JOE HEATON, District Judge.
Plaintiff Leslie Masse filed this case against defendant Waffle House
Defendant is a restaurant chain with locations in several states. According to the Amended Complaint and plaintiff's affidavit [Doc. Nos. 7 & 22-1], plaintiff was employed by defendant as a server during three separate periods of employment. At the outset of the first period, which began in late 2010, plaintiff signed an arbitration agreement in addition to other employment documents. She alleges that, when she signed the arbitration agreement, her manager told her that it would apply only to her current employment and that any future period of employment would be treated separately. The first period of employment ended in mid-2011.
According to the complaint, plaintiff was hired in April 2013 to work as a server in defendant's Edmond, Oklahoma location. She alleges that she filled out employment documents related to that hiring which did not include a new arbitration agreement. She further alleges that, during this second period of employment, she witnessed unsafe food storage and handling conditions and that her managers illegally withheld her wages. She alleges that when she complained to her superiors about the unsafe food conditions and wage withholdings, she was retaliated against by having her hours significantly reduced and by being terminated on August 17, 2013.
In September 2013, plaintiff began working for defendant again, this time at an Oklahoma City location. She alleges that, during this third period of employment, she was not paid for overtime hours worked and was paid less than minimum wage. Plaintiff alleges that she was again terminated in retaliation for her complaints about unpaid wages. This case followed.
The parties agree that the arbitration agreement signed in connection with the first period of employment was a valid and binding contract. They disagree, however, as to whether the agreement covers plaintiff's claims in this case, which arose during the second and third periods of employment. Plaintiff argues that, because she signed new employment documents at the outset of her second and third periods of employment, new contractual arrangements arose at those times which did not include an agreement to arbitrate. She states that, based on statements made by her supervisor at the time of the first employment, it was their mutual understanding that the arbitration agreement would not apply to future periods of employment. Defendant contends that the plain language of the arbitration agreement extends to both present and future employment. It also argues that any statements made at the time of, or prior to, execution of the agreement are inadmissible under the parol evidence rule.
The arbitration of disputes is favored under federal law. Once an agreement to arbitrate has been established, "doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration."
Defendant argues, and plaintiff does not substantially contest, that the state law applicable in the circumstances of this case is that of either Oklahoma or Georgia.
Georgia law is substantially the same. "The cardinal rule of construction is to ascertain the intention of the parties." Ga. Code Ann. § 13-2-3; see also
The arbitration agreement involved here is not ambiguous. It provides that the parties "will resolve by arbitration all claims and controversies [ ], past, present, or future, whether or not arising out of [plaintiff's] employment or termination from employment. . . ." [Doc. #14-1, para. 2]. It further states that, absent narrow circumstances not present here, the agreement "can only be revoked by a writing signed by both parties which specifically states an intent to revoke" it, and that it "will survive the termination of [plaintiff's] employment. . . ." Id. at para. 12. Finally, the agreement states that it will "remain valid and enforceable unless modified by" defendant. Id. at para. 14.
Plaintiff's reliance on inconsistent statements by her supervisor prior to execution of the arbitration agreement do not lead to a different result. Such statements are subject to the parol evidence rule, observed in both Georgia and Oklahoma. See Ga. Code § 13-2-2 (1); 15 Okla. Stat. § 137.
In light of the agreement's terms referenced above, the court concludes plaintiff's claims are within the scope of the arbitration agreement, regardless of which state's law is applied.
The Federal Arbitration Act provides that, if an issue is referable to arbitration under a written arbitration agreement, the court "shall on application of one of the parties stay the trial of the action until such arbitration has been had . . . ." 9 U.S.C. § 3. Some courts have concluded that dismissal, rather than a stay, may be appropriate where all claims are referred to arbitration. E.g.
For the reasons stated, defendant's motion to compel arbitration and dismiss or stay the case [Doc. #11] is