Creasy v. Seelbach and Company, Inc.
3:17-cv-00742
M.D. Tenn.Jul 11, 2017Background
- Plaintiff Jimmy Creasy sued his former employer Seelbach and Company, Inc. for alleged FMLA interference and retaliation.
- Defendant moved to dismiss or, alternatively, to stay proceedings and compel arbitration, citing a signed Application Acknowledgment and the employer’s Arbitration Policy requiring binding arbitration of employment disputes.
- The Arbitration Policy and Plaintiff’s signed acknowledgment were submitted to the court; Plaintiff did not contest their validity or applicability.
- The dispute over whether to compel arbitration is governed by the Federal Arbitration Act (FAA), which creates a strong presumption in favor of enforcing arbitration agreements and requires stays of suits pending arbitration.
- Sixth Circuit precedent requires a party opposing arbitration to show a genuine issue of material fact as to the agreement’s validity or applicability—akin to surviving summary judgment.
- Because Creasy did not challenge the arbitration agreement, the court granted Defendant’s motion to stay the action and compel arbitration and administratively closed the file.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FMLA claims must be submitted to arbitration | Creasy contends his complaint states viable FMLA claims and did not dispute the arbitration agreement’s applicability | Seelbach contends Creasy agreed to submit employment disputes to binding arbitration via the signed acknowledgment and arbitration policy | Court compelled arbitration—agreement enforceable and applicable because Creasy did not challenge it |
| Appropriate court remedy when arbitration applies (dismiss vs stay) | Creasy argued the court should consider Rule 12(b)(6) sufficiency of his complaint | Seelbach sought dismissal or, alternatively, a stay pending arbitration | Court stayed the action and compelled arbitration (stayed rather than dismissed) |
Key Cases Cited
- Morrison v. Circuit City Stores, Inc., 317 F.3d 646 (6th Cir. 2003) (courts must enforce valid arbitration agreements and apply presumption in favor of arbitration)
- Great Earth Cos., Inc. v. Simons, 288 F.3d 878 (6th Cir. 2002) (party opposing arbitration must show genuine issue of material fact on validity or applicability of arbitration agreement)
