Document: 531 U.S. 79121 S.Ct. 513148 L.Ed.2d 373 NOTICE: This opinion is subject to formal revision before publication in the preliminary print of United States Reports. Readers are requested notify Reporter Decisions, Supreme Court States, Washington, D. C. 20543, any typographical or other errors, order that corrections may be made goes press.GREEN TREE FINANCIAL CORP.-ALABAMA et al.v.LARKETTA RANDOLPH No. 99 1235. SUPREME COURT OF THE UNITED STATES Argued October 3, 2000 Decided December 11, Syllabus Respondent Randolph's mobile home financing agreement with petitioners, financial institutions, required Randolph buy insurance protecting petitioners from costs her default and also provided all disputes under contract would resolved by binding arbitration. later sued alleging they violated Truth Lending Act (TILA) failing disclose requirement as a finance charge Equal Credit Opportunity requiring arbitrate statutory causes action. Among its rulings, District granted petitioners' motion compel arbitration, dismissed claims prejudice, denied request for reconsideration, which asserted she lacked resources arbitrate, result, have forgo against petitioners. The Eleventh Circuit held it had jurisdiction review Court's §16(a)(3) Federal Arbitration (FAA), allows appeals "a final decision respect an arbitration this title." court determined final, appealable within provision one disposes issues framed litigation, leaving nothing done but execute order, found definition. Determining failed provide minimum guarantees could vindicate rights TILA, observed was silent payment expenses, therefore unenforceable because posed risk ability undone "steep" costs. Held: 1. Where, here, has ordered parties proceed it, "final" §16(a)(3), appealable. term "final decision" well-developed longstanding meaning: It ends litigation on merits leaves more do judgment. E.g., Digital Equipment Corp. v. Desktop Direct, Inc., 511 863, 867. Because FAA does not define arbitration" otherwise suggest ordinary meaning should apply, accords well-established meaning. See Evans 504 255, 259 260. plainly falls disposed entire case left no part pending court. fact permits agreements bring separate proceeding enter judgment award once (or vacate modify it) vitiate finality resolution below. Moreover, disagrees contention phrase include compelling dismissing action when occurs "embedded" proceeding, such one, involving both relief, distinguished "independent" sole issue appear that, at time §16(a)(3)'s enactment, Appeals decisions attaching significance independent/embedded distinction, consequences finality, were so firmly established assume Congress meant incorporate them into §16(a)(3). Certainly statute's plain language intent. Pp. 4 8. 2. rendered simply says about costs, thus fails protection potentially substantial pursuing federal arbitral forum. In light FAA's purpose reverse judicial hostility place same footing contracts, Gilmer Interstate/Johnson Lane Corp., 500 20, 24, recognized can appropriately through enforced claims, see, e.g., Rodriguez de Quijas Shearson/American Express, 490 477. determining whether arbitrated, asks agreed submit evinced intention preclude waiver remedies issue. See, Gilmer, supra, 26. Here, undisputed relating their contract, including rights, contend TILA evinces remedies. She contends instead agreement's silence creates "risk" will bear prohibitive thereby unable Although existence large well litigant like effectively vindicating record show if Indeed, contains hardly information matter, revealing only subject. That alone insufficient render unenforceable. To invalidate undermine liberal policy favoring agreements, Moses H. Cone Memorial Hospital Mercury Constr. 460 1, conflict holdings party resisting bears burden proving intended issue, Thus, seeking ground prohibitively expensive showing likelihood incurring did meet burden. need discuss how detailed be, case, there timely point. 8 12. 178 F.3d 1149, affirmed reversed part. ON WRIT CERTIORARI TO OFAPPEALS FOR ELEVENTH CIRCUIT Rehnquist, J., delivered Court, Part II unanimous Parts I III joined O'Connor, Scalia, Kennedy, Thomas, JJ. Ginsburg, filed concurring dissenting part, Stevens Souter, JJ., joined, Breyer, III. Opinion Chief Justice Rehnquist Court. 1 we first address party's underlying §16 Act, 9 U.S.C. § 16 immediately pursuant Act. decide question affirmative, mention fees affirmatively protect steep We conclude matters 2 * Larketta purchased Better Cents Home Builders, Opelika, Alabama. financed purchase Green Tree Financial Corporation wholly owned subsidiary, Corp.-Alabama. Petitioners' Manufactured Retail Installment Contract Security Agreement Vendor's Single Interest insurance, protects vendor lienholder repossession event default. arising from, to, law law, arbitration.1 3 (TILA), 15 1601 seq., requirement. amended complaint add claim 1691 1691f, brought behalf similarly situated class. lieu answer, stay action, or, alternative, dismiss. stay, prejudice. certify 991 F. Supp. 1410 (MD Ala. 1997). asserting Plaintiff's Motion Reconsideration, Record Doc. 53, p. 9. reconsideration. Supp., 1425 1426. appealed. decision. 1149 (1999). looked governs appeal specifically order. definition.The then respondent TILA. Critical determination court's observation filing fees, arbitrators' expenses. On basis, respondent's certiorari, 529 1052 (2000), now affirm conclusion, second. 5 Section enacted 1988, appellate orders. 16. provides: 6 "(a) An taken 7 "(1) "(A) refusing section title, "(B) denying petition title proceed, 10 "(C) application 206 11 "(D) confirming confirmation partial award, 12 "(E) modifying, correcting, vacating award; 13 "(2) interlocutory granting, continuing, modifying injunction title; 14 "(3) title. "(b) Except 1292(b) 28, granting 17 directing 18 19 "(4) enjoin 20 directed relief. us, then, appealed Petitioners urge us hold cannot. They rely, goal "mov[ing] arbitrable dispute out quickly easily possible." 22, (1983); id., 24. accordance purpose, point out, generally immediate orders hostile interlocutory, bars favorable 21 16(a)(3), however, preserves arbitration," regardless And agree, " 'ends judgment.' 867 (1994), Coopers & Lybrand Livesay, 437 463, 467 (1978), (quoting Catlin 324 229, 233 (1945)). St. Louis, I. M. S. R. Co. Southern Express Co., 108 28 29 (1883). accord 260 (1992). 22 permit district it), remedy instant proceeding. 10, 11. taken.2 Sears, Roebuck Mackey, 351 427, 431 (1956) (explaining appealable); Catlin, 236 (noting dismiss been dismissal entered, "clearly end lie "). 23 one. Brief "Embedded" proceedings those actions "Independent" proceedings, contrast, Those Courts distinction not, even dismisses remaining claims.3 between independent embedded §16's enactment 24 disagree. rules cases where claims.4 note time, uniform approach proceedings.5 decision," enjoys consistent interpretation. text rather complex where, 25 turn provides "[a] written maritime transaction evidencing commerce settle controversy thereafter shall valid, irrevocable, enforceable, save upon grounds exist equity revocation contract." considering unenforceable, mindful "to contracts." (1991). 26 involve claims. 477 (1989) (Securities 1933); Inc. McMahon, 482 220 (1987) Exchange 1934 Racketeer Influenced Corrupt Organizations Act); Mitsubishi Motors Soler Chrysler&nbhyph;Plymouth, 473 614 (1985) (Sherman Act). likewise rejected generalized attacks rest "suspicion method weakening protections afforded substantive would-be complainants." Quijas, 481. These demonstrate statute designed further important social policies arbitrated 'so long prospective [his her] cause forum,' serves functions. Mitsubishi, 637). 27 ask 26; 628. rights. Nor pursues forum, forces Therefore, argues, 30. But matter.6 As recognized, "we lack claimants fare Tree's clause." F.3d, 1158. reveals subject, saddled too speculative justify invalidation agreement. basis "liberal agreements." Hospital, U.S., our prior unsuitable 227. avoid establishing supra; supra. Similarly, believe seeks expensive, How expense must come forward contrary evidence matter discuss; neither during discovery nor presented erred deciding unenforceable.7 30 31 ordered. NOTES: states pertinent part: "All disputes, controversies relationships result Contract, validity clause arbitrator selected Assignee consent Buyer(s). interstate commerce, governed Judgment entered having jurisdiction. agree understand choose resolve disputes. right opportunity litigate court, prefer except herein. PARTIES VOLUNTARILY AND KNOWINGLY WAIVE ANY RIGHT THEY HAVE A JURY TRIAL EITHER PURSUANT ARBITRATION UNDER THIS CLAUSE OR ACTION BY ASSIGNEE (AS PROVIDED HEREIN). laws, including, limited tort, property Contract. powers Contract." Joint Lodging 37.2 Had 16(b)(1). course it. majority opined, Circuit. Seacoast Salisbury, Chrysler 143 626, 628 629 (CA1 1998); Altman Nursing, Clay Capital 84 769, 771 (CA5 1996); Napleton General 138 1209, 1212 (CA7 Gammaro Thorp Consumer Discount 93, 95 (CA8 1994); McCarthy Providential 122 1242, 1244 (CA9 see Arnold Printed Communications Business, 920 F.2d 1269, 1276 (CA6 1990) (order treated deference judgment); Armijo Prudential Insurance America, 72 793, 797 (CA10 1995) (same). 1998 addressed §16(a)(3)); Napleton, adds "unfamiliar ingredient" proceedings). Cincinnati Gas Electric Benjamin Shaw 706 155, 158 1983) (rejecting argument declaratory relief sought suit ordered, Howard Elec. Mechanical Frank Briscoe 754 847, 849 1985) (plaintiff work performed arbitration; appealable). Cf. re Hops Antitrust Litigation, 832 470, 472 1987) (District some remained court); County Durham Richards Assocs., 742 811, 813, n. (CA4 1984) number over claim). Wright, A. Miller E. Cooper, Practice Procedure §3914.17, Reconsideration "[a]rbitration high" arbitrate. support assertion. acknowledged designated particular association dispute. Her subsequent discussion relied entirely unfounded assumptions. stated "[f]or purposes discussion, [American Association], fee $500 $10,000 cost administrative fees." on, attached exhibit what appears informational material American Association amount fees. noted "[The Association] cites $700 per day average arbitrator's fee." For proposition cited article Daily Labor Report, February 15, 1996, published Bureau National Affairs, entitled Lawyers ABA Session Debate Role Association. pp. stray statement executive day. make factual conduct did, charged identified. unsupported statements ascertain actual brief lists incurred arbitrations reflected opinions Appeals, while counsel frequently waived None affords sufficient concluding went decline reach Appeals' conclusion alternative precludes bringing class 39 48. pass question, here decided Roberts Galen Va., 525 249 (1999) (per curiam). 32 J. 33 whom Souter join, Breyer joins III, 34 join opinion, holds "final," appealable, Ante, airs ante, allocation rule definitively. Instead, Circuit's decision, dispositively declared remand closer consideration forum's accessibility. 35 today deals "who pays" specifically, who pays demonstrating forum financially inaccessible her. Essentially, requires party, is, either without knowing pay up front imposed her, prohibitive. current posture ripe disposition. 36 recognizes "the forum." 10. But, next determines, "Randolph burden." ruling, blends two discrete inquiries: First, adequate adjudicate issue; second, accessible 37 Our past deal adequacy various (1991) (Age Discrimination Employment amenable arbitration); (Claims Securities arbitration). inadequacy adjudication genre. follow night day, 38 contained form drawn commercial individual consumer take-it-or-leave-it basis. dominantly relies, involved nonnegotiated clause. arise Gilmer. Under New York Stock standard practice securities industry parties, arbitrating employment Cole Burns Int'l Servs., 105 1465, 1483 (CADC Regarding practice, Columbia recently commented: "[I]n endorsed system employees assigned hear There reason think approved absence arrangement. unaware situation jurisprudence beneficiary services judge his case." Id., 1484. 40 indication likely incur Tree, drafter filled void specifying, instance, (AAA). AAA's Rules, consumers small-claims $125 total arbitrator. All paid business party. Amicus Curiae Other national organizations developed similar models fair allocation.2 fills blank space Counsel offered hint direction. Tr. Oral Arg. ("Green [arbitration] lot instances ."). reliable consumer-protective 41 repeat player superior Raleigh Illinois Dept. Revenue, 530 (2000) (slip op., 5) ("the very proof often placed taxpayer [to disprove tax liability] reflects several rationales [including] taxpayer's readier access relevant information"); Wigmore, Evidence §2486 (J. Chadbourn rev. ed. 1981) (where fairness requires, "party presumably peculiar means knowledge" fact); Restatement (Second) Contracts §206 (1979) ("In choosing among reasonable meanings [an] thereof, preferred operates [drafting] these circumstances, clear inaccessibility, much 42 reached prematurely lender's favor. If retail installment sales purchasers resembles employer insulated Randolph, occasion Before writing Cole, 1485,3 initially each arbitrator, does, clarification practice. 43 comprehend correctly, prevent returning postarbitration, allocation. so, reduces when, whether, spared excessive Neither certainty economy served unsettled until line. 44 reasons stated, dissent reversal question. accessibility Randolph.4 Alabama, most courts interpret contract's (about costs) according "usage custom." Wampler, 749 So. 2d 409, 415 (Ala. 1999); §204, Comment d essential missing, supply comports community standards policy"). First Options Chicago, Kaplan, 514 938, 944 (1995) (courts apply state principles certain matter); Mastrobuono Shearson Lehman Hutton, 52, 62 64, (interpreting law). Forum provisions limit $49 $175 Disputes Advisory Committee protocol recommending amount. Forum, Code Procedure, App. C, Fee Schedule (July 2000); Committee, Due Process Protocol, Principle 6, (Apr. 17, 1998), http://www.adr.org/education/education/consumer_protocol.html. interpreted require necessary full [the discharged employee's] claims." 1485. alternatively urges affirmance pursuit cf. Johnson West Suburban Bank, 225 366 (CA3 2000) (holding short-term loan enforceable though pursue unavailable). class-action properly raised Appeals. read Nothing far forfeits

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