Ciccio v. SmileDirectClub, LLC

Docket: 20-5833 

Opinion Date: June 25, 2021

Judge: McKEAGUE 

Areas of Law: Arbitration & Mediation

SmileDirect sells orthodontic implements online as an alternative to traditional orthodontists. Plaintiffs sued SmileDirect, alleging false advertising. SmileDirect and its customers had an arbitration agreement that excepted claims within the jurisdiction of Small Claims Court. The district court concluded that whether the claims fell within that exception was a gateway question of arbitrability and that the parties agreed to arbitrate such gateway questions. The consumer plaintiffs voluntarily dismissed their claims. One consumer plaintiff, Johnson filed a demand for class-wide arbitration with the American Arbitration Association (AAA). An AAA administrator stated that AAA’s Healthcare Due Process Protocol and Healthcare Policy Statement applied, which require healthcare providers and their patients to sign an arbitration agreement after a dispute arises in certain cases unless a court order has compelled arbitration. Johnson declined to sign the post-dispute agreement and moved to rejoin this case. The district court held that Johnson satisfied his obligations under the arbitration agreement, concluding that the arbitration agreement did not cover the dispute. The Sixth Circuit reversed. Whether an arbitration agreement covers a dispute is a gateway question of arbitrability, and here the parties delegated such questions to an arbitrator. Under the agreement and the incorporated AAA rules, it was improper for an administrator to effectively answer that gateway question or to overlook it altogether by binding the parties to AAA’s views of sound policy.

Perez v. Sturgis Public Schools

Docket: 20-1076 

Opinion Date: June 25, 2021

Judge: Thapar 

Areas of Law: Civil Procedure, Education Law

When Perez (now 23) was nine, he emigrated from Mexico and started school in the Sturgis. Perez is deaf; the school assigned him a classroom aide who was not trained to work with deaf students and did not know sign language. Perez nonetheless appeared to progress academically. He was on the Honor Roll every semester. Months before graduation, the school informed the family that Perez did not qualify for a diploma—he was eligible for only a “certificate of completion.” Perez filed a complaint with the Michigan Department of Education, citing the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. 1412, the Americans with Disabilities Act (ADA), the Rehabilitation Act, and Michigan disabilities laws. The ALJ dismissed the ADA and Rehabilitation Act claims for lack of jurisdiction. Before a hearing on the IDEA claim, the parties settled. The school agreed to pay for Perez to attend the Michigan School for the Deaf, for any “post-secondary compensatory education,” for sign language instruction, and for the family’s attorney’s fees. Months later, Perez sued Sturgis Public Schools, with one ADA claim and one claim under Michigan law, alleging that the school discriminated against him by not providing the resources necessary for him to fully participate in class. The Sixth Circuit affirmed the dismissal of the claims. Under the IDEA, the decision to settle means that Perez is barred from bringing a similar case against the school in court—even under a different federal law.

Barger v. United Brotherhood of Carpenters & Joiners of America

Docket: 19-3852 

Opinion Date: June 25, 2021

Judge: Batchelder 

Areas of Law: Labor & Employment Law

Local 2, representing carpenters and workers in related industries, is a local affiliate of IKORCC, which is an affiliated regional union of UBC. Barger has been a Local 2 member of Local 2. In 2007-2015, he worked intermittently as a carpenter for SPI, whose client owned and operated the Zimmer Power Station. Barger worked at Zimmer in 2014-2015. After being laid off, Barger called Zimmer’s Maintenance Manager, Lind, asking for a job. When Lind rejected Barger’s request, Barger responded that “[SPI is] stealing money from you” by falsifying hours. Barger told Meier, an IKORCC business agent, that he had told Lind about SPI’s overbilling. Barger said that it was worth the harm to other union members “to get even with” SPI. Meier filed a charge with IKORCC against Barger for violating the UBC Constitution by “Causing Dissension,” and failing to use “every honorable means to procure employment for Brother and Sister Members.” IKORCC fined Barger $5,000; UBC vacated the fine. Meanwhile, ESS hired Barger as an independent contractor. ESS assigned Barger to work at Zimmer. When he arrived, he was denied entry. ESS subsequently stopped offering him assignments. Barger sued, alleging violations of his free speech rights under the Labor-Management Reporting and Disclosure Act (LMRDA), 29 U.S.C. 411(a)(2). The district court granted the defendants summary judgment. The Sixth Circuit reversed in part. Barger’s speech is protected by LMRDA section 101(a)(2) under the form-content-context test; the content of Barger’s speech was of union concern. The defendants had not raised the right of a union to adapt and enforce reasonable rules.