Hinkle v. Phillips 66 Company, No. 21-50905 (5th Cir. 2022)
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Appellant is a pipeline-inspection company that hires inspectors and sends them to work for its clients. When Plaintiff was hired, Appellant had him sign an Employment Agreement that contained an arbitration clause. That arbitration provision explained that Plaintiff and Appellant agree to arbitrate all claims that have arisen or will arise out of Plaintiff’s employment. Appellant staffed Plaintiff on a project with Defendant, a diversified energy company that stores and transports natural gas and crude oil.
Alleging that the Fair Labor Standards Act entitled him to overtime pay, Plaintiff filed a collective action against Defendant; he brought no claims against Appellant. Appellant moved to intervene. The magistrate judge granted that motion, explaining that Appellant met the criteria for both permissive intervention and intervention as of right. Appellant claimed that it was an “aggrieved party” under Section 4 of the Federal Arbitration Act (“FAA”) and thus could compel arbitration. The magistrate judge rejected all the motions. The district court affirmed.
The Fifth Circuit dismissed for lack of jurisdiction Appellant’s appeal. The court held that Appellant is not an aggrieved party under Section 4 of the FAA and cannot compel arbitration. The court explained it is only where the arbitration may not proceed under the provisions of the contract without a court order that the other party is really aggrieved. Here, Plaintiff only promised to arbitrate claims brought against Appellant. Claiming that Plaintiff did not arbitrate its claims with Defendant is therefore not an allegation that he violated his agreement with Appellant.
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