Slade v. Empire Today, LLC

Background

Empire Today, LLC moved to compel Jeul Slade to arbitrate his claims and to dismiss the action with prejudice. The motion was heard by videoconference on February 16, 2021.

Court’s analysis

Applying the standard used for motions that resemble summary-judgment proceedings, the court found a material dispute of fact about whether the parties formed an agreement to arbitrate. Because Empire Today had not established the existence of such an agreement on the current record, the court did not reach Slade’s arguments concerning whether the agreement was unconscionable or whether his claims were exempt from the Federal Arbitration Act. The court stated that those arguments did not persuade it on the existing record, but explained that it was not deciding them because the agreement’s existence had not been established.

The court also noted that Slade had filed separate objections to Empire Today’s evidence, contrary to a local rule requiring evidentiary and procedural objections to appear in the motion brief. The court did not consider that separate filing.

Ruling and next steps

The court denied the motion to compel arbitration without prejudice. It granted the parties leave to take limited discovery only on contract formation. By May 28, 2021, Empire Today had to file either a renewed motion to compel arbitration or, alternatively, the parties had to file a joint statement explaining how they wished to proceed. The court set June 4, 2021, as the compliance deadline and terminated Docket No. 10.