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Ninth Circuit Affirms Partial Denial of Motion to Compel Arbitration

The Ninth Circuit affirmed a district court’s partial denial of Kelly Services’ motion to compel arbitration, holding that the arbitration agreement lacked the clear and unmistakable intent required to delegate arbitrability questions to an arbitrator. The court emphasized that merely incorporating American Arbitration Association (AAA) rules does not satisfy this standard without explicit language. Additionally, the agreement expressly exempted the plaintiff’s California Unfair Competition Law claim from arbitration, reinforcing the claim’s non‑arbitrable status. The ruling underscores the court’s strict interpretation of arbitration clauses under both federal and state law.