Hale v. Club Demonstration Services, Inc.
3:21-cv-00257
| D. Nev. | Jul 6, 2022Background
- Plaintiff Vickie Hale sued Club Demonstration Services, Inc. and Daymon Worldwide Inc. alleging FMLA and Nevada wrongful-termination claims after an on-the-job injury.
- Defendants moved to compel arbitration and to dismiss or stay the case, relying on an arbitration agreement they say Hale signed when hired.
- Hale submitted a sworn declaration denying she agreed to arbitrate, denying recollection of the document, disputing its authenticity, and asserting she was never told arbitration was a condition of employment; she also timely demanded a jury trial on arbitrability.
- The arbitration document submitted by Defendants has no signature blocks, names CDS/Daymon Interactions (not Daymon Worldwide), and the highlighted electronic signature evidence does not expressly reference arbitration.
- Defendants submitted a human-resources declaration (Andrew Beros) describing general practices and an electronic record purporting to show Hale signed; the court found Beros’ declaration lacked detailed personal knowledge tying the arbitration agreement to Hale.
- Because factual disputes exist about formation of an arbitration agreement, the court applied the summary-judgment standard, concluded a genuine dispute of material fact exists, deferred ruling on the motions, and ordered a summary jury trial under 9 U.S.C. § 4 to decide arbitrability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of a valid arbitration agreement | Hale: she never agreed to arbitrate; she never saw or signed the agreement | Defendants: Hale electronically signed the arbitration agreement when hired | Court: Genuine dispute of material fact exists; trial on arbitrability required |
| Sufficiency of Hale's declaration | Declaration denies signing and disputes document authenticity; proffered as evidence creating dispute | Defendants: Hale's declaration is conclusory and self-serving, insufficient to defeat motion | Court: Hale's sworn statement is sufficient to create a triable dispute given defects in defendants' proof |
| Sufficiency of defendants' evidence (HR declaration & exhibits) | Hale: HR declaration lacks personal knowledge; exhibits do not show arbitration language or a clear signature | Defendants: HR manager attests to signature and electronic records linking Hale to agreement | Court: HR declaration and exhibits do not establish agreement as a matter of law; they leave factual issues for trial |
| Procedure before resolving motion to compel arbitration | Hale: timely demanded a jury trial on arbitrability under 9 U.S.C. § 4 | Defendants: asked court to rule on motions now | Court: Must hold a summary jury trial on arbitrability and defer ruling on motions until after trial |
Key Cases Cited
- Nigro v. Sears, Roebuck & Co., 784 F.3d 495 (9th Cir. 2015) (self-serving but admissible declarations can nevertheless create a genuine factual dispute for trial)
- Hansen v. LMB Mortgage Servs., Inc., 1 F.4th 667 (9th Cir. 2021) (when arbitrability is genuinely disputed, district court must proceed to trial on that issue and hold motions to compel in abeyance)