First Student, Inc. v. Teamsters, Local 959

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ALASKA
FIRST STUDENT, INC.,
Petitioner,
v.
GENERAL TEAMSTERS LOCAL
959, STATE OF ALASKA,
Respondent.
Case No. 3:18-cv-00305-SLG
ORDER REGARDING MOTION FOR ATTORNEY FEES
Before the Court at Docket 50 is respondent Teamsters Local 959’s Motion
for Attorney Fees. Teamsters Local 959 requests $8,625 in attorney fees.
Petitioner First Student, Inc. responded in opposition at Docket 54. Also before
the Court, at Docket 52, is Teamsters Local 959’s Motion to Accept Late Filed
Motion for Attorney Fees and Attendant Documents. First Student responded in
opposition at Docket 55.
I. Late filed motion
Having reviewed the declaration of counsel at Docket 53, the Court will allow
the late-filed Motion for Attorney Fees. Accordingly, the motion at Docket 52 will
be granted.
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Case No. 3:18-cv-00305-SLG, First Student, Inc. v. General Teamsters Local 959
Order Re Motion for Attorney Fees
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II. Merits of the Motion for Attorney Fees
In December of 2018, First Student petitioned to vacate an arbitration award
issued in favor of Teamsters Local 959.1 First Student brought its case pursuant
to the Labor Management Relations Act (29 U.S.C. § 185(a)) and the Federal
Arbitration Act (9 U.S.C. § 10).2 On September 30, 2019, the Court entered
judgment in favor of Teamsters Local 959.3
Teamsters Local 959 asserts that Alaska Rule of Civil Procedure 82 governs
the calculation of recoverable attorney fees in this case.4 However, because this
case was before the Court based on federal question jurisdiction, not diversity
jurisdiction, the Alaska Rules of Civil Procedure do not apply.5 Neither Section 10
of the Labor Management Relations Act nor Section 103 of the Federal Arbitration
Act contain an express authority to award attorney fees.6
First Student asserts that the contract between the parties bars granting
attorney fees to Teamsters Local 959 because of a clause in the contract that
1 Docket 1.
2 Docket 1 at 1.
3 Docket 47.
4 Docket 50.
5 See Disability Law Center of Alaska, Inc. v. Anchorage School Dist., 581 F.3d 936, 940–41 (9th
Cir. 2009) (“In a pure federal question case brought in federal court, federal law governs
attorney fees.”).
6 See Metzler Contracting Co. LLC v. Stephens, 774 F. Supp. 2d 1073, 1088–89 (D. Haw. 2011)
(“Attorneys’ fees are not available under the Federal Arbitration Act.”).
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Case No. 3:18-cv-00305-SLG, First Student, Inc. v. General Teamsters Local 959
Order Re Motion for Attorney Fees
Page 3 of 3
states “each party shall bear the expense of preparing its own case.”7 That clause,
however, directly precedes a clause discussing the cost of the arbitrator and other
arbitration-relation costs. It thus appears that the contract language regarding
expenses applies only to the arbitration itself and not to a civil suit brought to vacate
the decision of the arbitrator.8 Nonetheless, there does not appear to be any
language in the parties’ agreement that contemplates an order requiring the
payment of attorney fees to the prevailing party in a civil suit. Without any
contractual language to the contrary, the American Rule presumes that each party
should bear the cost of its own attorney’s fees.9
In light of the foregoing, the motion at Docket 52 is granted. The motion at
Docket 50 is denied.
DATED this 27th day of November, 2019, at Anchorage, Alaska.
/s/ Sharon L. Gleason
UNITED STATES DISTRICT JUDGE
7 Docket 54 at 3 (citing Docket 1-1 at 14).
8 See Docket 1-1 at 14 (applicable section of the agreement between the parties, which
discusses the selection of an arbitrator, the date, time, and location of arbitration, the finality of
the arbitrator’s decision, and the authority of the arbitrator).
9 Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240 (1975).
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