MEMORANDUM OPINION
Plaintiff Lisa White is a black woman who works as an esthetician at the Four Seasons Hotel here in Washington. Alleging retaliation, discrimination on the basis of her race and pregnancy status, and a hostile work environment, White brought this suit under the District of Columbia Human Rights Act, D.C.Code § 2-1401.01 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and the Civil Rights Act of 1866, 42 U.S.C. § 1981. Having removed her action from the District of Columbia Superior Court to this Court, Defendant Four Seasons now moves to compel arbitration pursuant to the terms of the hiring agreement Plaintiff signed in September 2007 and again in February 2009. White does not dispute the existence of an arbitration provision, but argues both that she was improperly pressured to sign the agreement and that the provision is patently unfair; as a result, she contends the Court should not enforce it. Disagreeing with her arguments as to both procedural and substantive unconseionability, the Court will grant the Motion to Compel Arbitration and stay the case pending completion of those proceedings.
I. Background
Given the involved factual history of this case, an overview of events will be useful in understanding how the parties arrived at the present dispute. In its explication, the Court recounts the facts in the light most favorable to Plaintiff, as is required in a Motion to Compel Arbitration.
See Aliron Intern., Inc. v. Cherokee Nation Indus., Inc.,
In September of 2007, White was hired by the Four Seasons as an esthetician at its Spa here in the District of Columbia.
See
Compl., ¶ 1. During the hiring process, White was given a presentation on, and encouraged to sign, the Four Seasons’ employee contract, known as “EmPact.”
See
Mot., Declaration of Stacey Coppel, ¶ 6. The contract is a document of over 60
The C.A.R.E. agreement lists five steps that an employee agrees to follow prior to the sixth step of “Mediation/Arbitration”: 1) an informal discussion with the immediate supervisor; 2) the filing of a “written complaint with the Human Resources office within 14 days” of an incident; 3 & 4) a formal investigation and written report by the Director of Human Resources; and 5) an appeal to the General Manager if the employee is not satisfied. Id. This C.A.R.E. agreement, unlike most employee contracts containing arbitration provisions, also provides an opt-out clause, allowing the employee to opt out of the mediation/arbitration step within 30 days of being presented with the agreement or after having “successfully completed” a 90-day probationary period. See Coppel Deck, Exh. B (Opt-Out Verification). This arbitration agreement does not permit the employee to opt out while any legal claim that arose prior to signing the opt-out form is pending. See id.
On the signature page of the EmPact agreement are the employee’s and the employer’s basic promises, outlined in bullet-ed plain English. See Coppel Deck, Exh. C (EmPact Signature Page). The employee’s promises include a commitment to “Use C.A.R.E. first for all complaints even if [the employee has] exercised [her] right to opt out of the mediation/arbitration provision of C.A.R.E.” and to “use the mediation/arbitration procedure” in C.A.R.E. to resolve any termination, discrimination, or harassment disputes unless the employee has exercised the right to opt out. Id.
White avers that, although the Four Seasons conducted a 30-minute presentation covering the EmPact, it hid the existence of the agreement’s arbitration provisions and the ability to opt out of those provisions. See Opp., Declaration of Lisa White, ¶ 5. According to White, upon the conclusion of this presentation, Defendant requested that she and her colleagues “immediately sign the EmPact agreement” without giving employees the opportunity to read the agreement or consult with a third party regarding its contents. Id. White signed the agreement, purportedly without realizing the commitment she was making. See id.
In February 2009, White was approached by Assistant Supervisor Steve Ellis, who directed her to again sign the signature page of the EmPact agreement, which he stated was “for [her] benefit” because “ it would help to secure [her] employment with Four Seasons.” Id., ¶ 6. White states that the EmPact agreement and its arbitration provisions were not included with the document that was presented to her, and that Ellis never informed her of her ability to opt out of the arbitration agreement. See id. White nevertheless again signed this signature page. See Coppel Deck, Exh. D (2009 EmPact Signature Page).
White’s employment with the Four Seasons, meanwhile, was hardly proceeding smoothly. In 2008 and continuing through to the filing of this action, she made nearly 30 formal and informal complaints to her supervisors, managers, and Director of Human Resources Stacey Coppel concerning various incidents that she perceived to be harassment, discrimination, or the creation of a hostile work environment.
See generally
Compl.;
see
Mot. at 6. These complaints ranged from disputes over client-booking and sales-crediting practices to sabotage by co-workers, and she sometimes made specific reference to the Em-Pact guide.
See
Coppel Deck at 6-11; Coppel Deck, Exh. J (May 10, 2010 Com
White eventually signed the opt-out agreement on August 7, 2012. See Coppel Decl., ¶ 13; White Decl., ¶ 9. This is relevant because one further incident occurred five days later on August 12, during which White claims to have been “interrogated” by two managers regarding a complaint against her from a fellow employee. No disciplinary action was ultimately taken against White with regard to this incident. See Compl., ¶ 51; Reply, Supplemental Declaration of Stacey Coppel, ¶ 10. Finally, in January of 2013, the parties attempted to mediate all claims occurring prior to her August 7, 2012, opt-out under the C.A.R.E. provisions for mediation. See Mot. at 12. That mediation was unsuccessful. See id. White then filed this suit, and Defendant now moves to compel arbitration.
II. Legal Standard
The Federal Arbitration Act “is a congressional declaration of a liberal federal policy favoring arbitration agreements.”
Moses H. Cone Memorial Hosp. v. Mercury Const. Corp.,
When considering a motion to compel arbitration, “the appropriate standard of review for the district court is the same standard used in resolving summary judgment motions pursuant to Fed. R.Civ.P. 56(c).”
Brown v. Dorsey & Whitney, LLP,
To review the Rule 56 standard, a fact is “material” if it is capable of affecting the substantive outcome of the litigation.
Holcomb v. Powell,
The party seeking summary judgment “bears the heavy burden of establishing that the merits of his case are so clear that expedited action is justified.”
Taxpayers Watchdog, Inc., v. Stanley,
The nonmoving party’s opposition, however, must consist of more than mere unsupported allegations or denials and must be supported by affidavits, declarations, or other competent evidence, setting forth specific facts showing that there is a genuine issue for trial. Fed.R.Civ.P. 56(e);
Celotex Corp. v. Catrett, 477
U.S. 317, 324,
III. Analysis
There is no dispute here as to the existence of the EmPact’s arbitration provision. Instead, White argues that the Court should not enforce the provision because of both procedural and substantive unconscionability. After ultimately rejecting these contentions, the Court must also determine whether to stay or dismiss the case pending arbitration.
A. Procedural Unconscionability
White first asserts that she was forced to sign the EmPact agreement without a sufficient opportunity to understand or appreciate the commitment she was making. Whether or not an arbitration agreement is proeedurally unconscionable turns on whether a party “lacked meaningful choice as to whether to enter the agreement.”
Fox v. Computer World Services Corp.,
White begins by maintaining that her lack of legal knowledge renders the arbitration provision unenforceable.
See
Opp. at 12-13 (citing
Walker-Thomas,
While White may not be a lawyer, her education level gives her an understanding of the plain English language used in the C.A.R.E. agreement, which notably includes a section titled “what is mediation/arbitration” and attempts to define certain potentially confusing terms such as “no-fault separation pay.” C.A.R.E. Agreement at 60-62. The signature page also plainly states that “Unless I have exercised my right to opt-out,” the employee agrees to “use the mediation/arbitration procedure described in C.A.R.E” as the only method to resolve disputes “relating to termination” and/or “claims of employment discrimination, [or] harassment.” EmPaet Signature Page. The arbitration agreement therefore does not contain the hidden pitfalls or extensive legal jargon imagined by Walker-Thomas.
See
Moving next to the circumstances of White’s signing, the Court notes that “one who signs a contract has a duty to read it and is obligated according to its terms,”
Skrynnikov v. Fed. Nat. Motg. Ass’n,
No. 11-0609,
Yet, even under that assumption, the documents themselves belie White’s claims of lack of comprehension. First, she initialed an orientation checklist next to the words “grievance procedure,” which, according to Coppel, is the indication for a “brief description of the C.A.R.E. process.” Coppel Supp. Deck, Exh. 3 (Orientation Checklist) at 5; Coppel Supp. Deck, ¶ 6. White herself thus indicates that she was at least made aware of the C.A.R.E. provisions of the EmPaet. In other words, the C.A.R.E. provisions were hardly facts “known or accessible only to defendant.”
Toledano v. O’Connor,
Even more compelling is the C.A.R.E. signature page. This page al-
White additionally claims not to have understood the implications of having signed her EmPact agreement.
See
Opp. at 3. But this is not relevant because it was her responsibility to “think the matter through” before signing the contract.
See Nur v. RFC, USA, Inc.,
Plaintiff also contends that the placement of the arbitration provisions in the EmPact amounted to hiding them in a maze of fine print, unidentifiable to the normal observer.
See
Opp. at 15. She argues that the terms were “hidden” in the final pages of the document, without any “differentiating font or heading to draw a reasonable reader’s attention to it,” and she takes issue with the fact that the arbitration provisions are not entitled “Arbitration Agreement.”
Id.
at 12, 15,
Plaintiff last adverts to her “distinct disparity in bargaining power” with Defendant, a corporate employer.
See
Opp. at 13. Defendant, however, made an attempt to minimize this advantage by providing an opt-out provision within the
In sum, because Plaintiff is a sufficiently educated, English-speaking adult who was given the right to opt out of an arbitration provision that was clear and emphasized on the signature page of the contract, the Court finds as a matter of law that no procedural unconscionability occurred here.
B. Substantive Unconscionability
Plaintiff next asserts that the arbitration agreement was substantively unconscionable. “A contract is substantively unconscionable if the contract terms are unreasonably favorable to one party” such that they are “so outrageously unfair as to shock the judicial conscience.”
Fox,
White argues that the requirement that she first speak with her tormentor via an informal discussion with an immediate supervisor renders the arbitration agreement exceedingly unfair.
See
Opp. at 17-19 (citing,
inter alia, EEOC v. V & J Foods, Inc.,
White also takes issue with what she perceives as a heightened notice requirement owed to Defendant because under C.A.R.E., before receiving the benefit of arbitration, she must first to follow a five-step procedure, including an informal and formal complaint process.
See Opp.
at 19; C.A.R.E. Agreement at 1. Yet the case that White cites to support that argument,
Lake v. AK Steel Corp.,
No. 3-517,
Plaintiff next claims that C.A.R.E.’s requirement that complaints be filed within 14 days of the incident is unconscionable, and she cites multiple cases from other jurisdictions for that proposition.
See
Opp. at 20 (citing
Alexander v. Anthony Int’l, LP,
Pointing out that Defendant is not similarly bound by the arbitration provision, and that it may “prosecute employment-related claims in court and there are no restrictions on its ability to do so,” Plaintiff next asserts that the agreement is unconscionably one-sided.
See
Opp. at 20. There are two problems with such an argument. First, the EmPact agreement equally binds the Four Seasons to use C.A.R.E. (and impliedly its arbitration provisions) as the
“exclusive
remedy for resolving any disputes relating to [Plaintiffs] ... claims of employment discrimination, [or] harassment.” EmPact Signature Page at 1 (emphasis added). Second, the reason that the C.A.R.E. provisions focus on the claims of White, rather than the hotel, is that a claim of discrimination or harassment “belongs to the employee, not to the employer.”
See Shelton,
Given that the Court finds that the agreement is not substantively unconscionable, it need not consider Defendant’s alternative argument that Plaintiffs previous invocation of the C.A.R.E. procedures estops her from contesting their validity now.
C. Stay or Dismiss
One issue remains: the Court must decide whether to stay the case
Plaintiff also argues that one of her claims is not subject to arbitration because it took place after her signing of the opt-out provision on August 7, 2012. White’s Complaint and Opposition characterize the event of August 12 as an “interrogation” that led to severe emotional distress culminating in the termination of her pregnancy. See Opp. at 22-23; Compl., ¶¶ 51-54. Defendant counters that this is a grave exaggeration of what, in actuality, amounted to her supervisors’ performing a routine investigation regarding White’s interactions with another employee who had complained about White’s behavior, and that no disciplinary action was taken against Plaintiff. See Coppel Supp. Deck, ¶10.
As a preliminary matter, there is no record support for this incident. Even if there were — and to the extent Plaintiff wishes to proceed on this one event in this Court — she cannot do so. This is because the August 12 incident is insufficient to form the basis of a claim for hostile work environment or for retaliation or discrimination.
As to hostile work environment, this single minor occurrence cannot suffice.
See Rodriguez v. Donovan,
Nor could this event constitute an act of retaliation or discrimination. “Retaliation claims ... require less [than discrimination claims], barring any act that ‘a reasonable employee would have found ... materially adverse, which in this context means it well might have dissuaded a reasonable worker from making or supporting a charge of discrimination.’ ”
Joyce v. Office of Architect of Capitol,
No. 12-1837,
Even if this Court were somehow to consider the interrogation itself to be sufficiently adverse under the retaliation standard, Plaintiff has failed to show that Defendant’s “stated reason for the employment action was not the actual reason,” and that it was instead retaliation or based on “race, color, religion, sex, or national origin.”
Brady v. Office of Sergeant at Arms,
Given that this one event cannot stand alone, the Court will not entertain it during the transfer of the remainder of the case to arbitration.
IV. Conclusion
Because the agreement to arbitrate was not formed under proeedurally unconscionable terms and contained no substantively unconscionable language, it is enforceable, and the Court must therefore refer the issues presented to the proper arbitration forum. The Court will stay all claims pending the outcome of such arbitration. A contemporaneous Order so ruling will issue this day.
