Friend v. Haleon US Holdings Inc.
0:24-cv-00648
D. MinnesotaMay 7, 2024Background
- Plaintiff Kenneth Friend worked at Haleon US Holdings, Inc. (and its predecessor) since 1987 and was terminated in September 2023 for alleged violations of company policy, which he denies.
- Upon termination for misconduct, Friend was not offered severance benefits by Haleon.
- Friend sued, alleging interference with ERISA rights, and violations of the Minnesota Human Rights Act and the ADA.
- Haleon moved to compel arbitration per its HEAR program, a mandatory arbitration policy launched in 2018 that allowed employees to opt out by a specific deadline.
- Friend claims he did not recall seeing or agreeing to the HEAR Legal Agreement and did not opt out, but records show he opened related emails multiple times.
- The main legal question was whether Friend, by not opting out, is bound to arbitrate his claims under the HEAR agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of Arbitration Agreement | Friend never saw/agreed to HEAR Legal Agreement | HEAR terms clearly offered, Friend failed to opt out | Friend is bound by the arbitration clause |
| Communication and Acceptance | Claimed lack of awareness negates agreement | Offer was communicated via multiple channels, emails opened | Acceptance by failing to opt out |
| Signature Requirement | No explicit argument made | Signature not needed for contract under MN law and FAA | Signature not required |
| Applicability to ERISA claim | Arbitration agreement doesn't cover ERISA claim | Arbitrability must be decided by arbitrator as per HEAR | Issue referred to arbitrator |
Key Cases Cited
- E.E.O.C. v. Waffle House, Inc., 534 U.S. 279 (arbitration agreements are on equal footing with other contracts under the FAA)
- Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20 (scope of court’s review on motions to compel arbitration)
- Gannon v. Circuit City Stores, Inc., 262 F.3d 677 (court's limited role to determine existence and scope of arbitration agreement)
- Keymer v. Mgmt. Recruiters Int’l, Inc., 169 F.3d 501 (contract law governs creation and enforcement of arbitration agreements)