In this employment dispute regarding whether a limousine driver was misclassified as an independent contractor as opposed to an employee, the arbitrator bifurcated the proceedings in order to address liability and damage issues separately. The arbitrator first issued an interim award on liability, finding that the plaintiff driver was an employee of the defendant and entitled to overtime damages. The award also explained there would be a separate hearing on damages.
A district court then granted the employer’s motion to vacate the interim award based on professional misconduct of the plaintiff’s counsel, which included improper communications between the plaintiff’s counsel and the defendant employer outside of the presence of defense counsel.
On appeal, the Eleventh Circuit found the interim liability award should not be considered a final award. As a result, the district court did not have jurisdiction to vacate the interim award on liability under the FAA. Schatt v. Aventura Limousine & Transportation Service, Inc., No. 14–11549 (11th Cir. Mar. 16, 2015) (click here for a copy of the decision).
Interestingly, the Eleventh Circuit commented that this employment dispute, which has yet to be fully resolved, has been ongoing for the last five years. This case helps show that arbitration is not necessarily speedy and efficient.