Jones et al v. Singing River Health Services Foundation et al

Filing 109

ORDER REQUIRING RESPONSE AND MEMORANDUM BRIEF re 89 MOTION to Compel Arbitration and MOTION to Stay Proceedings Pending Arbitration as to KPMG LLP or, in the alternative MOTION to Dismiss Plaintiffs' Claims as to KPMG LLP MOTION to Stay Case re 76 Amended Complaint pursuant to Local Rule 16(b)(3)(B) filed by KPMG, LLP Signed by Chief District Judge Louis Guirola, Jr on 07/27/2015 (Guirola, Louis)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
SOUTHERN DIVISION
THOMAS JONES, JOSEPH CHARLES
LOHFINK, SUE BEAVERS, RODOLFOA
REL, and HAZEL REED THOMAS, on behalf
of themselves and other similarly situated
v.

PLAINTIFFS

CAUSE NO. 1:14CV447-LG-RHW

SINGING RIVER HEALTH SERVICES
FOUNDATION, et al.

DEFENDANTS

CONSOLIDATED WITH
REGINA COBB, SUSAN CREEL, and
PHYLLIS DENMARK, on behalf of
themselves and others similarly situated
v.

PLAINTIFFS
CAUSE NO. 1:15CV1-LG-RHW

SINGING RIVER HEALTH SYSTEM, et al.

DEFENDANTS

AND
MARTHA EZELL LOWE, individually
and on behalf of a class of similarly
situated employees
v.

PLAINTIFFS
CAUSE NO. 1:15CV44-LG-RHW

SINGING RIVER HEALTH SYSTEM, et al.

DEFENDANTS

ORDER REQUIRING SINGING RIVER HOSPITAL SYSTEM TO FILE A
RESPONSE TO KPMG LLP’S MOTION TO COMPEL ARBITRATION
BEFORE THE COURT is the Motion to Compel Arbitration [89] filed by the
defendant KPMG LLP. After reviewing the Motion, the record in this matter, and
the applicable law, the Court finds that Singing River Hospital System should be
required to file a response in opposition to the Motion.

DISCUSSION
In its Motion to Compel Arbitration, KPMG raises an arbitration clause
contained in an attachment to engagement letters entered into by KPMG and
Singing River Hospital System. Although only Singing River Hospital System
signed the Engagement Letters, KPMG claims that the Jones and Lowe plaintiffs
are bound by the arbitration clauses pursuant to the doctrine of equitable estoppel.
The Jones and Lowe plaintiffs have filed a response in opposition to the Motion.
Although Singing River requested additional time to respond to the Motion, it never
filed a response.
The Mississippi Attorney General has opined that state agencies and political
subdivisions, including county entities, generally are not permitted to enter into
binding arbitration agreements unless authorized to do so by the Legislature. See
MS. Att'y Gen. Op., No. 2002-0295, 2002 WL 1579650 Clark (June 7, 2002); see also
MS Att'y Gen. Op., No. 2001 WL 283630 Austin (Feb. 16, 2001). As a result, the
Court finds that Singing River Hospital System should be required to file a
response to the Motion to Compel Arbitration. The response should address (1) the
issue of whether Singing River Hospital System had authority to enter into a
binding arbitration agreement with KPMG, and (2) the issue of whether the
arbitration agreement is valid and enforceable. The response must be filed by
August 13, 2015. KPMG may file a reply to Singing River’s response by August 24,
2015.

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IT IS, THEREFORE, ORDERED AND ADJUDGED that the Motion to
Compel Arbitration [89] filed by the defendant KPMG LLP is TAKEN UNDER
ADVISEMENT. Singing River Hospital System is ordered to file a response to the
Motion to Compel Arbitration by August 13, 2015.
IT IS, FURTHER, ORDERED AND ADJUDGED that KPMG may file a
reply to Singing River’s Response by August 24, 2015.
SO ORDERED AND ADJUDGED this the 27th day of July, 2015.

s/

Louis Guirola, Jr.

LOUIS GUIROLA, JR.
CHIEF U.S. DISTRICT JUDGE

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