KENNETH A. MARRA, District Judge.
This cause is before the Court upon Defendant Morgan Stanley Smith Barney LLC's Motion to Compel Arbitration and to Stay (DE 5). The Motion is fully briefed and ripe for review. The Court held a hearing on the Motion on February 24, 2017. The Court has carefully considered the Motion and is otherwise fully advised in the premises.
Plaintiff Steven R. Grant ("Plaintiff") brings a five count Amended Complaint against Defendant Morgan Stanley Smith Barney LLC ("Defendant") for a violation of the Florida Civil Rights Act, Florida Statutes § 760.10 (count one), a violation of the Florida's Private Whistleblower Act, Florida Statutes § 448.103 (count two), civil conspiracy (count three), tortious interference with a business relationship (count four) and unjust enrichment (count five). (Am. Compl., DE 1-5.) Plaintiff, an employee of Defendant, alleges Defendant subjected him to age discrimination and retaliated against him when he complained about the alleged discrimination. (Am. Compl. ¶ 1.)
The exhibits attached to the instant motion and the February 24, 2017 hearing established the following: More than ten years ago, Defendant launched an internal employee dispute resolution program entitled CARE (Convenient Access to Resolutions for Employees). The pre-2015 version of CARE included both a mandatory arbitration program for some claims, and a voluntary arbitration program for other claims. Employment discrimination claims could be pursued in an arbitration forum or in court.
In 2015, Defendant expanded the CARE program to make arbitration mandatory for all covered claims. The arbitration agreement covers "any and all disputes between [Plaintiff] and [Defendant] . . . arising out of, or which arose out of [ ] employment." This includes claims for "statutory discrimination, harassment and retaliation claims, and claims under, based on or relating to any federal, state or local . . . statute. . . and any other . . . discrimination law." (Arbitration Agreement ¶ 2, DE 5-6.) The agreement also provides that employment discrimination claims, including claims for harassment and retaliation, would be resolved by final and binding arbitration conducted under the auspices and rules of JAMS in accordance with the JAMS arbitration rules. (
Defendant delivered this notice to employees via their work email accounts which contained links to the arbitration agreement, the CARE guidebook that described the expanded arbitration program, and the CARE arbitration program opt-out form. This information was also posted on Defendant's intranet site where all human resources policies are available to employees. The email explained that, effective October 2, 2015, arbitration would mandatory for all employees. The email also explained that continuing employment with Defendant after October 2, 2015 would constitute acceptance of the arbitration agreement unless the employee opted out by following the instructions contained in the notice for completing the opt-out form. The subject of the email was "expansion of the CARE arbitration program."
The email notice was delivered to and received by Plaintiff on September 2, 2015, via his work email account. The email did not trigger an automatic out-of-office message and Plaintiff was not on leave at any time between September 2, 2015 and October 2, 2015. Plaintiff did not complete and submit the opt-out form.
Plaintiff testified that many emails are sent to his work email and he does not open and read all of them. Emails that are not opened remain in bold face with black lettering. When seeing the word "CARE" in the email, Plaintiff believed the email concerned a charity, as Defendant participates in various philanthropic activities. Plaintiff did not open the September 2, 2015 email.
Defendant moves to compel arbitration on the basis that (1) federal law requires enforcement of the arbitration agreement; (2) the arbitration agreement is valid and enforceable as a matter of law: (3) Plaintiff's claims fall within the scope of the arbitration agreement and (4) Plaintiff's claims should be directed to JAMS arbitration.
Plaintiff responds that the arbitration agreement did not fairly and adequately inform him about the agreement and that "negative opt-out" emails are unconscionable.
The Supreme Court has articulated a strong federal policy favoring arbitration agreements.
For the purpose of a motion to compel arbitration, the Court may consider affidavits.
The question before the Court is whether Plaintiff's claims are subject to arbitration even though he never reviewed the opt-out emails sent by Defendant. To begin, the Court notes that "an arbitration agreement does not need to be signed to satisfy the written agreement requirement of the FAA."
at *9 (M.D. Fla. July 20, 2011) (citing
Here, Plaintiff acknowledges that he saw the two emails relating to the mandatory arbitration agreement, but failed to open and read them. The Court finds that Plaintiff's decision not to open and read an email does not render the arbitration agreement invalid and unenforceable.
Plaintiff, however, argues that because the opt-out email was deceptively sent and was never read by him, it cannot form the basis to compel arbitration. Specifically, Plaintiff states that the email had the "innocuous appearance of a non-important human resources correspondence." (Resp. at 2.) The Court disagrees. The subject line of the email stated "expansion of the CARE arbitration program." Although Plaintiff testified that he believed the use of the word "CARE" reflected a firm-wide promotion email, the Court finds this belief was unreasonable, given that the subject line of the emails also included the words "arbitration program." Nor does the Court find anything unreasonable about the manner in which the terms of the agreement were communicated. Indeed, the agreement was accessible both via links in the email as well as Defendant's intranet.
Next, the Court rejects Plaintiff's contention that the arbitration agreement is unconscionable and void because it requires him to arbitrate his claims before JAMS and requires him to arbitrate statutory claims. Arbitration forum selection clauses specifying a tribunal are valid and enforceable.
Accordingly, it is hereby