PUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
LONG JOHN SILVER’S RESTAURANTS,
INCORPORATED; LONG JOHN SILVER’S,
INCORPORATED,
Plaintiffs-Appellants,
v.
ERIN COLE; NICK KAUFMAN; VICTORIA No. 06-1259
MCWHORTER,
Defendants-Appellees.
SECRETARY OF LABOR,
Amicus Supporting Appellants.
Appeal from the United States District Court
for the District of South Carolina, at Greenville.
Henry F. Floyd, District Judge.
(6:05-cv-03039-HFF)
Argued: December 6, 2007
Decided: January 28, 2008
Before MICHAEL and KING, Circuit Judges, and
Catherine C. BLAKE, United States District Judge for the
District of Maryland, sitting by designation.
Affirmed by published opinion. Judge King wrote the opinion, in
which Judge Michael and Judge Blake joined.
2 LONG JOHN SILVER’S v. COLE
COUNSEL
ARGUED: Kenneth Steven Geller, MAYER BROWN, L.L.P.,
Washington, D.C., for Appellants. Edward D. Sieger, Senior Appel-
late Attorney, UNITED STATES DEPARTMENT OF LABOR,
Washington, D.C., for Amicus Supporting Appellants. Morris Reid
Estes, Jr., STEWART, ESTES & DONNELL, Nashville, Tennessee,
for Appellees. ON BRIEF: Robert P. Davis, David M. Gossett,
Tamara S. Killion, MAYER, BROWN, ROWE & MAW, L.L.P.,
Washington, D.C.; John F. Dienelt, Scott McIntosh, DLA PIPER
RUDNICK GRAY CARY, L.L.P., Washington, D.C.; Henry L. Parr,
Jr., J. Theodore Gentry, Hannah Rogers Metcalfe, WYCHE, BUR-
GESS, FREEMAN & PARHAM, P.A., Greenville, South Carolina,
for Appellants. Thomas J. Ervin, KATHRYN WILLIAMS, P.A.,
Greenville, South Carolina; Darrell L. West, STEWART, ESTES &
DONNELL, Nashville, Tennessee; Brian P. Murphy, Greenville,
South Carolina, for Appellees. Howard M. Radzely, Solicitor of
Labor, Gregory F. Jacob, Deputy Solicitor, Nathaniel I. Spiller, Assis-
tant Deputy Solicitor, UNITED STATES DEPARTMENT OF
LABOR, Washington, D.C., for Amicus Supporting Appellants.
OPINION
KING, Circuit Judge:
Long John Silver’s Restaurants, Incorporated, and Long John Sil-
ver’s, Incorporated (collectively, "LJS"), seek appellate relief from a
January 20, 2006 ruling of the district court declining to vacate an
arbitration award. Long John Silver’s Rests., Inc. v. Cole, No. 6:05-
cv-03039-HFF (D.S.C. Jan. 20, 2006) (the "Opinion").1 In the under-
lying arbitration proceedings, three former LJS managerial employ-
ees, Erin Cole, Nick Kaufman, and Victoria McWhorter (the
"Claimants"), contended that LJS violated the Fair Labor Standards
Act (the "FLSA") by failing to pay them and other LJS employees the
1
The Opinion can be found at J.A. 281-91. (Citations herein to "J.A.
___" refer to the contents of the Joint Appendix filed by the parties in
this appeal.)
LONG JOHN SILVER’S v. COLE 3
overtime compensation required by law. In September 2005, the arbi-
trator ruled, in his Class Determination Partial Final Award (the
"Class Award"),2 that the "opt-in" class certification provision of the
FLSA (codified at 29 U.S.C. § 216(b)) did not apply in the arbitration
proceedings. The arbitrator also ruled that, pursuant to the controlling
arbitration agreement, the arbitration proceedings were governed by
the "opt-out" class certification provision of the Supplementary Rules
for Class Arbitrations of the American Arbitration Association (the
"AAA Class Rules").
In this appeal, LJS contends that the district court erred in two
respects when it declined to vacate the Class Award: first, in failing
to recognize that the arbitrator, in making the Award, had manifestly
disregarded controlling legal principles; and, second, in failing to rec-
ognize that the arbitrator had exceeded the scope of his authority. As
explained below, we reject these contentions and affirm.
I.
A.
As background in this matter, the Claimants are former managers
and managerial assistants of various LJS restaurants. They maintain
that LJS has been engaged in unlawful employment practices, subject-
ing them and others to payroll deductions and salary givebacks to
cover losses in LJS’s restaurant operations. These unlawful practices,
according to the Claimants, violated the FLSA and its regulations on
overtime pay, and resulted in insufficient compensation being paid to
them and others.
In 1995, LJS initiated a mandatory arbitration procedure and com-
menced the use of a uniform arbitration agreement for disputes with
its employees. The arbitration agreement prepared for this purpose
was executed by each of the Claimants. The agreement provides, in
pertinent part, that
[a]ny arbitration will be administered by the American Arbi-
2
The Class Award can be found at J.A. 47-71.
4 LONG JOHN SILVER’S v. COLE
tration Association under its commercial arbitration rules
(except as modified herein) . . . . The arbitrator shall apply
the substantive law (and the laws and remedies, if applica-
ble), in the state in which the claim arose, or federal law, or
both, depending upon the claims asserted.
J.A. 84.
The AAA Class Rules empower an arbitrator to make certain deter-
minations about whether an arbitration agreement permits an arbitra-
tion proceeding to be conducted as a class arbitration. In the event
that the agreement so permits, the arbitrator must decide whether the
arbitration should proceed as a class arbitration by considering the
criteria enumerated in the AAA Class Rules, as well as "any law or
agreement of the parties the arbitrator determines applies to the arbi-
tration." See AAA Class Rule 4(a). When the arbitrator has decided
that the arbitration should proceed as a class arbitration, he must set
forth the basis for that decision in a Class Determination Award,
which defines the class, the notice to be given, and the grounds for
exclusion of class members. See AAA Class Rule 5. AAA Class Rule
7 provides that a final award on the merits of a class arbitration must
define the class "with specificity," including "those who have elected
to opt out of the class."
Like the AAA Class Rules, § 16(b) of the FLSA contains a provi-
sion governing class action proceedings. Unlike the "opt-out" provi-
sion of the AAA Class Rules, however, § 16(b) of the FLSA is an
"opt-in" class provision, providing that
[n]o employee shall be a party plaintiff to any . . . action
[under the FLSA] unless he gives his consent in writing to
become such a party and such consent is filed in the court
in which such action is brought.
29 U.S.C. § 216(b) (the "FLSA § 16(b) provision" or the "§ 16(b) pro-
vision").
LONG JOHN SILVER’S v. COLE 5
B.
On January 21, 2004, Claimants Cole and Kaufman initiated an
arbitration proceeding before the AAA, on behalf of themselves and
others similarly situated. They alleged that LJS, in failing to properly
compensate them, had violated the FLSA.3 On March 4, 2005, the
Claimants filed an amended arbitration complaint with the AAA,
adding McWhorter as a representative claimant and seeking class cer-
tification pursuant to the AAA Class Rules. LJS then secured rulings
from the arbitrator on certain class certification issues, ultimately
leading to this appeal.
First, on June 15, 2004, the arbitrator made a clause construction
award, ruling that the arbitration agreement did not preclude a class
arbitration proceeding. Although the award did not decide whether a
class would ultimately be certified in the arbitration proceeding, LJS
promptly initiated suit in the district court, seeking to vacate the
award. LJS made two assertions in its lawsuit: (1) that the FLSA
§ 16(b) provision permitting employees to pursue collective actions is
a procedural right, and thus had been waived by the arbitration agree-
ments; and (2) that conducting a class arbitration proceeding is incon-
sistent with the FLSA. On September 15, 2005, the district court
dismissed that suit for lack of subject matter jurisdiction. See Cole v.
Long John Silver’s Rests., Inc., 388 F. Supp. 2d 644 (D.S.C. 2005).4
Next, on September 19, 2005, the arbitrator issued its Class Award,
which LJS challenges in this appeal. In the Class Award, the arbitra-
3
A related civil action involving similar compensation issues had been
previously initiated by a former LJS managerial employee in a Tennessee
federal court. That case was dismissed in 2004 because the claims were
deemed subject to arbitration. See Johnson v. Long John Silver’s Rests.,
Inc., 320 F. Supp. 2d 656 (M.D. Tenn. 2004), aff’d, 414 F.3d 583 (6th
Cir. 2005). After the Tennessee lawsuit was filed, Johnson sought certifi-
cation of an "opt-in" class pursuant to the FLSA § 16(b) provision. LJS
opposed any such class certification, however, and moved to compel
arbitration.
4
LJS initially pursued an appeal in this Court of the district court’s dis-
missal of its challenge to the clause construction award. On January 10,
2007, the appeal was dismissed at LJS’s request.
6 LONG JOHN SILVER’S v. COLE
tor ruled that the Claimants could serve as representative plaintiffs in
an "opt-out" class arbitration proceeding — the class being composed
of current and former LJS managerial employees having potential
FLSA claims. In rendering the Class Award, the arbitrator was called
upon to address the apparent conflict between the "opt-in" aspect of
the FLSA § 16(b) provision, on the one hand, and the "opt-out" aspect
of the AAA Class Rules, on the other. In the Class Award, the arbitra-
tor decided that, because "there is no evidence of any congressional
intent" to make the right to the "opt-in" requirement of the § 16(b)
provision nonwaivable, the FLSA did not preclude enforcement of the
parties’ agreement to arbitrate pursuant to the AAA Class Rules.
Class Award 7. Accordingly, the arbitrator applied the "opt-out" pro-
visions of AAA Class Rule 7.
C.
On October 25, 2005, LJS filed suit in the District of South Caro-
lina, seeking to vacate the Class Award, and challenging the arbitra-
tor’s ruling that the FLSA § 16(b) provision was not controlling.5 On
January 20, 2006, the district court filed its Opinion denying LJS’s
request for relief. By the Opinion, the court rejected LJS’s contention
that the FLSA dispositively provides employees a nonwaivable sub-
stantive right to "opt-in" proceedings under the § 16(b) provision.
Having determined that no "clear principle of law bound the arbitrator
in this case," the court further ruled that the arbitrator had satisfied his
obligation to render a reasoned award, that he had not manifestly dis-
regarded the applicable legal principles, and that he had instead "thor-
oughly analyzed the relationship of [the § 16(b) provision] and the
arbitration agreement." Opinion 7. Indeed, as the court recognized,
because the arbitration agreement "undoubtedly gave the arbitrator
authority to invoke equity, it provided him with the power to render
any relief which a court could award." Id. at 9. LJS has appealed, and
we possess jurisdiction pursuant to 28 U.S.C. § 1291.
5
The Secretary of Labor made an amicus curiae submission to the dis-
trict court supporting LJS’s motion to vacate. More particularly, she
asserted that the FLSA § 16(b) provision constituted substantive law and
was nonwaivable.
LONG JOHN SILVER’S v. COLE 7
II.
In conducting an appellate review of a district court’s refusal to
vacate an arbitration award, we are obliged to accept findings of fact
that are not clearly erroneous and to assess conclusions of law de
novo. See First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938,
947-49 (1995). Importantly, any judicial review of an arbitration
award is "extremely limited," and is, in fact, "among the narrowest
known to the law." U.S. Postal Serv. v. Am. Postal Workers Union,
AFL-CIO, 204 F.3d 523, 527 (4th Cir. 2000) (internal quotation
marks omitted). As we have consistently recognized, a reviewing
court is entitled to "determine only whether the arbitrator did his job
— not whether he did it well, correctly, or reasonably, but simply
whether he did it." Mountaineer Gas Co. v. Oil, Chem. & Atomic
Workers Int’l Union, 76 F.3d 606, 608 (4th Cir. 1996). "[A]s long as
the arbitrator is even arguably construing or applying the contract and
acting within the scope of his authority, that a court is convinced he
committed serious error does not suffice to overturn his decision."
United Paperworkers Int’l Union, AFL-CIO v. Misco, Inc., 484 U.S.
29, 38 (1987).
An arbitration award may be vacated if it fails to draw its essence
from the controlling agreement. United Paperworkers Int’l Union,
484 U.S. at 36. And such an award may be overturned if it flowed
from an arbitrator’s manifest disregard of the applicable law. Apex
Plumbing Supply, Inc. v. U.S. Supply Co., 142 F.3d 188, 193 (4th Cir.
1998). In order to secure judicial relief on such grounds, it must be
shown that the arbitrator, in making his ruling, was "aware of the law,
understood it correctly, found it applicable to the case before [him],
and yet chose to ignore it in propounding [his] decision." Remmey v.
PaineWebber, Inc., 32 F.3d 143, 149 (4th Cir. 1994). As one of our
sister circuits has explained, an arbitrator does not act in manifest dis-
regard of the law unless: "(1) the applicable legal principle is clearly
defined and not subject to reasonable debate; and (2) the arbitrator[ ]
refused to heed that legal principle." Merrill Lynch, Pierce, Fenner &
Smith, Inc. v. Jaros, 70 F.3d 418, 421 (6th Cir. 1995).
III.
LJS makes two contentions in support of its position on appeal.
First, it maintains that the arbitrator’s certification of an "opt-out"
8 LONG JOHN SILVER’S v. COLE
class resulted from a manifest disregard of the applicable legal princi-
ples, and that, in particular, the arbitrator disregarded the FLSA
§ 16(b) provision. Second, LJS asserts that the arbitrator exceeded the
scope of his authority in certifying an "opt-out" arbitration class,
rather than applying the "opt-in" aspect of the § 16(b) provision.
A.
In pursuing these contentions, LJS asserts, as a threshold matter,
that an employee cannot be made a party to an FLSA-related civil
proceeding without his consent, and that this statutory right, being
both fundamental and substantive, is not waivable.6 The apparent con-
flict between the AAA Class Rules and the FLSA § 16(b) provision
would necessarily be resolved in favor of an "opt-in" procedure if the
consent requirement of § 16(b) is a substantive right, not waivable by
an arbitration agreement. As the Supreme Court noted in Gilmer v.
Interstate/Johnson Lane Corp., parties who agree to arbitrate a statu-
tory claim "do[ ] not forgo the substantive rights afforded by the stat-
ute," but rather "submit[ ] to their resolution in an arbitral, rather than
a judicial, forum." 500 U.S. 20, 26 (1991) (internal quotation marks
omitted). It is well-settled that a contract to arbitrate an FLSA claim
will not be enforceable if "Congress has evinced an intention to pre-
clude a waiver of judicial remedies for the statutory rights at issue."
Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79, 90 (2000).
Therefore, in order to prove that the "opt-in" requirement of the FLSA
could not be waived by the parties’ agreement to arbitrate under the
AAA Class Rules, LJS must demonstrate that Congress expressly
intended to preclude a waiver of the "opt-in" procedure for class arbi-
tration of FLSA claims, by reference to "the text of the FLSA, its leg-
islative history, or an ‘inherent conflict’" between the AAA Class
Rules and the FLSA’s "underlying purposes." Adkins v. Labor Ready,
Inc., 303 F.3d 496, 506 (4th Cir. 2002); see also Gilmer, 500 U.S. at
26.
6
In an amicus curiae submission in this appeal, the Secretary of Labor
supports LJS’s position, asserting, as she did in the district court, that the
"written consent" provision of the FLSA § 16(b) provision is a substan-
tive and unwaivable right.
LONG JOHN SILVER’S v. COLE 9
LJS has failed to make any such demonstration here. For example,
LJS posits that, in the FLSA § 16(b) provision’s mandate that "con-
sent [must be] filed in the court in which such action is brought," the
word "court" must be accorded its general meaning, which, LJS
asserts, would include an arbitration forum. LJS also references a por-
tion of the legislative history of the § 16(b) provision — particularly,
the remarks of Senator Donnell during a 1947 Senate debate on FLSA
amendments that included the § 16(b) provision — suggesting that it
would be "‘unwholesome’" to allow suits under the FLSA which are
"‘not brought with the actual consent or agency of the individuals for
whom an ostensible plaintiff filed the suit.’" Br. of Appellants 27-28
(citing Arrington v. Nat’l Broad. Co., 531 F. Supp. 498, 502 (D.D.C.
1982) (quoting 93 Cong. Rec. 2182 (1947)));7 see also Hoffmann-La
Roche, Inc. v. Sperling, 493 U.S. 165, 173 (1989) (observing that
Congress enacted the § 16(b) provision "for the purpose of limiting
private FLSA plaintiffs to employees who asserted claims in their
own right and freeing employers of the burden of representative
actions"). Although LJS’s references to the text and legislative history
of the FLSA reassure us of Congress’s intention that the "opt-in" pro-
cedure should apply in arbitration as in court proceedings, they fail
to also convince us that Congress expressly intended that the "opt-in"
procedure could not be waived by the parties’ agreement to an alter-
nate procedure.
We also are not persuaded by LJS’s reliance on a prior decision of
this Court. LJS highlights a footnote in Adkins v. Labor Ready, Inc.,
in which we observed that the fee provision in § 16(b) (a provision
LJS contends is analogous to the "opt-in" aspect of the § 16(b) provi-
7
Senator Donnell’s remarks during the proposed 1947 debate on the
FLSA amendments included the following:
"Obviously, . . . this is a wholesome provision, for it is certainly
unwholesome to allow an individual to come into court alleging
that he is suing on behalf of 10,000 persons and actually not
have a solitary person behind him, and then later on have 10,000
men join in the suit, which was not brought in good faith, was
not brought by a party in interest, and was not brought with the
actual consent or agency of the individuals for whom an ostensi-
ble plaintiff filed the suit."
Arrington, 531 F. Supp. at 502 (quoting 93 Cong. Rec. 2182 (1947)).
10 LONG JOHN SILVER’S v. COLE
sion) is a substantive right retained by parties in arbitration. See 303
F.3d at 502 n.1. LJS acknowledges, however, that no court has explic-
itly ruled that the "opt-in" provision of the § 16(b) provision creates
a substantive, nonwaivable right.8 Put simply, it is far from clear that
the "opt-in" aspect of the § 16(b) provision is such a nonwaivable
substantive right. Having so concluded, we turn to LJS’s contentions
that the arbitrator manifestly disregarded the applicable legal princi-
ples and exceeded the scope of his authority in rendering the Class
Award.
B.
1.
In its first contention, LJS asserts that the district court erred in
refusing to vacate the Class Award on the basis that the arbitrator had
manifestly disregarded applicable federal law — namely, the FLSA
§ 16(b) provision’s "opt-in" requirement. As discussed above, any
judicial review of an arbitration award must be an extremely narrow
exercise. See United Paperworkers Int’l Union, AFL-CIO v. Misco,
Inc., 484 U.S. 29, 38 (1987); U.S. Postal Serv. v. Am. Postal Workers
Union, AFL-CIO, 204 F.3d 523, 527 (4th Cir. 2000); Mountaineer
Gas Co. v. Oil, Chem. & Atomic Workers Int’l Union, 76 F.3d 606,
608 (4th Cir. 1996). In order to overturn an arbitration award on the
basis of the arbitrator’s manifest disregard of the law, the party pursu-
ing that effort must sustain a heavy burden, and is obliged to show
that the arbitrator knowingly ignored applicable law when rendering
his decision. Remmey v. PaineWebber, Inc., 32 F.3d 143, 149 (4th
Cir. 1994).
In making the Class Award, the arbitrator specifically assessed the
8
By contrast, the Claimants point out that the Supreme Court has rec-
ognized that employees are entitled to waive their right to collective
action by agreeing to mandatory arbitration. See Gilmer v. Inter-
state/Johnson Lane Corp., 500 U.S. 20 (1991) (upholding compulsory
arbitration agreement under the Age Discrimination in Employment Act
of 1967). If the right to initiate a collective action can be waived, as the
Claimants assert, it may be inferred that an "opt-in" procedure relating
to any such right (here, the FLSA § 16(b) provision) can also be waived.
LONG JOHN SILVER’S v. COLE 11
possibility that "Congress [had] evinced an intention to preclude a
waiver of judicial remedies" for the consent mandate of the FLSA
§ 16(b) provision. Class Award 7 (citing Gilmer, 500 U.S. at 26). He
concluded, however, that "there is no evidence of any congressional
intent which would impose an opt-in provision upon a class action
being privately arbitrated," and thus that such a procedure remained
waivable. Id. After careful analysis, the arbitrator then ruled in the
Class Award that the use of an "opt-out" class in the class arbitration
proceeding was proper. According to the arbitrator, LJS’s pretrial
maneuvering in the Johnson case, see supra note 3, had occasioned
a substantial delay in the processing of potential claims, and had
threatened the resolution of legitimate claims, such that the adoption
of the "opt-in" procedure of the § 16(b) provision "would now create
a fundamental unfairness" by "significantly reduc[ing] the class popu-
lation in derogation of fundamental FLSA objectives." Class Award
10. On this point, the arbitrator emphasized that equity would be bet-
ter served by safeguarding the rights of potential claimants "‘side-
lined’ during the progress of this case." Id. at 11. And the arbitrator
reasoned that the "opt-out" procedure best achieved FLSA’s objective
of permitting states (and by analogy, private parties) to "adopt higher
standards than those established in the [FLSA]," as well as the Fed-
eral Arbitration Act’s preference for "the procedural rules defined by
private contract." Id. at 8.
In rejecting LJS’s challenge to the Class Award, the district court
acknowledged the uncertainty as to whether Congress intended to
apply the FLSA § 16(b) provision’s "consent in writing" requirement
in arbitration proceedings, and concluded that the arbitrator was not,
therefore, bound by any "clear principle of law" in rendering the
Award. Opinion 5. The court further observed that the parties had
been accorded "a full and fair opportunity to present their competing
views of the relevance of FLSA § 16(b) to the arbitration proceed-
ings," and that the Class Award was based on a reasonable interpreta-
tion of the FLSA and the Federal Arbitration Act. Id. at 7.
On this record, we are similarly convinced that the arbitrator "did
his job." See Mountaineer Gas, 76 F.3d at 608. Because there is a
debatable contention that the FLSA § 16(b) provision did not explic-
itly overrule the "opt-out" feature of the arbitration agreement, the
arbitrator did not ignore the FLSA or any other applicable legal prin-
12 LONG JOHN SILVER’S v. COLE
ciples when he certified an "opt-out" class in the Class Award, and
LJS has thus not sustained its heavy burden to demonstrate otherwise.
See Remmey, 32 F.3d at 149. The district court accordingly did not
err in declining to vacate the Class Award on this basis.
2.
LJS’s second appellate contention is that the district court erred in
failing to vacate the Class Award on the ground that the arbitrator
exceeded the scope of his authority under the arbitration agreement
by certifying an "opt-out" arbitration class. On this point, LJS argues
that the plain terms of the arbitration agreement required the arbitrator
to "apply the ‘federal law’ regarding the claim at issue, provide ‘the
same protections as a court of law,’ and award only that relief avail-
able in a ‘court of law.’" Br. of Appellants 47. More specifically, LJS
relies on specific language drawn from the arbitration agreement.
See J.A. 81 ("If you win, the arbitrator can award you anything you
might seek through a court of law."); id. at 84 ("The arbitrator shall
apply the substantive law (and the laws of remedies, if applicable) in
the state in which the claims arose, or federal law, or both . . . ."). LJS
asserts that, by approving an "opt-out" class, the arbitrator ignored the
terms of the agreement requiring him — in exercising the authority
he derived therefrom — to apply the "opt-in" requirement of the
FLSA § 16(b) provision.
The district court deemed LJS’s argument on this point unpersua-
sive, observing that the arbitrator’s decision in the Class Award to
certify an "opt-out" class was simply a matter of contract interpreta-
tion, and thus well within his authority. The central question, as
framed by the arbitrator and the court, was whether the arbitration
agreement that incorporated the AAA Class Rules authorized the use
of an "opt-out" procedure. With regard to the proposition that the
arbitration agreement unambiguously required the arbitrator to adhere
to the FLSA § 16(b) provision, the court disagreed, observing that the
arbitrator was forced to interpret the agreement precisely "because of
its ambiguity as to whether § 16(b) or the AAA rules would apply to
class certification." Opinion 9 (emphasis in original).
Indeed, the first provision of the arbitration agreement upon which
LJS relies — that an employee is entitled in arbitration to anything
LONG JOHN SILVER’S v. COLE 13
he might seek in a court of law — appears only in a portion of the
agreement generally describing the benefits of arbitration. And the
second provision quoted by LJS — requiring the arbitrator to apply
substantive law — could not have limited the arbitrator’s authority in
the manner LJS proposes, when, as we have already explained, it is
far from clear that the "opt-in" procedure of the FLSA § 16(b) provi-
sion creates a substantive, nonwaivable right.9
In making our extremely limited review of the Class Award, we
must, in these circumstances, agree with the district court that the
arbitrator did not exceed the scope of his authority by certifying an
"opt-out" class. See Am. Postal Workers Union, 204 F.3d at 527. As
the district court recognized, the arbitrator "did what he was supposed
to do: he analyzed two conflicting interpretations of the arbitration
agreement and made a reasoned decision as to why an opt-out class
should be certified." Opinion 9. The court thus correctly ruled that it
lacked the authority to vacate the Class Award, which was "at the
very most" only an arguable contravention of the arbitrator’s powers.
Id. at 10. In these circumstances, we are obliged to affirm the district
court.
IV.
Pursuant to the foregoing, we reject the appellate contentions of
LJS with respect to the Class Award and affirm the Opinion of the
9
LJS also asserts that the arbitrator, in making the Class Award, relied
on his personal notions of right and wrong, thus exceeding the scope of
his authority under the arbitration agreement. In support of this proposi-
tion, LJS relies on the arbitrator’s statement in the Class Award that, in
light of LJS’s "endless procedural machination . . . in Johnson and . . .
in this arbitration," "[e]quity is better served by preserving the rights of
potential claimants who have been ‘sidelined’ during the progress of this
case." Class Award 10-11. In this regard, we agree with the district court
that LJS’s assertion is contradicted by the fact that the arbitrator relied
on settled principles in support of his reliance on equity, and by the pro-
vision of the arbitration agreement empowering the arbitrator to "award
any relief which a court could award." Opinion 9.
14 LONG JOHN SILVER’S v. COLE
district court.
AFFIRMED