Waithaka v. Amazon.com Inc

CourtDistrict Court, W.D. Washington
DecidedNovember 30, 2020
Docket2:19-cv-01320
StatusUnknown

This text of Waithaka v. Amazon.com Inc (Waithaka v. Amazon.com 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
Waithaka v. Amazon.com Inc, (W.D. Wash. 2020).

Opinion

7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE

9 BERNARD WAITHAKA, on behalf of 10 himself and all others similarly situated, No. C19-01320-RSM

11 Plaintiff, ORDER GRANTING DEFENDANTS’ MOTION TO EXTEND STAY 12 v.

13 AMAZON.COM, INC., AMAZON LOGISTICS, INC., 14 Defendants. 15

16 I. INTRODUCTION 17 18 This matter comes before the Court on Defendants Amazon.com, Inc. and Amazon 19 Logistics, Inc. (collectively, “Amazon”)’s Motion to extend stay pending the U.S. Supreme 20 Court’s decision on Defendants’ petitions for writ of certiorari. Dkt. #84. Plaintiff Bernard 21 Waithaka opposes Amazon’s motion. Dkt. #87. The Court finds oral argument unnecessary to 22 rule on the issues. Having reviewed Defendants’ motion, Plaintiff’s response, and the 23 remainder of the record, the Court GRANTS Defendants’ motion. 24 // 25 26 // 1 II. BACKGROUND 2 A. Factual Background 3 Plaintiff Waithaka is an Amazon Flex (“AmFlex”) delivery driver for Amazon. 4 Amazon historically used third-party delivery providers like FedEx and UPS to deliver its 5 products but recently began using independent contractors for delivery services for the last mile 6 of the order. These “last mile” delivery drivers, like Plaintiff, use the AmFlex smartphone 7 8 application to sign up for delivery shifts and use their own methods of transportation, such as a 9 private vehicle, to deliver products subject to Amazon’s service standards. Contractors are paid 10 an hourly rate for their shifts but are not compensated for additional time needed to complete 11 all their deliveries, nor are they reimbursed for gas, vehicle maintenance, or cellphone data 12 expenses. 13 To work as an AmFlex driver, contractors like Plaintiff must download the AmFlex app 14 and agree to the AmFlex Independent Contractor Terms of Service (“Agreement”). Section 11 15 16 of the Agreement provides, in part, that the Federal Arbitration Act (“FAA”) and applicable 17 federal law “will govern any dispute that may arise between the parties.” Dkt. #31-2 at 10. In 18 a separate section, the Agreement states that “interpretation of this Agreement is governed by 19 the law of the state of Washington without regard to its conflict of laws principles, except for 20 Section 11 of this Agreement, which is governed by the Federal Arbitration Act and applicable 21 federal law.” Id. at 15. 22 23 B. Procedural Background 24 Plaintiff brought this action against Defendants in Massachusetts state court alleging (1) 25 misclassification of AmFlex drivers as contractors; (2) violation of the Massachusetts Wage 26 Act; and (3) violation of the Massachusetts Minimum Wage Law. Dkt. #1-1. Amazon removed 1 the action to the U.S. District Court for the District of Massachusetts. Dkt. #1. Amazon then 2 moved to compel arbitration or, in the alternative, to transfer or stay the case. Dkt. #29. 3 On August 20, 2019, Judge Hillman of the District of Massachusetts granted in part and 4 denied in part Amazon’s motion, concluding that a transfer to the Western District of 5 Washington was proper but denying Amazon’s motion to compel arbitration. Dkt. #59. On the 6 arbitration issue, Judge Hillman concluded that Plaintiff and those similarly situated fall within 7 8 the FAA’s transportation worker exemption, 9 U.S.C. § 1, that Massachusetts law therefore 9 governed the enforceability of the arbitration provision, and that the provision was 10 unenforceable based on Massachusetts public policy. Waithaka v. Amazon.com, Inc., 404 F. 11 Supp. 3d 335, 343, 346, 348 (D. Mass. 2019). Amazon appealed Judge Hillman’s ruling on the 12 FAA transportation worker exemption to the U.S. Court of Appeals for the First Circuit. 13 On July 17, 2020, the First Circuit affirmed the district court’s holding as to the scope 14 of 9 U.S.C. § 1, agreeing that the FAA transportation worker exemption encompasses the 15 16 contracts of transportation workers, like Plaintiff, “who transport goods or people within the 17 flow of interstate commerce, not simply those who physically cross state lines the course of 18 their work.” Waithaka v. Amazon.com, Inc., 966 F.3d 10, 13 (1st Cir. 2020). On September 1, 19 2020, the First Circuit denied Amazon’s petition for rehearing en banc. See Waithaka, No. 19- 20 1848 (1st Cir. Sept. 1, 2020). 21 C. Rittmann Litigation 22 23 A group of AmFlex delivery drivers brought a separate action against Defendants in the 24 U.S. District Court for the Western District of Washington before Judge Coughenour, alleging 25 misclassification of AmFlex drivers as independent contractors. Amazon moved to compel 26 arbitration pursuant to the Agreement. The district court denied Amazon’s motion to compel 1 arbitration on the basis that plaintiffs fell within the FAA’s transportation worker exemption, 2 which the Ninth Circuit affirmed. Rittmann v. Amazon.com, Inc., 383 F. Supp. 3d 1196 (W.D. 3 Wash. 2019), aff’d, 971 F.3d 904 (9th Cir. 2020). Judge Bress dissented with the majority’s 4 interpretation of “engaged in foreign or interstate commerce” under 9 U.S.C. § 1 on the basis 5 that a delivery worker must belong to a “class of workers” that crosses state lines in order to 6 qualify for the FAA’s transportation worker exemption. Rittman, 971 F.3d at 921 (J. Bress, 7 8 dissenting). Amazon filed a petition to the Ninth Circuit for a rehearing en banc, which was 9 pending at the time Amazon filed the instant motion. 10 D. Motion to Extend Stay 11 Amazon moves to extend the stay of this case while awaiting (1) the Supreme Court’s 12 ruling on Amazon’s forthcoming petition for a writ of certiorari in Waithaka; and (2) the Ninth 13 Circuit’s ruling on Amazon’s petition for rehearing in Rittmann. After Amazon filed the instant 14 motion, the Ninth Circuit denied rehearing en banc, see Rittmann, No. 19-35381, (9th Cir. Sept. 15 16 25, 2020), Dkt. #70, and Amazon filed a petition for a writ of certiorari that is now pending 17 before the U.S. Supreme Court. See id., petition for cert. filed, No. 20-622 (U.S. Nov. 4, 2020). 18 Accordingly, the only basis for Amazon’s motion to extend the stay is the Supreme Court’s 19 decision on its forthcoming and pending petitions for certiorari in Waithaka and Rittmann. 20 III. DISCUSSION 21 A. Legal Standard 22 23 Whether to stay a lawsuit is within this Court’s discretion. Lockyer v. Mirant Corp., 398 24 F.3d 1098, 1105 (9th Cir. 2005). In considering a stay request, courts weigh the competing 25 interests that will be affected: 26 // 1 the possible damage which may result from the granting of a stay, the hardship or inequity which a party may suffer in being 2 required to go forward, and the orderly course of justice measured in terms of the simplifying or complicating of issues, 3 proof, and questions of law which could be expected to result 4 from a stay.

5 CMAX, Inc. v. Hall, 300 F.2d 265, 268 (9th Cir. 1962). “‘[I]f there is even a fair possibility that 6 the stay . . . will work damage to some one else,’ the party seeking the stay ‘must make out a 7 clear case of hardship or inequity.’” Lockyer, 398 F.3d at 1105 (quoting Landis v. N. Am. Co., 8 299 U.S. 248, 255 (1936)). “The proponent of a stay bears the burden of establishing its need.” 9 Clinton v. Jones, 520 U.S. 681, 708 (1997). 10 Here, Amazon seeks a stay pending the U.S.

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

Related

Lashan D. Hill v. Rent-A-Center, Inc.
398 F.3d 1286 (Eleventh Circuit, 2005)
Landis v. North American Co.
299 U.S. 248 (Supreme Court, 1936)
McDermott International, Inc. v. Wilander
498 U.S. 337 (Supreme Court, 1991)
Packwood v. Senate Select Committee on Ethics
510 U.S. 1319 (Supreme Court, 1994)
Clinton v. Jones
520 U.S. 681 (Supreme Court, 1997)
Circuit City Stores, Inc. v. Adams
532 U.S. 105 (Supreme Court, 2001)
United States v. Janet K. Holland
1 F.3d 454 (Seventh Circuit, 1993)
Asplundh Tree Expert Company v. Robert E. Bates
71 F.3d 592 (Sixth Circuit, 1995)
United States v. Mandycz
321 F. Supp. 2d 862 (E.D. Michigan, 2004)
Cmax, Inc. v. Hall
300 F.2d 265 (Ninth Circuit, 1962)
Subafilms, Ltd. v. MGM-Pathe Communications Co.
24 F.3d 1088 (Ninth Circuit, 1994)
Rittmann v. Amazon.com, Inc.
383 F. Supp. 3d 1196 (W.D. Washington, 2019)
Lightfoot v. Cendant Mortg. Corp.
580 U.S. 82 (Supreme Court, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Waithaka v. Amazon.com Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waithaka-v-amazoncom-inc-wawd-2020.