Archer and White Sales, Inc. v. Henry Schein, Inco , 878 F.3d 488 ( 2017 )


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  •      Case: 16-41674   Document: 00514283638     Page: 1   Date Filed: 12/21/2017
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT
    United States Court of Appeals
    Fifth Circuit
    No. 16-41674                               FILED
    December 21, 2017
    Lyle W. Cayce
    ARCHER AND WHITE SALES, INC.,                                              Clerk
    Plaintiff-Appellee
    v.
    HENRY SCHEIN, INC., DANAHER CORPORATION,
    INSTRUMENTARIUM DENTAL INC., DENTAL EQUIPMENT LLC, KAVO
    DENTAL TECHNOLOGIES LLC, AND DENTAL IMAGING
    TECHNOLOGIES CORPORATION,
    Defendants-Appellants
    Appeals from the United States District Court
    for the Eastern District of Texas
    Before HIGGINBOTHAM, GRAVES, and HIGGINSON, Circuit Judges.
    PATRICK E. HIGGINBOTHAM, Circuit Judge:
    Sued by a competitor for antitrust violations, Defendants-Appellants
    sought to enforce an arbitration agreement. The magistrate judge granted the
    motion to compel arbitration, holding that the gateway question of the
    arbitrability of the claims belonged to an arbitrator. The district court
    reversed, holding it had the authority to rule on the question of arbitrability
    and the claims at issue were not arbitrable. We now affirm.
    I.
    Five years ago, Plaintiff-Appellee Archer and White Sales, Inc.
    (“Archer”), a distributor, seller, and servicer for multiple dental equipment
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    No. 16-41674
    manufacturers, brought this suit against Defendant-Appellants Henry Schein,
    Inc. and Danaher Corporation, allegedly the largest distributor and
    manufacturer of dental equipment in the United States, and certain wholly-
    owned subsidiaries of Danaher.
    The suit alleges violations of Section 1 of the Sherman Antitrust Act and
    the Texas Free Enterprise and Antitrust Act, contending that the Defendants’
    activities occurred over the preceding four years and are “continuing”
    violations, and seeking both damages (“estimated to be in the tens of millions
    of dollars”) and injunctive relief. 1 The district court referred the case to a
    United States Magistrate Judge.
    Defendants moved to compel arbitration pursuant to a clause in a
    contract between Archer and Pelton & Crane, allegedly a Defendant’s
    predecessor-in-interest (the “Dealer Agreement”). The arbitration clause reads
    as follows:
    Disputes. This Agreement shall be governed by the
    laws of the State of North Carolina. Any dispute
    arising under or related to this Agreement (except for
    actions seeking injunctive relief and disputes related
    to trademarks, trade secrets, or other intellectual
    property of Pelton & Crane), shall be resolved by
    binding arbitration in accordance with the arbitration
    rules of the American Arbitration Association [(AAA)].
    1 Archer alleges that Defendants conspired “to fix prices and refuse to compete with
    each other” and to “force their common supplier Danaher and its various subsidiaries to
    terminate and/or reduce the distribution territory of their price-cutting distributor Archer
    Dental.” It also alleges that the Defendants “carried out their conspiracy through a series of
    unlawful activities, including, but not limited to agreements not to compete, agreements to
    fix prices, and boycotts.”
    2
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    The place of arbitration shall be in Charlotte, North
    Carolina.
    Following a hearing, the magistrate judge issued a Memorandum Order
    holding that: (1) the incorporation of the AAA Rules in the arbitration clause
    clearly evinced an intent to have the arbitrator decide questions of
    arbitrability; (2) there is a reasonable construction of the arbitration clause
    that would call for arbitration in this dispute; and (3) the Grigson equitable
    estoppel test, which both sides agree is controlling in their dispute, required
    arbitration against both signatories and non-signatories to the Dealer
    Agreement. 2
    The district court vacated the magistrate judge’s order and held that the
    court could decide the question of arbitrability, and that the dispute was not
    arbitrable because the plain language of the arbitration clause expressly
    excluded suits that involved requests for injunctive relief. The court declined
    to reach the question of equitable estoppel. 3
    Defendants appealed. 4
    II.
    We review a ruling on a motion to compel arbitration de novo. 5
    “Enforcement of an arbitration agreement involves two analytical steps.” 6
    First, a court must decide “whether the parties entered into any arbitration
    2 Archer & White Sales, Inc. v. Henry Schein, Inc., No. 2:12-cv-572-JRG-RSP, 
    2013 WL 12155243
    (E.D. Tex. May 28, 2013), vacated, 
    2016 WL 7157421
    (E.D. Tex. Dec. 7, 2016).
    3 Archer & White Sales, Inc. v. Henry Schein, Inc., No. 2:12-cv-572-JRG, 
    2016 WL 7157421
    , at *9 (E.D. Tex. Dec. 7, 2016).
    4 Defendants filed an interlocutory appeal pursuant to 9 U.S.C. § 16(a)(1)(C). See Al
    Rushaid v. Nat’l Oilwell Varco, Inc., 
    757 F.3d 416
    , 419 (5th Cir. 2014) (“Title 9 U.S.C. section
    16(a)(1)(C) provides that a party may seek interlocutory review of an order . . . denying an
    application . . . to compel arbitration.”) (internal quotation marks omitted).
    5 Kubala v. Supreme Prod. Servs., Inc., 
    830 F.3d 199
    , 201 (5th Cir. 2012) (citing Carey
    v. 24 Hour Fitness, USA, Inc., 
    669 F.3d 202
    , 205 (5th Cir. 2012)).
    6 
    Kubala, 830 F.3d at 201
    (5th Cir. 2012).
    3
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    agreement at all.” 7 This inquiry is one of pure contract formation, and it looks
    only at whether the parties “form[ed] a valid agreement to arbitrate some set
    of claims.” 8 The next step is to determine “whether [the dispute at issue] is
    covered by the arbitration agreement.” 9 Before this step, however, the court
    must answer a third question: “[w]ho should have the primary power to decide’
    whether the claim is arbitrable.” 10 This question turns on “whether the
    agreement contains a valid delegation clause—‘that is, if it evinces an intent
    to have the arbitrator decide whether a given claim must be arbitrated.’” 11
    This determination begins the two-step inquiry adopted in Douglas v.
    Regions Bank. 12 First, whether the parties “clearly and unmistakably”
    intended to delegate the question of arbitrability to an arbitrator. 13 If so, “the
    motion to compel arbitration should be granted in almost all cases.” 14 But not
    “[i]f the argument that the claim at hand is within the scope of the arbitration
    agreement is ‘wholly groundless.’” 15 So Douglas’s second step asks whether
    there is a plausible argument for the arbitrability of the dispute. Where there
    is no such plausible argument, “the district court may decide the ‘gateway’
    issue of arbitrability despite a valid delegation clause.’” 16
    7  
    Id. 8 IQ
    Prods. Co. v. WD-40 Co., 
    871 F.3d 344
    , 348 (5th Cir. 2017).
    9 
    Kubala, 830 F.3d at 201
    .
    10 
    Id. at 202
    (quoting First Options of Chi., Inc. v. Kaplan, 
    514 U.S. 938
    , 942 (1995)).
    11 IQ 
    Prods., 871 F.3d at 348
    (quoting 
    Kubala, 830 F.3d at 202
    ).
    12 
    757 F.3d 460
    , 464 (5th Cir. 2014).
    13 “[C]ourts should not assume that the parties agreed to arbitrate arbitrability unless
    there is ‘clea[r] and unmistakabl[e]’ evidence that they did so.” First 
    Options, 514 U.S. at 944
    (citing AT&T Technologies, Inc. v. Commc’n Workers of Am., 
    475 U.S. 643
    , 649 (1986)).
    14 
    Kubala, 830 F.3d at 202
    .
    15 
    Douglas, 757 F.3d at 464
    .
    16 IQ 
    Prods., 871 F.3d at 349
    .
    4
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    The parties agree that the Dealer Agreement contained an arbitration
    provision, though not whether the arbitration provision applies here. 17
    Specifically, they disagree on whether the court or an arbitrator should decide
    the gateway question of arbitrability—and relatedly, whether the underlying
    dispute is arbitrable at all. We turn to the two-step Douglas test.
    A.
    We first ask if the parties “clearly and unmistakably” delegated the issue
    of arbitrability. 18 Absent a delegation, “the question of whether the parties
    agreed to arbitrate is to be decided by the court, not the arbitrator.” 19 “Just as
    the arbitrability of the merits of a dispute depends upon whether the parties
    agreed to arbitrate that dispute, so the question ‘who has the primary power
    to decide arbitrability’ turns upon what the parties agreed about that
    matter.’” 20
    A contract need not contain an express delegation clause to meet this
    standard. An arbitration agreement that expressly incorporates the AAA Rules
    “presents clear and unmistakable evidence that the parties agreed to arbitrate
    arbitrability.” 21 Under AAA Rule 7(a), “the arbitrator shall have the power to
    17 Archer states that, because the Dealer Agreement “unambiguously divides disputes
    into two categories”—those within the carve-out and all other disputes—there is no valid
    agreement to arbitrate. This argument misconstrues the very first analytical step in
    enforcement of an arbitration agreement, which asks “whether the parties entered into any
    arbitration agreement at all.” Archer does not appear to argue that there was no arbitration
    agreement regarding claims outside the scope of the carve-out. Instead, Archer contends that
    the Dealer Agreement is “best construed to express the parties’ intent not to arbitrate this
    action seeking injunctive relief.” Thus, we treat Archer’s arguments to this effect as going to
    whether the parties agreed to arbitrate this particular dispute.
    18 
    AT&T, 475 U.S. at 649
    .
    19 
    Id. 20 First
    Options, 514 U.S. at 943 
    (internal citations omitted). See also Rent-A-Center,
    W., Inc. v. Jackson, 
    561 U.S. 63
    , 68–69 (2010) (holding that parties may delegate arbitrability
    through an express delegation clause).
    21 Petrofac, Inc. v. DynMcDermott Petroleum Operations Co., 
    687 F.3d 671
    , 675 (5th
    Cir. 2012).
    5
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    rule on his or her own jurisdiction, including any objections with respect to the
    existence, scope or validity of the arbitration agreement.” 22
    By the Dealer Agreement, “[a]ny dispute arising under or related to this
    Agreement (except for actions seeking injunctive relief and disputes related to
    trademarks, trade secrets, or other intellectual property of [the predecessor]),
    shall be resolved by binding arbitration in accordance with the arbitration rules
    of the American Arbitration Association.” The parties dispute the relationship
    between the carve-out clause—“except for actions seeking injunctive relief and
    [intellectual property] disputes”—and the incorporation of the AAA Rules.
    The magistrate judge saw three separate parts to the arbitration
    provision: (1) a general rule compelling arbitration for any dispute related to
    the agreement, (2) an exemption from arbitration for actions seeking injunctive
    relief, and (3) a clause incorporating the AAA Rules. 23 On this reading, the
    AAA Rules would apply to all disputes arising under the contract, including
    those eventually found to fall within the Dealer Agreement’s carve-out. The
    district court disagreed, holding that the carve-out clause removed the disputes
    from the ambit of both arbitration and the AAA Rules. The district court
    distinguished Petrofac, where the agreement at issue “did not contain any
    exclusions[;] [r]ather, it was a standard broad arbitration clause.” 24
    Defendants argue that Petrofac controls; that, by holding otherwise, the
    district court conflated the issue of whether the dispute is arbitrable with the
    issue of who decides arbitrability; and that, under the plain language of the
    clause, disputes about arbitrability do not fall within the carve-out and thus
    22  This version of Rule 7(a) was in effect when the parties signed their agreement. AM.
    ARBITRATION ASS’N, COMMERCIAL ARBITRATION RULES AND MEDIATION PROCEDURES (2007),
    https://www.adr.org/sites/default/files/Commercial%20Arbitration%20Rules%20and%20Me
    diation%20Procedures%20Sept.%201%2C%202007.pdf.
    23 Archer, 
    2013 WL 12155243
    at *1.
    24 Archer, 
    2016 WL 7157421
    , at *7.
    6
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    belong to the arbitrator. This court has previously applied Petrofac to
    arbitration provisions containing carve-out provisions. In Crawford, we
    examined an agreement that incorporated the AAA Rules and preserved the
    parties’ ability to seek injunctive relief in the courts. 25 We held—without
    directly addressing the relevance of its carve-out provision—that the Crawford
    agreement’s incorporation of the AAA Rules constituted “clear and
    unmistakable evidence that the parties to the [] Agreement agreed to arbitrate
    arbitrability, and so . . . whether the Plaintiffs’ claims are subject to arbitration
    must be decided in the first instance by the arbitrator, not a court.” 26
    Archer responds that the agreement in Petrofac did not include a carve-
    out provision, and the Crawford agreement is distinguishable because it
    contained separate clauses incorporating the AAA Rules and creating a carve-
    out excluding claims for injunctive relief—specifically, the agreement stated
    that the AAA Rules would apply to “[a]ny and all disputes in connection with
    or arising out of the Provider Agreement,” and contained a carve-out in a
    25 Crawford Prof’l Drugs, Inc. v. CVS Caremark Corp., 
    748 F.3d 249
    , 256 (5th Cir.
    2014). In that case, the Provider Agreement read, in relevant part:
    Any and all disputes in connection with or arising out of the Provider
    Agreement by the parties will be exclusively settled by arbitration before a
    single arbitrator in accordance with the Rules of the American Arbitration
    Association. The arbitrator must follow the rule of Law, and may only award
    remedies provided for in the Provider Agreement. . . . Arbitration shall be the
    exclusive and final remedy for any dispute between the parties in connection
    with or arising out of the Provider Agreement; provided, however, that nothing
    in this provision shall prevent either party from seeking injunctive relief for
    breach of this Provider Agreement in any state or federal court of law . . . .
    
    Id. 26 Id.
    at 263. Defendants also point to Oracle, where the Ninth Circuit addressed an
    arbitration clause that adopted the UNCITRAL Rules (which also delegate arbitrability
    issues to the arbitrator) and a carve-out for certain types of claims. The court rejected the
    argument that the carve-out provision bore on the question of arbitrability, stating that such
    an argument “conflates the scope of the arbitration clause . . . with the question of who decides
    arbitrability.” Oracle Am., Inc. v. Myriad Group A.G., 
    724 F.3d 1069
    , 1072–76 (9th Cir. 2013).
    7
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    subsequent sentence stating that nothing in the agreement would prevent a
    suit seeking injunctive relief in a court of law. 27
    Archer argues that, in contrast, the structure of the specific carve-out at
    issue here leads to the natural reading that the AAA Rules only apply to the
    category of cases that are subject to binding arbitration under the Dealer
    Agreement—namely, those outside of the contract’s express carve-out. Archer
    further notes that Defendants’ predecessor-in-interest drafted the Dealer
    Agreement, and that North Carolina law requires that “[p]ursuant to well[-
    ]settled contract law principles, the language of [an] arbitration clause should
    be strictly construed against the drafter of the clause.” 28
    There is a strong argument that the Dealer Agreement’s invocation of
    the AAA Rules does not apply to cases that fall within the carve-out. It is not
    the case that any mention in the parties’ contract of the AAA Rules trumps all
    other contract language. Here, the interaction between the AAA Rules and the
    carve-out is at best ambiguous. On one reading, the Rules apply to “[a]ny
    dispute arising under or related to [the] Agreement.” On another, the provision
    expressly exempts certain disputes and the Rules apply only to the remaining
    disputes. We need not decide which reading to adopt here because Douglas
    provides us with another avenue to resolve this issue: the “wholly groundless”
    inquiry.
    B.
    Regardless of whether an agreement clearly and unmistakably delegates
    the question of arbitrability, the second step in Douglas provides a narrow
    27   
    Crawford, 748 F.3d at 256
    .
    28   T.M.C.S., Inc. v. Marco Contractors, Inc., 
    780 S.E.2d 588
    , 597 (N.C. Ct. App. 2015).
    8
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    escape valve. If an “assertion of arbitrability [is] wholly groundless,” the court
    need not submit the issue of arbitrability to the arbitrator. 29
    We have cautioned that the “wholly groundless” exception is a narrow
    one and that it “is not a license for the court to prejudge arbitrability disputes
    more properly left to the arbitrator pursuant to a valid delegation clause.” 30
    “An assertion of arbitrability is not ‘wholly groundless’ if ‘there is a legitimate
    argument that th[e] arbitration clause covers the present dispute, and, on the
    other hand, that it does not.’” 31 If a court can find “a ‘plausible’ argument that
    the arbitration agreement requires the merits of the claim to be arbitrated,”
    the wholly groundless exception will not apply. 32
    The magistrate judge issued his order before Douglas, and therefore he
    did not address the “wholly groundless” exception directly. Instead, he found
    that while “[o]n the most superficial level, this lawsuit is clearly an action
    seeking injunctive relief since it does seek that relief,” there was also “a
    plausible construction [of the Dealer Agreement] calling for arbitration.” 33
    Thus, he concluded that “the question of whether the exception for actions
    seeking injunctive relief should be limited to actions for an injunction in aid of
    arbitration or to enforce an arbitrator’s award should properly be left for the
    arbitrator to decide.” 34
    The district court, now with Douglas at hand, found the Defendants’
    arguments for arbitrability wholly groundless. The court first stated that the
    wholly groundless inquiry “necessarily requires the courts to examine and, to
    29  
    Douglas, 757 F.3d at 463
    (quoting Agere Systems, Inc. v. Samsung Elecs. Co., 
    560 F.3d 337
    , 340 (5th Cir. 2009)).
    30 
    Kubala, 830 F.3d at 202
    n.1.
    31 IQ 
    Prods., 871 F.3d at 350
    (quoting 
    Douglas, 871 F.3d at 463
    ).
    32 
    Kubala, 830 F.3d at 202
    n.1.
    33 Archer, 
    2013 WL 12155243
    , at *1–2.
    34 
    Id. at *2.
    9
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    a limited extent, construe the underlying agreement.” 35 It then noted that the
    Dealer Agreement’s carve-out language “differs from the standard arbitration
    clause suggested by [AAA],” 36 and found that “the phrase ‘except actions
    seeking injunctive relief’ is clear on its face—any action seeking injunctive
    relief is excluded from mandatory arbitration.” 37 Thus, the provision’s plain
    language includes all actions seeking injunctive relief, not a more limited
    category of cases. The court declined to “re-write the terms of the Parties’
    agreement to accommodate a party—notably the party that drafted the
    agreement—that could have negotiated for more precise language,” 38 and held
    that the arguments for arbitrability were “wholly without merit based on the
    plain language of the arbitration clause itself” and fell squarely within the
    Douglas exception. 39
    Defendants suggest a limited reading of the “wholly groundless”
    exception that would only apply when the contract containing the arbitration
    provision has “nothing to do with” the dispute before the court. 40 In Douglas,
    35   Archer, 
    2016 WL 7157421
    , at *8 (quoting 
    Douglas, 757 F.3d at 463
    ) (internal
    quotation marks omitted). This limited inquiry allows the parties to avoid jumping through
    hoops to begin arbitration only to be sent directly back to the courthouse. See 
    Douglas, 757 F.3d at 464
    (“When [plaintiff] signed the arbitration agreement containing a delegation
    provision, did she intend to go through the rigmaroles of arbitration just so the arbitrator can
    tell her in the first instance that her claim has nothing whatsoever to do with her arbitration
    agreement, and she should now feel free to file in federal court? Obviously not.”).
    36 The district court claimed that “[s]uch an intentional drafting effort” deserves
    notice. Archer, 
    2016 WL 7157421
    , at *5.
    37 
    Id. 38 Id.
    at *6.
    39 Archer, 
    2016 WL 7157421
    , at *9. The district court also rejected arguments from
    Defendants that Archer failed to “plead” a claim for injunctive relief based on the fact that
    Archer had not made any showing on the factors articulated by the Supreme Court in eBay
    Inc. v. MercExchange, L.L.C., 
    547 U.S. 388
    , 394 (2006). The court held first that the eBay
    factors are not pleading requirements, and that in any event, the proper vehicle to argue the
    plaintiff is not entitled to relief would be a motion to dismiss under Rule 12. We do not address
    the underlying merits of Archer’s claim here because, as Defendants concede, “the issue here
    is not whether Archer’s injunctive relief claim fails on the merits.”
    40 
    Douglas, 757 F.3d at 461
    .
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    the plaintiff had signed an agreement with an arbitration provision when she
    opened a checking account with Regions Bank that closed less than one year
    later. Years later, the plaintiff was involved in an automobile accident, and she
    received a $500,000 settlement in subsequent litigation. She then alleged that
    her attorney, who banked with Regions, had embezzled that money, and she
    brought suit against the bank for negligence and conversion on the theory that
    the bank had notice of the embezzlement and failed to report it. Regions moved
    to compel arbitration pursuant to the agreement that the plaintiff signed when
    she opened the now-closed checking account. This court held that “[t]he mere
    existence of a delegation provision in the checking account’s arbitration
    agreement . . . cannot possibly bind [the plaintiff] to arbitrate gateway
    questions of arbitrability in all future disputes with the other party, no matter
    their origin.” 41
    Defendants argue that applying the “wholly groundless” exception here
    would allow the court to construe the bounds of an arbitration clause before an
    arbitrator can do so—effectively obviating the entire purpose of delegating the
    gateway question to the arbitrator in the first place; that their arbitrability
    arguments are not wholly groundless, pointing to the magistrate judge’s
    finding of plausible readings of the arbitration clause that would not exclude
    the suit from arbitration; and that doubts about the arbitrability of a claim
    should be resolved in favor of arbitration, pursuant to settled federal law.
    Defendants urge that “[t]he correct reading of this arbitration clause is
    that the parties may come to court seeking injunctive relief at any time . . . but
    still must arbitrate any claim for damages.” Defendants further urge the court
    should send the damages clause to arbitration, even if it results in “piecemeal
    litigation.” In their view, “[t]he correct reading of this arbitration clause is that
    41   
    Id. at 462,
    464.
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    the parties may come to court seeking injunctive relief at any time . . . but still
    must arbitrate any claim for damages.”
    Archer counters that the plain language of the clause makes clear that
    the parties did not agree to arbitrate actions that involve a request for
    injunctive relief, and that any argument to the contrary is wholly groundless.
    Archer emphasizes that arbitration agreements are “as enforceable as other
    contracts, but not more so,” 42 and states that under North Carolina law, “when
    the terms of a contract are plain and unambiguous, there is no room for
    construction. The contract is to be interpreted as written and enforced as the
    parties have made it.” 43 Archer says the Dealer Agreement clearly
    contemplates two categories of disputes—those involving “actions seeking
    injunctive relief” and certain intellectual property disputes, and all other
    disputes—and that only the latter category must be subject to arbitration.
    Archer contends that the clause’s incorporation of “action” prohibits any
    piecemeal litigation because “action,” as distinct from “claim,” pertains to all
    of the claims in a given case. 44
    While Douglas is a recent case, with contours of the “wholly groundless”
    exception not yet fully developed, if the doctrine is to have any teeth, it must
    apply where, as here, an arbitration clause expressly excludes certain types of
    disputes. The arbitration clause creates a carve-out for “actions seeking
    injunctive relief.” It does not limit the exclusion to “actions seeking only
    injunctive relief,” nor “actions for injunction in aid of an arbitrator’s award.”
    Nor does it limit itself to only claims for injunctive relief. Such readings find
    no footing within the four corners of the contract. “When the language of a
    42See Prima Paint Corp. v. Flood & Conklin Mfg. Co., 
    388 U.S. 395
    , 404 n.12 (1967).
    43State v. Phillip Morris USA Inc., 
    685 S.E.2d 85
    , 91 (N.C. 2009) (internal quotation
    marks omitted) (internal citations omitted).
    44 An action is “[a] civil or criminal judicial proceeding,” which is “nearly if not quite
    synonymous” with suit. BLACK’S LAW DICTIONARY 28–29 (7th ed. 1999).
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    contract is clear and unambiguous, effect must be given to its terms, and the
    court, under the guise of construction, cannot reject what the parties inserted
    or insert what the parties elected to omit.” 45 We see no plausible argument
    that the arbitration clause applies here to an “action seeking injunctive relief.”
    The mere fact that the arbitration clause allows Archer to avoid arbitration by
    adding a claim for injunctive relief does not change the clause’s plain meaning.
    “While ambiguities in the language of the agreement should be resolved in
    favor of arbitration, we do not override the clear intent of the parties, or reach
    a result inconsistent with the plain text of the contract, simply because the
    policy favoring arbitration is implicated.” 46
    III.
    Defendants argue in the alternative that, even if the district court was
    correct to decide the issue of arbitrability, it erred in determining that the
    complaint was not subject to the arbitration clause. Because we find that
    Defendants’ arguments for arbitrability are wholly groundless, we affirm the
    district court’s holding that the claims are not arbitrable. Having concluded
    that this action is not subject to mandatory arbitration, we need not reach the
    question of whether the third parties to the arbitration clause in this case can
    enforce such an arbitration clause.
    We affirm the district court’s order denying the motions to compel
    arbitration.
    45   Procar II, Inc. v. Dennis, 
    721 S.E.2d 369
    , 371 (N.C. Ct. App. 2012).
    46   E.E.O.C. v. Waffle House, 
    534 U.S. 279
    , 294 (2002) (emphasis added).
    13