FI FTH DI VI SI ON

M CFA DDEN, C. J.

, R I CKM A N, P. J.

, and SENI OR A PPELLA TE JUDGE PHI PPS

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

https ://w w w

. ga a ppe a ls .us /r ule s

D E A D LIN E S A R E N O LO N G E R TO LLE D IN T

H I S

C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

.

June 28, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 1 A0 29 4 . OM NITECH INSTITUTE, INC. et al v . NORW OOD.

R I C K M A N , Pres i d i n g J u d g e.

Om n i tech In s t i t u t e, In c. an d i t s p re s i d en t

, Ch arl et on Les t er, (co l l ect i v el y

“ Om ni t ech ”) s eek i n t erl ocu t o ry rev i ew o f t h e tri al co u rt ’ s o rd er d en y i n g t h ei r m o t i o n

t o co m p el t h e arb i t rat i o n o f J as m i n e No rwo o d ’ s em p lo y m en t d i s cri m i n at i o n cl ai m s

.

Om n i t ech co nt en d s t hat t he t ri al co u rt erred b y accep t i n g No rwo o d’ s arg u m en t t h at

en fo rcem en t o f t h e a rb i t rat i o n p ro v i s i o n wo ul d p ro h i b i t her fro m effect i v el y

v i n d i cat i ng h er cl ai m s b ecau s e s h e co ul d n o t affo rd t h e arb i trat i o n co s t s

. Becau s e t h e

i s su e o f arb i t rat io n co s t s i s n ot ri p e at t h i s s t ag e o f t h e p ro ceed i n g s , we rev ers e.

On ap peal fro m a d en i al o f a m o t i o n t o co m p el arb i t rat i o n

, we “ rev i ew[ ] t h e

reco rd d e n o v o t o d et erm i ne w h et h er t he tri al co u rt ’ s d en i al o f t h e m o t i o n to co m p el

arb i t rat i on i s co rrect as a m at ter o f l aw. Ho wev er, we d efer t o t h e t ri al co u rt ’ s fi n d i ng so f fact u p o n wh i ch i t s d en i al was b as ed u n l es s t h o s e fi n di n g s are cl earl y erro n eo u s .”

(Ci t at i o n s an d p u n ct uat i o n o m i t t ed .) S ch i n a z i v. E

d en

, 35 1 Ga. Ap p

. 1 5 1 , 1 5 6 (8 3 0

SE2 d 5 3 1) (2 0 1 9).

So v i ewed

, Om

ni t ec h h i r ed No rwo o d in Ap ri l 2 0 1 9 t o wo rk as a s ub s t i t u t e

t each er. Her em

p lo y m en t co n tract c o n t ai n ed an arb it rat i o n cl au s e s t at i n g t h at an y

cl ai m ari si n g o u t of h er em p lo y m en t wo u l d b e set t led by bi nd i ng arb i t rat i on b efo re

a p an el o f t h ree arb i t rat o rs i n acco rd an ce wi t h t h e co m m erci al arb i trat i o n ru l es o f t h e

Am eri can Arb it rat i on As s o ci at i o n (“ AAA”).

Ap p ro x im at el y fi v e m o n t h s aft er s h e h ad b een h i red

, No rwo o d s u ed Om n i t ech

.

In h er co m

p l ai n t, No rwo o d al l eg ed th at Les ter h ad m ad e m ul t i p l e u n w an t ed s ex u al

ad v an ces t o ward h er, i n cl u d i n g g rab b i n g an d ru b b i n g ag ai ns t h er, an d th at wh en s h e

co m p l ai n ed t o h er s u p erv i so r, s h e was t o l d t h at t h e o n l y way t o av o i d i n t eract i n g wi th

Les t er was t o q ui t

, wh i ch s h e u l t i m at el y d i d. No rwo o d ’ s co m p l ai nt as s ert ed st at e l aw

t o rt cl ai m s an d fed eral Ti t l e VII s ex u al h aras sm en t an d ret al i at i o n c lai m s

. In res p o n s e,

Om n i t ech fi l ed a m o t i o n t o co m p el arb i t rat i o n an d d i s m i s s t h e co m p l ai n t. No rwo o d

o p p o s ed t h e m o t i o n

, ack n owl ed g i ng t hat s he h ad ag reed to t h e arb i t rat i o n cl au s e an d

t h at i t co v ered h er cl ai m s

, b u t as s ert i n g t h at i t was n o n et hel es s u nen fo rceab l e.

2Sp eci fi cal l y, N o r w oo d arg u ed t h at s h e co u l d n ot effect i vel y v i nd i cat e h er ri g h t s

t h ro u g h arb i t rat i o n b ecau s e s h e co u l d n ot affo rd t h e arb it rat i o n fees

.

Th e t ri al co u rt d en i ed Om n i t ec h ’ s m o t i o n t o co m

p el arb i t rat io n, fi n d i n g t h at

“ en fo rci n g t h e [arb i t rat io n ] ag reem en t wi l l p recl u d e [No rwo o d ’ s ] effect i v e

v i n d i cat i on o f h er fed eral s t at u t o ry ri g h t s .”

Om n i tech co n t en d s t h at th e t ri al co u rt erred b y accep t i n g No rwo o d ’ s arg u m en t

t h at en fo rcem e n t o f t h e arb i t rat i o n p ro v i s i o n w o u l d p ro h i b i t her fro m effect i v el y

v i n d i cat i ng h er cl ai m s b ecau s e s h e co u ld n o t affo rd t he arb i t rat i o n co s t s.

Th e Fed eral Arb i t rat i on Act (“ FAA”) p ro v i d es t h at arb i t rat i o n ag reem en t s

“ s h al l be v al i d

, i rrev o cab l e, an d en fo rceab l e, s av e u po n s u ch g ro un d s as ex i s t at l aw

o r i n eq u i t y fo r t h e r ev o cat io n o f an y co n t ract .” 9 U. S. C. § 2

. Th i s p referen ce fo r

en fo rci n g arb i t rat i o n ag reem en t s “ req ui res a l i beral read i n g o f [s u ch ] ag reem en t s ,”

an d an y d o u bt s co n cern i n g t h e arb i t rab i l i t y o f an is s u e s h ou l d b e res o lv ed in fav o r o f

arb i t rat i on

. Kr u t v. W

h i t eca p Ho us i ng G r o u

p

, 2 6 8 Ga. Ap p

. 4 3 6

, 4 4 1 (2 ) (a) (6 0 2

SE2 d 2 0 1 ) (2 0 0 4 ) (ci ti n g Mo ses H. Co n e Mem. Ho sp

. v. Mer cu r y Co ns t r

. Co r

p

. , 4 6 0

U. S. 1

, 2 3 (1 03 SCt 9 2 7

, 7 4 LE2 d 7 6 5 ) (1 9 8 3 )). In d eed

, ev en fed eral st at u t o ry

cl ai m s

, s u ch as t h e em

p l o y m en t d is cri m i n at i o n cl ai m s No rwo od as sert s here, m ay b e

res o l ved t h ro u g h arb i t rat i o n – “ s o l o n g as t h e p ro s p ect i v e l i t ig an t effect i v el y m ay

3v i n d i cat e h i s o r h er s t at u t o ry cau s e o f act i o n i n th e arb i t ral fo ru m [.] ” (Ci t at i o n an d

p u n ct u at i o n o m i t t eed .) Gi l mer v. In t er s ta te/ J o h n s o n La ne Co rp

. , 5 0 0 U. S. 2 0

, 2 8

(III) (A) (1 1 1 SCt 1 6 47 , 1 1 4 LE2 d 2 6 ) (1 99 1 ).

In Gr een Tr ee F

i n a n ci a l Co r

p

. -Al a

. v. Ra n d

o l p h

, 53 1 U. S. 7 9 (1 2 1 SCt 5 1 3,

1 4 8 LE2 d 3 7 3 ) (2 0 0 0 ), t h e Su p rem e Co u rt reco g n i zed th at “ [i ] t m ay wel l b e t h at t h e

ex i s t en ce o f l arg e arb i t rat i o n co s t s co u l d p recl ud e a l it i gan t

. . . fro m effect i v el y

v i n d i cat i ng h er fed eral s t at ut ory ri g h t s i n t h e arb i t ral fo ru m

. ” Id

. at 9 0 (III). Becau s e,

t h e reco rd , h o wev er, h ad n o i n fo rm at i o n ab o u t s u ch co s t s o r wh o wo ul d b ear t h em

,

t h e Su p rem e Co u rt h el d t h at “ [t ] h e ‘ ri s k ’ t h at [t h e p l ai n t i ff] wi l l b e s a d d l ed wi th

p ro h ib i t i ve co s t s i s t o o sp ecu l at i v e t o ju s t i fy t h e i n v al i d a t i o n o f an arb i t rat i o n

ag reem en t .” Id . at 9 1 (III).

T h e ci rcu m s t an ces un d er wh i ch t he effect i v e v i n di cat i o n d efen s e wo u ld

i n v a l i d at e an arb it rat i o n ag reem en t i s an i s s u e o f fi rs t i m p res s i o n i n Geo rg i a. Th e

El ev en th Ci rcu i t h as ad d res s ed t h e d efen s e s ev eral t i m es in t h e wak e o f Gr een Tr ee

,

b u t s o far h as reject ed i t as t o o s p ecu l at i ve i n ev ery cas e. In Mu s n i ck v. Ki n g Mo t o r

Co

. o f Ft

. La u der da l e

, 3 2 5 F.3 d 1 2 5 5 (1 1 t h Ci r. 2 0 0 3 ), t h e co u rt h el d t h at “ [u ] n d er

Gr een Tr ee

, [t h e p l ai n t i ff] h as an o b li g at i o n t o o ffer ev i d en ce o f t h e am o un t o f fees

h e i s l i kel y t o i n cu r

, a s w e l l as o f hi s in ab i l i t y t o p ay t h o s e fees .” Id

. at 1 2 6 0 (II).

4No t in g t hat o th er ci rcu i t s h av e t a k en a cas e-b y -cas e ap p ro ach i n ev al uat i n g t h e

s u ffi ci en cy o f a pl ai n t i ff’ s p ro o f, t h e Mu sn i ck co urt reject ed as “ wh o l l y i n ad eq u at e”

t h e p l ai n t i ff’ s affi d av i t s tat i n g t h at h e w as “ fearfu l of a p o t en t i al at t o rn ey ’ s fee award

ag ai n s t [h i m t h at h e] wi l l b e u nab l e t o p ay .” Id

. (p u nct u at i o n o m i t t ed ). Th u s

, Mu s n i ck

es t ab l i s h ed t hat a p l ai n t i ff res i s ti n g arb i t rat i o n can no t t raffi c i n g en eral i t i es

, b u t m u s t

i n s t ead p res en t s p eci fi c, d ol l ar-am o u n t ev i d en ce o f arb i t rat i o n co s t s

.

Ev en s p eci fi c d o ll ar am o u n t s

, h o w ev er, are i n s uffi ci en t u nl es s t h e p l ai n t i ff can

s h o w t h at s h e wi l l act u al l y b e req u i red t o p ay t h em

. Fu rt her, t he pl ai n t i ff m u s t s h o w

t h at s h e i s req u ired t o p ay arb i t rat i o n co s t s at t h e o ut s et

, n o t j u s t t h at t hey m ay b e

as s es s ed l at er. In An d

er s v

. H o m e t o w n Mt

g

. S vcs

., 3 4 6 F.3 d 10 2 4 (1 1 t h Ci r. 2 0 0 3 ),

t h e p l ai n t i ff, wh o h ad b o rro wed m o n ey fro m t he d efen d an t t o b u y a h o m e, s u ed t h e

d efen d an t fo r v i ol at i o n s o f fed eral real es t at e an d l en d i n g l a w. Th e lo an ag reem en t

co n tai n ed an arb i t r a t i o n cl au s e m u ch li k e t h e o ne h ere, req ui ri n g arb i t rat i o n o f

d i s p u t es i n acco rd an ce wi t h AAA’ s co m m erci al d is p u te ru l es

. Id

. at 10 2 6 -1 0 2 7 (I),

1 0 2 8 (II). Th e p l ai nt i ff arg u ed t h at h e “ s i m p l y [co u l d ] n ot affo rd t o p ay t h e $ 3 ,5 0 0 .0 0

t o $ 6 ,0 0 0 .0 0 th at [h e h ad ] d et erm i n ed w[o ul d ] b e req u ired t o arb it rat e [h i s] cl ai m s .”

Id

. at 1 0 2 8 ( I I )

. Th e El ev en t h Ci rcu i t reject ed t h i s arg u m en t

, n o t i n g t hat t h e AAA

ru l es p ro v id e t h at ad m i n i st rat i v e f e e s m ay b e red u ced or d eferred i n t h e ev en t o f

5ex t rem e h ard s hi p o n t h e p art o f ei t h er p art y an d t h at wh i l e o t h er co s t s are g en eral l y

b o rn e eq u al l y by t h e p art i es

, t h e arb i trat o r i s au t ho ri zed to ru le o t h erwi s e. Id

. at 1 0 2 8

(II). 1

Here, i t i s u n d i sp u t ed t h at No rwo od ’ s em p l o y m en t co n t r a c t co n tai n ed an

arb i t rat i on cl au s e wh i ch s tat ed t h at an y cl ai m ari s i n g o ut o f or rel at i n g to t h e co n t ract

o r t h e s erv i ces p ro vi ded p urs u an t t o t h e co n t ract wo u l d be s et tl ed b y b i n d i n g

arb i t rat i on i n acco rd an ce wi t h t h e co m m erci al arb i t rat io n r u l e s o f t h e AAA. To

s u p p ort h e r a r g u m e n t t hat sh e co u l d n o t affo rd th e co s t s o f arb i trat i o n, No rwo o d

s u b m i t t ed a co p y o f AAA’ s co m m erci al arb i t rat i o n ru l es

, wh i ch i n cl ud e a g en eral fee

s ch ed u l e t h at o ut l i n es th e i n i t ial ad m i n i st rat i v e fi l i n g fees b as ed o n t h e am o u n t o f t h e

p l ai n t i ff’ s cl ai m

. T h es e fees are t o b e ad v an ced b y t h e part y fi l i n g t he cl ai m

, h o wev er,

No rw oo d al s o s u b m i t t ed a co p y o f t he co m m erci al arb i t rat io n ru l es wh i ch s peci fi cal l y

p ro v id e th at “ [t ] h e A A A m ay

, i n t h e ev en t of ex t rem e h ard s h i p o n t h e part o f an y

1 Th e An d er s co u rt ex p l ai n ed t h at “ [w] e n eed n o t d eci d e if t h os e p ro v i s i o n s o f

t h e AAA ru l es al o n e are en o u g h t o p recl u d e a fi nd i n g t h a t a r b i t rat i o n w o u l d b e

p ro h ib i t i vel y ex pen s i v e fo r [t h e p l ai n t i ff]

, b ecau se t h ere i s m o re.” An d er s

, 3 4 6 F.3 d

at 1 0 2 8-1 0 2 9 (II). Th e “ m o re” was t h at t he l en d er h ad s t i pu l at ed i n co u rt t hat i f t h e

p l ai n t i ff co u l d n ot affo rd t he arb i t rat i o n ex p en s es

, t h en t h e len d er wo u ld ag ree t o b ear

t h e fees

. Un d er t h o s e ci rcu m st an ces

, t he co u rt fo u n d t h at

, “ it f o l l o ws t h at [t h e

p l ai n t i ff] h as n o t d em o n st rat ed t h at arb i trat i o n w o u l d b e p ro hi b i t i v el y ex p en s i v e fo r

h i m .” Id . at 1 0 2 9 (II).

6p art y

, defer o r red u ce t he ad m i n i s t rat i v e fees .” In ad d i t i on

, t h e part i es are req u i red to

s p l i t th e co s t s an d ex pen s es of arb i trat o rs

, A AA rep res en t at i v es

, an d wi t n es s es

,

“ u n les s t h ey ag ree o t h erwi s e o r u n l es s t he arb i t rat o r i n t h e award as s es ses s u c h

ex p en s es o r an y

p art t h ereo f ag ai n s t an y

s p eci fi ed p art y

o r p art i es .”

Al t h ou g h t h e t ri al co u rt co n cl u d ed t h at t h e fees ci t ed b y No rwo o d w ere n o t t o o

s p ecu l at i v e, t h e co u rt fai l ed t o co n s i d er t he AAA ru l es p ro vi d i n g t h at ad m in i s t rat i v e

fees m ay b e red u ced o r d eferred i n cas e o f ex t rem e fi n an c i a l h a r d sh i p an d t h at

a r bitr a t o rs m ay ch o o s e to ap p ort i o n rem ai n in g ex p en s es i n a m an n er o t h er t h an s i m p l e

co s t -s p l it t i n g an d wh at i m pac t t h o s e ru l es wo u l d h av e o n No rwo o d ’ s cl ai m t h at

arb i t rat i on w o ul d be co s t p ro hi bi t i v e fo r h er. At p res en t, No rwo o d h as n o t es t ab l i s h ed

t h a t s h e wi l l act u al ly b e req u i red t o p ay t h es e fees an d t h u s

, t he t ri al co u rt erred b y

ap p ly i n g t h e effect i v e v i n d i cat i o n d efen s e at t h i s s t ag e o f t he p r o c e e d i n g s

. See

An d er s , 3 4 6 F.3 d at 1 0 2 8 (II). 2

Ju d g men t r ever

s ed

. S en i o r Ap p el l a t e Ju d

g e Her b er t E. P h i

p p s

, c o n cu r

s a n d

McFa d den , C. J. d i s s en ts

.

2 Gi v en o u r h o ld i n g

, we n eed n o t ad dres s Om n i t ech ’ s rem ai ni n g ch al l en g es to

t h e t ri al co urt ’ s o rd er.

7

# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 1 A0 29 4

. OM NITECH INSTITUTE, INC. et al

. v

. NORW OOD.

M C F A D D E N , Ch i ef J u d g e, d i s s en t i n g

.

Th e q u es t io n b efo re t h e s u p eri o r co u rt was wh et h er i n “ s eek [i ng ] t o i n v al i d at e

[t he] arb it rat io n ag reem en t o n t h e g ro u nd t h at arb i trat i o n wo u ld b e pro h i b i t i v el y

ex p en s i v e,” J as m in e No rwo o d m et h er “ b u rd en o f s h o wi n g th e l i kel i h o o d o f i n c ur ri n g

s u ch co s t s .” See Gr een Tr ee Fi n a n ci a l Co r p .-Al a

. v. Ra n d

o l p h

, 53 1 U. S. 7 9

, 9 2 (III)

(1 2 1 SCt 5 1 3

, 1 4 8 LE2 d 3 73 ) (2 0 0 0 ) (em p h as i s ad d ed ). Th e co u rt fo u n d t h at s h e h ad

.

8Th e q u es t i o n b efo re us o n ap p eal i s wh et h er t h ere i s an y ev i d en ce t o su p p o rt t h at

fi nd i ng . Th ere i s.

Th at ev i d en ce es t ab l i s h ed t h at

, u n d er t h e fee s ch ed u l e fo r t h e v en d o r s p eci fi ed

i n t h e arb i t rat i o n ag reem en t

, AAA, an d fo r th e c o m m e rci al arb i t rat io n p ro g ram

s p eci fi ed i n th e ag reem en t

, No rwo o d wo u ld hav e t o p ay ad m i n i s t rat iv e fees of n earl y

7 5 % o f h er an n ual i n co m e t o i n i t i at e arb i t rat i o n

. Th ere i s ev i d e n ce o f o t h er v ery

s u b s t an t i al fe e s a n d e x p en s es th at wo u l d s u b s eq u en t l y accru e. Bu t t h e ev i d en ce o f

t h at i n it i at i o n fee was s u ffi ci en t b y i t sel f t o s u s t ai n t h e t ri al co u rt ’ s fi n d i ng

.

Th e m ajo ri ty o p i n i on u s u rp s t he t ri al co u rt ’ s ro l e as fact fi n d er. Th e fed eral

cas e l aw o n wh i ch t h e m ajo ri t y rel i es i s n o t o n p o i n t

. It i s n o t fact u al l y ap p o s i t e, an d

i t w as d eci d ed u nd er a d i ffere n t s t a n d a rd o f ap p el lat e rev i ew. So I res p ect fu l l y

d i s s en t

.

On ap peal fro m a d en i al o f a m o t i o n t o co m p el arb i t rat i o n

, we “ rev i ew[ ] t h e

reco rd de n o v o t o d et erm i n e wh et h er t h e t ri al co u rt ’ s d en i al o f t h e m o t i o n to co m p el

arb i t rat i on i s co rrect as a m at ter o f l aw. Ho wev er, we d efer t o t he t ri al co urt ’ s fi n d i ng s

o f fact u p o n wh i ch i t s d en i al was b as ed un l es s t h o s e fi nd i n g s are cl earl y erro n eo u s .”

S c hi n az i v. E

d en

, 3 5 1 Ga. A p p

. 1 5 1

, 1 5 6 (8 3 0 SE2 d 5 31 ) (2 0 1 9 ) (ci t a t i o n s a n d

p u n ct u at i o n o m it ted ). “ In Geo rg ia, i t i s w e l l -s et t l ed t h at t h e ‘ cl earl y erro n eo u s ’

9s t an d ard fo r r e v i e w i n g fi n d i n g s o f fact is eq ui v al en t t o t he h i g h l y d eferen t i al ‘ an y

ev i d en ce’ t es t .” Reed v. S t a t e

, 2 9 1 Ga. 1 0

, 1 3 (3 ) (7 2 7 SE2 d 11 2 ) (2 01 2 ) (ci t i n g b o th

ci v i l an d cri m i n al d eci si o n s fo r t h i s p ri n ci pl e).

So o n ap p el l at e rev i ew i n t h i s cas e, t h e q ues t i o n i s s im p l y wh et h er t here i s an y

ev i d en ce fr o m wh i ch t h e t ri al co u rt co u ld h av e co n cl u d ed t h at N o rwo o d m et h er

b u rd en o f s h o wi n g t h at sh e w a s l i k e l y t o i n cu r co s t s th at wo u l d m ak e acces s t o t h e

arb i t ral fo ru m p ro h i b i t iv el y ex pen s i v e t o h er. I em ph as i ze t h at u nd er Gr een Tr ee s h e

n eed ed o n l y s h o w t hat i t i s li kel y s h e wo u l d in cu r p ro hi b i t i v el y ex p en s i v e co s t s

, n ot

t h at s h e d efi n i tel y wo u l d i n cu r t h em

. Gr een Tr ee

, 5 31 U. S. at 9 2 (III). Th e reco rd in

t h i s cas e d o es co nt ai n s uch ev i d en ce. Th at ev i d en ce i s s uffi ci en t t o s u s tai n t h e t ri al

co u rt ’ s ru l i n g.

Th e reco rd co n tai n s No rwo o d ’s affi dav i t t es t i m on y t h at

, s i n ce s h e s t o p p ed

wo rk i n g fo r Om

n i t ech

, h er o n l y s o u rce of in co m e h as b een t h e ap p ro xi m at el y $ 2 0 0

p er week s h e earn s as an Ub er d ri v er. As t o as s et s , No rwo o d fu rt h er av erred :

I d o n o t h av e an y as s et s I can co n t ri b u t e t o t h e p a y m e nt o f arb i trat i o n

fees an d co s t s

. I do n o t o wn a h o m e, an d I can no t affo rd ren t

. I l i v e w i t h

m y fam i ly u p on wh o m I rel y t o h el p en s u re I h av e b as ic l i fe neces s i t i es

.

I d o n ’ t o wn t h e v eh i cl e I u s e t o d ri v e fo r Ub er; I l eas e i t

.

10Sh e co ncl u d ed i n t he affi d av i t : “ I wo u l d no t b e ab l e t o affo rd t o p urs u e m y cl ai m s

ag ai n s t Om

n i t ech an d M r. L es ter w ere I req u i red t o p ay t h e co s t s an d fees req u i r ed

b y t h e AAA co m

m erci al arb i t rat i o n ru l es .” Th e reco rd al s o co n t ai n s t h e AAA’ s fee

s ch ed u l e fo r co m

m erci al arb i trat i o n s

, wh i ch s et s fo rt h a $ 7 ,7 0 0 ad m i n i s trat i v e fee to

i n i t i at e an arb i t rat i o n p ro ceed i n g i n a ca s e

, s u c h as No rwo od ’ s

, i nv o l v i n g

“ u n d et erm i n ed m o n et ary

cl ai m s .”

So t h e $ 7

, 7 0 0 i ni ti at i o n fee s p e c i f i e d i n t h e AAA’ s fee s ch ed ul e wo u l d h av e

req u i red No rwo od to p ay n earl y 7 5 % o f h er an n u al i n co m e s i m p l y t o g ai n acces s to

t h e arb it ral fo ru m i n t h e fi rs t in s t an ce. (Th i s do es n ot t ak e i n t o acco u n t h er o t h er

u n l i q u i d at ed res p on s i b i l i t i es u n d er t he fee s ch ed u l e

— wh i ch th e AAA m i g h t o r

m i g h t n o t h av e red u ced in li g h t o f h er ci rcu m st an ces — an d wh i ch w o u l d i n cl u d e h er

s h are o f t h e fees an d ex p en s es o f t h ree arb i t rat o rs

, l i k el y t h ree ex peri en ced at t o rn ey s .)

Th i s ev i d en ce

— h o w m

u ch m o n ey N orwo o d m ak es

, her acces s t o res o u rces

,

an d th e AAA’ s p u b l i s h ed fee s ch ed u l e

— i s co ncret e an d s p eci fi c. I t i s n o t

s p ecu l at i v e. It w a s f

o r t h e t ri al co u rt as t h e fi n der of fact

, rat h er t h an t h i s co u rt

, to

d et erm i n e wh et h er t h e fact s es t ab l i s h ed b y t hi s ev i d en ce were en ou g h t o s h o w t h e

req u i s i t e l i k el i h oo d o f p ro h i b i t iv e co s t s

. No rwo o d ’ s ev i d en ce m et t h e “ an y ev i d en ce”

s t an d ard

.

11Th e cas es ci t ed b y t he m ajo ri t y can n o t s u p p o rt t h e co n t rary o ut co m e i t ad o pt s

.

In t h e fi rs t p lace, t h ey

are fact u al l y

i n ap p os i t e. In Mu sn i ck v. Ki n g Mo t o r Co . o f Ft

.

L a u d e r d a l e

, 3 25 F3 d 12 5 5

, 1 26 0 (II) (1 1 t h Ci r. 20 0 3 ), t h e ci rcu i t co u rt reject ed as

“ s i m p l y t o o ‘ s pecu l at i v e’ t o ren d e r h i s ag reem en t t o arb i t rat e u n en fo rceab l e” an

affi d av i t t h at “ m erel y

reci t e[d ] ” t h at :

I g en u i n el y fear t h e i m

p o s i t i o n o f at t o rn ey ’ s fees fro m Fi s her & Ph i ll i ps

,

as I am fam i l i a r wi t h t h ei r b i l l i n g sen t t o Ki n g M o to rs

. Fi s her &

Ph i l li p s’ h o u rl y rat e is h ig h

, an d I i m ag i n e i t wi l l b e h i gh er wh en b i l led

t o an o p p o n en t

. . . . I am fearfu l o f a p o t en t i al at t o rn ey ’ s fee award

ag ai ns t m e. . . . I wi l l b e u n ab l e t o p ay

.

Mu s n i ck v. Ki n g Mo t o r C o

. o f Fo r t La u d

er d al e

, 3 2 5 F.3 d 1 2 5 5

, 1 26 0 (1 1 t h Ci r.

2 0 0 3 ).

An d t h e d efen d an t i n An d er s v. Ho met own Mt

g. S vcs

. , 3 4 6 F3 d 1 0 2 4

, 1 0 2 9 (II)

(1 1 t h Ci r. 2 0 0 3 ), “ s t i p u lat ed i n t h e d i s t ri ct co u rt t h at i f [t he p l ai n t i ff] was u n ab l e to

p ay fo r arb i t rat io n an d h i s i n ab il i t y wo u l d p recl u d e arb i trat i o n, [t he d efen d an t ] wo u ld

ag ree t o b ear t h e ad m i n i s t rat i v e fees wh i ch [t h e p l ai n t iff] wo u l d o t h erwi s e be req u i red

t o p ay i n t h e i n s t i t u t i o n o f an arb i t rat io n act i o n .” (Pu n ct u at i o n o m i t t ed .) Th e co u rt in

An de rs h el d t h at

, “ [g ] i v en [t h e d efen d an t ’ s ] wi l l in g n es s to b ear th e co st s o f arb i t rat i o n

t h at [t h e p lai n t i ff] i s u n ab l e t o affo rd

. . . , it fo l l o ws t h at [ t h e p l ai n t iff] h as n ot

12d em o n s t rat ed t h a t arb i t rat i o n wo ul d b e p ro h i b i t i v el y ex p en s i v e fo r h i m .” Id

.

Cert ai n l y

, i f Om

ni t ech an d Les t er h ad ag reed t o p ay No rwo o d ’ s ad m i n i s t rat i v e fee to

i n i t i at e t h e p ro ceed i n g i n t h e ev en t s h e co u l d n o t do s o

, t h en t here wo u l d b e n o i s s u e

o f No rwo o d ’ s i n i t i al acces s t o t h e fo ru m , as t h ere i s h ere.

No r d o t h e o t her cas es ci t ed b y Om n i t ech an d Les t er i n s up p o rt o f t h ei r

arg u m en t t h at t h e ev i d en ce was i n s u ffi ci en t s u p p o rt t h e tri al co u rt ’ s fi n d i n g s ; t h e

ev i d en ce i n t ho s e cas es l ack s t h e l ev el o f s p eci fi ci t y fo u n d i n t h i s cas e

. I n S u a z o v.

NCL (Ba h a ma s) Lt d

. , 8 2 2 F3 d 5 4 3

, 5 5 5 (III) (B) (1 1 th Ci r. 2 0 1 6 ), t h e p l ai n t i ff o ffered

n o ev id en ce t o t h e tri al co u rt s u p p o rt i n g h i s co s t es t i m at e an d m erel y s t at ed i n h i s

affi d av i t “ t h at h e l i v es i n a p o o r co m m u ni t y

, wh ere i t i s n o t eas y to fi nd wo rk

, t h at h e

d o es n o t h av e m on ey t o p ay fo r an arb i t rat io n

, m u ch l es s fo r an arb i t rat or’ s sal ary

, an d

t h at h e d o es n o t h av e t h e m e a n s t o p ay t h o u san d s o f d o ll ars t o an arb i t rat o r”)

( p u n c t u at i o n o m i t t ed ). In Es co b a r v. Cel eb r a t io n Cr u i s e Op er a t o r

, 8 0 5 F3 d 1 2 7 9,

1 2 9 2 (VIII) (B) (1 1 t h Ci r. 2 01 5 ), t h e p l ai n t i ff o ffered no ex p l an at i o n f o r h o w h e

arri v ed at h i s es ti m at e of co st s

. In A mer i ca n Fa m i l y Li f e As su r

. Co

. v. Hu b b a r d

, 7 5 9

Fed

. Ap px

. 8 9 9

, 9 0 6 (III) (B) (1 1 t h Ci r. 2 0 1 9 ), t h e p lai n ti ffs i nt ro d uced no ev i d en ce

as t o ei t h er t h e am o u n t of fees an d ex p en s es t h ey were l i k el y t o i n cu r o r t h ei r i n ab i l i t y

t o p ay t h o s e fees an d ex p en s es

.

13M o re fu n dam en t al l y

, i t i s i m p ort an t t o recal l t h at th e El ev en t h Ci rcu i t cas e l aw

ci t ed by th e m ajo ri t y i s n o t b i nd i n g au t h o ri t y

— ev en o n qu es t io n s o f fed eral l a w.

Hu r st o n v. S t at e

, 3 1 0 Ga. 8 1 8, 8 2 9 (3 ) (b ) (8 5 4 SE2 d 7 4 5) (2 02 1 ). T h e o n ly fed eral

cas e l aw b i n di ng o n u s i s t h at f r o m t h e S u p rem e Co urt o f t he Un i t ed St at es

— an d

o n l y o n q u es t i o n s of fed eral co ns t i tu t i o n al an d s t at u to ry in t erp ret at i o n. See S t u b b s v.

Ha l l

, 3 0 8 Ga. 3 5 4, 3 7 1 (5 ) (b ) (8 4 0 SE2 d 4 0 7 ) (2 0 2 0 ); S o u th s t a r En er

g y S vcs

. v.

El l i so n

, 2 8 6 Ga. 70 9

, 7 1 3 (1 ) (6 9 1 SE2 d 2 0 3 ) (2 0 1 0); P o p e v. Ci t y of A tl a n t a

, 2 4 0 Ga.

1 7 7 , 1 7 8 (1 ) (2 4 0 SE2 d 2 41 ) (1 9 7 7 ).

M o re fu n dam en t al ly s t i ll

, t h es e fed eral d eci s i o n s ar e o f l i m i ted p ers u as i v e

au t h o ri t y t h e b ecau se t he fed eral ap p el l at e co u rt s rev i ew d i st ri ct co u rt s ’ fact fi n d i n g

wi t h l es s d eferen ce t han we o we o u r s u p eri or co u rt s

. W h il e t h e Geo rg i a an d fed eral

ap p el l at e co urt s ap pl y

t h e s am e l ab el t o t h ei r st an d ard s o f rev i ew o f fact fi n d i n g —

cl earl y erro n eo u s

— t he s ta n d ard s are very d ifferen t

. Fo r t h e Geo rg ia ap p el l at e co u rt s

,

rev i ew u nd er t h e cl earl y erro n eo u s s t an d ard “ i s eq u i val en t t o th e hi g h l y d eferen t i al

‘ an y ev i d en ce’ t es t .” R e e d

, 29 1 Ga. at 1 3 (3 ). Bu t wh i le t h e El ev en t h Ci rcu i t h as

d ecl ared t h at “ [c] l ear erro r i s a h i g h l y d eferen ti al s t an d ard o f rev i ew,” t h at co u rt

n ev ert h el es s ex erci s es t he p o wer t o o v erru l e “ a fact ual fi n d i n g [as ] cl earl y erro n eo u s

wh en al t h o u g h t h er e i s evi d e n ce t o s u

p p or t i t

, t h e rev i ewi ng co u rt o n t h e en t i re

14ev i d en ce i s left wi t h t h e d efi n i t e an d fi rm co n vi c t i o n th at a m i s t ak e h as b een

co m m i t t ed .” Fr eema n v. S

ma rt Pa y Lea s i n g

, 7 7 1 Fed

. Ap p x. 9 2 6

, 9 32 (III) (1 1 t h Ci r.

2019) ( c ita

t i o n an d p u n ct u at i o n o m i t ted ; em p h as is s u p p l i ed)

. S uc h de f e r e nc e c onf

ine s

ci rcu i t co u rt s o n ly

as m u ch as t h ey

ch o o s e t o b e co n fi n ed

.

So we are b o un d b y t h e U n i t ed St at es Su prem e Co u rt ’ s h ol d in g t h at No rwo o d

b ears t h e “ b u rd en o f s h o wi n g t h e l i kel i h o o d o f in cu rri ng s u ch co s t s

. ” G r e en Tr ee

,

s u p ra. Bu t ev en i f th e El ev en t h Ci rcu it ’ s deci s i on i n An d e r s d i d h o l d (rat h er t h an

m e r e l y a s s ert i n d i ct a, as t h e m ajo ri t y ack n o wl ed g es i n fo o t n o t e 1 ) t h at a p l ai n t i ff

s eek i n g t o m eet h er b u rd en un d er Gr een Tr ee “ m u s t s h ow t hat s h e i s req u i red t o p ay

arb i t rat i on co s t s at th e o u t set

, n o t ju s t th at t h ey m ay b e as s es sed l at er,” we wo u l d n ot

b e b o u n d b y t h at h o l d i ng

. An d

, i n l i g h t o f t h e d eferen ce w e o we t ri al co u rt s

, i t i s n ot

p ro p er fo r u s t o s o al ter a b urd en o f p ro o f u n d er t h e g u i s e o f an y -ev i den ce rev i ew.

So t h e m ajo ri t y errs i n h ol d i n g t hat t h e t ri al co urt fai l ed t o co n s i d er th e i m p act

o f o th er AAA ru les u p on N o rwo o d ’ s ab i l i t y t o p ay t h e arb i t rat io n fees

. Th e m ajo ri t y

p o i n t s t o t wo p ro v i si o n s wi t h i n t h e AAA ru l es : a p ro v i s i o n p erm i t t i n g t he AAA to

red u ce o r d efer t h e ad m i n i s t rat i v e fees i n t h e ev en t o f a p art y ’ s “ ex t rem e h ard s h i p,”

an d a p ro v i s i o n t hat req ui res t h e p art i es t o s p l i t cert ai n co s t s an d ex p en s es u n t i l t h e

15arb i t rat o rs as s es s s o m e o r al l o f t h os e ex p en s es o n a p art i cu l a r p art y o r p art i es

. Bu t

t h e m ajo ri t y ’ s rel i an ce o n t h at ev i d en ce o v ers t ep s t he s t an d ard o f rev i ew.

Th e m ajo ri t y i s al s o wro n g

. Th e t ri al co u rt d id co n s i d er t h es e pro v i si o n s

. Th es e

p r o v i s io n s were m ad e a p art o f t h e reco rd b efo re t h e t ri al co u rt

. Th e t ri al co u rt

ex p res s l y s t at ed i n her o rd er th at s h e “ rev i ew[ed ] t h e reco rd i n i ts en t i ret y [.] ” It was

fo r t h e t ri al co u rt

, n o t t h i s co u rt

, t o d eci d e wh at i n feren ces t o d raw ab o u t h ow t h o s e

ru l es wo ul d b e ad m i n i st ered

.

M o reo v er, Om

n i t ech an d Les t er d id n o t arg u e ei t her o f t h es e A AA ru l es t o t h e

t ri al co u rt as s u p p o rt fo r t h ei r arg um en t th at N o rwo o d d i d no t m ak e t h e n ece s s a r y

s h o wi n g u n d er t h e effect iv e v i n d i cat i o n do ct r i n e

. So ev en i f t h e tri al co u rt d i d n ot

co n s i d e r t h es e p ro v i si o n s i n h er ru li n g, an d ev en if her ru l i n g w as i n co rrect as a

res u l t, “ w e d o no t ap p l y a ‘ wro n g fo r an y reas on ’ ru l e to rev ers e i n co rrect ru l i n g s o n

i s su es n o t rai s ed o r ru l ed up on i n t h e t ri al co u rt .” Hea r d v. Ci t y of Vi l l a R ica

, 3 0 6 Ga.

Ap p . 2 9 1 , 2 9 3 -2 9 4 (1 ) (7 0 4 SE2 d 9 1 5 ) (2 0 10 ) (ci t at i o n s an d p u n ct uat i on o m i t t ed ).

Th e t ri al co urt ’ s ru l i n g was n o t i n co rrect

. Th ere i s n o n eed i n q u i re i n t o wh et h er

an d t o wh at ex t en t No rwo o d ’ s b u rd en o f pro o f req u ired h er t o es t ab l i s h ex act l y wh at

fees wo u l d b e i ncu rred an d ex act l y h o w t h e AAA’ s co s t -s p l i tt i n g ru l e s w o u l d b e

ad m i n is t ered . Th ere i s n o n eed t o em b ark on t h os e i n q ui res b ecau s e s h e h as p ro v en

16t h at s h e can n o t p ay t h e $ 7,7 0 0 ad m i n i s t rat i v e fee req u i red t o acces s t h e arb i t ral fo ru m

i n t he fi rs t i n s t an ce.

As t o t he ev i d en ce o f w h at t h a t i n it i al ad m i n i st rat i v e fee wo u l d b e, t h e AAA

ru l es pro v i d e th at th e “ fees i n effect wh en t h e fee o r c h a r g e i s i ncu rred s h a l l b e

ap p li cab l e” an d t h at th e “ fi l i n g fee s h a l l b e ad v an ced b y t he p art y o r p art ies m ak i n g

a cl ai m [.] ” (Em

ph as i s s u pp l i ed .) W h i l e t h e ru l es p erm i t t e d t h e AAA t o red u ce o r

d efer t h at am ou n t fo r ex t rem e h ard s h i p

, th ey d i d n o t req u i re th e AAA t o d o so

. Un d er

t h e cl earl y erro n eo u s s tan d ard o f rev i ew ap p l i cab l e i n Geo rg i a, t h i s co u rt m u s t affi rm

t h e t ri al co u rt ’ s fact u al fi n d i n g s i f th ere i s an y ev i d en ce s u p p o rt i n g t h em

. Reed

, 2 9 1

Ga. at 1 3 (3 ). Th e l an gu ag e of t h e AAA ru l es a u t h o r i zed t he t ri al co urt t o fi n d t h at

N o r wo o d l i k el y wo u l d b e req ui red t o p ay $ 7,7 0 0 (t h e am ou n t s ho wn o n t h e fee

s ch ed u l e) t o i n i t i at e h er cl ai m , an d t h i s co u rt s h o u l d res i s t t he t em p t at i o n t o en g ag e

i n fact fi n d i n g i n t h e co u rt ’ s s t ead

.

Th e m ajo ri t y errs y et ag ai n i n h o l d i ng t h at “ t he i s s u e o f arb i t rat i o n co s t s i s n ot

ri pe at t h i s s t ag e o f t h e p ro ceed i n g s ” an d t h at No rwo od h as n o t “ [a] t p res en t ” s h o wn

t h at s h e w i l l h av e t o p ay ex o rb i t an t fees t o acces s t h e arb i t ral fo ru m

. Th es e st at em en t s

s u g g es t th ere m ay b e s om e fu t u re p o in t in t he pro ceed i n gs wh en N o rwo o d wo u l d b e

b et t er p o si t i on ed to i n vo k e t h e effect iv e v i n d i cat i o n d o ct ri n e. Bu t t h ere wi l l b e n o

17fu t u re p o in t in t h e p ro ceed i n g s

. Th e m ajo ri t y ’ s rev ers al in th i s cas e effect i v el y b ri ng s

t h e c a s e i n th e t ri al co u rt t o an en d

. An d t h e q u es ti on of wh et h er t he arb i t rat i o n

ag reem en t i s u nen fo rceab l e becau s e No rwo o d can n ot affo rd a r b itr at i o n i s n o t a m at t er

f o r th e arb i t rat i o n pan el ; i n s t ead

, i t “ fal l s w i t hi n t h e cat eg o ry of a ‘ g at eway m at t e r ’

wh i ch t h e Su p rem e Co u rt [o f t h e Un i t ed St at es ] h as i n s t ru ct ed u s th at co u rt s an d n ot

arb i t rat o rs s ho u l d d eci de[.] ” A n d er s , 3 4 6 F3 d at 1 0 29 (II).

Fo r t h es e reas o n s

, th e tri al co u rt di d n o t err i n fi n d i n g t h a t No rwo o d m et h er

b u rd en of s h o wi n g t h at

, u n der t h e effect i v e v i n d i c at i o n d o ct ri n e, t h e arb i t rat i o n

ag reem en t s h o u l d no t b e en fo rced

. An d t here i s n o m eri t t o an y o f th e o t h er arg u m en t s

t h at Om n i t ech an d Les t er rai s e i n s u p p o rt o f t h ei r ap p eal

. So t h e t ri al co u rt ’ s o rd er i s

d u e t o be affi rm ed

.

18