Waithaka v. Amazon.com Inc

District Court, W.D. Washington·Decided November 30, 2020·No. 2:19-cv-01320·Unknown

Opinion

WESTERN DISTRICT OF WASHINGTON

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

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

LOGISTICS, INC., Defendants.

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

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