Myers v. Papa Texas, et al.
Split Score
What is a Split Score?
This score (0-100) indicates how likely this case is to be reviewed by the Supreme Court based on:
Case Summary
Disposition
Affirmed
Papa Texas appealed the district court’s order lifting a stay and allowing Luke Myers’s Fair Labor Standards Act suit to proceed after Papa Texas failed to pay arbitration fees. The Tenth Circuit held that under its precedent, failure to pay the required fees constitutes default in arbitration, so the district court correctly lifted the stay and the order is affirmed.
Circuit Split Identified
Legal Issue
Whether a party’s failure to pay its share of arbitration filing fees constitutes an automatic "default" under 9 U.S.C. § 3 that ends the right to a litigation stay, or whether courts must instead apply a broader waiver/totality-of-the-circumstances analysis before finding default.
Circuit Positions
Non-payment of arbitration fees equals per se default under FAA § 3; district court may lift stay without further inquiry.
Courts apply a waiver/totality-of-the-circumstances test; failure to pay fees is only one factor and does not automatically constitute default.
Conflict Summary
The Tenth Circuit follows its precedent in Pre-Paid Legal Services, Inc. v. Cahill and treats non-payment of required arbitration fees as per se default under § 3, automatically permitting the district court to lift a stay. Eleventh Circuit decisions cited by the appellant apply a totality-of-the-circumstances approach that conflates waiver and default, requiring the court to weigh litigation conduct and prejudice rather than finding automatic default from fee non-payment.