Dealer Computer Services, Inc. v. Dub Herring Ford

623 F.3d 348, 2010 U.S. App. LEXIS 21167, 2010 WL 4008141
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 14, 2010
Docket09-1848
StatusPublished
Cited by20 cases

This text of 623 F.3d 348 (Dealer Computer Services, Inc. v. Dub Herring Ford) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dealer Computer Services, Inc. v. Dub Herring Ford, 623 F.3d 348, 2010 U.S. App. LEXIS 21167, 2010 WL 4008141 (6th Cir. 2010).

Opinions

McKEAGUE, J., delivered the opinion of the court, in which COLE, J., joined. MAYS, D.J. (pp. 359-63), delivered a separate dissenting opinion.

OPINION

McKEAGUE, Circuit Judge.

This case poses the question whether a district court has jurisdiction to confirm an arbitration panel’s interim award denying class arbitration. The district court, following guidance provided by this court in a closely related earlier ruling in the same case, determined that the requisite ripeness is lacking and dismissed the motion to confirm for lack of jurisdiction. Because we agree that appellant has failed to demonstrate that it is subject to cognizable hardship if immediate judicial review of the interim award is denied, we affirm.

I. BACKGROUND

Plaintiff-appellant Dealer Computer Services, Inc. (“DCS”) provides computer hardware and software support to automobile dealers. It developed an electronic parts catalog system known as a Computerized Publication Display (“CPD”) that enabled car dealers to display then current automobile parts, prices, descriptive data and parts visualizations. Defendant-appellee Dub Herring Ford, a Mississippi corporation, and sixty-three other originally named Ford dealers are a group of dealerships that were parties to written contracts with DCS for the provision of CPD systems and services. They are also putative class representatives of a class of some 2,470 similarly situated Ford dealerships across the country allegedly aggrieved by DOS’s breaches of the CPD contracts. All of the CPD contracts contained an arbitration provision requiring that any contract-related controversy be submitted to arbitration under the Commercial Arbitration Rules of the American [350]*350Arbitration Association. Dub Herring Ford, on behalf of the dealers, commenced the arbitration proceedings and sought arbitration as a class action.

In November 2006, the arbitration panel issued its Clause Construction Award, concluding that the applicable CPD contracts permit the present arbitration to proceed as a class arbitration. DCS moved the district court to vacate the clause construction award. The district court denied the motion on May 29, 2007. R. 23, Order; Dealer Computer Services, Inc. v. Dub Herring Ford, 489 F.Supp.2d 772 (E.D.Mich.2007). The district court concluded that it had jurisdiction to review the award even though it was not a final arbitration award, but denied the motion to vacate the award, concluding that the arbitration panel did not exceed its powers or manifestly disregard the applicable law. On appeal, we vacated the district court’s order, holding that DCS’s motion to vacate was not ripe for judicial review and that the district court therefore lacked jurisdiction. Dealer Computer Services, Inc. v. Dub Herring Ford, 547 F.3d 558 (6th Cir.2008) (“DCS-I ”).

Next, in proceedings conducted from August to October 2008, the arbitration panel considered evidence and arguments regarding class certification. In December 2008, the arbitration panel issued its 37-page Partial Final Class Determination Award, denying class certification. DCS moved the district court to re-open the case and confirm the class determination award. Taking its lead from our earlier opinion on DCS’s motion to vacate the interim clause construction award, the district court applied the prescribed three-factor ripeness test. The court determined that the arbitration panel’s denial of class certification did not pose a likelihood of harm to DCS and that denial of immediate judicial review of the interlocutory award would pose no hardship to DCS. R. 43, Order; Dealer Computer Services, Inc. v. Dub Herring Ford, 2009 WL 1508210 (E.D.Mich., May 29, 2009) (unpublished). The district court therefore concluded that the matter was still not ripe and dismissed DCS’s motion to confirm. In its appeal from this ruling, DCS argues that the district court misconstrued our earlier ruling, applied the wrong standard in assessing ripeness, and misapplied the standard that it did apply.

II. APPELLATE JURISDICTION

Although Dub Herring Ford has not moved to dismiss the appeal for lack of appellate jurisdiction, it has questioned DCS’s asserted reliance on the collateral order exception to the final judgment rule of 28 U.S.C. § 1291 as a basis for this court’s appellate jurisdiction. Indeed, the district court’s dismissal order, essentially refusing to finally determine the propriety of the arbitration panel’s class determination award, does not appear to meet the requirements of the collateral order exception. See In re Dow Corning Corp., 86 F.3d 482, 488 (6th Cir.1996) (recognizing that an interlocutory order may be immediately reviewable under the collateral order exception if it: “(1) conclusively determines the disputed question; (2) resolves an important question completely separate from the merits of the action; and (3) is effectively unreviewable on appeal from the final judgment.”).

In response, however, DCS has correctly noted that appeal is properly taken under 9 U.S.C. § 16(a)(1)(D), expressly allowing appeals from orders confirming or denying confirmation of arbitration awards and partial awards. See Bull HN Information Systems, Inc. v. Hutson, 229 F.3d 321, 327-28 (1st Cir.2000) (applying § 16(a)(1)(D) as permitting appeal from an order denying confirmation of an interim [351]*351partial award). The district court’s order dismissing DOS’s motion to confirm the arbitration panel’s class determination award is in effect an order denying confirmation of a partial award, appealable under § 16(a)(1)(D). Accordingly, we have jurisdiction to hear this appeal.

III. ANALYSIS

A. Governing Standards

The district court’s determination that it lacked jurisdiction for lack of ripeness is subject to de novo review. DCS-I, 547 F.3d at 560. In our earlier ruling, we summarized the governing standards as follows:

The ripeness doctrine “focuses on the timing of the action.” ... “[It] is more than a mere procedural question; it is determinative of jurisdiction. If a claim is unripe, federal courts lack subject matter jurisdiction and the complaint must be dismissed.” ... Ripeness “draw[s] both from Article III limitations on judicial power and from prudential reasons for refusing to exercise jurisdiction.” ... Enforcing ripeness requirements discourages “premature adjudication” of legal questions and judicial entanglement in abstract controversies .... Thus, the doctrine serves as a bar to judicial review whenever a court determines a claim is filed prematurely.
The key factors to consider when assessing the ripeness of a dispute are: (1) the likelihood that the harm alleged by a party will ever come to pass; (2) the hardship to the parties if judicial relief is denied at this stage in the proceedings; and (3) whether the factual record is sufficiently developed to produce a fair adjudication of the merits.

Id.

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Dealer Computer Services, Inc. v. Dub Herring Ford
623 F.3d 348 (Sixth Circuit, 2010)

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623 F.3d 348, 2010 U.S. App. LEXIS 21167, 2010 WL 4008141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dealer-computer-services-inc-v-dub-herring-ford-ca6-2010.