Kambala Wa Kambala v. Checchi and Company Consulting, Inc.
Civil Action No. 2017-0451
| D.D.C. | May 4, 2017Background
- Checchi & Company Consulting hired plaintiff Oliver Kambala on December 11, 2015, as a project leader; plaintiff’s employment was at-will.
- Defendant terminated plaintiff in October 2016 pursuant to the at-will clause.
- The employment agreement contained an arbitration provision; plaintiff filed a demand for arbitration asserting a breach-of-contract claim.
- Simultaneously, plaintiff filed a federal-court suit alleging Title VII and D.C. Human Rights Act discrimination based on race and national origin.
- Defendant moved to enjoin the arbitration, arguing plaintiff waived his contractual right to arbitrate by invoking the federal courts.
- The court granted the motion to enjoin arbitration, ordered plaintiff to withdraw the AAA demand, denied defendant’s preliminary-injunction motion as moot, and allowed plaintiff to amend his complaint to add a breach-of-contract claim in court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff waived his contractual right to arbitrate by filing a federal suit asserting related discrimination claims | Kambala argued he could pursue breach-of-contract in arbitration while litigating Title VII/DCHRA claims in court because arbitration cannot provide the same relief for discrimination claims | Checchi argued filing suit in federal court while pursuing arbitration is inconsistent with the arbitration right and constitutes waiver | Court held Kambala waived arbitration by availing himself of the federal forum for related claims; arbitration enjoined and plaintiff must withdraw the AAA demand |
Key Cases Cited
- Nat'l Found. for Cancer Research v. A.G. Edwards & Sons, Inc., 821 F.2d 772 (D.C. Cir. 1987) (arbitration is a contractual right that may be waived by inconsistent actions)
- Khan v. Parsons Global Servs., Ltd., 521 F.3d 421 (D.C. Cir. 2008) (party’s active participation in litigation can constitute waiver of arbitration when it elects the judicial forum)
- Booker v. Robert Half Int'l, Inc., 413 F.3d 77 (D.C. Cir. 2005) (Title VII claims may be compelled to arbitration)
- Borg-Warner Protective Servs. Corp. v. Equal Emp't Opportunity Comm'n, 245 F.3d 831 (D.C. Cir. 2001) (Title VII claims are subject to mandatory arbitration)