ORDER
Plaintiff Antonia M. Valdiviezo (“Valdiviezo”) has filed a sexual harassment claim against Defendants Phelps Dodge Hidalgo Smelter, Inc. (“Phelps Dodge”) and Thurman Shannon (“Shannon”). Pending before the court are Defendants’ motions for summary judgment. Oral arguments were heard on Monday, July 28, 1997. At that time, the
I. BACKGROUND
Plaintiff Valdiviezo has been employed by Phelps Dodge since May 14,1991. [Valdiviezo Deposition at 12, Exh. to Defendants’ Statement of Facts (“DSOF”)]. Upon the commencement of her employment, she received and signed for a copy of Phelps Dodge’s Employee Handbook (the “Handbook”). [Valdiviezo Deposition at 95-96, Exh. 2 to Plaintiffs Statement of Facts (“PSOF”)]. The receipt and acknowledgment form she signed states:
I have received a copy of the Phelps Dodge Hidalgo Smelter Employees Handbook, revised January, 1991.
I agree to read the handbook and become familiar with its contents. I also agree that I will follow the policies, procedures, rules and regulations of the Company.
[Exh. 1 to PSOF].
Among the procedures provided for in the Handbook was a multi-step “problem-solving procedure” for resolving complaints by employees. [Exh. 3 to PSOF at 33-36]. The procedure culminates in a hearing before a professional arbitrator or, in most cases, before a five person Appeal Board selected jointly by Phelps Dodge and the affected employee. [Exh. 3 to PSOF at 35]. The Handbook also provides that the problem solving procedure constitutes the “sole and exclusive procedure for the processing and resolution of any controversy, complaint, misunderstanding or dispute that may arise concerning any aspect of [the employee’s] employment or termination from employment.” [Exh. 3 to PSOF at 57],
On May 16, 1995, Valdiviezo reported to company management that she had been sexually harassed by her immediate supervisor, Defendant Shannon. [Valdiviezo Deposition, Exh. to DSOF at 66-67, 69]. Thereafter, Phelps Dodge investigated Valdiviezo’s allegations and concluded that, while Shannon made one verbal sexual advance toward her, there was inconclusive evidence that Shannon touched her in an inappropriate manner. [Smith Affidavit ¶¶6-9]. At the conclusion of its investigation, Phelps Dodge counseled Shannon, both verbally and in writing, about his conduct and advised him that any future violation of the company’s Equal Employment Opportunity (“EEO”) policy could result in his immediate discharge. [Smith Affidavit ¶ 10; Exh. C to Smith Affidavit]. The company also informed Valdiviezo, both verbally and in writing, of its findings. [Smith Affidavit ¶ 11; Exh. D to Smith Aff.; Valdiviezo Deposition at 83; 86-89]. Valdiviezo was dissatisfied with the company’s response [Smith Affidavit ¶ 12; Valdiviezo Deposition at 89-90], and, as a result, she filed a five count complaint before this court alleging: (1) unlawful sexual harassment under Title VII of the Civil Rights Act of 1964 (“Title VII”), 42 U.S.C. §§ 2000e et seq. and under the New Mexico Human Rights Act (“NMHRA”); (2) negligence; (3) breach of contract and of the implied covenant of good faith and fair dealing; (4) assault and battery; and (5) intentional infliction of emotional ... distress. 1
Now, Defendants have moved for summary judgment arguing: (1) Valdiviezo is required to arbitrate her claims; (2) there was no Title VII violation; (3) Valdiviezo cannot state a § 1981 or § 1983 claim; and (4) Valdiviezo cannot state a breach of the implied covenant of good faith and fair dealing claim under New Mexico law. The parties have stipulated that the court, for now, should only consider the arbitration issue. Nevertheless, in its response, Valdiviezo conceded that she could not state a § 1981 or § 1983 claim against either defendant, a Title VII claim against Shannon or a breach of contract and breach of the implied covenant of good faith and fair dealing claim against Phelps Dodge. Accordingly, the court will grant Defendants’ motion for summary judgment as to these claims, and the remainder of this order will be limited to a discussion of the arbitration issue.
II. STANDARD OF REVIEW
Summary judgment is appropriate where no genuine issue exists as to any material
However, the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment. The requirement is that there be no
genuine
issue of
m,atenal
fact.
Anderson v. Liberty Lobby, Inc.,
Moreover, the moving party is entitled to judgment as a matter of law if the nonmoving 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,
Finally, a nonmoving party cannot rest upon mere allegations or denials in the pleadings or papers.
Anderson,
III. DISCUSSION
In moving for summary judgment, Defendants 2 argue that Valdiviezo was required, under the terms of the Handbook, to arbitrate her claims and that the court should enforce this arbitration agreement under the Federal Arbitration Act (“FAA”), 9 U.S.C. § 2. For her part, Valdiviezo argues (1) that the arbitration contract is unenforceable; (2) that the arbitration contract, even if enforceable, does not cover her assault and battery and intentional infliction of emotional distress claims; (3) that she did not “knowingly agree” to arbitrate her Title VII and NMHRA claims; and (4) that Defendants’ “problem solving procedure” conflicts with the social policies of Title VII and NMHRA. The court will consider these arguments in turn.
A. IS THE ARBITRATION CONTRACT ENFORCEABLE?
The FAA provides that arbitration contracts “shall be valid, irrevocable, and enforceable, save upon grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. § 2. In determining whether there exist grounds for the revocation of the contract, the Supreme Court has held that state law is applicable “if that law arose to govern issues concerning the validity, revoeability, and enforceability of contracts
generally.” Doctor’s Associates, Inc. v. Casarotto,
Here, Valdiviezo argues that under state law the arbitration agreement is unenforceable (1) because it lacks mutual assent and (2) because it lacks consideration—two legal principles which apply to contracts generally. The court considers these arguments separately.
To constitute a contract, under either Arizona or New Mexico law,
3
a writing must manifest mutual assent, i.e., the parties’ intent to be bound.
Keith Equip. Co. v. Casa Grande Cotton Fin., Co.,
This employee handbook sets out policies and guidelines and is provided to you for your orientation and information. It is not a contract of employment as to any occupational position, period of time, or any other matter, and nothing contained in it should be viewed as such. This handbook may be changed at any time should the Company deem it appropriate. ...
[Exh. 3 to PSOF at 1] (emphasis added). In support of this argument, she cites to
Heurtebise v. Reliable Bus. Computers, Inc.,
In response, Defendants argue that Valdiviezo’s argument is foreclosed since she acknowledged that the Handbook is a contract when she relied on it as a basis for relief in her complaint. The court agrees. In
Moses v. Phelps Dodge Carp.,
Nonetheless, even if
Moses
is factually distinguishable, its holding is well-settled and is based on the concept of estoppel. Several courts, both federal and state, have held that a party cannot reap the benefits of a contract and then seek to avoid the corresponding burdens.
See, e.g., Hudson Motors Partnership v. Crest Leasing Enter., Inc.,
Valdiviezo’s reliance on
Hewrtebise
does not affect this ruling. Unlike Valdiviezo, the plaintiff in
Hewrtebise
did not allege a breach of contract claim.
Finally, Valdiviezo’s abandonment of her breach of contract claim in her response also does not affect this ruling. Under Ninth Circuit law, a statement in a complaint serves as a judicial admission.
See Sicor Ltd. v. Cetus Corp.,
2. Does the arbitration agreement lack consideration?
Valdiviezo further argues that the contract is unenforceable for lack of consideration. Under either New Mexico or Arizona law, a contract, to be legally enforceable, must be supported by consideration.
Garcia,
If the subject of your complaint is such that the Company believes that the experience and skills of a professional arbitrator are required, the complaint will be decided by an arbitrator rather than being submitted to the Appeal Board.
[Exh. 3 to PSOF at 35],
In support of her argument, Valdiviezo cites to
Stevens/Leinweber/Sullens, Inc. v. Holm Dev. and Management, Inc.,
This reasoning in
Stevens
illustrates why it is factually distinguishable from the present case. The concern of the
Stevens
court was not that defendant had a unilateral option; rather, the concern was that defendant had the unilateral option to choose between litigation and arbitration. Here, by contrast, the option available to Phelps Dodge is not between litigation and arbitration, but rather between two alternative dispute resolution
Further, Valdiviezo has not shown why Phelps Dodge’s option to choose between an arbitrator and an Appeal Board is an illusory promise. The Restatement provides the following definition of an illusory promise:
A promise or apparent promise is not consideration if by its terms the promisor or purported promisor reserves a choice of alternative performances unless
(a) each alternative performances would have been consideration if it alone had been bargained for ...
Restatement (Second) of Contracts § 77 (emphasis added). Here, Valdiviezo has not argued nor explained why the alternative performances available to Phelps Dodge (i.e.-, a hearing before an arbitrator or a hearing before the Appeal Board) would not have been consideration if it alone had been bargained for. Since the party opposing the arbitration bears the burden of proof 8 and since Valdiviezo fails to meet this burden, her argument fails.
Finally, the arguments in the preceding section apply with equal force here. Valdiviezo is estopped from arguing that the Handbook is unenforceable for lack of consideration when she has relied upon it as a basis for relief. See Section III.A.1.
B. DOES THE ARBITRATION CONTRACT COVER VALDIVIEZO’S ASSAULT AND BATTERY AND INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS CLAIMS?
Notwithstanding the federal policy favoring it, arbitration is a matter of contract, and the parties cannot be required to arbitrate any dispute which he has not agreed to arbitrate.
United Steelworkers v. Warrior & Gulf Navigation Co.,
Here, citing
Tracer Research v. Nat’l Envtl. Servs. Co.,
Tracer
is factually distinguishable from this ease. Unlike the arbitration agreement in
Tracer,
the arbitration agreement here did not merely require arbitration of disputes arising from the employment
contract;
it
In
Morgan v. Smith Barney, Harris Upham & Co.,
The court concludes, therefore, that Valdiviezo did agree to arbitrate her assault and battery and IIED claims.
C. DID VALDIVIEZO KNOWINGLY AGREE TO ARBITRATE HER TITLE VII AND NEW MEXICO HUMAN RIGHTS ACT CLAIMS?
The Ninth Circuit has held that a plaintiff cannot waive the comprehensive statutory rights, remedies and procedural protections prescribed in Title VII and analogous state statutes (like NMHRA) unless the employee “knowingly agreed” to the arbitration of those claims.
Prudential Ins. Co. of America v. Lai,
Lai is factually distinguishable from the present case. In Lai, plaintiffs signed forms requiring them “to arbitrate any dispute, claim or controversy that ... is required to be arbitrated under the rules, constitutions or bylaws of the organizations with which [they] register,” id. at 1301; the form did not refer to the arbitration of employment disputes. Further, plaintiffs allege that, when they signed the forms, they were told only that they were applying to take a test which was required for their employment and that they were not given an opportunity to read the forms. Id. Arbitration was never mentioned, and plaintiffs were never given a copy of the manual which contained the actual terms of the arbitration agreement. Id. Based on these facts, the Ninth Circuit found that plaintiffs did not “knowingly agree” to arbitrate their Title VII claims.
By contrast, in this case, the Handbook clearly refers to the arbitration of employment disputes; it provides that the problem solving procedure is the “sole and exclusive procedure for the processing and resolution of any controversy, complaint, misunderstanding or dispute that may arise
concerning any aspect of your employment or termination from
employment.”
[See
Exh. 3 to PSOF at 57] (emphasis added). Further, while the acknowledgement form that Valdiviezo signed does not refer to the arbitration of employment disputes,
10
it is an acknowl
To the extent Valdiviezo is arguing that she cannot have “knowingly agreed” to arbitrate her Title VII and NMHRA claims unless the arbitration agreement refers to those claims specifically, her argument also fails. Her argument has been rejected by at least one court. In
Golenia v. Bob Baker Toyota,
The plaintiff would have the Court read these decisions as holding that the arbitration clause must specifically name the statute, or describe with particularity the class of statutes—e.g., “civil rights statutes”— whose procedures are to be waived in favor of arbitration. This is not required. Prudential emphasized the lack of reference to “employment disputes.” The language of the clause in this case refers to arbitration [sic] “any dispute or controversy ... arising from, related to, or having any connection with my seeking employment with, employment by, or other association with, Company ...” More cannot be reasonably required in view of the Supreme Court’s rule that “any doubts concerning the scope of arbitrable issues should be resolved in ' favor of arbitration, whether the problem at hand is the construction of the contract language itself or an allegation or [sic] waiver, delay, or a like defense to arbitrability.” Moses H. Cone Memorial Hospital,460 U.S. at 24-25 ,103 S.Ct. at 941-42 .
Id.
at 205. The
Golenia
court’s reasoning is persuasive. As noted by the
Golenia
court, the
Lai
court implied that a plaintiff knowingly agrees to the arbitration of her Title VII claims if she signs an arbitration agreement which required arbitration of “employment disputes” (barring of course any defense of fraud or misrepresentation).
D. DOES PHELPS DODGE’S “PROBLEM SOLVING PROCEDURE” CONFLICT WITH THE SOCIAL POLICIES UNDERLYING TITLE VII AND NMHRA?
In determining whether a particular type of claim is arbitrable, the court must consider whether “Congress intended to preclude a waiver of judicial remedies for [that claim].”
Shearson/American Exp. Inc. v. McMahon,
Nevertheless, Valdiviezo argues that these cases are not binding on this case because there is a strong possibility her claims will be decided before an Appeal Board rather than an arbitrator.
11
She argues that, while there may not be an inherent conflict between arbitration and the policies underlying Title VII and NMHRA, there is an inherent conflict between an Appeal Board hearing and Title VII/NMHRA policies. Her argument hinges of course on whether there exist differences between arbitration and an Appeal Board hearing, and, more importantly, on whether these differences would prevent her from effectively vindicating her statutory rights in a non-judicial forum.
See Gilmer,
Before addressing Valdiviezo’s arguments, the court begins with the Supreme Court’s admonition that “questions of arbitrability must be addressed with a healthy regal'd for the federal policy favoring arbitration.”
Moses H. Cone Mem’l Hasp.,
Valdiviezo first argues that the Board members’ lack of knowledge about substantive law, evidence and procedure will prevent her from effectively litigating her claims. The court disagrees. The Handbook provides that members of the Appeal Board are selected from a pre-existing list of employees. The Handbook does not indicate that employees must have certain legal qualifications in order to serve on the board. Accordingly, Valdiviezo is probably correct in assuming that the members of the board, unlike many professional arbitrators, will not be knowledgeable about evidence, procedure or substantive law.
12
However, this fact alone does not mean that Valdiviezo cannot effectively litigate her claim, since if she
The court finds a closer question whether the fact that members of the board will be present employees of Phelps Dodge would make them potentially biased in its favor. While a professional arbitrator would also be paid by Phelps Dodge, s/he is less likely than an employee to rule in Phelps Dodge’s favor because of this financial relationship since, unlike the board employee, s/he does not obtain his/her sole means of livelihood from Phelps Dodge. On the other hand, this country has a tradition of labor union representation where conflict between management and workers frequently exists. Workers have little hesitancy to challenge their own employers when they believe their view is correct. Indeed, shop stewards or worker representatives customarily come from the ranks of the employees. This tradition strongly militates against pro-employer bias.
While the court is mindful of the Supreme Court’s admonition in
Gilmer
that courts should not presume bias on the part of an arbitral body, the court does not lightly disregard Plaintiffs view that there is less of a check against bias in this case than there was in
Gilmer.
Nevertheless, the
Gilmer
court also pointed to judicial review under 9 U.S.C. § 10(b) as a check against arbitrator bias. That section provides that courts may overturn arbitration decisions “[w]here there was evident partiality or corruption in the arbitrators.” 9 U.S.C. § 10(b). Valdiviezo argues, however, that, because 9 U.S.C. § 10(b) refers only to judicial review of awards by “arbitrators” and because the Board members are not arbitrators, 9 U.S.C. § 10(b) will not be a check against biased awards in this case. The court disagrees. Valdiviezo has cited to no caselaw which precludes courts from reviewing awards by jointemployer-employee-seleeted-boards under 9 U.S.C. § 10(b). By contrast, the court has found at least one circuit which has applied 9 U.S.C. § 10(b) to a joint labor-management board award.
See Local 814, Intern. Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America v. J & B Systems Installers and Moving, Inc.,
It is not arbitration per se that federal policy favors, but rather a final adjustment of differences by a means selected by the parties. If the parties agree that a procedure other than arbitration shall provide a conclusive resolution of their differences, federal labor policy encourages that procedure no less than arbitration.
Where appropriate and to the extent authorized by law, the use of alternative means of dispute resolution, including settlement negotiations, conciliation, facilitation, mediation, factfinding, minitrials and arbitration is encouraged to resolve disputes arising under the Acts or provisions of Federal law amended by this title.
§ 118 of Pub.L. 102-166, set forth in the notes following 42 U.S.C. § 1981 (Supp.1994).
For these reasons, the court grants Defendants’ motion to compel arbitration of Valdiviezo’s Title VII and NMHRA claims. 14
IT IS ORDERED granting Defendants’ motion for summary judgment of Valdiviezo’s §§ 1981 and 1983 claims (docs. 28 & 30).
IT IS ORDERED granting Defendants’ motion for summary judgment of Valdiviezo’s breach of contract and breach of the implied covenant of good faith and fair dealing claims (does. 28 & 30).
IT IS ORDERED granting Defendants’ motion for summary judgment on Plaintiffs assault and battery, IIED, Title VII and NMHRA claims on the basis that Plaintiff is required to arbitrate these claims (doe. 28 & 30). The clerk of the court is directed to terminate the ease.
Notes
. In the "Preliminary Statement” of her complaint, Valdiviezo also alleges that Defendants’ conduct violated 42 U.S.C. §§ 1981 and 1983.
. Defendant Shannon has moved to compel arbitration, even though he is a nonsignatory to the arbitration agreement. Under Ninth Circuit law, a nonsignatory to an arbitration agreement may require enforcement of that agreement if he is bound by the agreement under ordinary contract and agency principles.
Letizia
v.
Prudential Bache Securities, Inc.,
. There are two possible states whose laws could apply in this case: Arizona and New Mexico. Since there is no appreciable difference between the contract laws of these states, at least as to laws regarding mutual assent and consideration, the court will defer—for now—any choice of law analysis.
. Defendants also cite to
Patterson v. Tenet Healthcare, Inc.,
In
Patterson,
the Eighth Circuit found that the arbitration clause was enforceable even though the handbook in which it was contained stated that it "[was] not intended to constitute a legal contract,” that management had discretion to abide by the policies in the handbook, and that the terms therein were subject to modifications by the employer.
Here, by contrast, the facts are much less compelling. Phelps Dodge employees are not required to sign a separate acknowledgment form for the arbitration agreement. The acknowledgment form for the Handbook does not refer specifically to the arbitration contract. And the arbitration agreement is not a separate detachable page from the rest of the Handbook. Accordingly, the court finds that Patterson is not persuasive authority.
.
See also Thomas v. Garrett Corp.,
. These facts distinguish the present case from
Sicor.
In
Sicor,
there existed an ambiguity in plaintiffs pleading; construing it one way would have led to the dismissal of plaintiff's complaint while construing it in a different way would not. In a subsequent pleading, plaintiff attempted to correct the ambiguity by explaining what it truly meant. The district court did not accord its explanation due weight, and the Ninth Circuit reversed.
.
Stevens
involved the Arizona Uniform Arbitration Act (A.R.S. § 12-1501) rather than the FAA. However, as the
Stevens
court and Valdiviezo notes, the statutes are virtually identical.
A written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract.
A.R.S. § 12-1501.
.
Cf. Mago v. Shearson Lehman Hutton Inc.,
. In her response, Valdiviezo argues that the arbitration agreement does not cover her tort claims since her claims, assault and battery and IIED, would constitute torts whether or not they occurred within the employment relationship. However, regardless of whether these torts would constitute torts if they occurred outside the employment relationship, Valdiviezo has alleged that they occurred during the employment relationship. And, because the arbitration contract requires arbitration of any dispute arising out of the employment relationship and because these torts arose out of the employment relationship, they are covered by the arbitration agreement.
. During oral arguments, Defendants cited the court to a recently decided Ninth Circuit opinion,
Nelson v. Cyprus Bagdad Copper Corporation,
. Defendants do not dispute that Valdiviezo’s claims arc likely to be heard before an Appeal Board rather than an arbitrator. Further, the Handbook itself indicates that ”[m]ost complaints ... are heard by the Appeal Board.” [Exh. 3 to PSOF at 35].
. Of course this assumption on Valdiviezo’s part would be inaccurate for the many professional arbitrators who are as knowledgeable about evidence, procedure or substantive law as any lay person but who are chosen to be arbitrators because of their professional standing or their knowledge of the area of inquiry in dispute.
. During oral arguments, Valdiviezo argued that joint labor-management committees are distinct from the Appeal Board and that, traditionally, more deference is given to the labor-management committee because it is the product of a collective bargaining agreement where the terms are negotiated vigorously by labor and management. However, Valdiviezo cites to no authority which has recognized such a distinction on such a basis. Further, Valdiviezo’s reasoning is flawed. If anything, courts traditionally give less deference to collective bargaining agreements which require arbitration because of the tension between collective representation and individual statutory rights.
Gilmer,
. Valdiviezo also argues that Phelps Dodge’s problem solving procedure conflicts with Title VII and NMHRA policy because the procedure voids any decision by the Appeal Board or arbitrator which is in conflict with Phelps Dodge's policies.
[See
Exh. 3 to PSOF at 36]. The court disagrees. First, Valdiviezo has not argued that Phelps Dodge’s policies
are
in conflict with Title VII or NMHRA. The Handbook indicates that Phelps Dodge has a policy prohibiting discrimination and harassment. [See Exh. 3 to PSOF at 6-7]. This policy seems consonant rather than inconsistent with the policy underlying Title VII and NMHRA. Second, the Supreme Court has indicated that plaintiffs who arbitrate their statutory claims do not forego the substantive rights afforded by statutes.
Mitsubishi Motors,
