Lawyers for DoorDash Workers Call Company's Arbitration Moves 'Unethical and Unlawful'
Lawyers at Keller Lenkner claim that moves the company and its counsel at Gibson, Dunn & Crutcher took to push a new arbitration agreement directly to their "Dasher" clients via the delivery app skirted ethical rules against communicating directly with a represented party. Gibson Dunn lawyers have previously called Keller Lenkner's arbitration tactics a "shakedown."
November 18, 2019 at 05:38 PM
5 minute read
Lawyers who represent more than 2,000 DoorDash delivery workers pursuing individual arbitration against the company are crying foul over moves the company recently made, which they claim frustrate their clients' ability to move forward with worker misclassification claims. The lawyers at Keller Lenkner also claim that changes made by DoorDash and its counsel at Gibson, Dunn & Crutcher to push a new arbitration agreement directly to their "Dasher" clients via the delivery app skirted ethical rules against communicating directly with a represented party.
"They know our clients to be represented by counsel, they know our clients are pursuing arbitration against DoorDash, and yet they are communicating directly with them," via the app, said Keller Lenkner' Travis Lenkner, calling the move a "shocking breach of the ethical rules."
Gibson Dunn's Joshua Lipshutz declined to comment, but this isn't the first time lawyers at Keller Lenkner and Gibson Dunn have tussled over batches of arbitration claims.
Keller Lenkner previously went to court to compel arbitration on behalf of 5,257 couriers who work for DoorDash rival Postmates. In that case, Gibson Dunn labeled Keller Lenkner's tactics "a shakedown" and claimed that the firm attempts to use the case administration fee charged by arbitrators in individuals cases to leverage outsize settlements. In the footnote of an order compelling arbitration in the case, U.S. District Judge Saundra Brown Armstrong of the Northern District of California wrote "the possibility that Postmates may now be required to submit a sizeable arbitration fee in response to each individual arbitration demand is a direct result of the mandatory arbitration clause and class action waiver that Postmates has imposed upon each of its couriers."
In the newly filed DoorDash action, the Keller Lenkner lawyers are seeking to compel arbitration on behalf of 2,236 DoorDash delivery workers on whose behalf the firm had served demands for arbitration on DoorDash with the American Arbitration Association in late August. The firm claims that AAA found that they all met its requirements to proceed with arbitration, DoorDash declined to pay its portion of the arbitration fees—$1,900 per individual claimant. The Keller Lenkner lawyers claim that they and their co-counsel in the arbitrations at Quinn Emanuel Urquhart & Sullivan are prepared to move forward with the individual cases seeking to show that DoorDash misclassifies delivery workers as independent contractors and therefore fails to pay them required minimum wage, overtime and for business reimbursements.
"DoorDash's actions make clear that it does not actually support the right of a meaningful number of Dashers to pursue arbitration; rather, it is willing to comply with the Mutual Arbitration Provision it drafted only so long as a small number of Dashers invoke it," the Keller Lenkner lawyers wrote in their petition to compel arbitration filed Friday in U.S. District Court for the Northern District of California. "That is not a choice DoorDash's contract allows it to make."
The Keller Lenkner lawyers further claim that the day after AAA administratively closed the pending arbitrations due to DoorDash's failure to pay, the company began pushing out a new arbitration agreement incorporating the recently developed mass claims protocol of the International Institute for Conflict Prevention and Resolution, or CPR, a separate arbitration organization. CPR's new "Employment-Related Mass-Claims Protocol "includes a procedure to randomly choose 10 bellwether cases in matters where many individual employees bring the same sorts of claims against an employer. The Keller Lenkner lawyers complain Doordash's new agreement incorporated the new protocol just three days after it was announced, and Doordash couriers must accept the agreement prior to taking on new delivery assignments.
"Doordash and its counsel forced a new arbitration agreement directly on our clients on a Saturday the day after AAA administratively closed their files due to Doordash's non-payment," Lenker said. "That timing is at best suspicious."
"It's an obvious attempt by DoorDash having imposed a class action and group action bar to essentially force a group procedure where Doordash controls the timing and the outcome," Lenkner said.
The Keller Lenkner lawyers are seeking to get a federal judge to issue a temporary injunction barring DoorDash and its lawyers from "forcing Petitioners to sign new arbitration agreements pending a decision on the permissibility of that conduct by an arbitrator." In the alternative, they're asking that DoorDash be barred from forcing workers to sign the new agreements until the court decides its motion to compel arbitration under the AAA rules.
The DoorDash dispute comes as 12 states attorneys general, including California Attorney General Xavier Becerra, announced last week that they were investigating the potential harms of mandatory arbitration clauses for low wage workers, including asking AAA and JAMS about instances where employers require arbitration but refuse to pay required fees for cases to move forward. California Gov. Gavin Newsom earlier this year signed a new state law making non-payment of fees by the drafting party of an arbitration agreement a material breach and potentially sanctionable.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All'Black Box': Food Delivery Platform GrubHub Hit With Class Action Targeting Its Use of TikTok Software
Suit Over Citric Acid in Kraft Mac & Cheese Survives Challenge
Judge Dismisses Microplastics Suit Against Evian's 'Natural Spring Water'
5 minute readDoorDash Seeks More Information About NLJ 500 Firm's Connections With Chicago
4 minute readLaw Firms Mentioned
Trending Stories
- 1Legal Speak at General Counsel Conference East 2024: Match Group's Katie Dugan & Herrick's Carol Goodman
- 2Legal Speak at General Counsel Conference East 2024: Eric Wall, Executive VP, Syllo
- 3Battle for Top Talent Accelerates Amid Profit and Demand Surge
- 4Friday Newspaper
- 5Public Notices/Calendars
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250