Mayhan v. Sunoco Inc
Filing
46
MEMORANDUM OPINION. Signed by Judge Richard G. Andrews on 1/16/2020. (nms)
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
DEBORAH J. MAYHAN,
Plaintiff,
: Civil Action No. 18-355-RGA
V.
SUNOCO, INC.,
Defendant.
Deborah J. Mayhan , New Castle , Delaware. Pro Se Plaintiff.
Barry M. Klayman , Abigail M. Green , and Daniel V. Johns, Cozen & O'Connor. Counsel
for Defendant.
MEMORANDUM OPINION
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2020
January
Wilmingtbn, Delaware
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Plaintiff Deborah J. Mayhan , who appears prose and has been granted leave to
proceed in forma pauperis, filed this employment discrimination action on March 6,
2018 , against Sunoco, Inc. (D.I. 2). Presently before the Court is Defendant's motion to
compel arbitration and stay the proceedings and Plaintiff's opposition . (D .I. 42) . The
matter has been fully briefed .
FACTUAL AND PROCEDURAL BACKGROUND
Plaintiff began her employment with Sunoco in early January 2014 as a customer
service representative . (D .I. 43-1 at 2). Plaintiff was employed by Sunoco , Inc. (R&M) ,
a subsidiary of Sunoco, Inc. One of Sunoco, Inc. (R&M)'s divisions was Mascot
Petroleum Company. (Id. at 2-3) . Plaintiffs employment was terminated on or around
May 1, 2016 . (Id) . Plaintiff alleges that Sunoco did not pay her the wages that it had
allegedly agreed to pay, she was denied the right to use her breathing machine, and her
employment was terminated for no reason. (D.I. 2 at 4). Plaintiffs EEOC charge of
discrimination alleges discrimination by reason of race and disability in violation of Title
VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e, et seq. , and the Americans with
Disabilities Act of 1990, 42 U.S.C. § 12101 , et seq. (D.I. 17).
At the beginning of Plaintiffs employment with Sunoco , on January 13, 2014 , she
signed an agreement (D.I. 43-3) to participate in the Mascot Petroleum Compan.y
Dispute Resolution Program ("DRP"). (D .I. 43-2 at 2-19) . The DRP establishes a
mandatory arbitration process for claims made by current and former employees arising
out of their employment or termination of employment. (D .I. 43-3) . The DRP "is
designed to provide rules and procedures for the quick, fair, accessible and inexpensive
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resolution of issues between the Company and the Company's present and eligible
former employees ," and it explains what arbitration is and how an employee initiates
and participates in arbitration . (D .I. 43-2 at 11 , 12-13). The DRP states that it "is
intended to create an exclusive procedural mechanism for the final resolution of all
claims falling within its terms ," and "is not intended either to abridge or enlarge
substantive rights available under applicable law." (Id. at 11 ).
Section Ill of the DRP states that an employee's agreement to arbitrate claims
arising out of her employment is an express condition of employment as follows:
"Mascot Petroleum Company's DRP is a condition of employment and by accepting
employment with Mascot you are knowingly and voluntarily agreeing to its terms,
including the requirement that you arbitrate any claims against the Company." (D .I. 433). The agreement provides that "all claims relating to your application or candidacy for
employment, your employment, or the termination of your employment from the
Company shall be submitted to final and binding arbitration in accordance with the
Mascot Dispute Resolution Program (DRP) Rules and Procedures." (Id.).
[The DRP] covers all issues or controversies arising out of your
employment or termination " including "[m]atters relating to discrimination,
harassment and unlawful forms of retaliation , intentional infliction of
emotional distress," and "claims arising under federal , state or local
statutory or common law" including but not limited to "Title VII ," "the
Americans with Disabilities Act" and "any and all claims under . .. state
and local laws against discrimination.
(D .I. 43-2 at 4, 11). Similarly, the page Plaintiff signed provides that "[a]II claims arising
under federal , state, or local statutory or common law shall be subject to arbitration
including ... claims arising under Title VII ," the ADA, and "state and local laws against
discrimination ." (D .I. 43-3).
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The DRP provides that "[a]ny legal issue not resolved through [the administrative
processes preceding arbitration] must be submitted to final and binding arbitration rather
than through the courts or to a jury. " (D .I 43-2 at 9). The page that Plaintiff signed
states :
I understand that I may file administrative charges with the Equal
Employment Opportunity Commission , and similar state or local agencies,
but that upon receipt of right-to-sue letter or my having otherwise
exhausted administrative remedies under the law, I shall arbitrate any
claim that I may have against Mascot Petroleum Company in accordance
with DRP Rules and Procedures rather than proceed through the courts or
to a jury.
(D .I. 43-3).
LEGAL STANDARDS
The Federal Arbitration Act ("FAA") provides that written agreements to arbitrate
disputes "shall be valid , irrevocable, and enforceable." 9 U.S .C. § 2. A district court
may only issue an order compelling arbitration when that court has "diversity jurisdiction
or some other independent basis for federal jurisdiction ... ." Moses H. Cone Mem'I
Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 25 n. 32 (1983). The FAA mandates that
district courts shall direct parties to proceed to arbitration on issues for which arbitration
has been agreed , and to stay proceedings while the arbitration is pending. See 9
U.S.C. §§ 3, 4; Dean Witter Reynolds Inc. v. Byrd, 470 U.S. 213, 218 (1985) ; Harris v.
Green Tree Fin. Corp., 183 F.3d 173, 179-80 (3d Cir. 1999).
The FAA limits the role of courts to determine: (1) whether the parties entered
into a valid arbitration agreement; and (2) whether the specific dispute falls within the
scope of the agreement. John Hancock Mutual Life Ins. Co. v. Olick, 151 F.3d 132, 137
(3d Cir. 1998). In conducting this review, the court should apply the ordinary principles
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of contract law. See 9 U.S .C. § 2 ; First Options of Chicago, Inc. v. Kaplan , 514 U.S.
938 , 944 (1995) .
In determining whether the particular dispute falls within a valid arbitration
agreement's scope , 'there is a presumption of arbitrability[.]"' Century lndem. Co. v.
Certain Underwriters at Lloyd's, London , 584 F.3d 513 , 524 (3d Cir. 2009) (quoting AT
& T Techs., Inc. v. Communications Workers of Am., 475 U.S. 643 , 650 (1986)) . This
presumption applies whenever a contract has an arbitration clause and is "particularly
applicable where the clause is [] broad ." AT & T Techs., Inc., 475 U.S . at 650. "'Any
doubts as to the scope of arbitratable issues should be resolved in favor of arbitration . .
. ."' Suterv. Munich Reinsurance Co., 223 F.3d 150, 155 (3d Cir. 2000) . When the
presumption applies , "a court may not deny a motion to compel arbitration 'unless it may
be said with positive assurance that the . .. arbitration clause is not susceptible of an
interpretation that covers the dispute ."' Cup v. Ampco Pittsburgh Corp. , 903 F.3d 58 ,
64-65 (3d Cir. 2018) (quoting AT & T Techs. , Inc., 475 U.S . at 650). "If . . . the court
determines that an agreement exists and that the dispute falls within the scope of the
agreement, it then must refer the matter to arbitration without considering the merits of
the dispute. " PaineWebber inc. v. Hartmann , 921 F.2d 507 , 511 (3d Cir. 1990)
(overruled on other grounds) .
DISCUSSION
Defendant moves to compel arbitration under the FAA and to stay the
proceedings. It states that all of Plaintiff's claims are subject to exclusive , final and
binding arbitration pursuant to the DRP , and it contends that Plaintiff improperly
commenced her action in this Court. (0.1. 43) . Plaintiff responds that she has provided
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all material to the Court regarding the statement of facts , wages , termination , and
damages. (D .I. 44).
Plaintiff does not dispute that she signed the arbitration agreement. Nor does
she dispute that she agreed to arbitrate all employment disputes with her employer
when she signed the agreement in Section Ill of the DRP and acknowledged receipt of
the DRP Handbook and that it was her responsibility to read the handbook. The
arbitration clause clearly provides that as a condition of employment, Plaintiff must
submit employment-related disputes , including statutory, contractual, or common law
claims , to binding arbitration and that upon receipt of a right to sue letter from the
EEOC , Plaintiff shall submit to arbitration . Courts have enforced arbitration agreements
presented as a condition of employment before employment begins. See, e.g. , Murphy
v. Glencore Ltd., 2019 WL 549139 , at *6 (D . Conn . Feb . 11 , 2019) ; McCoy v. Dave &
Buster's, Inc. , 2018 WL 550637 , at *5 (E.D .N.Y. Jan. 24 , 2018) . In addition , public
policy favors the enforcement of arbitration clauses if the parties validly entered into the
agreement and the specific dispute falls within the scope of the clause. BAE Sys.
Aircraft Controls, Inc. v. Eclipse Aviation Corp., 224 F.R.D . 581 , 586 (D . Del. 2004).
Plaintiff makes no argument that the arbitration agreement is invalid. She only
states that she has provided all documents to the Court. The agreement signed by
Plaintiff is valid and enforceable, and her claims fall within the scope of the arbitration
agreement. Therefore, her employment discrimination claims must be resolved by
arbitration.
CONCLUSION
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For the above reasons , the Court will grant Defendant's motion to compel
arbitration and stay the case .
An appropriate Order will be entered .
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