Quinn Emanuel partner Alex Spiro.

Our Litigator of the Week is Quinn Emanuel Urquhart & Sullivan partner Alex Spiro, recognized for his work in a case that involves lack of diversity in the legal profession, mandatory arbitration—and Jay-Z.

Spiro represents rap mogul Shawn Carter, known professionally as Jay-Z, in an ongoing dispute with fashion company Iconix Brand Group. In 2007, Iconix bought Jay-Z's Rocawear apparel brand for $200 million, but now claims he is undermining their licensing agreement.

The case is headed to arbitration with the American Arbitration Association, but when Spiro and his celebrity client looked for qualified African American arbitrators to serve on the panel, they realized they were all but non-existent.

In a novel move, Spiro last week persuaded a New York State judge in Manhattan to halt the proceedings. He discussed the case with Lit Daily.

Lit Daily: How did you come to represent Jay-Z in this case?

Alex Spiro: I represented Jay previously, as well as and many of the people around him. It happened organically. 

 

I know the underlying dispute with Iconix is ongoing, but what can you tell us about the fight?

Iconix is a public company that manages and licenses brands–primarily in the apparel and footwear categories. Jay has one of the strongest lifestyle brands in the world. The business deal was struck between equals, but now Iconix seems to be of the opinion that Jay got the better deal, and they seem to think they're entitled to try and retroactively extract money from Jay and his business empire. 

 

What happened when you looked for qualified African-American arbitrators?

There was not a fair cross-section.

By background, I was a prosecutor, and I have tried dozens of criminal cases. The rules regarding jury venires and strikes are guided by the concept of protected classes. Obviously, this country's history is no secret–especially in regards to the justice system–has been marred by unimaginable instances and eras of racial discrimination and persecution. The infamous image of the black child tried and convicted by an all-white jury doesn't leave me readily. 

Jay is one of the most successful, admired, and well-known African-Americans in our country's history. If an individual like Jay can't get a fair cross-section of arbitrators to hear his case, who can? If Jay, with all of the resources and brand power he's worked to amass–can't make sure the justice system is fair to all, who could?

 

 

Why is it important that AAA offer a diverse slate of arbitrators?

It isn't just the principle, even though that is obviously a big part of it. It isn't just that putting anyone through such an unfair, unjust process is, itself, an abusive experience. It's the fact that in a dispute such as this one–especially in a dispute such as this one–there is reason to acknowledge that an arbitrator's personal background and experience are crucial to their ability to put themselves in the shoes of the defendant with the hope of bringing about a just outcome.

Jay created the Shawn Carter Foundation, and part of the foundation's mission is to give scholarships to underprivileged kids, kids who face many of the same overwhelming challenges he faced growing up in a community like the Marcy Projects in Brooklyn.  In making his deal with Iconix, Jay insisted that scholarships be part of the deal, and Iconix failed to live up to that promise.

Now, someone could say, those scholarships aren't that significant in terms of dollars and cents. But if you knew first-hand, or even understood the world Jay came from, the world those kids come from… then at least there's a chance–a fair chance–you could understand the enormous significance of those scholarships.

 

Jay-Z agreed that AAA would arbitrate his disputes. Does that (as some have suggested) hurt his argument that it's unconstitutional for the AAA to not have enough arbitrators of color?

Absolutely not. First, the promise was for a “fair arbitration in a forum that billed itself as diverse,” and it was expected that as an African-American man from the projects, Jay would get the same fair cross-section of arbitrators that a white, Harvard-educated man like me would.

 

Tell us about the decision to file the TRO. Has anyone done that before?

No, this is a first. But I can candidly and confidently say, no one else has had [Quinn Emanuel partner] Andy Rossman–who is the best litigator out there–at his or her side, as well as what is, as any of our clients can tell you, the fiercest army-of-a-litigation-firm behind them. 

 

How did Iconix respond?

“No comment.”

 

According to the hearing transcript, Justice Saliann Scarpulla said, “So you're asking me to say any time a gay designer does arbitration, then the arbitration panel has to have gay members because there's something about a business dispute that reflects someone's personal preferences—or I'm trying to figure out what the argument is.” What is your response?

The point we are arguing is not that the sole arbitrator ultimately chosen has to be gay, it's simply that somewhere in the pool of 200 candidates to choose from there should at least be one gay arbitrator.

And I know where this line of argument could go: “My mother's blind, does she get a blind arbitrator? Where does it all end?”

Well, ideally where it all ends is with a more just justice system. But here, now, in the present, I can tell you that African-Americans unquestionably make up a large part of our society, and even more to the point: no group of Americans has ever been more systematically targeted, prosecuted, and literally decimated by a system of “justice” than African-Americans. 

 

Lack of diversity is a widespread problem in the legal profession. Do you have any suggestions what AAA (or other alternative dispute resolution providers) could do to increase their roster of minority arbitrators?

I think it starts by having diverse judiciaries, diverse arbitrators, and diverse professors. It starts with giving young people examples of what they can aspire to be. It's going to take time; as I've just pointed out: it is a long-standing historical failing of one of the fundamental promises of our society, so we need to make extra efforts to make it right. 

Here's a concrete example of how to get that started: Send AAA and other arbitral organizations the resumes of highly-qualified and diverse lawyers to add to their rosters. Even better, send your arbitrators out into communities of color. Offer their assistance in working out disputes in the Marcy Projects amongst teenagers and help teach them how to settle things fairly and with reason. Like so many important things – it isn't “easy” … but it's “simple.”

 

What do you hope will be the impact of this case?

My hope is for people to think about the lingering, festering injustices like this every day, because the moment we get complacent, the moment we shrug our shoulders and settle for “the justice we can get” instead of “the justice we all deserve” is the moment all progress stalls.

My hope is for people to remember that if we don't address injustices like this, they will continue to trickle down into the frustrated, contentious interactions between young African-Americans and white police officers who administer justice. And it will remain one of the single biggest reasons neither side can fully make peace. 

 

You also jumped into another civil rights case that was quickly resolved this week. Tell us about your work on behalf of Montavious Smith in Tennessee.

I have always tried to take on cases where I believe there has been some wrong that must be remedied. [Pro basketball player] Thabo Sefolosha wanted me behind this kid. Pedro Hernandez wanted me behind this kid. [Rapper] Yo Gotti wanted me behind this kid.

And so, we backed Montavious, and with the help of a lot of great folks on the ground in Memphis, an innocent, young African-American man who was arrested for exercising his basic right to wear a hooded sweatshirt in a shopping mall will be cleared of all charges and celebrated for standing his ground and standing up for his rights.

And if someone tries to arbitrate the case against him, Montavious will at least have the choice of African-American arbitrators.