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`Case 2:21-cv-00733 Document 1 Filed 06/03/21 Page 1 of 6
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`UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF WASHINGTON
`AT SEATLE
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` No. 2:21-cv-733
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`T-MOBILE, USA, INC.’S PETITION TO
`CONFIRM ARBITRATION AWARD
`
`NOTE ON MOTION CALENDAR:
`JUNE 18, 2021
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`T-Mobile USA, Inc.,
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`Petitioner,
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`v.
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`Verity Wireless, Inc.,
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`Respondent.
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`Pursuant to 9 U.S.C. §§ 9 and 13, T-Mobile USA, Inc. (“T-Mobile”) petitions this
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`honorable Court to confirm interim relief in the form of the preliminary injunction (“Injunction”)
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`granted to T-Mobile by The Hon. Faith Ireland (Ret.) (the “Emergency Arbitrator”) in the matter
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`styled T-Mobile USA, Inc. v. Verity Wireless, Inc., JAMS Arbitration Reference No. 1160024282
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`(the “Arbitration”).
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`I.
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`PARTIES
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`1.
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`Petitioner T-Mobile USA, Inc. is a Delaware corporation with its principal place of
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`business in Bellevue, Washington. T-Mobile is one of the three largest wireless communications
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`carriers operating in the United States. In April, 2020, T-Mobile completed its merger with Sprint
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`Corporation and its subsidiaries.
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`2.
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`Respondent Verity Wireless, Inc. is a Colorado corporation. On information and
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`PETITION TO CONFIRM ARBITRATION AWARD – 1
`(Case No. 2:21-cv-733)
`
`
`1000 SECOND AVENUE, SUITE 3500
`SEATTLE, WA 98104 • (206) 393-5400
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`
`
`

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`Case 2:21-cv-00733 Document 1 Filed 06/03/21 Page 2 of 6
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`belief, Verity’s principal place of business is located in Buena Park, California.
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`3.
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`Verity also conducts business in Washington, and has designated both its principal
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`office address and registered agent’s address at 2115 201st Pl. SE, Unit B5, Bothell, WA 98012-
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`8562.
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`4.
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`This Court has subject matter jurisdiction to confirm the Injunction pursuant to the
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`Federal Arbitration Act, 9 U.S.C. §§ 1-15, because the parties entered into Agreements involving
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`interstate commerce. The Court has personal jurisdiction over the parties because, among other
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`reasons, they have stipulated to the personal jurisdiction of this Court in the Agreements.
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`5.
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`Venue is proper because the Parties have stipulated to venue in this Court in the
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`Agreements, and further because Verity is subject to personal jurisdiction in this district, as it
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`conducts business here. See 28 U.S.C. § 1391(b)(1), (c)(2), and (d).
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`6.
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`Verity may be served notice of this Petition through its counsel at the address
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`indicated in the certificate of service of this Petition because: (i) the Emergency Arbitrator entered
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`the Injunction in Seattle, Washington and Verity is a resident of this district; and/or (ii) JAMS
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`served the Injunction on the parties from Los Angeles, California, and Verity is also a resident of
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`the Central District of California as it conducts business throughout that district. See 9 U.S.C. § 9
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`(permitting service of petition to confirm an award on the resident of a district in which the award
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`was made to the extent permitted for service of a motion in that court); W.D. Wa. LCR 5(b)
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`(permitting service consistent with Federal Rules); C.D. Cal. Civ. R. 4.1(d) (similarly permitting
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`service as per Fed. R. Civ. P. 5); Fed. R. Civ. P. 5(b) (specifying service on counsel).
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`II.
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`THE ARBITRATION
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`7.
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`Verity was, in accordance with four Retail Services Agreements with T-Mobile (the
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`“Agreements”), each effective June 1, 2020, an authorized retail dealer for T-Mobile, operating T-
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`Mobile stores in Colorado, Washington, and Northern and Southern California. The Agreements
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`are identical in all material respects. An exemplar of the Agreements is attached hereto as Exhibit
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`1, exclusive of confidential and proprietary information that is not relevant to the Court’s
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`PETITION TO CONFIRM ARBITRATION AWARD – 2
`(Case No. 2:21-cv-733)
`
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`1000 SECOND AVENUE, SUITE 3500
`SEATTLE, WA 98104 • (206) 393-5400
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`
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`

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`Case 2:21-cv-00733 Document 1 Filed 06/03/21 Page 3 of 6
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`consideration of this petition, per W.D. Wa. LCR 5(g)(1)(B).
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`8.
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`Each Agreement provides that disputes between the parties shall be submitted to
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`JAMS for arbitration, and administered pursuant to JAMS Comprehensive Rules and Procedures
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`(the “Rules”). See Agreements, § 16.
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`9.
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`On March 19, 2021, T-Mobile notified Verity that it was terminating the
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`Agreements, citing Verity’s material breaches of the Agreements.
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`10.
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`Although T-Mobile had deferred the effective date of its termination until May 1,
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`2021, Verity abruptly closed its stores on March 31, 2021, and refused T-Mobile’s demands to
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`execute the Transitions Services Agreements that each Agreement requires.
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`11.
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`On April 8, 2021, T-Mobile initiated the Arbitration. A copy of the order
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`appointing the Hon. Faith Ireland as the Emergency Arbitrator is attached hereto as Exhibit 2.
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`12.
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`JAMS Rule 2(c) creates Emergency Relief Procedures that permit a party to seek
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`emergency relief by “notify[ing] JAMS and all other Parties in writing of the relief sought and the
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`basis for an award of such relief.” JAMS Rule 2(c)(i).
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`13.
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`T-Mobile first filed a request for Emergency Relief, seeking an order requiring
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`Verity to allow T-Mobile to obtain possession of inventory and other T-Mobile assets in Verity’s
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`closed stores. The parties entered into a Stipulation, attached hereto as Exhibit 3, to resolve that
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`issue and it is not at issue in this Petition.
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`14.
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`The Agreements prohibit Verity, notwithstanding any other provision of the
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`Agreements, from competing with T-Mobile for one year following termination, and Section
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`13.1.3 of the Agreements specifically prohibits Verity and its principals from “directly or indirectly
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`sell[ing], assign[ing], or otherwise transfer[ring] any [store] to a wireless service provider (carrier
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`or agent/dealer) in the business of offering, providing, marketing, procuring, or referring customers
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`in a[] manner that competes with [T-Mobile] or its dealers within the Area” described in each
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`Agreement.
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`15.
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`The Agreements provide that a breach of Section 13.1 “will result in irreparable
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`PETITION TO CONFIRM ARBITRATION AWARD – 3
`(Case No. 2:21-cv-733)
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`1000 SECOND AVENUE, SUITE 3500
`SEATTLE, WA 98104 • (206) 393-5400
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`

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`Case 2:21-cv-00733 Document 1 Filed 06/03/21 Page 4 of 6
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`harm to T-Mobile, and monetary damages would be an inadequate remedy” for such a breach, and
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`that “T-Mobile may seek temporary, preliminary and permanent injunctive relief with respect to
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`any such breach by provider.” Agreements, § 13.1.4.
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`16.
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`After Verity disregarded several requests by T-Mobile requiring Verity to transfer
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`stores to T-Mobile-approved dealers or to T-Mobile (as required by separate provisions of the
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`Agreements), and after learning facts that suggested that Verity’s principals and insiders were
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`intending to convert the stores into AT&T stores that compete with T-Mobile in violation of the
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`Agreements, T-Mobile filed a Second Request for Emergency Relief to enjoin Verity from
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`transferring T-Mobile stores except to T-Mobile or to T-Mobile-approved dealers, and to prohibit
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`Verity from transferring T-Mobile stores to T-Mobile competitors. See Agreements, § 13.1.3.
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`17.
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`18.
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`Verity responded to the Second Emergency Request on May 4, 2021.
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`The Arbitrator set a reply deadline and a hearing on the Second Request for
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`Emergency Relief on May 5, 2021.
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`19.
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`20.
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`The Arbitrator heard oral arguments of the Parties on May 5, 2021.
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`The Arbitrator invited the Parties to supplement or amend their pleadings by May
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`7, 2021 at 4:00 PM PT. On that date, T-Mobile submitted a statement of Additional and Amended
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`Claims, and Verity submitted a supplemental response in opposition to the Second Request for
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`Emergency Relief. After requesting and receiving permission from the Arbitrator, T-Mobile
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`submitted a reply to Verity’s supplemental response, on May 11, 2021.
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`21.
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`On May 13, 2021, the Arbitrator entered the Injunction, a copy of which is attached
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`hereto as Exhibit 4.
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`22.
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`The Court should grant this Petition and confirm the Injunction as a judgment of
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`this Court, as required by the Federal Arbitration Act, because none of the limited statutory
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`grounds for vacating the Injunction exist here. See 9 U.S.C. §§ 9-10; Aspic Eng’g & Constr. Co.
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`v. ECC Centcom Constructors LLC, 913 F.3d 1162, 1166 (9th Cir. 2019); Pac. Reinsurance Mgmt.
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`Corp. v. Ohio Reinsurance Corp., 935 F.2d 1019, 1023-26 (9th Cir. 1991).
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`PETITION TO CONFIRM ARBITRATION AWARD – 4
`(Case No. 2:21-cv-733)
`
`
`1000 SECOND AVENUE, SUITE 3500
`SEATTLE, WA 98104 • (206) 393-5400
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`
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`

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`Case 2:21-cv-00733 Document 1 Filed 06/03/21 Page 5 of 6
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`PRAYER FOR RELIEF
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`WHEREFORE, the Petitioner prays that this honorable Court sign an order confirming the
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`interim relief issued on May 13, 2021 by Hon. Faith Ireland (Ret.) as an enforceable Order of this
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`Court.
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`DATED this 3rd day of June, 2021.
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`POLSINELLI PC
`
`
`By: /s/ Jessica M. Andrade
`Jessica M. Andrade, WSBA# 39297
`1000 Second Avenue, Suite 3500
`Seattle, WA 98104
`Telephone: (206) 393-5400
`Facsimile: (206) 393-5401
`jessica.andrade@polsinelli.com
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`Attorneys for Petitioner T-Mobile USA, Inc.
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`PETITION TO CONFIRM ARBITRATION AWARD – 5
`(Case No. 2:21-cv-733)
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`1000 SECOND AVENUE, SUITE 3500
`SEATTLE, WA 98104 • (206) 393-5400
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`

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`Case 2:21-cv-00733 Document 1 Filed 06/03/21 Page 6 of 6
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`CERTIFICATE OF SERVICE
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`I hereby certify that on the date shown below, I electronically filed the foregoing with the
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`Clerk of the Court using the CM/ECF system.
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`I also certify that on June 3, 2021, true and correct copies of the foregoing were served via
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`email and United States First Class mail, postage prepaid to:
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`
`Timothy B. Yoo
`Sharon Ben-Shahar Mayer
`BIRD, MARELLA, BOXER, WOLPERT, NESSIM,
`DROOKS, LINCENBERG & RHOW, P.C.
`1875 Century Park East, 23rd Floor
`Los Angeles, California 90067-2561
`tyoo@birdmarella.com
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`smayer@birdmarella.com
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`Attorneys for Respondent Verity Wireless, Inc.
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`I certify under penalty of perjury under the laws of the State of Washington that the
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`foregoing is true and correct.
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`Dated this 3rd day of June, 2021, at Seattle, Washington.
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`By: /s/ Jeni Bonanno
`Jeni Bonanno, Legal Assistant
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`PETITION TO CONFIRM ARBITRATION AWARD – 6
`(Case No. 2:21-cv-733)
`
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`1000 SECOND AVENUE, SUITE 3500
`SEATTLE, WA 98104 • (206) 393-5400
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