MARK A. KEARNEY, District Judge.
Alysha Asberry-Jones seeks damages from her former employer Wells Fargo Bank, N.A., supervisor Kristen Lutz, and human resources manager Catheryn Goode arising from alleged race, color, and national origin discrimination towards her violating both federal and state law. Wells Fargo and its agents now move to compel arbitration. Wells Fargo contends Ms. Asberry-Jones signed an arbitration agreement as a condition of her employment agreeing to arbitrate employment disputes. Ms. Asberry-Jones does not deny she signed the arbitration agreement or challenge its authenticity. She argues Wells Fargo's motion is premature and discovery is necessary to determine whether the arbitration agreement is illusory or lacks adequate consideration. She proposes Wells Fargo renew its motion for our consideration after limited discovery under a summary judgment standard. But she fails to respond to the motion with disputed facts warranting discovery sufficient to challenge the enforceability of the arbitration agreement other than pure speculation. The arbitration agreement is signed. It requires this dispute be resolved in arbitration. We apply the motion to dismiss standard in finding a valid and enforceable arbitration agreement and granting Wells Fargo's motion to compel arbitration. Under the state law claim, and even though no party requested a stay pending arbitration, we must stay progress in federal court until prompt resolution of the arbitration.
Wells Fargo hired Ms. Asberry-Jones in September 2017 for a "mortgage processor 4" position.
In response, Wells Fargo moved to compel arbitration and to dismiss the action.
Ms. Asberry-Jones signed the offer letter on September 1, 2017.
The Arbitration Agreement provides "Wells Fargo and I mutually agree that any legal Claims arising out of my application for employment, employment, or separation from employment with Wells Fargo shall be resolved by final and binding arbitration. Except as noted below, Wells Fargo and I agree to waive our rights to pursue any Claims in court or before a jury. This Agreement is subject to the Federal Arbitration Act." Claims for "discrimination, harassment, retaliation, ... or claims for violations of any federal, state, or local statute, regulation or common law, including, but not limited to, Title VII of the Civil Rights Act of 1964 . . ." are "covered by this Agreement with any Wells Fargo entity, . . . employee, agents . . . ."
The parties dispute the standard we apply to Wells Fargo's Motion to compel arbitration. Wells Fargo argues we should apply a motion to dismiss standard. Ms. Asberry-Jones counters Wells Fargo's motion is premature as discovery is necessary to determine whether the arbitration agreement is illusory or is supported by adequate consideration.
The Federal Arbitration Act (the "Act") "establishes a strong federal policy in favor of the resolution of disputes through arbitration."
In Guidotti v. Legal Helpers Debt Resolution, LLC, our Court of Appeals defined the standard for evaluating motions to compel arbitration.
We apply the Rule 12(b)(6) standard "when it is apparent, based on `the face of a complaint, and documents relied upon in the complaint,' that certain of a party's claims `are subject to an enforceable arbitration clause.'"
As directed by our Court of Appeals, a Rule 12(b)(6) standard "is inappropriate when either `the motion to compel arbitration does not have as its predicate a complaint with the requisite clarity' to establish on its face that the parties agreed to arbitrate, ... or the opposing party has come forth with reliable evidence that is more than a `naked assertion ... that it did not intend to be bound' by the arbitration agreement, even though on the face of the pleadings it appears that it did."
Although her complaint does not refer to the Arbitration Agreement and her response to Wells Fargo's motion argues the complaint is "unclear regarding the agreement to arbitrate," her allegations fall within the scope of the Arbitration Agreement.
Ms. Asberry-Jones "has not come forth with reliable evidence" she did not intend to be bound by the Arbitration Agreement. Ms. Asberry-Jones does not deny she signed the offer letter or Arbitration Agreement or contest the authenticity of either document attached to Wells Fargo's motion. She does not provide us facts challenging the validity of the Arbitration Agreement. Instead, she suggests we should allow discovery to evaluate "if there was a meeting of the minds or if the purported arbitration agreement is illusory."
Ms. Asberry-Jones argues we must allow discovery to determine whether her employment is subject to an employee handbook which she considers "critical in determining the arbitrability" of this action and to determine whether the Arbitration Agreement is supported by adequate consideration. The employee handbook is critical, argues Ms. Asberry-Jones, because if it references the Arbitration Agreement and Wells Fargo retains "unfettered discretion" to change or modify the employee handbook, the Arbitration Agreement "could be deemed to be illusory." She does not provide the employee handbook or cite language raising a question regarding Wells Fargo's possible "unfettered discretion" to change or modify the employee handbook nor does she point to language in the Arbitration Agreement evidencing such "unfettered discretion." In fact, the language of the Arbitration Agreement confirms Wells Fargo does not have "unfettered discretion" to change or modify the Arbitration Agreement. We have nothing to show us discovery on this issue is warranted.
Ms. Asberry-Jones's argument is based solely on a recent decision in Crump v. Metasource Acquisitions, LLC, a case entirely distinguishable.
The Crump case is readily distinguishable. Ms. Asberry-Jones fails to cite language in the Arbitration Agreement, offer letter, or employee handbook similar to the language at issue in Crump. There, the "acknowledgment and agreement" page of the employee handbook containing the arbitration clause allowed the employer to "change any of its obligations (other than at-will employment) at any time, simply by putting its desired changes in writing—without so much as telling its employees of these changes," a condition giving the employer "unfettered discretion" to modify its arbitration obligations and rendering the agreement illusory.
Ms. Asberry-Jones also argues the Arbitration Agreement may not be supported by sufficient consideration and asks for discovery on the "timing" of her "alleged acknowledgment of the purported arbitration agreement," again relying on Crump. In Crump, the plaintiff employee signed the arbitration clause one week after employment. Unlike Crump, Ms. Asberry-Jones signed the Arbitration Clause on September 1, 2017, weeks before she began her employment at Wells Fargo. Again, she does not deny she signed the document or challenge the authenticity of the document. We do not perceive how discovery is necessary on a "timing" issue, making her facts distinguishable from Crump. The language of the Arbitration Agreement here—unlike in Crump—binds both Wells Fargo and Ms. Asberry-Jones to arbitration: "Wells Fargo and I mutually agree that any legal Claims arising out of my application for employment, employment, or separation from employment with Wells Fargo shall be resolved by final and binding arbitration."
There is no lack of clarity regarding the agreement to arbitrate and Ms. Asberry-Jones did not produce facts sufficient to place the Arbitration Agreement at issue.
We next determine whether Ms. Asberry-Jones and Wells Fargo entered into a valid arbitration agreement. In making the determination we ask (1) "whether `there is an agreement to arbitrate'" and (2) "whether `the particular dispute falls within the scope of that agreement.'"
We apply Pennsylvania's contract law to determine whether a party entered into a valid and enforceable agreement to arbitrate.
Wells Fargo argues there are at least two forms of consideration sufficient to support the Arbitration Agreement: signing the Arbitration Agreement was a mandatory condition of Ms. Asberry-Jones's employment at Wells Fargo and the Agreement recites the parties' mutual exchange of promises to be bound by arbitration.
As to the second prong, Wells Fargo argues the Arbitration Agreement encompasses Ms. Asberry-Jones's claims. It argues the law requires "any doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration" and there is no doubt here.
The language of the Arbitration Agreement clearly and unambiguously requires arbitration of all claims "arising out of [Ms. Asberry-Jones's] application for employment, employment, or separation from employment with Wells Fargo ..." including but not limited to "claims for discrimination, harassment, retaliation ..."
Wells Fargo asks we compel arbitration and dismiss with prejudice Ms. Asberry-Jones's complaint under Section 4 of the Act.
Section 3 of the Act provides for a stay of proceedings where the action is referable to arbitration: "If any suit or proceeding be brought in any of the courts of the United States upon any issue referable to arbitration under an agreement in writing for such arbitration, the court in which such suit is pending, upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration under such an agreement, shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement, providing the applicant for the stay is not in default in proceeding with such arbitration."
But Ms. Asberry-Jones also alleges violations of the Pennsylvania Human Relations Act. The Pennsylvania Arbitration Act requires a stay of judicial proceedings.
In the accompanying Order, we grant Wells Fargo's motion to compel arbitration, deny its motion to dismiss and place this case in suspense pending prompt resolution of final and binding arbitration.