Lee v. AutoNation Inc

CourtDistrict Court, W.D. Washington
DecidedOctober 21, 2024
Docket2:23-cv-00348
StatusUnknown

This text of Lee v. AutoNation Inc (Lee v. AutoNation Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee v. AutoNation Inc, (W.D. Wash. 2024).

Opinion

5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON 7 AT SEATTLE 8 ERIC LEE, Case No. C23-348RSL 9

10 Plaintiff, ORDER CONFIRMING 11 v. ARBITRATION AWARD 12 AUTONATION INC., et al., 13 Defendants. 14 15 This matter comes before the Court on plaintiff’s “Motion to Confirm Arbitration Award 16 and Enter Judgment” (Dkt. # 12) and defendants’ “Counter Motion to Vacate” (Dkt. # 15). 17 Having reviewed the motion, the counter motion, and the record herein, the Court GRANTS 18 19 plaintiff’s motion, DENIES defendants’ counter motion, and makes additional determinations 20 regarding fees, costs, and interest as described below. 21 I. Background 22 23 This case arises from an employment dispute under the Washington Law Against 24 Discrimination (“WLAD”) and the Age Discrimination in Employment Act (“ADEA”). 25 Dkt. # 1. Plaintiff Eric Lee is 65 years old and was employed by Porsche Bellevue for more than 26 27 30 years. See Dkt. # 13, Ex. 3 at 2, 7, 10. On November 30, 2021, Lee was terminated from 28 1 Porsche Bellevue at the age of 62. Id. Porsche Bellevue is owned by the defendant, AutoNation, 2 Inc. Id at 2. 3 On March 31, 2023, the Court granted the parties’ stipulated motion to stay the litigation 4 5 pending arbitration. Dkts. # 9, # 10. As part of their stipulation to arbitrate, the parties agreed, in 6 relevant part, that (1) Judge Regina Cahan at JAMS would be the arbitrator, (2) JAMS rules 7 shall apply, (3) “[t]he arbitrator’s award may be vacated only for the reasons set forth in the 8 9 Washington Uniform Arbitration Act or the Federal Arbitration Act,” and (4) “[a]ll types of 10 relief that would otherwise be available in court shall be available to Plaintiff in arbitration.” 11 Dkt. # 10. 12 13 Following discovery and a four-day hearing, Judge Cahan ruled in favor of the plaintiff 14 only on the WLAD claim, finding that plaintiff’s age was a “substantial factor” in his 15 termination. Dkt. # 13, Ex. 3 at 20–26. Pursuant to the WLAD, Judge Cahan awarded plaintiff a 16 17 total of $2,493,912.96 as follows: 18 (a) Lost earnings: $1,125,542 19 (b) Lost benefits: $21,077 20 21 (c) Emotional damages: $500,000 22 (d) An offset for adverse tax consequences: $135,737 23 (e) Pre-judgment interest through April 1, 2024: $68,983 24 25 26 27 28 1 (f) Post judgment interest to accrue until the judgment is paid in full: amount to be 2 determined1 3 (g) Attorney’s fees through March 1, 2024: $642,573.96 4 5 Dkt. # 13, Ex. 3 at 32. 6 The award became final on March 28, 2024. Dkt. # 12 at 6. Plaintiff now moves to 7 confirm the arbitration award. Dkt. # 12. Defendants do not dispute their liability resulting from 8 9 the arbitrator’s finding that Lee’s age was a “substantial factor” in his termination. Dkts. # 13, 10 Ex. 3 at 20; # 15. They challenge the arbitrator’s award, moving to vacate or modify that award. 11 Dkt. # 15. 12 13 II. Discussion 14 A. Legal Standard 15 The Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq., “supplies mechanisms for 16 17 enforcing arbitration awards: a judicial decree confirming an award, an order vacating it, or an 18 order modifying or correcting it.” Hall St. Assocs., L.L.C. v. Mattel, Inc., 552 U.S 576, 582 19 (2008). If a party seeks to confirm an arbitration award, “the court must grant such an order 20 21 unless the award is vacated, modified, or corrected.” 9 U.S.C. § 9. 22 A court may vacate an award in four limited circumstances: (1) “where the award was 23 procured by corruption, fraud, or undue means;” (2) “where there was evident partiality or 24 25

26 1 Judge Cahan awarded “post-judgment interest at the statutory rate under RCW 4.56.110(3)(b).” Dkt. # 13, Ex. 3 at 32. The statute sets the rate at “two percentage points above the prime rate, as 27 published by the board of governors of the federal reserve system on the first business day of the 28 calendar month immediately preceding the date of entry.” RCW 4.56.110(3)(b), Dkt. # 13, Ex. 8 at 4. 1 corruption in the arbitrators”; (3) “where the arbitrators were guilty of misconduct in refusing to 2 postpone the hearing. . . or in refusing to hear evidence pertinent and material to the 3 controversy; or of any other misbehavior by which the rights of any party have been 4 5 prejudiced;” or (4) “where the arbitrators exceeded their powers, or so imperfectly executed 6 them that a mutual, final, and definite award upon the subject matter submitted was not made.” 7 9 U.S.C. § 10(a). A court may modify an award in three circumstances: (1) “Where there was an 8 9 evident material miscalculation of figures or an evident material mistake in the description of 10 any person, thing, or property referred to in the award”; (2) “Where the arbitrators have awarded 11 upon a matter not submitted to them”; or (3) “Where the award is imperfect in matter of form 12 13 not affecting the merits of the controversy.” 9 U.S.C. § 11(a–c). 14 These grounds for vacatur and modification “afford an extremely limited review 15 authority, a limitation that is designed to preserve due process but not to permit unnecessary 16 17 public intrusion into private arbitration procedures.” Kyocera Corp. v. Prudential-Bache Trade 18 Servs., Inc., 341 F.3d 987, 998 (9th Cir. 2003). This limited review is grounded in “good 19 reason.” Id. “Arbitration is a dispute resolution process designed, at least in theory, to respond to 20 21 the wishes of the parties more flexibly and expeditiously than the federal courts’ uniform rules 22 of procedure allow.” Id. 23 B. Analysis 24 25 Defendants seek to vacate the award based on two grounds. First, defendants claim the 26 arbitrator exceeded her powers as described in 9 U.S.C. § 10(a)(4). Second, defendants claim the 27 arbitrator committed misconduct as described in 9 U.S.C. § 10(a)(3). In addition, defendants 28 1 seek to modify the award, claiming the arbitrator miscalculated figures as described in 9 U.S.C. 2 § 11(a). On all three of these claims, defendants have failed to demonstrate anything more than 3 their disagreement with Judge Cahan’s application of the law, interpretation of the evidence, and 4 5 fee award decision-making. As both the FAA and the relevant caselaw make clear, a party’s 6 disagreement with the outcome of an arbitration is far from enough to justify vacatur or 7 modification of the arbitrator’s award. 8 9 1. The Arbitrator Did Not Exceed Her Authority. 10 This portion of defendants’ argument relates to the arbitrator awarding Lee back pay even 11 after Lee was fired from Jaguar Land Rover Bellevue (JLR), a job he obtained following his 12 13 termination from Porsche Bellevue. Dkt. # 15 at 6. Defendants argue that Judge Cahan exceeded 14 her powers because she was aware that a failure by Lee to mitigate damages from the loss of his 15 job at Porsche Bellevue would require the tolling of back pay in any award, but still concluded 16 17 that Lee’s firing from JLR did not constitute a failure to mitigate damages. Dkts. # 13, Ex. 3 at 18 29–31; # 15 at 6–7.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lagstein v. CERTAIN UNDERWRITERS, LLOYD'S, LONDON
607 F.3d 634 (Ninth Circuit, 2010)
State v. Carter
888 P.2d 1230 (Court of Appeals of Washington, 1995)
In Re Bosack v. Soward
586 F.3d 1096 (Ninth Circuit, 2009)
Francis v. People of Virgin Islands
11 F.2d 860 (Third Circuit, 1926)
Kloss v. Honeywell, Inc.
890 P.2d 480 (Court of Appeals of Washington, 1995)
Mahler v. Szucs
135 Wash. 2d 398 (Washington Supreme Court, 1998)
Blackburn v. Department of Social & Health Services
375 P.3d 1076 (Washington Supreme Court, 2016)
Ameriprise Fin. Servs., Inc. v. Brady
325 F. Supp. 3d 219 (District of Columbia, 2018)
Sangster v. United Air Lines, Inc.
633 F.2d 864 (Ninth Circuit, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
Lee v. AutoNation Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-autonation-inc-wawd-2024.