Fox v. Computer World Services Corp.
920 F. Supp. 2d 90
D.D.C.2013Background
- Fox sues his former employers, CWS and C2, plus executives Hameed and Lundy, under the DCHRA and DC common law for age discrimination, retaliation, and unpaid bonus.
- Fox’s employment was established under a joint-employer relationship between CWS and C2; C2 recruited Fox and submitted an arbitration agreement as part of his employment terms.
- An arbitration agreement (Agreement to Arbitrate) allegedly covered disputes against C2 and defined a broad scope of claims, including wage, contract, tort, and discrimination claims, with a six-month notice requirement and limited discovery.
- Fox electronically signed the arbitration agreement (dated Sept. 30, 2009); a C2 representative signed on Oct. 2, 2009; CWS did not sign and was not named in the agreement.
- Fox claims his termination in March 2011 was age-based; after disputed letters, he filed an EEOC charge in Aug. 2011 and later asserted DCHRA claims in 2012 in DC Superior Court.
- Defendants moved to compel arbitration and dismiss or stay; Fox challenged enforceability on unconscionability grounds and CWS’s alleged non-signatory status, seeking to avoid arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the C2 arbitration agreement is unconscionable. | Agreement is procedurally and substantively unconscionable. | Agreement is enforceable; waivers of costs mitigate concerns. | Arbitration agreement not unconscionable; enforceable. |
| Whether CWS can be compelled to arbitrate despite being a non-signatory. | CWS must arbitrate only if it signed or is bound by the agreement. | Estoppel and intertwined claims justify compelling arbitration with CWS. | Fox must arbitrate claims against CWS under estoppel; CWS can be compelled. |
| Whether the agreement’s statute of limitations and administrative claims provisions impede vindication of rights. | Six-month notice and administrative claim bars are unfair and unconscionable. | Provisions do not interfere with substantive rights; discovery and waiver provisions address costs. | Statute-of-limitations and administrative claims provisions are not unconscionable. |
| Whether the discovery and fee-sharing provisions render the agreement unconscionable. | Limited discovery and cost-sharing make arbitration inaccessible. | Arbitration allows possible expansion of discovery; costs can be managed; fee-sharing waived by defendants. | Discovery and fee-sharing are not unconscionable; waiver of fees by defendants supports enforceability. |
Key Cases Cited
- Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (Supreme Court, 1983) (liberal federal policy favoring arbitration; enforceability of agreements)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (Supreme Court, 1995) (questions of arbitrability resolved by courts when contract exists)
- Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79 (Supreme Court, 2000) (burden on party challenging costs; silence on costs not per se unconscionable)
- Booker v. Robert Half Int’l, Inc. (Booker II), 413 F.3d 77 (D.C. Cir. 2005) (arbitration discovery discretion; enforceability despite potential limits)
- Nelson v. Insignia/Esg, Inc., 215 F. Supp. 2d 143 (D.D.C. 2002) (fee-splitting provisions; waiver of fees can validate arbitration)
- Khan v. Parsons Global Servs., Ltd., 480 F. Supp. 2d 327 (D.D.C. 2007) (estoppel applicable to compel arbitration with non-signatories when intertwined)
- Toledano v. O’Connor, 501 F. Supp. 2d 127 (D.D.C. 2007) (DC Circuit context cited in non-statutory claims for arbitration)
- Urban Invests., Inc. v. Branham, 464 A.2d 93 (D.C. 1983) (unconscionability framework for procedural and substantive unconscionability)
- Hill v. Wackenhut Sec. Int’l, 865 F. Supp. 2d 84 (D.D.C. 2012) (arbitration enforcement standards; relevance to discovery and costs)
