Shawn C. Carter, et al. v. Iconix Brand Group, Inc., et al.

Shawn C. Carter (defendant), a successful African American artist and entrepreneur popularly known as JAY-Z, was sued by Iconix Brand Group, Inc. (Iconix) and other parties (plaintiffs) according to Carter. Iconix separately commenced arbitration against Carter pursuant to an arbitration provision in a licensing agreement Iconix had with Carter. It was agreed the arbitration would be done under American Arbitration Association (AAA) rules. Under these rules, if the parties did not agree on a single arbitrator, then they each would submit four names from the AAA’s large and complex roster of potential arbitrators in the New York area. This roster was supposed to contain arbitrators experienced in complex commercial arbitration. The AAA advertised on its website that it prioritized diversity and promoted the inclusion of minorities who had traditionally been excluded from meaningful participation in arbitration. However, Carter could not identify a single African American in the roster of 200 potential arbitrators. When Carter asked that the AAA provide names of “neutrals of color,” the AAA responded by providing a list of six names, only three of which were African Americans, with one being a partner in the law firm that represented Iconix—an obvious conflict. Carter objected to both this list and available options on the AAA’s website for lack of diversity. The AAA gave Carter an ultimatum: either he could choose arbitrators from the available roster and the six additional names it provided, or the AAA would make the selection for him. The latter happened, and Carter sought a temporary restraining order and preliminary injunction against Iconix.