Restaurant chain 99 Restaurants LLC said it has reached a deal to resolve a battle in the U.S. Court of Appeals for the First Circuit over whether courts or arbitrators get to decide whether class arbitration is permitted, as well as a related arbitration action brought by a former server over alleged wage violations.

Ballard Spahr attorney Burt M. Rublin, who represents 99 Restaurants, said in a short letter to the appeals court that his client had reached an agreement in principle with the former employee, Constanza Kiran, to resolve the company’s challenge to a trial court’s decision rejecting a petition to compel individual arbitration.

That petition came after Kiran, who worked for 99 Restaurants from 2000 through 2013, lodged a class demand with the American Arbitration Association in October 2013 alleging wage violations related to tip-pooling. Mr. Rublin's letter said that both the appeal and the underlying arbitration case would be covered by the settlement.

“The settlement is subject to execution of an already agreed-upon settlement agreement, which will likely occur within the next week or so,” the letter said.

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