Hernandez Hernandez v. Acosta Tractors Inc., No. 17-13057 (11th Cir. 2018)Annotate this Case
Acosta challenged the district court's entry of a default judgment against them after they failed to pay their required arbitration fees in a dispute with a former employee who sought unpaid wages under the Fair Labor Standards Act (FLSA). The Eleventh Circuit vacated and remanded, holding that it found no basis in the Federal Arbitration Act, caselaw, or anywhere else to support a court's decision to enter a default judgment solely because a party defaulted in the underlying arbitration. Because the court concluded that the district court erred in entering a default judgment against Acosta based solely on Acosta's default in the underlying arbitration, the court did not reach the remaining arguments.