McCoy v. Cintas, Inc.
Filing
11
ORDER granting 2 Defendant's Motion to Compel Arbitration. The Court STAYS the proceedings before this Court pending arbitration. Signed by Judge S Arthur Spiegel on 6/11/2013. (km1)
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF OHIO
WESTERN DIVISION
VERONICA MCCOY,
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:
Plaintiff,
v.
CINTAS, INC.,
Defendant.
NO. 1:13-CV-134
ORDER
This matter is before the Court on Defendant’s Motion
to
Compel
Arbitration
(doc.
2),
Plaintiff’s
response
in
opposition thereto (doc. 9), and Defendant’s reply in support
thereof (doc. 10).
On February 25, 2013, Plaintiff filed a complaint with
this Court claiming that the termination of her employment by
Defendant
was
Disabilities
done
Act,
the
in
violation
Age
of
Discrimination
the
Americans
in
with
Employment
Act,
Title VII of the Civil Rights Act of 1964, and corresponding
state
laws
arbitration
(doc.
of
1).
Defendant
Plaintiff’s
moves
claims
the
pursuant
Court
to
an
to
compel
Employment
Agreement Plaintiff signed on November 1, 2011, which contained
an arbitration clause (doc. 2).
Plaintiff opposes Defendant’s
motion, arguing that the clause is invalid because Plaintiff has
1
“low
to
mid-level
experience,
background
arbitration
provision
of
the
Employment
stand-alone
document
and
did
not
and
education”;
Agreement
contain
was
language
the
not
a
expressly
waiving Plaintiff’s right to a jury trial; and Defendant did not
offer a seminar for employees in which the arbitration provision
was explained (doc. 9).
Under
the
Federal
Arbitration
Act
(the
“FAA”),
a
written agreement to arbitrate disputes that arise out of a
contract involving transactions in interstate commerce “shall be
valid, irrevocable, and enforceable, save upon such grounds as
exist at law or in equity for the revocation of any contract.”
Stout v. J.D. Byrider, 228 F.3d 709, 714 (6th Cir. 2000)( citing
9
U.S.C.
§
2).
The
FAA
was
designed
to
override
judicial
reluctance to enforce arbitration agreements, to relieve court
congestion, and to provide parties with a speedier and less
costly alternative to litigation. Id.
engages
in
interstate
commerce,
Because Defendant clearly
there
is
no
dispute
about
whether the employment agreement at issue here falls within the
scope of the FAA, which applies whenever there is an agreement
to arbitrate contained in “a contract evidencing a transaction
involving commerce.” 9 U.S.C. § 2.
When asked by a party to compel arbitration under a
contract, a federal court must determine whether the parties
2
agreed to arbitrate the dispute at issue. Stout, 228 F.3d at
719.
Courts are to examine the language of the contract in
light of the strong federal policy in favor of arbitration.
Moses H. Cone Mem'l Hosp. v. Mercury Constr. Corp., 460 U.S. 1,
24,
103
S.Ct.
927,
74
L.Ed.2d
765
(1983)
(the
FAA
“is
a
congressional declaration of a liberal federal policy favoring
arbitration agreements, notwithstanding any state substantive or
procedural policies to the contrary”).1 Any ambiguities in the
contract
or
doubts
as
to
the
parties'
intentions
should
be
resolved in favor of arbitration. Stout, 228 F.3d at 714. The
“primary
purpose”
of
the
FAA
is
to
ensure
“that
private
agreements to arbitrate are enforced according to their terms.”
Volt Info. Sciences, Inc. v. Bd. of Tr. of Leland Stanford, Jr.
Univ.,
489
U.S.
468,
479,
109
S.Ct.
1248,
103
L.Ed.2d
488
(1989).
Section 3 of the FAA provides as follows:
If any suit or proceeding be brought in any of
the courts of the United States upon any issue
referable to arbitration under an agreement in
writing for such arbitration, the court in which
1
The Court notes that Ohio also has a strong policy
favoring arbitration and that Ohio’s Arbitration Act mirrors the
federal act in many ways, including that any doubts should be
resolved in favor of arbitration and that arbitration clauses
should be effectuated unless the clause is not susceptible to an
interpretation that covers the dispute. See, e.g., Ohio R. Code
§2711.01(A); Gibbons-Grable Co. v. Gilbane Building Co., 517
N.E.2d 559 (Ohio Ct. App. 1986); Smith v. Whitlatch & Co., 739
N.E.2d 857 (Ohio Ct. App. 2000).
3
such suit is pending, upon being satisfied that
the issue involved in such suit or proceeding is
referable to arbitration under such agreement,
shall on application of one of the parties, stay
the trial of the action until such arbitration
has been had in accordance with the terms of the
Agreement, provided the applicant for the stay is
not
in
default
in
proceeding
with
such
arbitration.
9 U.S.C. § 3. Section 3 thus “requires” a court in which suit
has been brought “‘upon any issue referable to arbitration under
an agreement in writing for such arbitration’ to stay the court
action pending arbitration once it is satisfied that the issue
is arbitrable under the agreement.”
Prima Paint Corp. v. Flood
& Conklin Mfg. Co., 388 U.S. 395, 400, 87 S.Ct. 1801, 18 L.Ed.2d
1270 (1967). See also Santos v. Am. Broad. Co., 866 F.2d 892,
894 (6th Cir.1989) (“[w]here the parties to a contract that
provides
for
arbitration
have
an
arbitrable
dispute,
it
is
crystal clear that Congress has mandated that federal courts
defer to contractual arbitration”).
When considering a motion to compel arbitration under
the FAA, a court has four tasks: (1) it must determine whether
the parties agreed to arbitrate; (2) it must determine the scope
of the arbitration agreement; (3) if federal statutory claims
are asserted, it must consider whether Congress intended those
claims to be nonarbitrable; and (4) if the court concludes that
some, but not all, of the claims in the action are subject to
4
arbitration, it must determine whether to stay the remainder of
the proceedings pending arbitration.
Stout, 228 F.3d at 714.
The Sixth Circuit applies “the cardinal rule that, in
the absence of fraud or willful deceit, one who signs a contract
which he has had an opportunity to read and understand, is bound
by its provisions.”
Allied Steel & Conveyors, Inc. v. Ford
Motor Co., 277 F.2d 907, 913 (6th Cir. 1960).
Doubt regarding
the applicability of an arbitration clause should be resolved in
favor of arbitration. Id. Indeed, “any doubts are to be resolved
in favor of arbitration unless it may be said with positive
assurance that the arbitration clause is not susceptible of an
interpretation that covers the asserted dispute.”
Nestle Waters
North America, Inc. v. Hollman, 505 F.3d 498, 504 (6th Cir.
2007).
If
parties
contract
to
resolve
their
disputes
in
arbitration rather than in the courts, a party may not renege on
that
contract
absent
the
most
extreme
circumstances.
Allied
Steel & Conveyors, Inc., 277 F.2d at 913.
Here,
enforceability
Plaintiff’s
of
the
arguments
arbitration
employment agreement are unavailing.
clause
regarding
contained
the
in
the
First, as Defendant notes,
there is no dispute about whether the parties entered into an
employment agreement that contained a provision that mandates
that all disputes arising out of Plaintiff’s employment with
5
Defendant—expressly including the very types of claims raised by
Plaintiff in this matter-be arbitrated as the exclusive method
of dispute resolution.
The parties agreed to arbitrate not one
time but as many as six times over the course of Plaintiff’s
employment with Defendant, as she signed at least six employment
agreements over the course of fourteen years, each of which
contained an arbitration provision.
This is not an ambiguous
case where the employee did not sign the agreement but instead
simply
continued
to
work
Plaintiff
repeatedly
provision
in
the
after
was
receiving
presented
employment
with
agreements
notice.
the
and
Instead,
arbitration
repeatedly
acknowledged her awareness of and acquiescence to the provision
with
her
signature
to
the
agreement.
Plaintiff’s
repeated
execution of these employment agreements, absent any evidence
that she was not in possession of her faculties or was unable to
read or write, is evidence enough that there was a meeting of
the minds as to the agreement to arbitrate.
See, e.g., Garcia
v. Wayne Homes, LLC, 2002 WL 628619 (Ohio Ct. App., April 19,
2002)(noting that Ohio law presumes that an adult with full
faculties who can read and write who signs a contract has read
it and should be bound by its terms).
Plaintiff’s arguments that she should not now be bound
by the terms of the agreement she made because she has “low to
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mid-level
experience,
background
and
education”
or
because
Defendant did not offer a seminar for employees in which the
arbitration provision was explained simply do not rise anywhere
near to the level of “the most extreme circumstances.”
Steel & Conveyors, Inc., 277 F.2d at 913.
no
legal
requirement
document,
and
the
that
Sixth
the
In addition, there is
provision
Circuit
Allied
has
be
a
stand-alone
expressly
rejected
Plaintiff’s argument that an arbitration agreement that does not
include an express jury-trial waiver is invalid.
See Cooper v.
MRM Inv. Co., 376 F3d 493, 506 (6th Cir. 2004)(“This Court…has
flatly rejected the claim that an arbitration agreement must
contain a provision expressly waiving the employee’s right to a
jury
trial.”).
Simply
put,
the
parties
here
agreed
to
arbitration.
As to the scope of the agreement, the Court finds that
it is clear in its terms: the parties’ agreement to arbitrate
encompasses
all
relationship,
disputes
including
arising
those
out
raised
of
by
the
employment
Plaintiff
in
her
complaint here, and Congress has not indicated that it intended
the federal statutory claims she asserts be nonarbitrable.
Thus,
arbitration
GRANTED.
the
Court
well-taken,
finds
and
it
Defendant’s
should
be,
motion
and
to
compel
hereby
is,
The Court thus STAYS the proceedings here pending
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arbitration.
SO ORDERED.
Dated:
June 11, 2013
s/S. Arthur Spiegel________________
S. Arthur Spiegel
United States Senior District Judge
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