# Opposition Brief — McLeland v. Syncor International Corp.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1998
- **Citation:** 522 U.S. 1110

## Text

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No. JAN 14 (9%

Supreme Court of the United States
OCTOBER TERM 1997
+

In The me —

DAVID L. MCLELAND,

Petitioner,
v.

SYNCOR INTERNATIONAL CORPORATION,
Respondent.

+

On Petition for Writ of Certiorari to the
United States Court of Appeals for the
Fourth Circuit

+

BRIEF IN OPPOSITION TO
PETITION FOR WRIT OF CERTIORARI

+

BENJAMIN L. BAILEY
RONDA L. HARVEY
Counsel of Record
BOWLES RICE McDAVID GRAFF & LOVE, P.L.L.C.
600 Quarrier Street
Post Office Box 1386
Charleston, West Virginia 25325-1386
(304) 347-1100

Counsel for a

LANTAGNE LEGAL PRINTING
801 East Main Street Suite 100 Richmoad, Virginia 23219 (800) 847-0477

i

RESTATEMENT OF QUESTIONS PRESENTED

Whether the Courts below properly construed an arbitration
agreement and ordered enforcement of an arbitrator’s decision
which was rendered ex parte, after notice to petitioner?

ii
TABLE OF CONTENTS
RESTATEMENT OF QUESTIONS PRESENTED ...... i
SOP EOCAUIMOMIHES.................. iii
OPINIONS BELOW ....... OE TY ee Fe eee eae 1
STATEMENT OF JURISDICTION ...............__. |
STATEMENT OFTHECASE.................. 2

A. Basis of Jurisdiction In the First Instance and
Procedural History ..................__ 2
MAMMENICEINEFACTS........... 5
REASONS FOR DENYING THE FRAMLION ......... 12
I. The Petition raises no new legal issues and
conflicts with the strong, clear federal policy

favoring arbitration. ............... 12

I. The ex parte Arbitration was Proper and
McLeland has Offered No Valid Basis for
Overturning the Award.............__. 14
A. This Case Presents No Conflict of Any

Issue Among the Circuit Courts . . . 15
B. The Arbitrator was Neutral, and was
Selected Solely by AAA with No Input
kaa 20

Tl. The Lower Courts Properly Decided that the
Matter was Arbitrable, and the Timing of that
Decision in this Case is Irrelevant ....._. 23

nn MMO eanaERET ontret a cepa tla 27

TABLE OF AUTHORITIES

STATUTES

SAE OTL ED SEONG). ccc ccc rccccccssscccces 1
CASES

Aronson _v. Dean Witter Reynolds, Inc., 675 F.Supp. 1324
GUAPO y in Sue SeieworG Ge Los. ie 25
America, 106 S.Ct. 1415, 475 U.S. 643 (1986) ........ 25
Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 221, 105
S.Ct. 1238, 1242, 84 L.Ed.2d 158 (1985) ............. 12
First Options of Chicago, Inc. v. Kaplan, 115 S.Ct. 1920, 1921
Cares 5 as Fo Oe oc cons bs bp bs bees Viiv cw cee 24
Gilmer v, Interstate/Johnson Lane Corp., 895 F.2d 195 (4th Cir.
a en av eebese nee 25
Peoples Sec, Life Ins. v. Monumental Life Ins. Co., 867 F.2d
BO og oe ak ccc dusaccces 12

Remmey vy. PaineWebber, Inc., 32 F.3d 143, 146 (4th Cir.

iv
477 F.2d
1128 (Sth Cir. (S.D.Tex.) 1973) cert. denied, 414 U.S. 1001
EPEAT OE ies iste eed ty Ma 17-19
107 S.Ct. 2332,
I We: 25

934 F.2d 557 (4th Cir.
i ES SiG aca ge aaa 15, 17, 19

1095, 834 F.2d 751 (9th Cir. (N.D.Calf.) 1987) 16, 17, 19, 24

OPINIONS BELOW

On March 29, 1995, the United States District Court for
the Southern District of West Virginia granted the Motion of
Syncor International Corporation (“Syncor”) to Enforce the
Final Award of Arbitrator, David V. Breen. Petitioner David L.
McLeland (“McLeland”) filed a Motion for a New Trial which
the District Court denied on August 19, 1996. McLeland
appealed to the Fourth Circuit Court of Appeals, and the Fourth
Circuit affirmed the District Court’s Order.

STATEMENT OF JURISDICTION
The United States Court of Appeals for the Fourth

Circuit entered its judgment on August 11, 1997. Petitioner

invokes this Court’s jurisdiction pursuant to 28 U.S.C. §

1254(1), 2101(c).

i

STATEMENT OF THE CASE

A. Basis of Jurisdiction In the First Instance
and Procedural History

This case arises out of dispute between David L.

McLeland (“McLeland”) and his employer, Syncor International
Corporation (“Syncor”). On May 18, 1995, Syncor submitted
an arbitration demand to the American Arbitration Association
(“AAA”), in accordance with the terms of an Arbitration

Agreement voluntarily entered into by McLeland with Syncor.

On July 12, 1995, the AAA scheduled the arbitration to take
place in Charleston, West Virginia on August 21, 1995, and
duly notified both parties. | Respondent’s Appendix A;
Petitioner’s Appendix D at D-7; Petitioner’s Appendix M at M-
11; Respondent’s Appendix B at B-7.

Upon the advice of his first attorney and the theory that
the dispute was not arbitrable, McLeland decided not to appear
at the arbitration. Petitioner’s Appendix E at E-4; Respondent’s

Appendix B at B-3 through B-4. Invoking the Federal

Arbitration Act, 9 U.S.C. 1, et seq., Syncor filed a Complaint

and Petition to Compel Arbitration on August 2, 1995 seeking
a hearing within five (5) days. When the District Court was
unable to hear Syncor’s Petition before August 21, 1995, the
arbitration proceeded ex parte as provided for in the AAA rules
which specifically governed the Arbitration Agreement.
McLeland’s answer to the original Complaint was filed two
days later, on August 23.

The arbitrator issued his lengthy written Arbitrator’ s
Final Award Including Factual Findings and the Reason on
Which the Decision is Based on September 29, 1995. He found
that McLeland had violated several agreements entered into
with Syncor and awarded Syncor damages including, among
other things, 100% of the stock in Princeton Diagnostic
Isotopes, Inc. (“PDI”). Petitioner’s Appendix M at M-1 through
M-18. On October 17, 1995, Syncor filed in the case before the

District Court a Motion to Enforce Arbitrator’s Final Award.

On March 12, 1996, the District Court conducted a
hearing on the Motion, and McLeland testified. On March 29,
1996, the District Court entered an Order granting Syncor’s
Motion to Enforce the Arbitrator’s Award.

McLeland then terminated his relationship with his
original lawyer and retained his present counsel. On April 8,
1996, McLeland moved for a new trial and to set aside Syncor’s
judgment. On April 25, 1996, Syncor filed a response.
Meanwhile, on April 15, 1996, Jeffrey Clanton, McLeland’s
alleged partner, filed a motion to join him as an indispensable
party. On May 2, 1996, Syncor filed its response to Mr.
Clanton’s motion. On August 19, 1996, the District Court
entered an Order denying both motions and upholding its
previous Order enforcing the Arbitrator’s Award.

On September 13, 1996, McLeland appealed the District

Court’s decision to the United States Circuit Court of Appeals

for the Fourth Circuit. Arguments were held on June 4, 1997,

and on August 11, 1997 the Fourth Circuit affirmed the District
Court's order in an unpublished per curiam opinion.
STATEMENT OF THE FACTS

McLeland was employed with Syncor in various
positions for more than ten (10) years. By 1994, he had
advanced to the position of regional pharmacy manager of
between five and ten Syncor pharmacies that generated annual
revenue of between ten and twenty-five million dollars.
Respondent’s Appendix B at B-4 through B-6. During the
course of his employment, McLeland executed various
employment agreements with Syncor. The agreement which is
the primary subject of this appeal is a 1995 Arbitration
Agreement (the “Arbitration Agreement”) in which McLeland
and Syncor agreed to binding arbitration, according to AAA
rules, of disputes arising out of separation from employment.

Petitioner's Appendix O at O-1 through O-2. McLeland

voluntarily entered into the Arbitration Agreement, and had no

concerns or misgivings about entering into it. Respondent’s
Appendix B at B-9 through B-10.

Other agreements between Syncor and McLeland
included a 1993 Employment Agreement (the “Employment
Agreement”). Petitioner’s Appendix K at K-1] through K-4 and
Petitioner’s Appendix L at L-1 through L-5. McLeland also
signed similar 1990 and 1995 Invention, Secrecy and Other
Matters Agreements (the “Secrecy Agreement”). Petitioner’s
Appendix Q at Q-1 through Q-6 . The Employment Agreement
prohibited McLeland from, among other things (i) enticing
other employees to leave Syncor and (ii) competing against
Syncor for a period of ninety (90) days following the
termination of his employment. Petitioner’s Exhibit K at K-1.
The Employment Agreement also created an irrevocable
Consulting Agreement Option during the term of the agreement

and for 90 days thereafter, and also provided for injunctive

relief and attorney’s fees as remedies for any dispute

thereunder. Petitioner’s Appendix K at K-3 through K-4;
Petitioner's Appendix L at L-1 through L-5. McLeland
admitted in open court that he voluntarily agreed to the
restrictive covenant against competition and to the provisions
regarding injunctive relief. Respondent’s Appendix B at B-9
through B-10. The Secrecy Agreement contained similar
provisions, and specifically prohibited McLeland from directly
or indirectly using propriety information to solicit, divert or
otherwise attempt to take away any of Syncor’s customers.
Petitioner’s Appendix Q.

In a letter dated November 28, 1994, Syncor informed
McLeland that, for business reasons, it was necessary for
Syncor to eliminate his position effective December 31, 1994.
Respondent’s Appendix C. Pursuant to company policy,
McLeland received 10 weeks severance pay. Respondent’s

Appendix C. McLeland also received an additional 12 weeks

of severance pay in exchange for signing an Agreement and

Release, releasing Syncor from any claims arising from his
separation of employment. Respondent’s Appendix C;
Petitioner’s Appendix R at R-1] through R-2. On January 5,
1995, McLeland was rehired by Syncor as a temporary
pharmacist. Petitioner’s Appendix Q at Q-1 through Q-6. At
that time, he voluntarily signed the Arbitration Agreement. In
March of 1995, his employment as a temporary pharmacist was
terminated. Respondent’s Appendix D.

Sometime in October or November 1994, on the eve of
the coming termination, McLeland began planning and
pursuing establishing a nuclear pharmacy in _ the
Beckley/Princeton area which he hoped to operate as a joint
venture with Syncor. Petitioner’s Appendix M at M-4 through
M-5. In November, 1994, Syncor rejected McLeland’s idea.
Petitioner’s Appendix M at M-8 through M-9. Although

McLeland was aware of Syncor’s disapproval, he convinced

Wade Hopkins, another Syncor employee, to help him establish

ee ee ee ee

the pharmacy, and Hopkins paid McLeland $20,000.00 for 50%
of its stock. Respondent’s Appendix E; Petitioner’s Appendix
M at M-4 through M-S. In violation of the Secrecy Agreement
and Employment Agreement, McLeland incorporated the
pharmacy as Princeton Diagnostic Isotopes, Inc. on January 31,
1995. Petitioner’s Appendix M at M-4 through M-5.
Without appropriate approval from Syncor, McLeland
also began soliciting Syncor’s customers including two (2) key
customers located in Raleigh County, West Virginia -- Raleigh
General Hospital and Beckley Hospital. Petitioner’s Appendix
M at M-5. At that time, the Beckley Hospital contract was
worth approximately $10,000 per month and the Raleigh
General Hospital contract was worth approximately $23,000 per
month. Petitioner's Appendix M at M-5. These customers

represented about 45% of the business of Syncor’s Huntington,

West Virginia pharmacy. Petitioner’s Appendix M at M-5.

In January or February 1995, after McLeland’s plans for
establishing a joint venture with Syncor had failed, Syncor
became aware of these efforts to establish a competing
pharmacy. Petitioner’s Appendix M at M-11. In February
1995, Mr. Haig Bagerdjian, Syncor’s general counsel, contacted
McLeland regarding his activities. Petitioner’s Appendix M at
M-11. McLeland immediately attempted to negotiate a deal
with Syncor to sell all or part of PDI to Syncor. Petitioner’s
Appendix M at M-11. Despite Syncor’s efforts to resolve this
matter, the parties could not come to terms. Petitioner’s
Appendix M at M-11.

On March 30, 1995, after these negotiations failed,
Syncor wrote McLeland to notify him that it intended to
exercise its option under the 1993 Employment Agreement, to
engage him as a consultant. McLeland refused to sign the

consulting agreement, and this dispute began in earnest, as set

forth in the procedural history in Section A, above.

Meanwhile, Syncor purchased Hopkins’ 50% interest in
PDI. Petitioner's Appendix M at M-11. However, McLeland
refused to transfer the stock certificates, claiming that the stock
was subject to a buy-sell agreement in favor of McLeland.
Petitioner’s Appendix M at M-11. Hopkins never entered into
any such buy-sell agreement. Petitioner’s Appendix M at M-1!1.

On August 21, 1995, as set forth in the procedural
history above, Syncor arbitrated this matter ex parte. The
arbitrator found that McLeland’s activities violated the 1993
Employment Agreement and the 1995 Secrecy Agreement.
Petitioner’s Appendix M at M-18. Pursuant to those
agreements, the arbitrator awarded Syncor 100% of the stock in
PDI, ordered McLeland to cease and desist from soliciting or
selling to Syncor’s customers, and ordered McL-land to cease

and desist from further violating the Agreements. Petitioner's

Appendix M at M-11; Petitioner’s Appendix N at N-1 through

N-3. It is this award, as enforced by both Courts below, which
McLeland seeks to avoid.
REASONS FOR DENYING THE PETITION
I. The Petition raises no new legal issues and conflicts
with the strong, clear federal policy favoring
arbitration.
This Court has directed federal courts to “rigorously
enforce agreements to arbitrate.” Witter Reynolds, Inc. v.
Byrd, 470 U.S. 213, 221, 105 S.Ct. 1238, 1242, 84 L.Ed.2d 158

(1985). The heavy presumption favoring arbitration is based on

the need for speedy and efficient decisions. Peoples Sec. Life

Ins. v. Monumental Life Ins. Co., 867 F.2d 809 (4th Cir. (Md.)
1989). Arbitration cases tend by their nature, to be fact-specific

and to turn on the specific language of the arbitration agreement
at issue. This case fits this model. Accordingly, nothing in this

case presents the sort of novel or critical legal issue which

would warrant granting the Petition.

Syncor obtained the arbitrator’s detailed decision in its
favor on September 29, 1995. Petitioner’s Appendix M at M-1
through M-8. That should have been the final word. McLeland
voluntarily entered into the Arbitration Agreement, and Syncor
had every reason to expect that arbitration would resolve its
dispute with McLeland. The result, however, has been
unnecessary, unwarranted and seemingly unending litigation.
By trying time and time again to avoid his legal obligations,
McLeland has spurned the federal policy favoring arbitration.

These efforts to change the outcome of an arbitration are
disfavored: “Parties may not seek a ‘second bite at the apple’
simply because they desire a different outcome. “To permit

such attempt would transform a binding process into a purely

advisory one.”” Remmey v. PaineWebber, Inc,, 32 F.3d 143,
146 (4th Cir. (N.C.) 1994), citing Richmond, Fredericksburg

Union 1992, 973 F.2d 276 (4th Cir. (Va.) 1992). In the spirit

13

of the strong and clear federal policy favoring arbitration and

for the other reasons set forth below, the Supreme Court should

deny McLeland’s petition.

Il. The ex parte Arbitration was Proper and McLeland
has Offered No Valid Basis for Overturning the
Award.

The Arbitration Agreement is governed explicitly by the

AAA rules. As both the District Court and the Fourth Circuit

concluded, the AAA “rules provide for an arbitration hearing to

proceed ex parte if a party who has received proper notice does
not participate in the hearing.” Memorandum Opinion;

Petitioner’s Appendix B at B-5; Appellate Opinion; Petitioner’s

Appendix A at A-6.

McLeland claims that the ex parte arbitration was
improper because, in his view, the AAA rules require joint
selection of the arbitrator. Since McLeland did not participate

in the selection of the arbitrator, he contends that the arbitration

proceeded in violation of the AAA rules. He further asserts that

the Fourth Circuit’s ruling in this case conflicts with the Fifth
and Ninth Circuits regarding the issue of arbitration
enforcement when the arbitrator was not selected in accordance
with the Arbitration Agreement. Petitioner’s argument is
flawed both legally and factually. First, the Fourth, Fifth and
Ninth Circuits are not in conflict over this issue. Second,
contrary to Petitioner’s assertion, the Arbitrator in this case was
selected in accordance with AAA rules.

A. This Case Presents No Conflict of Any Issue
Among the Circuit Courts.

McLeland asserts that the Fourth Circuit’s holding in
this case and in Sheet Metal Workers Intemational Association
Local Union v, Power City Plumbing & Heating, Inc,, 934 F.2d
557 (4th Cir. (N.D.W.Va.) 1991), that “if the opposing party
was served with proper notice and was aware of the arbitration
proceedings, ‘[t}he arbitration award is valid and fully

,

enforceable despite [that party’s] absence,’” conflicts with

decisions rendered by the Fifth Circuit and Ninth Circuit.

15

Specifically, McLeland claims that this holding is
contrary to the Ninth Circuit’s holding in Toyota of Berkeley v.
Automobile Salesman’s Union, Local 1095, 834 F.2d 751 (9th
Cir. (N.D.Calf.) 1987). Toyota of Berkeley and the Automobile

Salesman’s Union were parties to the collective bargaining
agreement. The Union submitted a grievance to Toyota after
Toyota discharged an automobile salesman. Several months
later the Union submitted a formal demand for arbitration. The
parties agreed on an arbitrator and an arbitration was scheduled,
but Toyota decided it would not participate in the arbitration
because it claimed the Union failed to comply with procedural
requirements. ~The Court in Toyota of Berkeley, construing the
agreement in that case, stated:

If an agreement provides that the parties shall

jointly select an arbitrator, however, the Court

may refuse to enforce an award made following

an ex parte hearing before an arbitrator selected

without the defaulting party’s cooperation on

the grounds that the party not in default should
have sued to compel arbitration.

16

ld, at 754 [emphasis added}. Since the parties had agreed on an
arbitrator before the arbitration, the Ninth Circuit's statement
was merely dicta, and the arbitration agreement in that case
differed from the one at issue in this Petition. Nevertheless,
the Ninth Circuit did not require a court to refuse to enforce an
award when join selection is mandated, but not followed.
Rather, the Ninth Circuit gave the court discretion to enforce
| such an award. Thus, Toyota of Berkeley does not conflict with
the Fourth Circuit’s decision in Power City and the present
case.

Likewise, Power City and the present case do not
conflict with the Fifth Circuit’s decision in Sam Kane Packing
Co. v. Amalgamated Meat Cutters, 477 F.2d 1128 (Sth Cir.
(S.D.Tex.) 1973) cert. denied, 414 U.S. 1001 (1973). Although
the facts in Sam Kane are different from the present case, the
holding again supports enforcement of Syncor’s arbitration

award.

17

Sam Kane involved a collective bargaining agreement

that allowed each party to nominate a representative with the
representative of each party jointly selecting a third arbitrator.
The collective bargaining agreement provided that if one party
did not participate in the arbitration, the representative
appointed by the single party would arbitrate the grievance and
his decision would bind both parties. The Fifth Circuit held that
this clause would be construed strictly to apply only where a
party failed to name a representative to the arbitration board.
Hence, this clause did not apply because Sam Kane Packing
Company named an arbitrator who refused to participate on the
grounds that the case was not arbitrable. The ex parte
arbitration failed to comply with the collective bargaining
agreement, and thus was not enforceable.

In this case, Syncor proceeded to arbitrate this matter in
full compliance with its Arbitration Agreement. The collective

bargaining agreement in Sam Kane contained requirements that

18

were not present in the arbitration agreements in the present
case, in Power City, or Toyota of Berkeley. Thus, Sam Kane
does not conflict with the Fourth or Ninth Circuit decisions.
In fact, the Fifth Circuit’s ruling actually supports the
district court’s enforcement of the arbitration award in this case.
In Sam Kane, the Fifth Circuit “note[d] that had there been a
method whereby an admittedly ‘neutral’ arbitrator was selected
and the company merely refused to participate in the hearing we
would be faced with a strong case for the award.” 477 F2d. at
1136. Contrary to McLeland’s assertions, as discussed below,
a neutral arbitrator was selected by the AAA, in accordance
with its rules, in the present case. Thus, the Fifth Circuit's dicta

in Sam Kane is in accordance with the Fourth Circuit's rulings

in Power City and the present case.

B. The Arbitrator was Neutral, and was
Selected Solely by AAA with No Input from
Syncor.

McLeland attempts to paint a picture of unfairness on
the basis that he failed to participate in the selection of the
arbitrator. Furthermore, he claims that joint selection of the
arbitrator is required by the AAA rules. McLeland’s argument
is factually flawed. First, as the District Court and Fourth
Circuit concluded, the AAA rules merely provide for “joint
input” and do not require joint selection. Secondly, and perhaps
more importantly, the arbitrator was selected completely by the
AAA with no input from Syncor.

The AAA Rules provide for the AAA to send each
party, simultaneously, a list of arbitrators for the parties to
review and make their objections and strikes, if any. These
rules were followed On May 23, 1995, AAA mailed each party

a list of proposed arbitrators and allowed each party to strike

three names from the list. AAA further allowed the parties to

20

list all remaining names in the order of preference on a form
provided by AAA. Syncor did not strike any names, and did
not list the arbitrators in any preferential order. Rather, Syncor
responded that it had no preference. See, Respondent's
Appendix F.

McLeland had his chance to participate in selecting an
arbitrator, but declined. So, the AAA proceeded to select the
arbitrator and schedule the arbitration. McLeland never
expressed any concern with the selection process in his Answer
(filed two days after the arbitration hearing) or in any District
Court brief. Nor did he testify regarding such concerns during
the hearing on Syncor’s Motion to Enforce the Arbitrator’s
Award. In fact, he never filed a brief with the arbitrator, and
never raised any objection to the selection process until he
appealed to the Fourth Circuit. If he had, the record would be

clearer.

21

McLeland complains about being deprived of his
strikes, but he has never made any claim that the arbitrator was
biased, and he has never objected to the choice of the arbitrator.
By his own admission, he was not prejudiced by his failure to
participate in the selection of, the arbitrator. As the Fourth
Circuit found, the AAA rules provide only for joint input, not
joint selection. Since the AAA rules also recognize the validity
of an ex parte arbitration, the Fourth Circuit properly concluded

that the selection of the arbitrator and the arbitration proceeding

itself were both valid despite McLeland’s failure to participate.

Ill. |The Lower Courts Properly Decided that the Matter
was Arbitrable, and the Timing of that Decision in
this Case is Irrelevant.

The District Court thoroughly analyzed the issue of
arbitrability, using the language of the Arbitration Agreement,
the Court found that the dispute was related “to the separation
of respondent from his employment with Syncor” (Petitioner
Appendix B at B-8); and concluded that the case was arbitrable.
The Fourth Circuit upheld that decision, and no basis exists for
revisiting it.

McLeland also claims, however, that the arbitration
should not have proceeded without an order from the Court on
the issue of arbitrability before the arbitration took place. As
a matter of law and policy, this claim should be rejected. The
issue of arbitrability, in every arbitration, is a distinct issue
which courts wills always review; the purposes of arbitration
would be foiled in this case if arbitrability had to be decided, by

a court, before arbitration commenced.

23

Cases cited by McLeland actually contradict his
assertion. In First Options of Chicago, Inc. v. Kaplan, 115 S.Ct.
1920, 1921 (1995), the Supreme Court held that if the parties
agreed to submit the question of arbitrability to the arbitrator,
“then the court should defer to the arbitrator’s arbitrability
decision. If not, then the court should decide the question
independently.” Because the issue is independent, it can be
decided either before or after the arbitration itseli. In First
Options, this Court seemed to anticipate that the arbitration
could take place before the court determines the issue of
arbitrability, to enable the reviewing court to “defer to the
arbitrator’s arbitrability decision.”

Likewise, in Toyota of Berkeley, the Court decided the
issue of arbitrability after the arbitration occurred. Thus,
although arbitrability is a question for the court, it is implicit in
Toyota of Berkeley’s decision that a court may resolve the issue

after the arbitration.

24

Allowing courts to rule on arbitrability after a matter is
arbitrated is also in accordance with the strong federal policy
favoring arbitration. See AT&T Technologies, Inc. v.
Communications Workers of America, 106 S.Ct. 1415, 475
U.S. 643 (1986) (doubts concerning arbitrability should be
resolved in favor of arbitration). Based on the policy favoring
arbitration, courts have placed the burden of proving a matter
is not arbitrable on the party contesting arbitrability. See
generally, Shearson/American Express, Inc. v. McMahon, 107
S.Ct. 2332, 482 U.S. 220 (1987); Gilmer v. Interstate/Johnson
Lane Corp., 895 F.2d 195 (4th Cir. (W.D.N.C.) 1990); Aronson

y. Dean Witter Reynolds, Inc., 675 F.Supp. 1324 (S.D.Fla.

1987).

The burden was on McLeland to prove that the matter
was not arbitrable. Tut nothing in the Arbitration Agreement
supports his argument that arbitrability had to be decided by a

court before the arbitration could begin. Since McLeland did

25

not even attempt to meet that burden prior to the arbitration,
which he could have done by replying promptly to the original
complaint filed by Syncor (See District Court Order, footnote
2, Petitioner’s Appendix B at B-6, 7) the facts of this case and
the federal policy supporting arbitration support the district

court’s resolution of the arbitrability issue after the arbitration.

26

CONCLUSION
The Court should deny McLeland’s petition. The
petition presents no conflict among the Circuits. Moreover, the
District Court properly determined that the case was arbitrable,

and properly enforced the arbitration award.

Respectfully submitted,

dl fale,

L. BAILEY

RONBDAL. HARVEY

BOWLES RICE McDAVID
GRAFF & LOVE, P.L.L.C.

600 Quarrier Street

P. O. Box 1386

Charleston, WV 25325-1386

CHS 136017

27

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386013_1817%3A3. Public record. Not legal advice.
