Arnaoudoff v. Tivity Health Incorporated
2:23-cv-01510
D. Ariz.Mar 11, 2025Background
- Plaintiff Nancy Arnaoudoff, a former customer service representative for Tivity Health, alleged wrongful termination under the ADA after being denied accommodation for surgery recovery and was terminated in November 2020.
- After receiving a Right to Sue letter from the EEOC, Arnaoudoff filed a federal lawsuit seeking damages for discrimination.
- The parties engaged in settlement negotiations via email in August 2024, ultimately agreeing on a settlement amount of $57,671.80 and removal of certain contract clauses at Arnaoudoff's insistence.
- Although Arnaoudoff refused to sign the final agreement and later demanded much higher compensation, Tivity moved to enforce the settlement, arguing a binding contract existed.
- Magistrate Judge Bibles recommended enforcing the settlement; Arnaoudoff objected on several grounds including lack of legal counsel, lack of a signature, fairness, evidentiary issues, and adequacy of settlement amount.
- The district court overruled Arnaoudoff’s objections, adopted the R&R fully, enforced the settlement, and dismissed the case with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability without Plaintiff's Legal Counsel | Lack of counsel made Plaintiff unable to consent knowingly/voluntarily. | Plaintiff chose to proceed pro se and adequately negotiated terms herself. | Status as pro se does not affect enforceability; no special treatment required. |
| Enforceability Without Signature | No binding agreement existed because the settlement was never signed. | Email exchanges, with Plaintiff's typed signature, are sufficient for a binding agreement. | Signature not required; written emails suffice under local rule and contract principles. |
| Fairness and Adequacy of Settlement Amount | The amount and terms were unfair and did not account for all damages suffered, including emotional harms. | Settlement exceeded one year’s lost wages and met all required ADA remedies. | "Fairness" not required for enforceability in private settlements; Plaintiff was adequately paid. |
| Relevance of "Me-Too" Evidence | New witness could prove discriminatory practices, supporting higher damages or better outcome. | Evidence would not be admissible or relevant to Plaintiff’s own ADA claims. | Such evidence not relevant or admissible absent strong similarities; objection overruled. |
Key Cases Cited
- Jacobsen v. Filler, 790 F.2d 1362 (9th Cir. 1986) (pro se litigants are not entitled to special treatment in civil disputes)
- Miranda v. S. Pac. Transp. Co., 710 F.2d 516 (9th Cir. 1983) (district courts have broad discretion in interpreting and applying local rules)
- Adams v. Johns-Manville Corp., 876 F.2d 702 (9th Cir. 1989) (motions to enforce settlement agreements are actions to specifically enforce a contract)
- United Cal. Bank v. Prudential Ins. Co. of Am., 681 P.2d 390 (Ariz. Ct. App. 1983) (counteroffers can be accepted to form the basis of a valid contract)
- Sprint/United Mgmt. Co. v. Mendelsohn, 552 U.S. 379 (2008) (relevance of "me-too" evidence depends on connection to plaintiff’s own circumstances)
