FILED
NOT FOR PUBLICATION APR 17 2013
MOLLY C. DWYER, CLERK
UNITED STATES COURT OF APPEALS U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
ASHLEY ADAMS, individually and on No. 11-35871
behalf of all others similarly situated,
D.C. No. 2:10-CV-00763-RAJ
Plaintiff,
and MEMORANDUM*
ALEXANDRA SEVERANCE,
Plaintiff - Appellant,
v.
AT&T MOBILITY, LLC, a Delaware
limited liability company,
Defendant - Appellee.
Appeal from the United States District Court
for the Western District of Washington
Richard A. Jones, District Judge, Presiding
Argued and Submitted April 9, 2013
Seattle, Washington
Before: D.W. NELSON, TASHIMA, and CALLAHAN, Circuit Judges.
*
This disposition is not appropriate for publication and is not precedent
except as provided by 9th Cir. R. 36-3.
Plaintiff Alexandra Severance appeals from the district court’s order
compelling arbitration and dismissing the case. We review the validity and scope
of the arbitration clause de novo and the district court’s findings of fact for clear
error. Nagrampa v. MailCoups, Inc., 469 F.3d 1257, 1267 (9th Cir. 2006) (en
banc). We affirm.
I
AT&T Mobility, LLC (“ATTM”) had a contractual right to invoke the
arbitration clause in Severance’s wireless contract because ATTM is New Cingular
Wireless PCS’s parent company and New Cingular Wireless PCS was the
successor to Severance’s contract. Contrary to Severance’s view, DC Newco LLC
never held the wireless contracts; rather, it owned a complete membership interest
in the holding company that owned the contracts, Rural Newco LLC.
II
Severance’s dispute with ATTM is within the scope of the arbitration clause
in her wireless contract. Severance argues that her contract uses the word “us” to
refer only to Unicel. But Unicel is now defunct, so Severance’s proposed
interpretation would effectively nullify the contract. Severance cannot plausibly
argue that the parties intended that the arbitration clause would no longer apply to
any dispute now that Unicel has ceased to be. See Suchoski v. Redshaw, 660 A.2d
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290, 292 (Vt. 1995) (“We interpret the contract according to its terms and the
parties’ intent as expressed in the contract language.”).
At minimum, the contract terms “we” and “us” include Unicel’s successors.
The only remaining question is whether the arbitration clause applies only to
disputes between Severance and Unicel’s successor, New Cingular Wireless PCS,
or whether it also applies to disputes between Severance and New Cingular
Wireless’s parent company, ATTM.1 On this question the text is not perfectly
clear, but we think the latter interpretation is correct. The arbitration clause
redefines the subject pronoun “we” to include various additional parties, such as
assignees, parent companies, successors, subsidiaries, and affiliates. It is unlikely
that the object pronoun “us,” used in the same sentence, was intended to denote
different parties than “we.” It is also implausible that the arbitration clause would
give the authority to compel arbitration to an entity outside the scope of the clause.
A Unicel subsidiary or affiliate would have no reason to elect to arbitrate a dispute
under the contract if the arbitration clause only applied to disputes between
1
The Vermont Supreme Court’s decision in Porter v. AT&T Mobility,
LLC, 35 A.3d 1002 (Vt. 2011), does not inform our resolution of this question.
There, ATTM failed to prove that the plaintiff’s wireless contract was among those
it acquired when it bought various Unicel contracts from Verizon. Id. at 1006.
Here, there is no dispute that Severance’s contract was among those that ATTM
purchased.
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customers and Unicel itself. At the very least, the clause is ambiguous, and the
Supreme Court has been clear that “ambiguities as to the scope of the arbitration
clause” must be “resolved in favor of arbitration.” Mastrobuono v. Shearson
Lehman Hutton, Inc., 514 U.S. 52, 62 (1995) (quoting Volt Info. Scis., Inc. v. Bd. of
Trs. of Leland Stanford Junior Univ., 489 U.S. 468, 476 (1989)).
III
The district court did not clearly err when it found that Severance “f[e]ll well
short of proving” that she has “no effective means to vindicate [her] rights” in
arbitration. Coneff v. AT&T Corp., 673 F.3d 1155, 1159 (9th Cir. 2012) (emphasis
omitted). Severance’s evidence of her prospective arbitral costs—consisting solely
of a declaration by her counsel—explains only that she will be required to engage
in “significant” discovery to prove her case. The declaration contains no specific
details about the expenses she will incur in arbitration. Cf. Italian Colors Rest. v.
Am. Express Travel Related Servs. Co. (In re Am. Express Merchants’ Litig.), 634
F.3d 187, 198 (2d Cir. 2011) (finding that plaintiffs met their burden by submitting
a detailed expert affidavit stating that their expert-witness fees would total at least
$300,000). And, in any case, under the arbitration terms that apply to Severance,
ATTM will bear whatever arbitration costs she incurs. For these reasons, we agree
with the district court that Severance has not met her “burden of showing the
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likelihood of incurring [prohibitively expensive] costs.” Green Tree Fin.
Corp.-Ala. v. Randolph, 531 U.S. 79, 92 (2000).
AFFIRMED.
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