Victor A. Bolden, United States District Judge.
Plaintiff, Kerry Considine, has filed a Complaint against her employer, Brookdale Senior Living, Inc. ("Brookdale"), alleging that it improperly denied her same-sex spouse health and dental insurance coverage. She claims that Brookdale's actions violate Title VII of the Civil Rights Act of 1964 ("Title VII"), 42 U.S.C. § 2000e et seq., the Equal Pay Act, 29 U.S.C. § 206(d), and the Connecticut Fair Employment Practices Act ("CFEPA"), Conn. Gen.Stat. § 46a-60. Am. Compl. ¶¶ 33-43, ECF No. 19. She seeks a declaration that Brookdale violated all three statutes and that it must, "as a matter of law, [ ] make spousal health and dental insurance coverage benefits available to eligible employees with same-sex spouses on the same terms as made available to eligible employees with different-sex spouses." Id. at Prayers for Relief ¶ 1. She also seeks an injunction enjoining Brookdale from denying same-sex spousal health and dental benefits available to its employees. Id. at Prayers for Relief ¶ 2. While her First Amended Complaint also seeks attorney's fees and costs, at oral argument held on August 18, 2015, she agreed to withdraw these claims. Id. at Prayers for Relief ¶ 3.
Before the Court is a motion submitted by Brookdale seeking to dismiss the case and compel arbitration. Mot. To Dismiss, ECF No. 28.
Ms. Considine alleges that she was hired by Brookdale in 2012 as a "licensed physical therapist" and currently works as an "Ancillary Services Manager" in three Brookdale facilities located in West Hartford and Farmingdale, Connecticut. Am. Compl. ¶¶ 12-13, ECF No. 19. She alleges that as part of her compensation for this job, she receives health and dental insurance, self-insured through Brookdale and administered through United Healthcare. Id. ¶¶ 15-16. She claims that Brookdale offers "qualified employees" the option of obtaining health and dental insurance coverage for their spouses, and that Ms. Considine is a "qualified employee" for the purposes of obtaining such coverage. Id. ¶¶ 17-18.
Ms. Considine alleges that she married her female spouse, Renee Considine, in Massachusetts on November 1, 2013. Id. ¶ 19. She claims that in October and November 2013, she asked Brookdale twice whether her female spouse, Renee Considine, could be added to and covered by her health and dental insurance plans as her spouse. Id. ¶¶ 21-23. Ms. Considine alleges that Brookdale responded to both of her inquiries and explained that it would not provide coverage because her spouse was the same sex. Id.
Ms. Considine claims that she filed a charge of discrimination with the Equal Employment Opportunity Commission ("EEOC") on January 17, 2014. Id. ¶ 24. She alleges that she obtained a right to sue letter from the EEOC on October 1, 2014 and subsequently filed this lawsuit within the timeframe required by section 2000e-5(f)(1) of title 42 of the United States Code. Id. ¶¶ 9-10.
Ms. Considine also claims that after she filed her discrimination charge with the EEOC but before she received her right to sue letter, Brookdale informed its employees on February 19, 2014 that effective March 1, 2014, it would voluntarily provide same-sex spouses with health and dental insurance coverage. Id. ¶ 25.
Brookdale indicates that Ms. Considine signed an agreement to arbitrate certain disputes arising from her employment and has attached the agreement to its Second Motion to Dismiss for the Court's consideration. Ex. A, Employment Binding Arbitration Agreement, ECF No. 28-2 [hereinafter "Arbitration Agreement"]. Ms. Considine does not object to the accuracy or authenticity of the arbitration agreement provided by Brookdale. She also does not dispute that she signed the agreement.
The agreement provides that "[a]s a condition of [her] employment [ ], [Ms. Considine] agree[s] that any controversy or claim arising out of or relating to [her] employment relationship with [Brookdale] or the termination of that relationship, must be submitted for final and binding resolution by a private and Impartial arbitrator." Id. ¶ 1. The agreement then
Id. ¶ 1(a)(ii).
The agreement provides that "Claims Not Covered" include, among others not relevant here:
Id. ¶¶ 1(b)(iv)-(v).
The agreement indicates that if the parties are unable to resolve the dispute informally, "either [Ms. Considine] or [Brookdale] may submit the dispute for resolution by final binding confidential arbitration under the Procedure." Id. ¶ 1(d). In this same subsection, the agreement also incorporates by reference into the "Procedure" the "Employment Dispute Resolution Rules of the American Arbitration Association (`AAA')." Id.
In its second motion, Brookdale argues that all of Ms. Considine's claims should be dismissed because (1) they fall under the scope of an arbitration agreement and, thus, must be resolved in arbitration; (2) her claims are not justiciable because they are moot and/or not ripe; and (3) that she fails to plausibly claim that she is entitled to the relief she seeks under Rule 12(b)(6). Given the strong federal policy favoring enforcement of arbitration clauses, the Court must first address whether the parties have agreed to arbitrate the matter. See Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 217, 105 S.Ct. 1238, 84 L.Ed.2d 158 (1985) (holding that the Arbitration Act "divests the district courts of any discretion regarding arbitration" and that it requires the Court to compel arbitration on arbitrable claims when one of the parties files a motion to compel arbitration); KPMG LLP v. Cocchi, ___ U.S. ___, 132 S.Ct. 23, 25, 181 L.Ed.2d 323 (2011) ("The Federal Arbitration Act reflects an `emphatic federal policy in favor of arbitral dispute resolution ...' `require[ing] courts to enforce the bargain of the parties to arbitrate.'") (citations omitted); see also Carvant Financial LLC v.
The parties do not dispute that the arbitration agreement is governed by the Federal Arbitration Act ("FAA"), 9 U.S.C. § 1 et seq. Section 4 of the FAA enables any "party aggrieved" by the failure of another to arbitrate under a written agreement for arbitration to petition a United States District Court "for an order directing that such arbitration proceed in the manner provided for in such agreement." It also provides that written agreements to arbitrate are generally enforceable and "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 the context of motions to compel arbitration brought under the [FAA][ ] the [C]ourt applies a standard similar to that applicable for a motion for summary judgment." Bensadoun v. Jobe-Riat, 316 F.3d 171, 175 (2d Cir.2003) (citations omitted); see also McAllister v. Conn. Renaissance Inc., No. 3:10cv1488(WWE), 2011 WL 1299830, at *3 (D.Conn. Apr. 5, 2011) (applying the same standard in the context of a motion to compel arbitration under an employment arbitration agreement of federal statutory claims, including a Title VII claim). To grant the motion, as with a summary judgment motion, the Court must find that there are no genuine issues of material fact in dispute and that the moving party is entitled to the relief sought as a matter of law. See Fed. R.Civ.P. 56(a); see also Carvant Financial LLC v. Autoguard Advantage Corp., 958 F.Supp.2d 390, 395 (E.D.N.Y.2013).
In applying the FAA, the Court must examine "(1) whether the parties agreed to arbitrate disputes at all; and (2) whether the dispute at issue comes within the scope of the arbitration agreement." ACE Capital Re Overseas Ltd. v. Cent. United Life Ins. Co., 307 F.3d 24, 28 (2d Cir.2002) (citation omitted); see also McAllister, 2011 WL 1299830, at *3 (applying the same test in the context of a motion to enforce an employment-based arbitration agreement where plaintiff asserted federal statutory claims, including a Title VII claim) (citation omitted). If the moving party meets both elements of this two-part test "by a showing of evidentiary facts," the nonmoving party "may not rest on a denial but must submit evidentiary facts showing that there is a dispute of fact to be tried." Oppenheimer & Co., Inc. v. Neidhardt, 56 F.3d 352, 358 (2d Cir.1995) (citation omitted). If the opposing party does not produce evidence showing that a triable matter of fact exists as to one of the elements of the two-part test, the Court must submit the matter to arbitration. Id.
The FAA "establishes a national policy favoring arbitration when the parties contract for that mode of dispute resolution." Preston v. Ferrer, 552 U.S. 346, 349, 128 S.Ct. 978, 169 L.Ed.2d 917 (2008). "`Having made the bargain to arbitrate, the party should be held to it unless Congress itself has evinced an intention to preclude a waiver of judicial remedies for the statutory rights at issue." McAllister, 2011 WL 1299830, at *3 (quoting Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 628, 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985)). Courts may invalidate arbitration agreements based on "generally applicable contract defenses, such as fraud, duress, or unconscionability." Doctor's Assocs., Inc. v. Hamilton, 150 F.3d 157, 163 (2d Cir.1998) (citation omitted).
Brookdale argues that Ms. Considine's claim is one of sex discrimination, which falls under the list of claims that are covered by the agreement in subsection 1(a)(ii), regardless of whether injunctive or equitable relief is sought. Second Mot. to Dismiss 8-9, ECF No. 28. It also argues that the very dispute that Ms. Considine raises, regarding the scope of the arbitration agreement, is for the arbitrator to decide because the agreement delegates questions of arbitrability to the arbitrator. Id. at 12-15. Because the Court agrees with this last argument, the matter must be sent to arbitration.
The Supreme Court has indicated that the question of who — the arbitrator or the Court — has the power to decide the threshold issue of arbitrability depends on what the parties have agreed about that particular matter. First Options of Chicago, Inc., v. Kaplan, 514 U.S. 938, 943, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995) (citations omitted); see also AT & T Techs. v. Commc'ns Workers of Am., 475 U.S. 643, 648, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986) ("`[A]rbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.'") (citations omitted). Issues of "arbitrability" include "gateway" questions, "such as whether the parties have agreed to arbitrate or whether their agreement covers a particular controversy." Rent-A-Center, West, Inc. v. Jackson, 561 U.S. 63, 69-70, 130 S.Ct. 2772, 177 L.Ed.2d 403 (2010) (citations omitted); see also Schneider v. Kingdom of Thailand, 688 F.3d 68, 71 (2d Cir.2012)("arbitrability is a term of art covering `dispute[s] about whether the parties are bound by a given arbitration clause' [i.e., formation] as well as `disagreement[s] about whether an arbitration clause in a concededly binding contract applies to a particular type of controversy' [i.e., scope].") (citation omitted) (alterations in original). Because the parties' dispute focuses on the scope of the arbitration agreement, it is squarely one of arbitrability. Accordingly, to ensure that it is enforcing the arbitration agreement as the parties intended, the Court must determine who the parties agreed should decide the scope of their arbitration agreement, before it engages in any analysis of that issue. See VRB Linhas Aereas S.A. v. MatlinPatterson Global Opportunities Partners II, L.P., 717 F.3d 322, 326-27 (2d Cir.2013) (vacating a district court's decision to deny a request to confirm an arbitration award because the Court failed to answer the "initial question" of who should decide the scope of the arbitration agreement).
"The question whether the parties have submitted a particular dispute to arbitration, i.e., the `question of arbitrability,' is an issue for judicial determination [u]nless the parties clearly and unmistakably provide otherwise." Schneider, 688
In interpreting the agreement, as with any other contract, the Court must consider the agreement as a whole and give "operative" effect to all provisions. See O'Brien v. United States Fidelity & Guar. Co., 235 Conn. 837, 843, 669 A.2d 1221 (1996) (citations omitted). "[W]hether the parties have agreed to submit to arbitration not only the merits of the dispute but the very question of arbitrability as well depends upon the intention manifested in the agreement they have made." City of Bridgeport v. Bridgeport Police Local 1159, AFSCME, Council 15, 183 Conn. 102, 104, 438 A.2d 1171 (1981) (citation omitted); see also Collins & Aikman Prods. Co. v. Building Sys., Inc., 58 F.3d 16, 19 (2d Cir.1995) (finding that while there is a federal policy "strongly" favoring arbitration, a court must also construe an agreement to arbitrate, like other contracts, in accordance with its terms) (citation omitted).
The agreement between Ms. Considine and Brookdale provides that covered claims include "any dispute concerning the arbitrability of any such controversy or claim." Ex. A, Arbitration Agreement ¶ 1(a)(i). The Court finds that this language indicates an "unmistakable and clear" intent to have the arbitrator decide the matter of arbitrability. See Rent-A-Center, West, Inc., 561 U.S. at 66, 68-70, 130 S.Ct. 2772 (finding that a contract providing that `[t]he Arbitrator ... shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability, or formation of this Agreement including, but not limited to any claim that all or part of this Agreement is void or voidable' indicated that the parties agreed to delegate the issue of arbitrability to an arbitrator); Estate of Caruso v. Harvest Mgmt. SUB, LLC, No. CV136040891S, 2014 WL 929433, at *2 (Conn.Super.Ct. Feb. 6, 2014) (finding that a contract stating that "`[a]ny dispute regarding the enforceability and/or interpretation of [the arbitration agreement] shall itself be decided by the arbitrator and not by a Judge or a jury" delegated the issue of arbitrability in "explicit terms" to the arbitrator); cf. Welch Grp., Inc. v. Creative Drywall, Inc., 215 Conn. 464, 467, 576 A.2d 153 (1990) ("`The intention to have arbitrability determined by an arbitrator can be manifested by an express provision or through the use of broad terms to describe the scope of arbitration ...'") (citation omitted).
Moreover, even if the plain language of the contract were not dispositive on this point, the parties also incorporate a set of rules into their agreement, which delegate the authority to decide arbitrability to the arbitrator. Ex. A, Arbitration Agreement ¶ 1(d). The incorporated rules provide that "[t]he arbitrator shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope or validity of the arbitration agreement." Ex. B, AAA Employment Arbitration Rules & Mediation Procedures at 17. The Second Circuit has found that incorporation into an arbitration
The Supreme Court has indicated that this type of agreement to arbitrate arbitrability is enforceable in the same way that the rest of the arbitration clause is, unless a party challenges the validity of the "precise agreement to arbitrate at issue." Rent-A-Center, West, Inc., 561 U.S. at 70-71, 130 S.Ct. 2772; see also Am. Express Co. v. Italian Colors Restaurant, ___ U.S. ___, 133 S.Ct. 2304, 2309, 186 L.Ed.2d 417 (2013) ("[C]ourts must `rigorously enforce' arbitration agreements according to their terms, including ... `the rules under which that arbitration will be conducted.'") (citations omitted). Because Ms. Considine does not make such a challenge, the Court must compel arbitration.
Ms. Considine argues that Brookdale has sought to avoid this litigation by raising a mere "flicker of doubt" or a "wholly groundless" dispute as to whether the dispute may be arbitrated. Opp. Br. 16, ECF No. 31 (quoting Aetrex Worldwide, Inc. v. Sourcing for You Ltd., 555 Fed.Appx. 153, 155 (3d Cir.2014); Medicis Pharm. Corp. v. Anacor Pharms., Inc., C.A. No. 8095-VCP, 2013 WL 4509652, at *11-12, 2013 Del. Ch. LEXIS 206, at *39-40 (Del.Ch. Aug. 12, 2013)). However, Ms. Considine has not cited law from the Second Circuit indicating that courts in this jurisdiction engage in this inquiry. Even if these tests do apply, the Court is satisfied that Brookdale has raised more than a so-called "flicker of doubt" about the arbitrability of the dispute. Both sides rely on separate provisions of the agreement that, in this Court's view, do seem to compel opposite results. Because the parties have delegated the issue of arbitrability to an arbitrator, the Court can say no more on the matter.
For all of the foregoing reasons, Brookdale's Second Motion to Dismiss, ECF No. 28, is
The Clerk is directed to administratively close this case. Within thirty (30) days of a determination by the arbitrator on arbitrability, either party may file a motion to re-open the case if the arbitrator determines that the Court must resolve the parties' dispute.