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T-Mobile Drops Petition Challenging Judge's Award in Arbitration Beef

T-Mobile and Sprint Solutions voluntarily dismissed their petition seeking to vacate an arbitration award issued to respondent Wireless World, said their Monday notice of voluntary dismissal without prejudice (docket 2:23-cv-01337) in U.S. District Court for Western Washington in Seattle. The petitioners asserted the arbitrator in the case, retired Washington Supreme Court Justice Faith Ireland, “exceeded her powers” by voiding integral provisions of an arbitration agreement (see Ref:2308290041]). Wireless World, a former Sprint dealer that “voluntarily” sold its stores after the T-Mobile-Sprint merger, exited the business in September 2021. A few days later, the retailer initiated an arbitration against T-Mobile and Sprint with the JAMS Seattle office, demanding 10 claims for relief, including fraud, contract and statutory claims. All were based on Wireless World’s assertion that T-Mobile’s decision to “close redundant stores” was improper in light of the parties’ contracts and “alleged representations” made by T-Mobile, it said. On April 7, in advance of the final merits hearing, T-Mobile sent Wireless World a qualifying offer of settlement under their retail service agreement (RSA), but Wireless World didn’t submit its own offer of settlement, “rendering it unable to collect attorneys’ fees and costs under the arbitration agreement,” the petition said. Following a five-day final hearing in May, Judge Ireland issued an interim award June 13, ruling “affirmatively for T-Mobile as to Wireless World’s franchise law claims.” Wireless World prevailed under its claim pursuant to the Washington Consumer Protection Act (WCPA), and Ireland awarded Wireless World compensatory damages. T-Mobile filed a motion to correct the interim award, saying Wireless World wasn't a “prevailing party” under terms of the RSA because it didn’t extend an offer of settlement, the petition said. The carrier argued Ireland “exceeded her authority by ‘award[ing] fees and costs in contravention of a contractual prohibition otherwise.’” At a June 29 hearing, T-Mobile said Ireland exceeded her authority by awarding attorneys’ fees barred by the RSA’s arbitration agreement. On July 13, she issued an addendum denying T-Mobile’s request to correct the interim award, and she issued her final award Aug. 23.