Plaintiff sought to compel arbitration and enjoin defendant from pursuing claims of negligence and violations of the Colorado Consumer Protection Act (“CCPA”) in state court. Defendant argued the Court should abstain from ruling and allow the state court to address the arbitration issue or dismiss the complaint since the arbitration agreement is unenforceable under state law. As to the abstention argument, the Court applied the Colorado River factors. It found the state and federal actions to be parallel, but there were no exceptional “factors supporting Defendant’s position in favor of abstention, and since there are several factors that are neutral (or point the other way), the court has little choice but to exercise jurisdiction.” The arbitration agreement’s enforceability was largely dictated by whether Colorado’s Health Care Availability Act (“HCAA”) is preempted by the Federal Arbitration Act (“FAA”). Finding the HCAA was preempted by the FAA, the arbitration agreement was found to be valid and enforceable.
The District Court adopted the Magistrate’s Report & Recommendation, granting the motion to compel and staying the state court proceeding.
Watermark Harvard Square, LLC, et al. v. Willie Lee Calvin, Case No. 1:17-cv-00446 (USDC D. Colo. Mar. 29, 2018).
This post written by Nora A. Valenza-Frost.