PAUL W. GRIMM, District Judge.
Plaintiff Debra J. Brent filed suit, pro se, alleging that her former employer, Priority 1 Automotive Group, BMW of Rockville ("Priority 1"), terminated her employment in retaliation for participating in protected activity, and thereby violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq. Compl., ECF No. 1. Priority 1 seeks to dismiss the complaint and arbitrate the claim under an alleged arbitration agreement ("Arbitration Agreement") that Plaintiff purportedly entered into when her employment commenced. Def.'s Mot. to Dismiss Compl. & Compel Arbitration, ECF No. 6.
Defendant moves to dismiss the complaint and compel arbitration under the Federal Arbitration Act ("FAA"), 9 U.S.C. §§ 1-15.
Relevantly, "`even though arbitration has a favored place, there still must be an underlying agreement between the parties to arbitrate.'" Adkins, 303 F.3d at 501 (quoting Arrants v. Buck, 130 F.3d 636, 640 (4th Cir.1997)). Here, Plaintiff challenges the very existence of the Arbitration Agreement, rather than its scope. See Pl.'s Opp'n 1; Pl.'s Supp. Opp'n 8-21. As both parties acknowledge, when a party moves to compel arbitration and the validity of the purported arbitration agreement between the parties is disputed, the motion is treated as one for summary judgment. See Rose v. New Day Fin., LLC, 816 F.Supp.2d 245, 251 (D.Md.2011); see also id. at 252 n. 5 ("If the parties dispute the existence of an arbitration agreement, the court must `hear the parties' on the issue, and the party alleged to have violated the arbitration agreement is entitled to a jury trial on the existence of an agreement. Standard summary judgment rules apply." (quoting 9 U.S.C. § 4 and citing Shaffer v. ACS Gov't Servs., Inc., 321 F.Supp.2d 682, 684 n. 1 (D.Md.2004))). Therefore, I will treat Defendant's motion as one for summary judgment on the validity of the Arbitration Agreement. See id.; see also Fed. R.Civ.P. 12(d) (requiring conversion of motion to dismiss to motion for summary judgment where, as here, movant attaches affidavits in support that are not integral to the pleadings).
Summary judgment is proper when the moving party demonstrates, through "particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations ..., admissions, interrogatory answers, or other materials," that "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a), (c)(1)(A); see Baldwin v. City of Greensboro, 714 F.3d 828, 833 (4th Cir.2013). The question here is "whether a contract to arbitrate was formed," and "unless there is no genuine issue of fact as to whether a contract was formed, the court must submit the question to the jury." Galloway v. Santander Consumer USA, Inc., No. CCB-13-3240, 2014 WL 4384641, at *2 (D.Md. Sept. 3, 2014). To determine whether an arbitration agreement exists, "[c]ourts apply `ordinary state-law principles that govern the formation of contracts.'" Id. (quoting Noohi v. Toll Bros., Inc., 708 F.3d 599, 607 (4th Cir.2013) (internal quotation marks and citations omitted)).
Under Maryland law,
In support, Defendant attached the August 13, 2014 Affidavit of Nancy Delach, Human Resources Manager for Priority 1, to which are attached the Offer, Delach Aff. Ex. A, as well as the Arbitration Agreement as it appears in the Employee Handbook, Delach Aff. Ex. B. ECF No. 6-2. According to Ms. Delach, "[i]n connection with Brent's hiring by Priority 1, Brent executed a number of employmentrelated documents in March 2012, including an Offer of Employment Confirmation," and, "[i]n addition to executing the Offer of Employment Confirmation, Brent electronically signed an acknowledgement of her receipt of the ... Employee Handbook." Delach Aff. ¶ 5, Aug. 13, 2014. The Offer provides that the "Terms of Employment" are "[s]ubject to company policies and provisions contained in standard employee information handbook." It includes a "Start Date" of March 1, 2012 and is signed by Plaintiff and a "Manager," but the signatures are not dated, and the line for "Senior Management Signature" is blank. The Arbitration Agreement provides, under the heading "Binding Arbitration Program," that "[a]ny controversy or claim arising out of, or related to your current employment with this Company, shall be settled by arbitration in accordance with the current rules of the American Arbitration Association," and, under the heading "ARBITRATION," that "[t]he Employee agrees that as a condition of Priority 1 A.G. employment and continued employment, that any and all differences or disputes between the employee and the company shall be settled by the parties or through binding arbitration...."
While proceeding pro se, Plaintiff opposed the motion, insisting that she never signed the Arbitration Agreement and "never received signed [sic] a receipt, electronically or otherwise, for Defendant's standard employee information handbook," such that no valid arbitration agreement exists between her and the employer. Pl.'s Opp'n 1. She stated in a supporting affidavit that she "never signed any documents either manually or electronically that were presented to [her] by any Priority 1 Automotive employee whereby [she] agreed to settle any and all disputes with Priority 1 Automotive via arbitration," and that she "was never provided with a Priority 1 Automotive company Policy and Employee Handbook." Brent Aff. ¶¶ 1-2, ECF No. 14-1.
In reply, Defendant noted that Plaintiff did not contest that she signed the Offer. Def.'s Reply 2. Additionally, Defendant relied on a second affidavit from Ms. Delach to demonstrate that Plaintiff received the Employee Handbook. Id. at 2-3. Ms. Delach attested that each
Declach Aff. ¶ 5, Oct. 20, 2014, ECF No. 15-1. According to Ms. Delach, the portal's initial page said "
Now, with the benefit of counsel, Plaintiff maintains her arguments while also contending that "the meaning of the `[s]ubject to company policies ...' line in the Employment Offer" is disputed, and that the validity of the Arbitration Agreement can be established "only following discovery into the Employee Handbook and the electronic systems associated with Defendant[s] electronic signature software." Pl.'s Supp. Opp'n 5, 12. In a Declaration, Plaintiff states that she "understood [the Offer] to deal[solely with [her] compensation plan," and she "read the first two sentences of the Employment Offer conjunctively to mean that [her] compensation plan was confidential, subject to company policy." Brent Decl. ¶¶ 3 & 7, Pl.'s Supp. Opp'n Ex. 2, ECF No. 21-2. According to Plaintiff, discovery is necessary to determine "the reliability of the computer(s) used by Defendant[] as part of [its] esignature software program' ... to verify that no data was erroneously deleted, altered, added to, or associated with what Defendant[] allege[s] was Ms. Brent's unique user ID," as well as the reliability of the creation and preservation of the esignature log. Id. at 17-18. Plaintiff notes that the remainder of the Employee Handbook is not a part of the record, insisting that Defendant has not shown that it "was supported by mutual, non-illusory, consideration." See id. at 5 n. 4, 12. Plaintiff also argues that Defendant has not shown that she agreed to enter into the Arbitration Agreement by e-signature, as required by the Maryland Uniform Electronic Transactions Act, Md.Code Ann., Comm. Law § 21-101 et seq. Id. at 20. Attaching a Rule 56(d) affidavit, Pl.'s Supp. Opp'n Ex. 3, ECF No. 21-3, Plaintiff requests "a summary evidentiary hearing after appropriate discovery." Pl.'s Supp. Opp'n 10.
Plaintiff's acceptance of the Arbitration Agreement is a material fact. See Spaulding v. Wells Fargo Bank, N.A., 714 F.3d 769 (4th Cir.2013). On the record before me, a genuine dispute exists regarding this fact, as Defendant provides
Plaintiff also has filed a Motion for Leave to File First Amended Complaint, which Defendant opposes. Whether to grant a motion for leave to amend is within this Court's discretion, Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962), and "[t]he court should freely give leave [to amend] when justice so requires," Fed.R.Civ.P. 15(a)(2). The Court only should deny leave to amend if amendment "would prejudice the opposing party, reward bad faith on the part of the moving party, or ... amount to futility," MTB Servs., Inc. v. Tuckman-Barbee Constr. Co., No. RDB-12-2109, 2013 WL 1819944, at *3 (D.Md. Apr. 30, 2013); Laber v. Harvey, 438 F.3d 404, 426 (4th Cir.2006). Otherwise, "[i]f the underlying facts or circumstances relied upon by a plaintiff may be a proper subject of relief," and the plaintiff moves to amend, the Court should grant the motion so that the plaintiff has the "opportunity to test his claim on the merits." Foman, 371 U.S. at 182, 83 S.Ct. 227. As Plaintiff's claims against Defendant may be subject to arbitration, amendment could be futile insofar as Plaintiff seeks to amend its existing claim and state additional claims against Defendant.
Accordingly, it is, this 3rd day of March, 2015, hereby ORDERED that