Prescott v. Northlake Christian School

141 F. App'x 263
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 8, 2005
Docket04-31182
StatusUnpublished
Cited by3 cases

This text of 141 F. App'x 263 (Prescott v. Northlake Christian School) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prescott v. Northlake Christian School, 141 F. App'x 263 (5th Cir. 2005).

Opinion

PER CURIAM: *

Defendant-Appellant Northlake Christian School (“NCS”) appeals the district court’s order enforcing an arbitration award against NCS obtained by its former employee, Plaintiff-Appellee Pamela Prescott. We affirm the district court’s enforcement order.

I. FACTS AND PROCEEDINGS

NCS’s appeal is the latest chapter in its five-year-old employment dispute with Prescott; indeed, this is the second time that these parties have come before us regarding the validity of the arbitrator’s award. 1 As we detailed the facts underlying this dispute in our Prescott I opinion, we shall not repeat them here. We shall, however, briefly review the background proceedings for the sake of clarity.

After being fired from her job as principal at NCS, Prescott brought suit in the district court, alleging Title VII and various state law claims, including breach of her employment contract. After NCS moved successfully to compel arbitration, such proceedings were conducted according to the Rules of Procedure for Christian Conciliation (“Rules”) of the Institute for Christian Conciliation (“ICC”). In arbitration, Prescott prevailed on her breach of contract claim and was awarded approximately $ 150,000 in damages for reputational harms and loss of future income. In reaching his decision, the arbitrator determined that NCS had wrongfully discharged Prescott by failing to follow Biblical precepts, as required in her employment contract; specifically, the conflict resolution process described in Matthew 18. 2

NCS immediately returned to federal district court, this time requesting vacatur of the arbitrator’s award. NCS insisted that, even though the parties’ arbitration agreement specified that proceedings would be conducted under the Rules of the ICC and the Montana Uniform Arbitration Act (“MUAA”), 3 the parties had actually contracted for plenary judicial review of the arbitration proceedings when they struck through language in NCS’s form arbitration agreement, thereby making communications between the parties confidential and inadmissible in a court of law. The parties had also inserted a hand-written provision stating that “[n]o party waives appeal rights, if any, by signing this agreement.” 4 NCS reasoned that, under *266 this expanded scope of review, the district court had jurisdiction to address and hold that the arbitrator misconstrued Prescott’s employment contract as well as applicable Louisiana law. NCS also argued that the arbitrator exceeded his authority and was impermissibly biased — both grounds for vacatur under the MTJAA.

The district court ruled against NCS, holding that the parties had not expanded the scope of judicial review of the arbitration proceedings and that NCS had not shown that it was entitled to vacatur under the MUAA’s narrow standard of judicial review of proceedings in arbitration. NCS appealed this ruling to us in Prescott I.

Holding that the parties’ handwritten strike-outs and their insertion to their arbitration agreement were ambiguous, we vacated the district court’s order and remanded with instructions for the district court to hold an evidentiary hearing. In so doing, we directed the district court to “take evidence on and contractually interpret the circumstances surrounding the making of the provision.” 5 On remand, the district court held an evidentiary hearing as instructed, after which it again concluded that the parties had not contractually expanded the scope of review and again ordered enforcement of the arbitrator’s award for the reasons given in its previous opinion.

In the instant appeal, NCS challenges the district court’s determination that the arbitration agreement did not expand the parties’ right to judicial review on appeal. In addition, NCS now contends that it was entitled to a jury trial on the question of interpretation of the arbitration agreement, not just the making of that agreement, reiterating the contention that the district court erred in its earlier order enforcing the arbitration award in favor of Prescott.

II. DISCUSSION

A. The Ambiguous “Appeal Rights” Clause

1. Standard of Review

We review the district court’s findings of facts for clear error. 6 “The burden of showing that the findings of the district court are clearly erroneous is heavier if the credibility of witnesses is a factor in the trial court’s decision.” 7 “A factual finding is not clearly erroneous if it is *267 plausible in light of the record read as a whole.” 8

2. The Evidentiary Hearing

On remand from Prescott I, the district court heard testimony from the parties as to whether, in amending their arbitration agreement, they had intended to expand the scope of any subsequent judicial review. Prescott testified that she understood at the time that she had only a limited right of appeal but that she wanted to confirm in writing that, by signing the arbitration agreement, she was not waiving or curtailing even this limited right of review. To that end, she requested that the parties include a clause stating that “No party waives appeal rights by signing this agreement.” Prescott testified further that NCS twice rejected her suggestion but finally agreed to accept her modification on the condition that the words “if any” be inserted after “appeal rights.”

Boyd Leahy testified on behalf of NCS that the clause was added to preserve all appeal rights in the event that there was no successful mediation. He claimed that the words “if any” were added to the clause because, if the mediation had been successful, there would have been no appeal. 9

NCS also argued to the district court that the conduct of the parties demonstrated their belief that they had contracted for appeal rights beyond those guaranteed by the MUAA. NCS emphasized that (1) Prescott had hired a court reporter to transcribe the entire arbitration hearing, (2) during the arbitration proceeding, the parties discussed possible appeal to the Fifth Circuit, (8) Prescott proffered evidence for consideration on appeal, and (4) she agreed to the arbitrator’s retaining custody of disputed evidence pending final appeal.

The district court ruled in favor of Prescott, holding that the phrase “if any” was inserted to preserve appeal rights normally guaranteed by the MUAA. He interpreted “if any” to mean “if there are any,” a phrase that implies the possibility of none. “In other words,” ruled the district court, “the parties agreed to not waive appeal rights if there are any.”

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141 F. App'x 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prescott-v-northlake-christian-school-ca5-2005.