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2:17-cv-06023
E.D. La.
Nov 6, 2017
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Background

  • Plaintiff Page Zeringue worked for Monster Energy from 2008–2015 and sued under Title VII for a sexually hostile work environment and retaliation after alleged misconduct by supervisors and eventual termination.
  • Zeringue signed written employment agreements on February 20, 2008 and September 11, 2014; both contained arbitration provisions covering employment-related disputes and statutory "public policy" claims.
  • Plaintiff argued the September 2014 arbitration clause did not cover sexual harassment/retaliation claims and should not apply retroactively to conduct before September 2014.
  • Plaintiff also contended the arbitration clause conflicted with Monster’s harassment policies, that she did not meaningfully consent (oral assurances about a promotion), and that the clause was an unenforceable contract of adhesion.
  • Defendant moved to compel arbitration and to dismiss (alternatively stay) the Title VII suit; the court evaluated validity, scope, retroactivity, and any statutory bar to arbitration.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Scope/enforceability of arbitration clause Clause does not expressly include sexual harassment or retaliatory termination Clause unambiguously covers any dispute "arising out of or relating to" employment, including statutory claims Court: Arbitration clause valid and covers Title VII claims
Temporal scope/retroactivity Clause shouldn't reach events before Sept. 11, 2014 Clause has no temporal limit; earlier 2008 agreement also provides for arbitration Court: No temporal limitation; claims predating Sept. 2014 are arbitrable
Procedural fairness/adhesion & consent Plaintiff lacked meaningful assent; clause is adhesive and not negotiated Agreement was signed, conspicuous, mutual, and not hidden; plaintiff had duty to read Court: Not an unenforceable contract of adhesion; plaintiff consented by signing
Arbitrability under federal law / relief Implied that Title VII claims shouldn't be sent to arbitration (argued indirectly) FAA and Supreme Court precedent favor arbitration; no statute renders claims non-arbitrable; move to compel and dismiss Court: Federal policy favors arbitration; compelled arbitration and dismissed complaint

Key Cases Cited

  • AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (Sup. Ct.) (FAA’s strong federal policy favors enforcement of arbitration agreements)
  • Moses H. Cone Memorial Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (Sup. Ct.) (doubts about arbitrability resolved in favor of arbitration)
  • JP Morgan Chase & Co. v. Conegie ex rel. Lee, 492 F.3d 596 (5th Cir.) (two-step arbitrability inquiry: agreement and scope; then statutory preclusion)
  • Carey v. 24 Hour Fitness, USA, Inc., 669 F.3d 202 (5th Cir.) (silence on retroactivity can permit retroactive application of arbitration changes)
  • Alford v. Dean Witter Reynolds, Inc., 975 F.2d 1161 (5th Cir.) (dismissal appropriate where all claims are subject to arbitration)
  • Fedmet Corp. v. M/V BUYALYK, 194 F.3d 674 (5th Cir.) (discussing dismissal vs. stay when compelling arbitration)
  • Aguillard v. Auction Mgmt. Co., 908 So.2d 1 (La.) (contract-of-adhesion analysis focuses on whether party truly consented)
  • Coleman v. Jim Walter Homes, Inc., 6 So.3d 179 (La.) (written arbitration agreement enforceable despite prior oral negotiations)
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Case Details

Case Name: Zeringue v. Monster Energy Company
Court Name: District Court, E.D. Louisiana
Date Published: Nov 6, 2017
Citation: 2:17-cv-06023
Docket Number: 2:17-cv-06023
Court Abbreviation: E.D. La.
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