Campbell v. Keagle Inc.

Dist. Ct. erred in denying defendant-employer’s request to refer plaintiff-employee’s employment-related action to arbitration pursuant to arbitration clause contained in parties’ employment agreement. Although defendant did not contest Dist. Ct.’s finding that aspects of arbitration clause requiring plaintiff to bear all costs of arbitration, while defendant was permitted to select arbitrator and location of arbitration were unenforceable because they were too favorable to defendant, Dist. Ct. could not find that entire clause was unenforceable, where: (1) agreement reflected that both parties had agreed to arbitrate instant dispute; (2) agreement could be enforced without portions of agreement that Dist. Ct. found were too favorable to defendant; (3) decision on who pays for arbitration could be resolved by federal statute that formed basis of plaintiff’s claim; and (4) arbitration rules allowed Dist. Ct. to select arbitrator for arbitration that would occur in same judicial distract as instant litigation. As such, case was remanded with directions for Dist. Ct. to select arbitrator and to refer dispute to arbitration.