Lacy v. Rent-A-Center et al

Filing 25

MEMORANDUM AND ORDER granting as unopposed 4 defendant Rent-A-Center's Motion to Compel Arbitration and 19 defendant Factory Furniture Outlet's Motion to Compel Arbitration. The parties are directed to proceed to consolidated arbitra tion of plaintiff's claims. The court will stay the judicial proceedings in this case pending completion of the arbitration process. Counsel for the parties are directed to report to the court in writing no later than Monday, February 9, 2015 concerning the status of that arbitration in the event that it has not been terminated earlier. Failure to so report will lead to dismissal of this case for lack of prosecution. Signed by District Judge John W. Lungstrum on 08/08/2014. (ses)

IN THE UNITED STATES DISTRICT COURT
DISTRICT OF KANSAS
Hanh Lacy,
Plaintiff,
v.

Case No. 14-1143-JWL

Rent a Center; and
Furniture Factory Outlet,
Defendants.
MEMORANDUM & ORDER
Plaintiff Hanh Lacy filed suit against defendants alleging that both entities were her joint
employers and that both entities were liable for racial harassment, sexual harassment and
retaliation under federal law and for intentional infliction of emotional distress under Kansas
common law. Defendant Rent-A-Center has moved to dismiss or stay the case and to compel
arbitration on the grounds that plaintiff’s complaint was filed in contravention of the terms of a
valid and enforceable mutual agreement to arbitrate claims signed by plaintiff. Plaintiff does not
dispute that her claims against Rent-A-Center are subject to arbitration.
Defendant Furniture Factory Outlet subsequently filed a motion to dismiss or stay the
case and to compel arbitration on the grounds that plaintiff’s claims against Furniture Factory
Outlet are substantially intertwined and closely related to her claims against Rent-A-Center such
that arbitration of plaintiff’s claims against Furniture Factory Outlet is also appropriate. See In
re Universal Serv. Fund Tel. Billing Practices Lit., 300 F. Supp. 2d 1107, 1139 (D. Kan. 2003)
(court may compel arbitration when signatory to contract containing arbitration clause alleges

substantially interdependent and concerted misconduct by both the nonsignatory and one or
more of the signatories to the contract). In response, plaintiff does not oppose proceeding to
arbitration on her claims against Factory Furniture Outlet so long as that arbitration is
consolidated with the arbitration of her claims against Rent-A-Center in a single arbitration.
Rent-A-Center has not responded to Factory Furniture Outlet’s motion to compel
arbitration and has not objected to or otherwise opposed a consolidated arbitration. 1 Therefore,
the court will grant both motions to compel arbitration as unopposed and, in the absence of any
objection by the parties, will direct the parties to proceed to arbitration of plaintiff’s claims in a
single arbitration.

IT IS THEREFORE ORDERED BY THE COURT THAT defendant Rent-ACenter’s motion to compel arbitration (doc. 4) is granted as unopposed and defendant Factory
Furniture Outlet’s motion to compel arbitration (doc. 19) is granted as unopposed. The parties
are directed to proceed to consolidated arbitration of plaintiff’s claims. The court will stay the
judicial proceedings in this case pending completion of the arbitration process. Counsel for the
parties are directed to report to the court in writing no later than Monday, February 9, 2015
concerning the status of that arbitration in the event that it has not been terminated earlier.
Failure to so report will lead to dismissal of this case for lack of prosecution.

In her response to Factory Furniture Outlet’s motion to compel, plaintiff attaches exhibits
indicating that Rent-A-Center opposes consolidated arbitration on the grounds that the
arbitration agreement prohibits consolidation. The court cannot find any provision in the
arbitration agreement that would prohibit consolidation and, in any event, Rent-A-Center has not
lodged an objection to consolidation with the court despite ample opportunity to do so.
1

2

IT IS SO ORDERED.

Dated this 8th day of August, 2014, at Kansas City, Kansas.

s/ John W. Lungstrum
John W. Lungstrum
United States District Judge

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