Kevin McGee v. Thomas Armstrong
941 F.3d 859
| 6th Cir. | 2019Background
- Kevin McGee was a management employee of the Summit County Board of Developmental Disabilities under renewable one-year contracts (hired 2002, terminated 2012) that included a broad arbitration clause for disputes over removal/suspension/demotion.
- McGee joined the Ohio Army National Guard in 2008; a dispute arose over military leave pay when Board policy limited paid military leave to 176 hours per year but an earlier contract provision referenced "31 days"; the Board ultimately paid differential pay when leave exceeded 176 hours.
- The Board circulated two versions of the 2011–12 contract (one specifying "31 days," a revised one stating "military leave in accordance with Ohio law"); McGee did not sign either but continued working and accepted differential pay for part of his 2012 leave.
- McGee was placed on pre-disciplinary notice after returning from military leave and then terminated; he sued for wrongful termination, contract breaches, and military-discrimination/retaliation (including § 1983 claims).
- District Court compelled arbitration for most claims, the arbitrator found the contested claims arbitrable and granted summary judgment for defendants; the district court later denied vacatur of the award and granted summary judgment for defendants on remaining breach-of-contract claims; McGee appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court erred in compelling arbitration of certain claims | McGee argued specific claims (first, fifth, fourteenth, and § 1983 claims) were not arbitrable | The contract delegates arbitrability to the arbitrator via an AAA rule and an express contract clause | Court: Delegation clause is "clear and unmistakable"; under Henry Schein courts must defer arbitrability questions to arbitrator; no error in compelling arbitration |
| Whether the district court should have vacated the arbitrator’s summary-judgment award | McGee argued arbitrator lacked power to grant summary judgment and thus exceeded authority under Ohio law | Defendants: AAA rules permit dispositive motions; arbitrator acted within the parties’ agreed procedures | Court: Denied vacatur; arbitrator had authority per AAA rules to decide dispositive motions |
| Whether defendants breached the employment contract (military leave and other benefits) | McGee claimed Board failed to pay contractual military leave and omitted contractual benefits (professional time, sick, vacation) | Defendants: The 2011–12 contract incorporated Ohio law (176-hour month); McGee acquiesced to and was paid under those terms; benefits argument was not timely or supported | Court: Summary judgment for defendants; no breach shown as to military leave and benefits claims were waived/unsupported |
Key Cases Cited
- Huffman v. Hilltop Companies, LLC, 747 F.3d 391 (6th Cir. 2014) (de novo review of arbitrability and motion to compel arbitration)
- Circuit City Stores, Inc. v. Adams, 532 U.S. 105 (2001) (FAA applies to employment contracts with arbitration provisions)
- Stout v. J.D. Byrider, 228 F.3d 709 (6th Cir. 2000) (framework for courts deciding whether to compel arbitration)
- Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79 (2002) (arbitrability is for courts unless parties clearly and unmistakably delegate it)
- Turi v. Main Street Adoption Servs., LLP, 633 F.3d 496 (6th Cir. 2011) (prior Sixth Circuit approach limiting delegation to claims at least arguably covered; later abrogated by Henry Schein)
- Henry Schein, Inc. v. Archer & White Sales, Inc., 139 S. Ct. 524 (2019) (Supreme Court: courts must enforce clear delegation clauses and refer arbitrability to arbitrator even if arguments are "wholly groundless")
- Samaan v. Gen. Dynamics Land Sys., Inc., 835 F.3d 593 (6th Cir. 2016) (standard of review for district court decisions confirming/vacating arbitration awards)
- Way Bakery v. Truck Drivers Local No. 164, 363 F.3d 590 (6th Cir. 2004) (arbitration-award review is narrowly circumscribed)
- Baker v. City of Trenton, 936 F.3d 523 (6th Cir. 2019) (de novo review of district court summary-judgment rulings)
- McDaniel v. Upsher-Smith Laboratories, Inc., 893 F.3d 941 (6th Cir. 2018) (arguments not raised below are waived on appeal)
