Michael Ashbey v. Archstone Property Management
2015 U.S. App. LEXIS 7819
| 9th Cir. | 2015Background
- Michael Ashbey worked for Archstone from 1996 to 2010; he sued after termination alleging Title VII retaliation and related state-law claims.
- Ashbey signed 2009 and 2010 acknowledgments stating he received directions to access the Company Policy Manual and its Dispute Resolution Policy and agreed to abide by the Manual.
- The Manual’s Dispute Resolution Policy invoked the FAA and required final, binding arbitration for employment disputes, including claims under the Civil Rights Act of 1964.
- Archstone removed the case to federal court and moved to compel arbitration under the Manual’s Dispute Resolution Policy.
- The district court denied the motion, holding Ashbey had not "knowingly" waived his Title VII right to a jury trial; Archstone appealed.
- The Ninth Circuit reversed, holding the Acknowledgment and Manual gave sufficiently clear notice that Ashbey knowingly waived his judicial forum for Title VII and equivalent state-law claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Ashbey knowingly waived his Title VII right to a jury trial by signing the Acknowledgment | Acknowledgment did not give adequate notice that it contained an arbitration clause or that signing waived statutory remedies; continued employment doesn’t imply knowing waiver | Acknowledgment explicitly referenced the Dispute Resolution Policy, and the Manual unambiguously required arbitration for Title VII and related claims; Ashbey agreed to abide by it | Court held Ashbey knowingly waived his right; arbitration compelled |
Key Cases Cited
- Nelson v. Cyprus Bagdad Copper Corp., 119 F.3d 756 (9th Cir. 1997) (employee acknowledgment insufficient to show knowing waiver of statutory forum)
- Kummetz v. Tech Mold, Inc., 152 F.3d 1153 (9th Cir. 1998) (same—handbook acknowledgment did not notify of arbitration or waiver of remedies)
- Prudential Ins. Co. of Am. v. Lai, 42 F.3d 1299 (9th Cir. 1994) (Title VII plaintiffs may be forced to arbitrate only if waiver is knowing)
- Cox v. Ocean View Hotel Corp., 533 F.3d 1114 (9th Cir. 2008) (party seeking to compel arbitration must show a valid written agreement and that it covers the dispute)
- Bushley v. Credit Suisse First Boston, 360 F.3d 1149 (9th Cir. 2004) (denial of motion to compel arbitration reviewed de novo)