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