John Doe and Jane Doe v. Wayne Natt and Airbnb, Inc.
CourtDistrict Court of Appeal of Florida
Date FiledMarch 25, 2020
Docket2D19-1383
StatusPublished
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Full Opinion
NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING
MOTION AND, IF FILED, DETERMINED
IN THE DISTRICT COURT OF APPEAL
OF FLORIDA
SECOND DISTRICT
JOHN DOE and JANE DOE, )
)
Appellants, )
)
v. ) Case No. 2D19-1383
)
WAYNE NATT and AIRBNB, INC., )
)
Appellees. )
)
Opinion filed March 25, 2020.
Appeal from the Circuit Court for Manatee
County; Charles Sniffen, Circuit Judge.
Thomas J. Seider of Brannock &
Humphries, Tampa, and Damian Mallard
and Alan L. Perez of Mallard Law Firm,
P.A., Sarasota, for Appellants.
Charles E. Stoecker and William L.
Grimsley of McGlinchey Stafford, PLLC,
Fort Lauderdale, for Appellee Airbnb, Inc.
No appearance for remaining Appellee.
LUCAS, Judge
This appeal requires us to delve into the "rather arcane" issue in
arbitration1 of who decides whether a dispute is subject to a contract's arbitration
provision: an arbitrator or a judge. As we will explain, the contract's provision in this
case did not provide clear and unmistakable evidence that only the arbitrator could
decide the issue of arbitrability. Therefore, we must reverse the circuit court's order
which held to the contrary.
I.
A Texas couple, who will be referred to as John and Jane Doe to preserve
their confidentiality, decided to vacation in Longboat Key. Through a business, Airbnb,
Inc. (Airbnb), they located a condominium unit online that was available for a short-term
rental in the Longboat Key area. Using Airbnb's website, Mr. and Mrs. Doe rented the
unit for a three-day stay in May of 2016.
The condominium unit was owned by Wayne Natt. Unbeknownst to the
Does, Mr. Natt had installed hidden cameras throughout the unit. The Does allege that
Mr. Natt secretly recorded their entire stay in his unit, including some private and
intimate interactions. After they learned of Mr. Natt's recordings, the Does filed a
complaint in the circuit court of Manatee County, naming both Mr. Natt and Airbnb as
defendants. Their complaint included claims of intrusion against Mr. Natt, constructive
intrusion against Airbnb, and loss of consortium against both Mr. Natt and Airbnb. In
their constructive intrusion claims, the Does alleged that Airbnb failed to warn them of
past invasions of privacy that had occurred at other properties rented through Airbnb.
1See First Options of Chi., Inc. v. Kaplan, 514 U.S. 938, 945 (1995) ("[T]he
former question—the 'who (primarily) should decide arbitrability' question—is rather
arcane.").
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They also alleged that Airbnb failed to ensure that Mr. Natt's property did not contain
electronic recording devices.
In response to the Does' complaint, Airbnb filed a motion to compel
arbitration. Airbnb argued that the Does' claims were subject to arbitration under
Airbnb's Terms of Service, which the Does agreed to be bound to pursuant to a
"clickwrap" agreement2 they had entered when they first created their respective Airbnb
accounts online.
Specifically, Airbnb's motion relied upon the following language that
appears near the end of the twenty-two-page clickwrap agreement:
Dispute Resolution
You and Airbnb agree that any dispute, claim or controversy
arising out of or relating to these Terms or the breach,
termination, enforcement, interpretation or validity thereof, or
to the use of the Services of use of the Site or Application
(collectively, "Disputes") will be settled by binding
arbitration . . . . You acknowledge and agree that you and
Airbnb are each waiving the right to a trial by jury . . . .
Arbitration Rules and Governing Law. The arbitration will be
administered by the American Arbitration Association
("AAA") in accordance with the Commercial Arbitration Rules
and the Supplementary Procedures for Consumer Related
Disputes (the "AAA Rules") then in effect, except as modified
by this Dispute Resolution section. (The AAA Rules are
available at www.adr.org/arb_med or by calling the AAA at
2A clickwrap agreement has been defined as one that is entered online by
proposing contractual terms and conditions of service to a user, who then indicates his
or her assent to the terms and conditions by clicking an "I agree" box. See Nicosia v.
Amazon.com, Inc., 834 F.3d 220, 233 (2d Cir. 2016). In its motion to compel arbitration,
Airbnb styled its agreement with the Does as "a modified click-wrap presentation" of
Airbnb's terms of service, while the Does refer to it simply as a "clickwrap agreement."
Inasmuch as Airbnb's different nomenclature does not appear to encompass any
substantive definitional distinction, we will use the more widely understood term
clickwrap agreement in this opinion.
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1-800-778-7879.) The Federal Arbitration Act will govern the
interpretation and enforcement of this section.
Airbnb's motion argued that the Does' complaint's allegations "that Airbnb
failed to do what [the Does] alleged should have been done, or otherwise breached
certain duties alleged to be owed to them, are claims for negligence, which have been
held to be within the scope of broad arbitration provisions, such as the one here." But
according to Airbnb, the circuit court should not even consider whether the Does' claims
were arbitrable because the scope of what is or is not arbitrable had to be decided by
American Arbitration Association's (AAA) arbitrator, not the circuit court. Issues about
the scope of arbitrability had been contractually assigned to the arbitrator, according to
Airbnb, by virtue of the clickwrap agreement's reference to the American Arbitration
Association's Commercial Arbitration Rules and the Supplementary Procedures for
Consumer Related Disputes ("AAA Rules"). Although the AAA Rules were not
reproduced within the clickwrap agreement (or, apparently, directly linked), the
clickwrap agreement did direct the Does to a AAA website (and telephone number)
through which, Airbnb contended, they would have found AAA Rule 7, which states:
"The arbitrator shall have the power to rule on his or her own jurisdiction, including any
objections with respect to the existence, scope or validity of the arbitration agreement or
the arbitrability of any claim or counterclaim."
A hearing was held before the circuit court on Airbnb's motion on February
6, 2019. On March 7, 2019, the court issued an order granting Airbnb's motion to
compel arbitration. The order is noteworthy in two respects. First, the court seemed to
be persuaded by the Does' argument that their claims would have been outside the
scope of the clickwrap agreement's arbitration provision. However, the circuit court
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went on to conclude that it was powerless to make that determination because the issue
of arbitrability had to be decided by the arbitrator, not the court. The circuit court held
"that the parties entered an express agreement which incorporated the AAA rules, and
that this court is therefore bound to submit the issue of arbitrability to the arbitrator." In
so holding, the circuit court distinguished this court's prior holding in Morton v.
Polivchack, 931 So. 2d 935, 939 (Fla. 2d DCA 2006), as a case that was "fact-specific"
and confined to the "particular provision" before that panel and instead relied upon the
cases of Reunion West Development Partners, LLLP v. Guimaraes, 221 So. 3d 1278
(Fla. 5th DCA 2017); Younessi v. Recovery Racing, LLC, 88 So. 3d 364 (Fla. 4th DCA
2012), and Terminix International Co. v. Palmer Ranch Ltd. Partnership, 432 F.3d 1327
(11th Cir. 2005), to stay the proceedings and order the parties to proceed to arbitration.
The Does have appealed the circuit court's order pursuant to Florida Rule
of Appellate Procedure 9.130(a)(3)(C)(iv).
II.
Generally, we review an order on a motion to compel arbitration de novo.
Hernandez v. Crespo, 211 So. 3d 19, 24 (Fla. 2016); Wilson v. AmeriLife of E. Pasco,
LLC, 270 So. 3d 542, 545 (Fla. 2d DCA 2019). Issues of contract interpretation are also
subject to de novo review. Bethany Trace Owners' Ass'n v. Whispering Lakes I, LLC,
155 So. 3d 1188, 1191 (Fla. 2d DCA 2014). The particular arbitration provision before
us is governed by the Federal Arbitration Act (FAA),3 which can be applied in both
federal and state court proceedings. Glob. Travel Mktg., Inc. v. Shea, 908 So. 2d 392,
396-97 (Fla. 2005).
3See generally 9 U.S.C. §§ 1–307 (2018).
-5-
A.
When a question over arbitrability arises, who should decide the answer—
the arbitrator or the court—can pose something of an analytical challenge. However,
the United States Supreme Court provided a framework to resolve that first order issue
in First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 945 (1995). In First Options, a
plaintiff firm brought an arbitration proceeding against a husband, his wife, and his
wholly owned corporation. In connection with a "workout agreement," the husband's
corporation had signed a contract with the plaintiff that contained an arbitration
provision, but neither the husband nor his wife had ever executed an agreement with a
similar provision. The arbitrators determined they had the power to rule on all the
issues before them, including the husband and wife's objections to arbitration, and their
award was confirmed by the district court. After the Third Circuit reversed the district
court's confirmation, the case came before the Supreme Court. Id. at 940-41.
The First Options Court began its analysis by highlighting the importance
of the "who decides" arbitrability question under the FAA:
Although the question is a narrow one, it has a
certain practical importance. That is because a party who
has not agreed to arbitrate will normally have a right to a
court's decision about the merits of its dispute (say, as here,
its obligation under a contract). But, where the party has
agreed to arbitrate, he or she, in effect, has relinquished
much of that right's practical value. The party still can ask a
court to review the arbitrator's decision, but the court will set
that decision aside only in very unusual circumstances.
Hence, who—court or arbitrator—has the primary authority
to decide whether a party has agreed to arbitrate can make
a critical difference to a party resisting arbitration.
-6-
Id. at 942 (citations omitted). The First Options Court then went on to explain how to go
about deciding the "who decides" question of arbitrability and the practical concerns that
inform that analysis:
Just as the arbitrability of the merits of a dispute depends
upon whether the parties agreed to arbitrate that dispute, so
the question "who has the primary power to decide
arbitrability" turns upon what the parties agreed about that
matter. Did the parties agree to submit the arbitrability
question itself to arbitration? . . .
....
When deciding whether the parties agreed to arbitrate
a certain matter (including arbitrability), courts generally
(though with a qualification we discuss below) should apply
ordinary state-law principles that govern the formation of
contracts. . . .
This Court, however, has (as we just said) added an
important qualification, applicable when courts decide
whether a party has agreed that arbitrators should decide
arbitrability: Courts should not assume that the parties
agreed to arbitrate arbitrability unless there is "clea[r]
and unmistakabl[e]" evidence that they did so. In this
manner the law treats silence or ambiguity about the
question "who (primarily) should decide arbitrability"
differently from the way it treats silence or ambiguity about
the question "whether a particular merits-related dispute is
arbitrable because it is within the scope of a
valid arbitration agreement"—for in respect to this latter
question the law reverses the presumption.
But, this difference in treatment is understandable.
The latter question arises when the parties have a contract
that provides for arbitration of some issues. In such
circumstances, the parties likely gave at least some thought
to the scope of arbitration. And, given the law's permissive
policies in respect to arbitration, one can understand why the
law would insist upon clarity before concluding that the
parties did not want to arbitrate a related matter. On the
other hand, the former question—the "who (primarily) should
decide arbitrability" question—is rather arcane. A party often
might not focus upon that question or upon the significance
-7-
of having arbitrators decide the scope of their own powers.
And, given the principle that a party can be forced to
arbitrate only those issues it specifically has agreed to
submit to arbitration, one can understand why courts might
hesitate to interpret silence or ambiguity on the "who should
decide arbitrability" point as giving the arbitrators that power,
for doing so might too often force unwilling parties to
arbitrate a matter they reasonably would have thought a
judge, not an arbitrator, would decide.
Id. at 943-45 (fourth and fifth alterations in original) (bold emphasis added) (citations
omitted). The Court concluded that there was no clear and unmistakable evidence that
either the husband or wife had agreed to submit the issue of arbitrability to an arbitrator
and affirmed the judgment of the Third Circuit. Id. at 946-47; cf. Howsam v. Dean Witter
Reynolds, Inc., 537 U.S. 79, 83-84, 86 (2002) (characterizing First Options' clear and
unmistakable evidence standard as an "interpretive rule" and a "strong pro-court
presumption" that applies "where contracting parties would likely have expected a court
to have decided the gateway matter, where they are not likely to have thought that they
had agreed that an arbitrator would do so, and, consequently, where reference of the
gateway dispute to the court avoids the risk of forcing parties to arbitrate a matter that
they may well not have agreed to arbitrate").
In a more recent term, the Supreme Court made it a point to repeat First
Options' "who decides" arbitrability test under the FAA: "This Court has consistently held
that parties may delegate threshold arbitrability questions to the arbitrator, so long as
the parties' agreement does so by 'clear and unmistakable' evidence." See Henry
Schein, Inc. v. Archer & White Sales, Inc., 139 S. Ct. 524, 530 (2019) (quoting First
Options, 514 U.S. at 944). Thus, as the Supreme Court has repeatedly instructed,
under the FAA there must be clear and unmistakable evidence that the parties agreed
-8-
to have the arbitrator decide threshold questions about arbitrability; short of that, the
assumption remains that such disputes are to be decided by a court.
Our district applied First Options in a case that holds certain similarities to
the case at bar. In Morton, 931 So. 2d at 938, a dispute arose between a seller and a
buyer of a residential property over drainage problems that were later discovered on the
property. Pursuant to the purchase contract, the buyer filed a demand for arbitration
alleging fraud against the seller, to which the seller responded with various
counterclaims. Id. Both parties sought punitive damages, but the arbitration panel
concluded it did not have the authority to award punitive damages. Id. Apparently
dissatisfied with that ruling, the buyer filed a separate complaint in the circuit court. Id.
When he attempted to assert a claim for punitive damages in the civil proceeding, the
trial court agreed with the seller that it did not have the authority to review the arbitration
panel’s ruling that the arbitration panel had no power to award punitive damages. Id.
The buyer appealed, arguing that the circuit court, not the arbitration panel, should have
decided the scope of arbitrability for his claim of punitive damages. Id.
Like the Does' clickwrap agreement, the real estate contract in Morton did
"not expressly address the question of who decides issues of arbitrability." Id. And, like
the clickwrap agreement here, the contract before the Morton court stated that a set of
AAA rules would apply in an arbitration proceeding under the contract. Id. There,
however, the similarities between the cases appear to diminish.
From what is reported in the Morton opinion, the AAA rules that were
adopted in the parties' real estate contract contained a section that generally addressed
the timing of raising objections to the arbitrability of a claim; but the rule section did not
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explicitly state who could decide those objections. Id. at 939. Although one could fairly
infer that that section likely contemplated the arbitrator hearing such objections (it was,
after all, found within a body of rules promulgated by an arbitration business for use by
its arbitrators and customers), the Morton court held otherwise. We explained:
"[D]ecisions regarding arbitrability are to be made by
the trial court, unless the parties have entered an agreement
stating otherwise." Romano v. Goodlette Office Park, Ltd.,
700 So. 2d 62, 64 (Fla. 2d DCA 1997) (relying on Thomas
W. Ward & Assocs. v. Spinks, 574 So. 2d 169 (Fla. 4th DCA
1991)); see also Royal Prof'l Builders, Inc. v. Roggin, 853
{ "pageset": "S3dbf
So. 2d 520, 523 (Fla. 4th DCA 2003); Premier
Med. Mgmt., Ltd. v. Salas, 830 So. 2d 959, 961 n.2 (Fla. 1st
DCA 2002). "Contractual silence or ambiguity regarding who
determines the questions of arbitrability is insufficient to give
that authority to the arbitrators." Romano, 700 So. 2d at 64.
"If . . . the parties did not agree to submit the arbitrability
question itself to arbitration, then the court should decide
that question just as it would decide any other question that
the parties did not submit to arbitration, namely,
independently." First Options of Chicago, Inc. v. Kaplan, 514
U.S. 938, 943, 115 S. Ct. 1920, 131 L. Ed. 2d 985 (1995).
"Courts should not assume that the parties agreed to
arbitrate arbitrability unless there is 'clea[r] and
unmistakabl[e]' evidence that they did so." Id. at 944, 115 S.
Ct. 1920 (quoting AT & T Techs., Inc. v. Commc'ns Workers,
475 U.S. 643, 649, 106 S. Ct. 1415, 89 L. Ed. 2d 648
(1986)).
Id. at 938-39 (alterations in original).
The Morton court found "no merit" in the seller's argument that the circuit
court could not decide arbitrability of the punitive damages claim because the AAA rule,
we observed, "only addresses the procedure of raising an objection to arbitrability in an
arbitration proceeding when the arbitration panel has the authority to decide issues of
arbitrability. The provision does not itself grant the arbitration panel that authority." Id.
at 939 (emphasis omitted).
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The question we did not answer in Morton—and which we must now
decide—is whether a contract's arbitration provision's reference to an arbitration rule
that does grant an arbitrator the authority to decide arbitrability clearly and unmistakably
supplants a court's power to rule on the issue of arbitrability. In this case, we hold it
does not.
B.
Arbitration provisions are creatures of contract and must be construed as
"a matter of contract interpretation." See Seifert v. U.S. Home Corp., 750 So. 2d 633,
636 (Fla. 1999) (citing Seaboard Coast Line R.R. v. Trailer Train Co., 690 F.2d 1343,
1352 (11th Cir. 1982); R.W. Roberts Constr. Co. v. St. Johns River Water Mgmt. Dist.,
423 So. 2d 630, 632 (Fla. 5th DCA 1982)); 4927 Voorhees Road, LLC v. Mallard, 163
So. 3d 632, 634 (Fla. 2d DCA 2015). "[C]ourts must place arbitration agreements on an
equal footing with other contracts and enforce them according to their terms." AT&T
Mobility, LLC v. Concepcion, 563 U.S. 333, 339 (2011) (citations omitted) (first citing
Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440, 443 (2006); and then citing
{ "pageset": "S022a
Volt Info. Scis., Inc. v. Bd. of Trs. of Leland Stanford Junior Univ., 489 U.S.
468, 478 (1989)). " 'When interpreting a contract, the court must first examine the plain
language of the contract for evidence of the parties' intent.' . . . 'Intent unexpressed will
be unavailing . . . .' " Beach Towing Servs., Inc. v. Sunset Land Assocs., 278 So. 3d
857, 860 (Fla. 3d DCA 2019) (first quoting Perez-Gurri Corp. v. McLeod, 238 So. 3d
347, 350 (Fla. 3d DCA 2017); then quoting Moore v. Stevens, 106 So. 901, 903 (Fla.
1925)). It is often observed that if there is a dispute over the scope of arbitrability in a
contract, courts will generally resolve the dispute in favor of arbitration. See Jackson v.
- 11 -
Shakespeare Found., Inc., 108 So. 3d 587, 593 (Fla. 2013). The question we are faced
with, though, is not what the scope of arbitration is under the clickwrap agreement, but
who should decide that issue. That question is answered from a different perspective:
"courts should not assume that the parties agreed to submit issues concerning
arbitrability to the arbitrator, unless there is a clear and unmistakable agreement to do
so," and furthermore, contractual ambiguity "is insufficient to give that authority to the
arbitrators." See Romano v. Goodlette Office Park, Ltd., 700 So. 2d 62, 64 (Fla. 2d
DCA 1997) (citing First Options, 514 U.S. at 944)); see also Henry Schein, 139 S. Ct. at
530; Rent-A-Center, W., Inc. v. Jackson, 561 U.S. 63, 69 n.1 (2010)
With that in mind, we will begin by pointing out what is conspicuously
missing in the clickwrap agreement's language. The agreement itself is silent on the
issue of who should decide arbitrability. Cf. Romano, 700 So. 2d at 64. And although
the circuit court concluded that the AAA Rules had been "incorporated" into the parties'
clickwrap agreement for purposes of determining arbitrability (which, the court then
determined, precluded its authority to decide arbitrability), the agreement did not
actually say that. Indeed, whatever may be gleaned from the AAA Rules (a point we will
turn to shortly), those rules were referenced in the clickwrap agreement as a generic
body of procedural rules, and that reference was limited to how "the arbitration" was
supposed to be "administered." Plainly, the agreement's reference to the AAA Rules
and AAA's administration addresses an arbitration that is actually commenced. In other
words, the directive is necessarily conditional on there being an arbitration. If a claim is
arbitrated, then the AAA Rules apply. But if the question were put, "Who should decide
if this dispute is even subject to arbitration under this contract?" to respond, "The
- 12 -
arbitration will be administered by the American Arbitration Association ('AAA') in
accordance with the Commercial Arbitration Rules and the Supplementary Procedures
for Consumer Related Disputes," is not a very helpful answer and not at all clear.
Moreover, the reference to the AAA Rules was broad, nonspecific, and
cursory: the clickwrap agreement simply identified the entirety of a body of procedural
rules. The agreement did not quote or specify any particular provision or rule, such as
the one Airbnb now relies upon. And the AAA Rules were not attached to the
agreement. It does not appear from our record that an operative link to the AAA Rules
was even provided within the online clickwrap agreement.4 Instead, the agreement
directed the Does to AAA's website and phone number if they wished to learn more
about what was in the AAA Rules. Which strikes us as a rather obscure way of evincing
"clear and unmistakable evidence" that the parties intended to preclude a court from
deciding an issue that would ordinarily be decided by a court.
Assuming the clickwrap agreement's passing reference to AAA and the
AAA Rules sufficiently showed an intent that those rules (whatever they may say) could
supplant the trial court's presumed authority to decide arbitrability, there is then the
4Cf. Nicosia, 834 F.3d at 233 ("In contrast [to clickwrap agreements],
'browsewrap' agreements involve terms and conditions posted via hyperlink, commonly
at the bottom of the screen, and do not request an express manifestation of assent.
See Specht[ v. Netscape Commc'ns Corp., 306 F.3d 17, 31–32 (2d Cir. 2002)]
(describing what would later be termed 'browsewrap'). In determining the validity of
browsewrap agreements, courts often consider whether a website user has actual or
constructive notice of the conditions. See id. at 32; Schnabel[ v. Trilegiant Corp., 697
F.3d 110, 129 n.18 (2d Cir. 2012)] (noting that browsewrap provisions are generally
enforced only if 'the website user . . . had actual or constructive knowledge of the site's
terms and conditions, and . . . manifested assent to them' (quoting Cvent, Inc. v.
Eventbrite, Inc., 739 F. Supp. 2d 927, 937–38 (E.D. Va. 2010))) . . . ." (alterations in
original)).
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added uncertainty of whether the AAA Rules, in fact, did so. Again, the pertinent
arbitration rule Airbnb relies upon states that "[t]he arbitrator shall have the power to rule
on his or her own jurisdiction, including any objections with respect to the existence,
scope or validity of the arbitration agreement or the arbitrability of any claim or
counterclaim." And, again, we find something missing. This rule confers an
adjudicative power upon the arbitrator, but it does not purport to make that power
exclusive. Nor does it purport to contractually remove that adjudicative power from a
court of competent jurisdiction. See Ajamian v. CantorCO2e, L.P., 137 Cal. Rptr. 3d
773, 790 (Cal. Ct. App. 2012) ("[T]he rule merely states that the arbitrator shall have 'the
power' to determine issues of its own jurisdiction . . . . This tells the reader almost
nothing, since a court also has the power to decide such issues, and nothing in the AAA
rules states that the AAA arbitrator, as opposed to the court, shall determine those
threshold issues, or has exclusive authority to do so . . . ."). Indeed, in most interpretive
contexts, the statement, "shall have the power," does not even constitute a mandatory
directive. See, e.g., Sony Corp. of Am. v. Universal City Studios, Inc., 464 U.S. 417,
456 (1984) (concluding that the phrase "Congress shall have the power" is permissive
(citing Deepsouth Packing Co. v. Laitram Corp., 406 U.S. 518, 530 (1972))); People ex
rel. Oak Supply & Furniture Co. v. Dep't of Rev., 342 N.E. 2d 53, 55 (Ill. 1976)
(construing state statute that authorized state's department of revenue to issue
subpoenas, concluding that "the word 'shall' is to be read as permissive—'shall have the
power to' or 'may.' "); Johnson v. Commonwealth ex rel. Meredith, 165 S.W.2d 820, 825
(Ky. 1942) (observing that the statutory phrase "shall have the power and the authority"
is equivalent to "the permissive word, 'may' ").
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In our view, the parties' "manifestation of intent," Rent-A-Center, 561 U.S.
at 69 n.1 (emphasis omitted), in the clickwrap agreement fell short of the clear and
unmistakable evidence of assent that First Options requires.
C.
We recognize that our decision may constitute something of an outlier in
the jurisprudence of arbitration. Several federal circuit courts of appeal have concluded
that an arbitration rule that confers a general authority on an arbitrator to decide
questions of arbitrability, when incorporated into an agreement, evinces a sufficiently
clear and unmistakable intent to withdraw the issue from a court's consideration. See,
e.g., Belnap v. Iasis Healthcare, 844 F.3d 1272, 1290 (10th Cir. 2017) ("[A]lthough this
is a question of first impression in our court, a majority of our sister circuits have
concluded that a finding of clear and unmistakable intent to arbitrate arbitrability—which
may be inferred from the parties' incorporation in their agreement of rules that make
arbitrability subject to arbitration—obliges a court to decline to reach the merits of an
arbitrability dispute regarding the substantive claims at issue."); Oracle Am., Inc. v.
Myriad Grp. A.G., 724 F.3d 1069, 1074 (9th Cir. 2013) ("Virtually every circuit to have
considered the issue has determined that incorporation of the American Arbitration
Association's (AAA) arbitration rules constitutes clear and unmistakable evidence that
the parties agreed to arbitrate arbitrability. . . . We see no reason to deviate from the
prevailing view . . . ." (citations omitted)); Petrofac, Inc. v. DynMcDermott Petroleum
Operations Co., 687 F.3d 671, 675 (5th Cir. 2012) ("We agree with most of our sister
circuits that the express adoption of these rules presents clear and unmistakable
evidence that the parties agreed to arbitrate arbitrability."); Terminix Int'l Co. v. Palmer
- 15 -
Ranch Ltd. P'ship, 432 F.3d 1327, 1332 (11th Cir. 2005) ("By incorporating the AAA
Rules, including Rule 8, into their agreement, the parties clearly and unmistakably
agreed that the arbitrator should decide whether the arbitration clause is valid."); Contec
Corp. v. Remote Sol. Co., 398 F.3d 205, 208 (2d Cir. 2005) ("We have held that when,
as here, parties explicitly incorporate rules that empower an arbitrator to decide issues
of arbitrability, the incorporation serves as clear and unmistakable evidence of the
parties' intent to delegate such issues to an arbitrator."); Apollo Computer Inc. v. Berg,
886 F.2d 469, 473 (1st Cir. 1989) ("By contracting to have all disputes resolved
according to the Rules of the ICC, however, Apollo agreed to be bound by Articles 8.3
and 8.4. These provisions clearly and unmistakably allow the arbitrator to determine
her own jurisdiction when, as here, there exists a prima facie agreement to arbitrate
whose continued existence and validity is being questioned.").
Two of our sister district courts of appeal have followed this trend. See
Reunion W. Dev. Partners, LLLP v. Guimaraes, 221 So. 3d 1278, 1280 (Fla. 5th DCA
2017) ("[W]hen . . . parties explicitly incorporate rules that empower an arbitrator to
decide issues of arbitrability, the incorporation serves as clear and unmistakable
evidence of the parties' intent to delegate such issues to an arbitrator." (alterations in
original) (quoting Contec Corp., 398 F.3d at 208)); Glasswall, LLC v. Monadnock
Constr., Inc., 187 So. 3d 248, 251 (Fla. 3d DCA 2016) ("In so holding, we note that the
parties are in agreement that the majority of federal courts considering similar
circumstances where the AAA's arbitration rules have been incorporated by reference
into a contract likewise have found that the parties sufficiently evidenced their intent to
have arbitrators, not a court, hear and decide issues of arbitrability.").
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We respectfully disagree with these holdings because we do not believe
they comport with what First Options requires. As the Does point out, none of these
cases have ever examined how or why the mere "incorporation" of an arbitration rule
such as the one before us (which the Belnap court candidly likened to "inferring" assent,
844 F.3d at 1290) satisfies the heightened standard the Supreme Court set in First
Options, nor how it overcomes the "strong pro-court presumption" that is supposed to
attend this inquiry. See Howsam, 537 U.S. at 86. Most of the opinions have simply
stated the proposition as having been established with citations to prior decisions that
did the same. Both parties identify the principal case (from which all these holdings
appear to have derived) as the First Circuit's Apollo decision. But Apollo was issued
years before the Supreme Court's First Options opinion, and so the Apollo court could
not have had First Options' instructions in mind when it issued its opinion. Moreover,
Apollo's analysis on this point was quite limited, comprising of (1) identifying an
arbitration rule that conferred a generalized power to decide arbitrability to the arbitrator,
(2) observing that the rule had been incorporated into the parties' agreement, and (3)
stating "[t]hese provisions clearly and unmistakably allow the arbitrator to determine her
own jurisdiction when, as here, there exists a prima facie agreement to arbitrate." 886
F.2d at 473.5 Apparently, the court simply deemed the requisite clarity to have been
self-evident.6
5Apollo also cited to the First Circuit's prior case of Societe Generale de
Surveillance, S.A. v. Raytheon European Management & Systems Co., 643 F.2d 863,
869 (1st Cir. 1981), as authority for its conclusion. However, the Societe Generale case
was not a dispute over whether a court or an arbitrator should decide arbitrability but
rather one about which arbitrator, in Massachusetts or in Switzerland, was authorized to
preside over a commercial dispute between a French corporation and a Massachusetts
corporation. The First Circuit simply concluded that a district court acted "well within its
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If it was, we confess our failure to see it here. In the case at bar we have
an arguably permissive and clearly nonexclusive conferral of an adjudicative power to
an arbitrator, found within a body of rules that were neither attached nor linked to an
agreement, that itself did nothing more than identify the applicability of that body of rules
if an arbitration is convened. That is not "clear and unmistakable evidence" that these
parties agreed to delegate the "who decides" question of arbitrability from the court to
an arbitrator. To the contrary, the provision Airbnb relies upon is two steps removed
from the agreement itself, hidden within a body of procedural rules, and capable of
being read as a permissive direction. It is at best ambiguous. We may quibble over
what the precise measure of the Supreme Court's "clear and unmistakable evidence"
standard should entail,7 but it surely means evidence of intent that is not ambiguous.
Cf. Romano, 700 So. 2d at 64. Otherwise, we will be treating the "who decides" issue
discretion" to allow the Swiss arbitrator to decide the question of its jurisdiction because
the applicable rules empowered that arbitrator to do so and "[s]ince the arbitrators there
are more likely to be familiar with commercial dealings in this area and with French law."
Societe Generale, 643 F.2d at 869.
6Airbnb's argument for affirmance runs the same course. In its brief,
Airbnb dismisses the absence of a more in-depth consideration of this question in
Apollo because "no further analysis was required of the court in Apollo. The parties in
Apollo agreed to be bound by the ICC Rules. The ICC Rules contained a delegation
clause. The [c]ourt's analysis properly ended there."
7Cf. Richard W. Hulbert, Institutional Rules and Arbitral Jurisdiction: When
Party Intent is not "Clear and Unmistakable", 17 Am. Rev. Int'l Arb. 545, 571-72 (2006)
("Courts can stop misreading arbitral institutional rules. The doctrine that has resulted is
a judicial creation and judicial action could readily resolve it. If that step alone were
{ "pageset": "Starpa
taken, the question of party intent would be dealt with as the matter of fact
it is and not a matter of law to be determined by a factitious inference from institutional
rules. It might then prove to be the rare case where it would be found as a fact that the
parties actually intended that the arbitrators' decision as to their jurisdiction should
constitute the final and determinative decision of that issue." (footnote omitted)).
- 18 -
of arbitrability no differently than any other issue of arbitration, when the Supreme Court
has instructed, repeatedly, that it is a qualitatively different inquiry with a different
analysis. See First Options, 514 U.S. at 944-45 ("[T]he law treats silence or ambiguity
about the question 'who (primarily) should decide arbitrability' differently from the way it
treats silence or ambiguity about the question 'whether a particular merits-related
dispute is arbitrable . . . for in respect to this latter question the law reverses the
presumption. But, this difference in treatment is understandable." (citations omitted)).
III.
We hold that the clickwrap agreement's arbitration provision and the AAA
rule it references that addresses an arbitrator's authority to decide arbitrability did not, in
themselves, arise to "clear and unmistakable" evidence that the parties intended to
remove the court's presumed authority to decide such questions. The evidence on what
these parties may have agreed to about the "who decides" arbitrability question was