCC to re-brief its then-pending motion to compel arbitration. See Order at 7. In that second round of motions practice, FCC argued that, because the Notice’s arbitration waiver was expressly limited to “any period of time during which [the Old Regulations] are in effect,” FCC was no longer precluded from enforcing the arbitration agreements Britt and Henry had signed in 2018 and 2016, respectively. Finding this argument persuasive, we granted FCC’s Motion to Compel Arbitration. See Order at 29. Since then, the parties agree, neither the facts nor the law has changed.

ANALYSIS I. The Motion for Reconsideration “The only grounds for granting a Rule 59 motion are newly-discovered evidence or manifest errors of law or fact.” Arthur v. King, 500 F.3d 1335, 1343 (11th Cir. 2007) (cleaned up); see also Eveillard

1 The New Regulations were actually promulgated on September 23, 2019, see generally 84 Fed. Reg. 49,788 (Sept. 23, 2019)—some seven months before the Plaintiffs filed this lawsuit (on April 20, 2020). v. Nationstar Mortg. LLC, 2015 WL 1191170, at *5 (S.D. Fla. Mar. 16, 2015) (noting that “an intervening change in controlling law” may serve as a basis for Rule 59 relief); United States v. Russell, 994 F.3d 1230, 1243 n.4 (11th Cir. 2021) (“[R]econsideration is justified in civil cases when there is (1) an intervening change in controlling law; (2) the availability of new evidence; [or] (3) the need to correct clear error or prevent manifest injustice.” (cleaned up)). “[C]lear error or manifest injustice occurs where the Court ‘has patently misunderstood a party, or has made a decision outside the adversarial

issues presented to the Court by the parties, or has made an error not of reasoning but of apprehension[.]’” Great Lakes Ins. SE v. Boat Rental Miami, Inc., 2020 WL 264674, at *6 (S.D. Fla. Jan. 17, 2020) (Altonaga, C.J.). To prevail on a Rule 59(e) motion, then, the movant “must demonstrate why the court should reconsider its prior decision and set forth facts or law of a strongly convincing nature to induce the court to reverse its prior decision.” Instituto de Prevision Militar v. Lehman Bros., 485 F. Supp. 2d 1340, 1343 (S.D. Fla. 2007) (Moore, J.). “[A] Rule 59(e) motion [cannot be used] to relitigate old matters, raise argument or present evidence that could have been raised prior to the entry of judgment.” Michael Linet, Inc. v. Vill. of Wellington, Fla., 408 F.3d 757, 763 (11th Cir. 2005). “This prohibition includes new arguments that were previously available, but not pressed.” Wilchombe v. TeeVee Toons, Inc., 555 F.3d 949, 957 (11th Cir. 2009) (cleaned up); see also Colomar v. Mercy Hosp., Inc., 242 F.R.D. 671, 684 (S.D. Fla. 2007) (Seitz, J.) (“[T]o the extent Plaintiff merely reargues points previously considered and

rejected by the Court, or tries to raise new arguments and point to new evidence that could have been raised earlier, this is insufficient grounds to satisfy the clear error or manifest injustice standard for granting a motion for reconsideration.”). It’s thus “well-settled that motions for reconsideration are disfavored and that relief under Rule 59(e) is an extraordinary remedy to be employed sparingly.” Krstic v. Princess Cruise Lines, Ltd., 706 F. Supp. 2d 1271, 1282 (S.D. Fla. 2010) (Gold, J.) (cleaned up). And “[t]he decision to alter or amend a judgment is committed to the sound discretion of the district court.” O’Neal, 958 F.2d at 1047 (citing Am. Home Assur. Co. v. Glenn Estess & Assoc., Inc., 763 F.2d 1237, 1238–39 (11th Cir. 1985)). The Plaintiffs2 don’t identify any new facts or changes in the governing law. See generally Motion for Reconsideration. Their Motion for Reconsideration thus turns on their view that our Order resulted in four “clear errors” and a not-insignificant helping of “manifest injustice.” In the main, they contend as follows: (1) “[t]he [Court] failed to acknowledge that arbitration is a question of venue

determined at the time of filing”; (2) “the Court’s decision . . . rests on an argument not advanced by the Parties”; (3) “the Court’s decision . . . misinterprets and misapplies a condition subsequent”; (4) “the Court . . . did not construe ambiguity in the Supplement[3] against FCC”; and (5) “the Court’s decision is patently unfair and contravenes public policy.” Motion for Reconsideration at 1. We address—and reject—each argument in turn. A. The Plaintiffs’ First Ground for Reconsideration In their first argument for reconsideration, the Plaintiffs contend that our Order was “clearly erroneous” because it “failed to acknowledge” that arbitration clauses implicate questions of venue, which (the Plaintiffs say) must be determined on the facts as they existed at the time the complaint was filed. See id. at 2.

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