MEMORANDUM OPINION
This matter comes before the Court upon defendant’s Motion to Dismiss and/or for Summary Judgment (“Def.’s Mot.”), the plaintiffs Opposition to Defendant’s Motion to Dismiss and/or for Summary Judgment (“PL’s Opp’n”), and Defendant’s *145 Reply (“Def.’s Reply”) thereto. The basis for defendant’s motion is the assertion that the plaintiff failed to submit her claims contained in the complaint (“Compl.”) to the pre-designated arbitrator, pursuant to the arbitration clause in her employment agreement with the defendant. Having concluded that the plaintiff has failed to submit even a scintilla of evidence to demonstrate a special circumstance that would invalidate the parties’ employment agreement, the Court has undertaken am independent examination of the arbitration agreement to determine whether there exists any basis to invalidate the agreement. Finding none, the Court must grant summary judgment and direct the plaintiff to submit her claims to the designated arbitrator pursuant to the arbitration provision contained in the employment agreement that she executed with the defendant.
I. Factual Background
A brief recitation of the facts of this case is a necessary prelude to the Court’s analysis of the legal challenges raised in the parties’ pleadings. The events that preceded the filing of this action commenced when the defendant hired the plaintiff as an Assistant Controller for its office located in the District of Columbia. Compl. ¶4; Def.’s Mot. Ex. 1. The employment contract was executed on July 22, 2000, and the two and a half page written agreement contained the following arbitration clause:
ARBITRATION
Any dispute arising out of or relating to this Agreement, your performance or the Company’s performance thereunder, the terms and conditions of your employment by the Company, and/or the termination of such employment which has not been resolved by non-binding mediation under the auspices of J-A-MS/Endispute within 90 days of being submitted to the Company in writing shall be resolved by binding arbitration in New York, New York (or such other location as may be mutually agreed upon) through the offices of, and in accordance with the arbitration rules of, JA-M-S/Endispute applicable to employment arbitration (the “Rules”) as then in effect. Other than with respect to provisional equitable relief sought at the outset of the dispute, neither party shall be entitled to commence or maintain any action in a court of law with respect to any matter in dispute or relief requested until such matter or request for relief shall have been submitted to and decided by the chosen arbitrator and then only for the enforcement of the award of such arbitrator. The decision of the arbitrator shall be final and binding upon the parties and all persons claiming under and through them. All fees and expenses of the arbitrator shall be borne equally by the Company and Employee.
Def.’s Mot. Ex. 1. The plaintiffs employment ended when she was terminated by the defendant. 1 Compl. ¶ 12.
The plaintiff alleges that prior to her termination she had complained to the defendant’s' “upper management” regarding race and gender discrimination by her immediate supervisor and that she was subsequently promised an increased annual performance bonus for working under “intolerable conditions.” Compl. ¶¶ 6-7. After her termination, the plaintiff did not receive the increased bonus and proceeded to file a civil complaint in the Superior Court of the District of Columbia alleging: (1) intentional racial discrimination in violation of 1 D.C.Code § 2512 (2001); (2) intentional sexual discrimination in violation of 1 D.C.Code § 2512 (2001); (3) retaliatory discharge in violation of 1 D.C.Code § 2525 (2001); and (4) breach of implied contract. Compl. ¶¶ 15-21.
*146 The defendant contends that the plaintiffs claims arise out of her employment, are therefore subject to mandatory arbitration, and accordingly cannot be pursued in this Court. Def.’s Mot. at 2. The plaintiff counters, arguing that the arbitration agreement is invalid because “it is unclear” whether she understood the full scope of the agreement. Pl.’s Opp’n at 2. The plaintiff also asserts that “should Plaintiff be able to show that she was under duress to agree to binding arbitration, this would negate the contract agreement with Defendant.” Id.
II. Jurisdiction
On the defendant’s motion, the case was removed to this Court pursuant to this Court’s original jurisdiction created by 28 U.S.C. § 1332 (2000) (diversity of citizenship). 2 Notice of Removal of a Civil Action (“Removal Notice”) ¶ 5. In its removal notice, the defendant asserted, without challenge, that the plaintiff is domiciled in Maryland, and that the defendant is incorporated in Delaware, with its principal place of business in New York. The defendant’s assertion that the amount in controversy exceeds the statutory minimum of $75,000 that is required for this Court to exercise diversity jurisdiction is also undisputed. Removal Notice ¶ 5. Therefore, this Court has subject-matter jurisdiction over this matter pursuant to 28 U.S.C. § 1332.
Despite the fact that this Court has subject-matter jurisdiction pursuant to diversity, the defendant asserts that under the circumstances of this case, where the parties have entered into a binding arbitration agreement, the Court lacks subject-matter jurisdiction as a result of the Federal Arbitration Act (“FAA” or the “Act”), 9 U.S.C. §§ 1-16 (2000), and requests that this action be dismissed pursuant to Federal Rule of Civil Procedure 12(b)(1). The FAA requires that “upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement.” 9 U.S.C. § 4. However, the FAA states that “[i]f the making of the arbitration agreement or the failure, neglect, or refusal to perform the same be in issue, the court shall proceed summarily to the trial thereof.” Id. Therefore, this Court finds that the FAA statutory scheme for assessing whether parties must submit their claims to arbitration necessarily confers jurisdiction on the Court to determine the enforceability of the agreement when “the making of the arbitration agreement or the failure, neglect, or refusal to perform the same be in issue ...” Id. In this case, the plaintiff has placed the arbitration agreement in issue for this Court’s determination and, thus, rather than divesting the Court of jurisdiction, the filing of this action actually conferred to the Court the obligation, pursuant to the FAA, to determine the enforceability of the agreement and decide whether arbitration should be compelled. Dismissal under Rule 12(b)(1) is therefore inappropriate.
III. Standard of Review
Having concluded that this matter is not subject to dismissal under Rule 12(b)(1), the Court must consider whether
*147
the defendant is entitled to have its motion for summary judgment entertained by the Court. As part of its examination into whether the arbitration agreement is enforceable, the Court, in addition to considering the plaintiffs allegations on the subject, has also conducted its own independent inquiry of the enforceability of the fee-splitting provision contained in the arbitration agreement. This inquiry has required the Court to evaluate whether the party seeking to avoid arbitration (the plaintiff) has adequately demonstrated that the arbitration fees will effectively prohibit her from vindicating her claims against the party seeking arbitration (the defendant).
See Green Tree Fin. Corp-Alabama v. Randolph,
*148
Summary Judgment is generally appropriate when the pleadings “show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R.Civ.P. 56(c). To prevail under Rule 56, the moving party for summary judgment must show that the non-moving party “has failed to make a sufficient showing on an essential element of her case with respect to which she has the burden of proof.”
Celotex Corp. v. Catrett, 477
U.S. 317, 328,
IV. Analysis
(A) Federal Arbitration Act
The FAA was originally enacted in 1925 to “reverse the longstanding judicial hostility to arbitration agreements that had existed at English common law and had been adopted by American courts, and to place arbitration agreements upon the same footing as other contracts.”
Gilmer v. Interstate/Johnson Lane Corp.,
Since its adoption, the Supreme Court has consistently given an expansive interpretation to the scope of the FAA. For example, in
Prima Paint Corp. v. Flood & Conklin Manufacturing Co.,
[a] written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, transaction, or refusal, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.
9 U.S.C. § 2. In
Alliedr-Bruce,
the Court concluded that the use of the words “involving commerce” in Section 2 of the Act signals an “intent to exercise Congress’ commerce power to the full” in the arbitration area.
(1) Is the Arbitration Agreement Enforceable?
The foundation for this Court’s analysis of whether the arbitration agreement in this case is enforceable is grounded in the requirement under the FAA that “the party resisting arbitration bears the burden of proving that the claims at issue are unsuitable for arbitration.”
Green Tree,
(a) Choice of Law
The Court, in determining whether the arbitration agreement is a valid contract, must “apply ordinary state law principles that govern the formation of contracts.”
Emeronye v. CACI Int’l,
The District of Columbia Circuit, in
Ideal Electronic Security Co. v. International Fidelity Insurance Co.,
(a) the place of contracting, (b) the place of negotiation of the contract, (c) the place of performance, (d) the location of the subject matter of the contract, and (e) the domicil, residence, nationality, place of incorporation and place of business of the parties.
Because the parties here failed to designate which jurisdiction’s law they desired to govern their agreement, this Court will *151 apply District of Columbia law because it is both the location where the contract was executed and performed, and the other Restatement factors do not favor applying the law of another forum.
(b) Plaintiff’s Understanding of the Employment Agreement
Although the plaintiff simply asserts that “[i]t is not clear that [she] was even aware that, by signing this offer of employment letter, she signed away her rights to pursue any claims she might have in the judicial system” and seems to suggest that the defendant had an affirmative duty to discuss and explain the arbitration clause to her, Pl.’s Opp’n at 2, the Court must reject the plaintiffs position because District of Columbia law dictates that a signature on an agreement indicates “ ‘mutuality of assent’ and a party is bound by the contract unless he or she can show special circumstances relieving him or her of such an obligation.”
Emeronye,
(c) Special Circumstances that would Invalidate the Arbitration Agreement
(i) Duress
The District of Columbia Court of Appeals in
Isaac v. First National Bank of Maryland, D.C.,
(ii) Obligation that Plaintiff Pay Part of the Arbitration Expenses
As this Court discussed above, the Supreme Court has repeatedly “rejected generalized attacks on arbitration agreements that rest on ‘suspicion
of
arbitration as a method of weakening the protections afforded in the substantive law to would-be complainants.' ”
Green Tree,
Although prior to the Supreme Court’s decision in
Green Tree
the Federal Circuits were split on the enforceability of certain fee-splitting provisions contained in arbitration agreements, applying either a case-by-case analysis or a per se invalidation rule, today the vast majority of the Circuits employ a case-by-case analysis when examining whether a fee-splitting arbitration agreement is invalid, and focus on the record to determine whether the amount of the arbitration costs could foreclose the employee from pursuing arbitration.
See Rosenberg v. Merrill Lynch, Pierce, Fenner & Smith, Inc.,
appropriate inquiry is one that evaluates whether the arbitral forum in a particular case is an adequate and accessible substitute to litigation, i.e., a case-by-case analysis that focuses, among other things, upon the claimant’s ability to pay the arbitration fees and costs, the expected cost differential between arbitration and litigation in court, and whether that cost differential is so substantial as to deter the bringing of claims.
Those Circuits, including this Court’s Circuit, that have found fee-splitting provisions in arbitration agreements to be per se invalid have concluded that such cost obligations deter or prohibit employees from pursuing their statutory rights in an arbitral forum.
Cole,
Subsequent to the
Cole
decision, the Supreme Court issued its decision in
Green Tree,
which is particularly instructive on the question of whether the arbitration agreement in this case is enforceable in light of its fee-splitting provision. It is clear that
Green Tree
requires that a party resisting arbitration shoulder the initial burden of demonstrating that a requirement to pay arbitration fees would be prohibitively expensive by showing the “likelihood of incurring such costs.”
Following the
Green Tree
decision, the District of Columbia Circuit has placed limits on the per se application of its holding in
Cole
and only one Federal Circuit, the Ninth Circuit in
Circuit City,
The District of Columbia Circuit has cautioned that “[i]t would be quite a contortion of
Cole
to find that it had addressed a far broader subject than the case that it set out simply to refine.”
Brown,
Moreover, of like significance on the question of the limited scope of
Cole
and whether it applies to the arbitration agreement in this case, is the language that the Circuit Court added to what
Gilmer
stated are enforceable arbitration agreements, which was the determination
Cole
sought to refine.
LaPrade,
This Court must look to the decision in
Green Tree
and utilize the approach called for by the Supreme Court in deciding whether the arbitration agreement before this Court is enforceable. Accordingly, the Court must consider the specific circumstances of this case and will apply the burden-shifting test announced in
Green Tree
to determine whether the fee-splitting arbitration costs provision would effectively prohibit the plaintiff from vindicating her claims in an arbitral forum. Under this burden-shifting test, the “party seek[ing] to invalidate an arbitration agreement on the ground that arbitration would be prohibitively expensive ... bears the burden of showing the likelihood of incurring such costs.”
13
Green Tree,
(2) Are the Plaintiff’s Allegations Encompassed by the Arbitration Agreement?
Once a court finds that an arbitration agreement is an enforceable contract and that there are no special circumstances that would otherwise invalidate it, the court must then determine whether the plaintiffs claims are encompassed in the agreement.
Nur,
Y. Conclusion
For the reasons set forth above, this Court finds that the arbitration agreement entered into by the parties is a valid and enforceable contract because the plaintiff has failed to - demonstrate any special circumstances that would invalidate this agreement, and because the plaintiffs allegations are encompassed within this agreement. While the FAA provides that once arbitration is compelled by a district court it “shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement,” 9 U.S.C. § 3, this Court concludes this matter should be dismissed because neither party has requested that these proceedings be stayed, and dismissal is also in accordance with what other courts have done when all of the plaintiffs claims must be submitted to arbitration.
See Cole,
*159 SO ORDERED this 12th day of August, 2002.
ORDER
Upon consideration of Defendant’s Motion for Summary Judgment and for the reasons set forth in the Memorandum Opinion accompanying this Order, it is hereby,
ORDERED that the above-captioned case is DISMISSED WITHOUT PREJUDICE; and, it is
FURTHER ORDERED that this dismissal is predicated upon the defendant’s offer to “pay all fees and expenses of the mediator and, if necessary, the arbitrator.” Therefore, in accordance with this offer made by the defendant, it shall file a stipulation to this effect with ten (10) days of the entry of this Order. 16 However, if the defendant no longer desires to comply with this offer, it shall so advise the Court and the Court will vacate this Order and schedule an evidentiary hearing for the purposes of addressing whether any imposed arbitration costs are prohibitive to the plaintiffs ability to submit her claims to arbitration. This is a final appealable order. 17
SO ORDERED this 12th day of August, 2002.
Notes
. Neither party provided the date when the plaintiff’s employment was terminated.
. 28 U.S.C. § 1332(a)(1) states that "[t]he district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between—citizens of different States.” This jurisdictional statute also provides that for its purposes "a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business ...” 28 U.S.C. § 1332(c).
. While the defendant chose to file a motion to dismiss, or in the alternative for summary judgment, many defendants choose to file a motion to compel arbitration pursuant to 9 U.S.C. §§ 1-16 (2000).
See, e.g., Green Tree,
. While the Court finds it appropriate to review this matter as a motion for summary judgment, rather than as a motion to dismiss for lack of subject-matter jurisdiction, because of the nature of the Green Tree burden-shifting test, an analysis under Rule 12(b)(1) would be identical because matters outside of the pleadings were considered. The District of Columbia Circuit has stated that a
District Court may in appropriate cases dispose of a motion to dismiss for lack of subject matter jurisdiction under Fed. R.Civ.P. 12(b)(1) on the complaint standing alone. But where necessary, the court may consider the complaint supplemented by undisputed facts evidenced in the record, or the complaint supplemented by undisputed facts plus the court’s resolution of disputed facts.
Herbert v. Nat'l Acad. of Sciences,
. Although the facts of Green Tree did not involve an employment dispute, but rather allegations involving violations of the Truth in Lending Act, 15 U.S.C. §§ 1601, et seq. (2000), and the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691-16911 (2000), the Supreme Court's general discussion about arbitration agreements is instructive.
. Although some courts cite
Shankle
for the proposition that the court created a per se proscription against the validity of fee-splitting arbitration agreements, the Tenth Circuit actually examined the facts and circumstances of the plaintiff's ability to access the arbitral forum and invalidated the agreement because the plaintiff could not afford to pay the fee to avail her claim to arbitration. Therefore, this Court, as the Fourth Circuit concluded in
Bradford,
finds that the Tenth Circuit's decision in
Shankle
supports a case-by-case analysis when evaluating the validity of fee-splitting provisions.
Bradford,
.
See Randolph v. Green Tree Fin. Corp.-Alabama,
.The Court notes that while the Court in Cole indicated that it was adopting the per se rule, the Court nonetheless commented on the plaintiff's individual circumstances, stating that:
[i]f an employee like Cole is required to pay arbitrators' fees ranging from $500 to $1,000 per day or more, ..., in addition to administrative and attorney’s fees, it is unlikely that he will be able to pursue his statutory claims? We think not ... These fees would be prohibitively expensive for an employee like Cole, especially after being fired from his job [as a security guard.]
. The arbitration provision in Cole was distinguishable from the agreement in this case because there is no indication here that arbitration is an option only available to the employer.
. While the arbitration agreement in
Green Tree
was silent on the
matter
of fee-splitting, this Court agrees with the Fourth Circuit’s assessment in
Bradford
that the Supreme Court’s holding in
Green Tree
is nevertheless instructive because it clearly analyzed the issue before it — whether
the
possibility of fee-splitting precludes a litigant from effectively vindicating her federal statutory rights
in
the arbitral forum — in terms of the individual litigant and the arbitration agreement before it, rather than in terms of a broad per se rule that would nullify or invalidate an entire category of arbitration provisions.
Bradford,
. While the Ninth Circuit in
Circuit City
stated that the fee-splitting arrangement "alone would render an arbitration agreement unenforceable," citing
Cole, supra,
the court based its decision on California law and found that the agreement invalid because it was “both procedurally and substantively unconscionable" as it was a contract of adhesion and did not afford the plaintiff "the benefit of the full range of statutory remedies.”
Circuit City,
. While this Court recognizes that District of Columbia statutes are enacted by the District of Columbia Council, and are therefore subject to Congressional review, 1 D.C.Code § 201.02(a) (2001), they are not Congressional statutes and are therefore akin to state statutes, 1 D.C.Code § 204.04(e) (2001).
. The
Green Tree
Court did not address "[h]ow detailed the showing of prohibitive expense must be before the party seeking arbitration must come forward with contrary evidence,” because the plaintiff failed to make a timely showing.
.Some courts
post-Green Tree
have resolved a plaintiffs assertion that arbitration fees are prohibitive only after granting limited discovery on this issue and allowing the plaintiff the opportunity to prove that such expenses will effectively deny access to a forum to adjudicate the plaintiff's claims.
See Large,
. An Order consistent with the Court's ruling accompanies this Memorandum Opinion.
. Upon receipt of a stipulation from the defendant regarding the payment of all fees and expenses of arbitration, the Court will dismiss this case with prejudice.
. This Order is a "final order", and therefore an appealable order, because it has disposed of the entire case, "leaving the court nothing to do but execute the judgment.”
See Green
Tree,
