As attorneys dedicated to fighting for workers’ rights at Biller & Kimble, LLC, we’re thrilled to share a major win in the U.S. Court of Appeals for the Tenth Circuit. In the case of Luke Myers v. Papa Texas, LLC, our team successfully defended a lower court ruling that prevents employers from enforcing arbitration agreements after they’ve defaulted on their own obligations under the agreement. This decision not only affirms the rights of our client, but also sets a powerful precedent for employees across the country who are too often forced into unfair arbitration processes.
Case Background: A Fight for Fair Wages
Luke Myers brought a class and collective action on behalf of himself and similarly situated delivery drivers against Papa Texas, LLC—a franchisee operating Papa John’s pizza stores in New Mexico and Texas. The lawsuit alleged violations of the Fair Labor Standards Act (FLSA) and other laws, claiming that Papa Texas failed to properly reimburse drivers for vehicle expenses, effectively reducing their wages below the legal minimum.
Like many delivery-driver employees, Myers was required to sign an arbitration agreement at the outset of his employment with Papa Texas requiring disputes to be resolved through the American Arbitration Association (AAA). Initially, the parties agreed to dismiss the federal lawsuit to allow arbitration to proceed. However, things took a turn when Papa Texas failed to pay the required filing fees in the arbitration proceeding. As a result, the AAA administratively closed the case, citing non-payment. Although the parties attempted to reach a settlement, those efforts ultimately failed.
As a result, our team at Biller & Kimble re-filed Mr. Myers’ case in the U.S. District Court for the District of New Mexico. Papa Texas sought to again enforce the arbitration agreement. But, because of Papa Texas’s earlier default, the AAA would not accept the matter without Mr. Myers’ renewed consent. The district court agreed, finding that a party cannot enforce an arbitration agreement when they were themselves in default of its provisions. The court allowed the case to move forward in federal court where Myers and other drivers can pursue their claims openly and fairly.
The Appeal: Papa Texas’ Attempt to Revive a Dead Arbitration
Papa Texas appealed to the Tenth Circuit, arguing that they weren’t truly in “default” and that the court should compel Myers to consent to reopening the arbitration. They claimed the non-payment was a minor hiccup and that Myers was unfairly “vetoing” the process. Our attorneys vigorously defended the district court’s ruling on appeal. We emphasized that the FAA is clear: if a party defaults in arbitration—such as by failing to pay fees—they forfeit their right to enforce the agreement.
On February 12, 2026, the Tenth Circuit panel, consisting of Judges Joel M. Carson III, Kenneth C. Baldock, and Paul J. Kelly, Jr., unanimously affirmed the lower court’s decision.
The Tenth Circuit rejected Papa Texas’ arguments outright. They confirmed that non-payment of fees constitutes a default under the FAA, leading to the legitimate closure of the arbitration. As the opinion states: “We affirm the district court’s decision to lift the § 3 stay in light of Papa Texas’s default.” This ruling underscores a critical point: Arbitration agreements are not a one-way street for employers to evade accountability, but ignore when it’s convenient for them. When they fail to uphold their end of the bargain, employees shouldn’t be held to theirs.
Why This Win Matters for Workers
At Biller & Kimble, we see cases like this all too often. Employers push workers into arbitration to limit their rights, control the process, and avoid public scrutiny. But when it’s time for the employer to pay up or participate in good faith, they often drag their feet or ignore their obligations under the arbitration agreement. The Tenth Circuit’s affirmation sends a strong message: Defaults have consequences. This decision protects low-wage workers, like delivery drivers, who rely on every penny to make ends meet. It ensures that if an employer botches arbitration through their own fault, the case can return to federal court, where plaintiffs have access to discovery, class and collective action procedures, and a jury trial.
We’re proud to have represented Luke Myers in this appeal, building on our track record of holding corporations accountable for wage theft and unfair labor practices. Our team’s expertise in FLSA litigation and arbitration challenges was key to this success, and we’re grateful for the opportunity to advance justice for workers.
Looking Ahead
With the stay lifted, the case now proceeds in district court, where we’ll continue advocating for Myers and the putative class of drivers seeking fair compensation. If you’re a worker facing similar issues, know that you’re not alone. Contact Biller & Kimble today for a free consultation. Together, we can fight back.
For more details on the decision, you can read the full Tenth Circuit opinion here.
Stay tuned to our blog for updates on this case and other victories in the fight for workers’ rights.