Rath v. Casey

309 F. Supp. 2d 661, 2004 U.S. Dist. LEXIS 3901, 2004 WL 547527
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 27, 2004
Docket2:02-cv-00055
StatusPublished

This text of 309 F. Supp. 2d 661 (Rath v. Casey) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rath v. Casey, 309 F. Supp. 2d 661, 2004 U.S. Dist. LEXIS 3901, 2004 WL 547527 (E.D. Pa. 2004).

Opinion

MEMORANDUM AND ORDER

JOYNER, District Judge.

This civil, personal injury action is now before the Court on Motion of the Defendants to Enforce the Arbitration Award pursuant to Local Rule of Civil Procedure 53.2(6). For the reasons set forth below, the motion is granted.

Factual Background

This case arose out of an accident which occurred on December 21, 1999 in Down-ingtown, Pennsylvania. On that date, Defendant Johnny Casey, a South Carolina resident, was operating a tractor trailer owned by his employer, Carolina Transportation, when he struck the right front quarter panel of the plaintiffs Jeep Cherokee while executing a left hand turn. As a result of this accident, the plaintiff suffered injuries for which she sought redress through the filing of this lawsuit in the Philadelphia County Court of Common Pleas in December, 2001. Defendants thereafter removed the case to this Court on January 4, 2002.

Following a protracted period of discovery, in September, 2003, the parties agreed to submit the case to a binding “high-low” arbitration 1 before Judge Nay-thons of ADR Options, Inc. The arbitration was conducted on December 2, 2003 and Judge Naythons issued his decision and award in favor of the plaintiff and against the defendants in the amount of $14,400 on December 9, 2003. When Defendants’ counsel contacted Plaintiffs’ counsel on December 11, 2003 to make arrangements for the exchange of the draft, general release and IRS Form W-9, Plaintiffs’ counsel advised him that he was not interested in resolving the matter for the amount awarded by the arbitrator and would not be providing the release or Form W-9. On January 12, 2004, Defendants filed this motion to enforce the arbitration award.

Discussion

As a threshold matter to adjudicating the enforceability of the arbitration award at issue, we must first ascertain the appropriate law to apply. Although Defendants move to enforce the arbitration award pursuant to Local Rule of Civil Procedure 53.2.(6.), that Rule applies to compulsory arbitration cases filed in this Court after September 13,1999 in which the amount of damages sought was not in excess of $150,000, exclusive of interest and costs. As the parties in this case entered into an agreement to arbitrate on December 2, 2003, 2 the arbitration in this matter is one at common law and Local Rule of Civil Procedure 53.2.(6.) therefore has no application in this case.

Arbitration, of course, is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed to so submit. AT & T Technologies, Inc. v. Communications Workers of America, 475 U.S. 643, 648-649, 106 S.Ct. 1415, 1419, 89 L.Ed.2d 648 (1986). It therefore follows that the question of arbitrability is an issue for judicial *664 determination and thus unless the parties clearly and unmistakably provide otherwise, the question of whether the parties agreed to arbitrate is to be decided by the Court. Id. As a general rule, agreements to arbitrate are generously construed. Mastrobuono v. Shearson Lehman Hutton, Inc., 514 U.S. 52, 62, n. 7, 115 S.Ct. 1212, 1218, n. 7, 131 L.Ed.2d 76 (1995), citing Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 626, 105 S.Ct. 3346, 3353-54, 87 L.Ed.2d 444 (1985).

For the arbitration agreement at issue here to be governed by the Federal Arbitration Act, 9 U.S.C. § 1, et. seq., 3 , it must be found to be a contract evidencing a transaction in interstate commerce. Goodwin v. Elkins & Co., 730 F.2d 99, 108-109 (3d Cir.1984). Such a finding is a factual determination to be made by the district court. Id. Given that no evidence whatsoever on this issue has been provided to the court, we cannot specifically find that the Federal Arbitration Act governs the disposition of this case. Nevertheless, it appears that whether federal or state law is applied here makes no difference in reaching the substantive result because there is no meaningful difference between federal and Pennsylvania state law when reviewing the scope of an arbitration agreement. State Farm Mutual Automobile Insurance Co. v. Coviello, 233 F.3d 710, 713, n. 1 (3d Cir.2000); Goodwin v. Elkins, 730 F.2d at 109. 4

As enunciated by the Federal Arbitration Act, 9 U.S.C. § 1, et. seq., there is a strong federal policy favoring arbitration requiring that the courts rigorously enforce agreements to arbitrate. Shearson/American Express, Inc. v. McMahon, 482 U.S. 220, 226, 107 S.Ct. 2332, 2337, 96 L.Ed.2d 185 (1987); Roodveldt v. Merrill Lynch, Pierce, Fenner & Smith, 585 F.Supp. 770, 779 (E.D.Pa.1984). Under the FAA, the district court must first satisfy itself that there is a valid agreement to arbitrate keeping in mind that there is a strong presumption in favor of arbitration and that all doubts concerning the scope of arbitrable issues should be resolved in. favor of arbitration., Great Western Mortgage Corp. v. Peacock, 110 *665 F.3d 222, 228 (3d Cir.1997). See Also, Moses H. Cone Memorial Hospital v. Mercury Construction Corporation, 460 U.S. 1, 24-25, 103 S.Ct. 927, 941, 74 L.Ed.2d 765 (1983).

Similarly, Pennsylvania law is well established that a party against whom arbitration is sought under an alleged agreement to arbitrate has a right to a judicial determination of (1) whether the parties entered into an agreement to arbitrate and (2) whether the dispute at issue falls under the agreement. Allstate Insurance Company v. Gammon, 838 F.2d 73, 76 (3d Cir.1988), citing Lincoln University v. Lincoln University Chapter of the Association of University Professors, 467 Pa. 112, 119, 354 A.2d 576, 580 (1976) and Independence Development, Inc. v. American Arbitration, 460 Pa.

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309 F. Supp. 2d 661, 2004 U.S. Dist. LEXIS 3901, 2004 WL 547527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rath-v-casey-paed-2004.