No. 18-929

Marcus & Millichap Real Estate Investment Services, Inc., et al. v. Rae Weiler

Lower Court: California
Docketed: 2019-01-17
Status: Denied
Type: Paid
Amici (2)Response RequestedResponse WaivedRelisted (2) Experienced Counsel
Tags: affordable-forum arbitration-agreement arbitration-costs arbitrator-role contract-law cost-sharing cost-sharing-provision federal-arbitration-act federal-arbitration-act-preemption preemption state-contract-law state-law
Key Terms:
Arbitration JusticiabilityDoctri
Latest Conference: 2019-05-30 (distributed 2 times)
Question Presented (AI Summary)

Whether the Federal Arbitration Act preempts a state rule that denies enforcement of a cost-sharing provision in an arbitration agreement without a finding that the provision violates a general principle of state contract law

Question Presented (from Petition)

QUESTIONS PRESENTED This case involves the cost-sharing provision of an arbitration agreement. Executed as part of a contract to buy a restaurant, the agreement provides that the parties would divide arbitration costs equally. The investment turned sour within a few years, and one of the purchasers, Respondent Rae Weiler, sued petitioners for $2.8 million. After incurring only $15,725 in arbitration costs, Weiler asserted that she could not afford her share and demanded that petitioners pay all arbitration costs or lose their right to arbitrate. The California Court of Appeal granted Weiler’s demand. Without finding that the cost-sharing agreement violated any general contract-law doctrine, such as unconscionability, the court held that the state’s public policy favoring access to an affordable forum “far outweighs the interest, however strong, in respecting parties’ agreements to arbitrate.” App. 12a. The decision below, which rests on a state-law rule that applies only to arbitration agreements, will compel petitioners to pay all arbitration costs or lose their federal right to arbitrate. It also leaves courts free to usurp the arbitrator’s traditional role of allocating arbitration costs. The questions presented are: 1. Whether the Federal Arbitration Act preempts a state rule that denies enforcement of a cost-sharing provision in an arbitration agreement without a finding that the provision violates a general principle of state contract law. ii QUESTIONS PRESENTED—Continued 2. Whether this Court’s decision in Howsam v. Dean Witter Reynolds, Inc. requires an arbitrator to decide who pays arbitration costs, as the Fifth Circuit has held, or allows a court to decide, as the California Court of Appeal decided below.

Docket Entries

2019-06-03
Motion for leave to file amici brief filed by The California Building Industry Assn., et al. GRANTED.
2019-06-03
Petition DENIED.
2019-05-14
DISTRIBUTED for Conference of 5/30/2019.
2019-05-14
Reply of petitioners Marcus & Millichap Real Estate Investment Services, et al. filed. (Distributed)
2019-04-29
Brief of respondent Rae Weiler in opposition filed.
2019-03-18
Motion to extend the time to file a response is granted and the time is extended to and including April 29, 2019.
2019-03-06
Motion to extend the time to file a response from March 29, 2019 to April 29, 2019, submitted to The Clerk.
2019-02-27
Response Requested. (Due March 29, 2019)
2019-02-20
DISTRIBUTED for Conference of 3/15/2019.
2019-02-19
Motion for leave to file amici brief filed by The California Building Industry Association, et al. (Distributed)
2019-02-07
Waiver of right of respondent Rae Weiler to respond filed.
2019-01-14
Petition for a writ of certiorari filed. (Response due February 19, 2019)
2018-11-28
Application (18A450) granted by Justice Kagan extending the time to file until January 12, 2019.
2018-11-26
Application (18A450) to extend further the time from December 13, 2018 to January 12, 2019, submitted to Justice Kagan.
2018-10-29
Application (18A450) granted by Justice Kagan extending the time to file until December 13, 2018.
2018-10-25
Application (18A450) to extend the time to file a petition for a writ of certiorari from November 13, 2018 to December 13, 2018, submitted to Justice Kagan.

Attorneys

Marcus & Millichap Real Estate Investment Services, et al.
Alexander DushkuKirton McConkie, Petitioner
Alexander DushkuKirton McConkie, Petitioner
Rae Weiler
Scott Lawrence NelsonPublic Citizen Litigation Group, Respondent
Scott Lawrence NelsonPublic Citizen Litigation Group, Respondent
Cornelius P. BahanCornelius P. Bahan, Inc., Respondent
Cornelius P. BahanCornelius P. Bahan, Inc., Respondent
THE CALIFORNIA BUILDING INDUSTRY ASSN., THE CALIFORNIA BUSINESS PROPERTIES ASSOCIATION, THE CALIFORNIA MANUFACTURERS & TECHNOLOGY ASSOCIATION, CITIZENS AGAINST LAWSUIT ABUSE, LION REAL ESTATE GROUP LLC
Thomas Ryan McCarthyConsovoy McCarthy Park, PLLC, Amicus
Thomas Ryan McCarthyConsovoy McCarthy Park, PLLC, Amicus