Memo in Support of Motion to Dismiss

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Memorandum in Support of Motion to Dismiss.

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    UNITED STATES DISTRICT COURTFOR THE DISTRICT OF COLUMBIA

    MATTHEW J. RYAN,

    Plaintiff,

    v.

    BUCKLEYSANDLER LLP1250 24th Street, N.W., Suite 700Washington, DC 20037

    KIRK JENSEN1250 24th Street, N.W., Suite 700Washington, DC 20037

    ELIZABETH MCGINN1250 24th Street, N.W., Suite 700Washington, DC 20037

    Defendants.

    Case No.: 1:13-cv-01816

    Hon. Beryl A. Howell

    DEFENDANTS MEMORANDUM OF POINTS AND AUTHORITIES INSUPPORT OF THEIR MOTION TO DISMISS AND COMPEL ARBITRATION

    Defendants BuckleySandler LLP, Kirk Jensen, and Elizabeth McGinn move this Court

    under the Federal Arbitration Act, 9 U.S.C. 1 et seq., to dismiss this case and compel

    arbitration on the ground that Plaintiff Matthew J. Ryans (Plaintiff) claims are subject to

    mandatory, binding arbitration.

    Factual Background

    Plaintiff, a 47 year old white male, began his association with the predecessor to

    BuckleySandler in March 2008 on a temporary basis as a contract attorney through a legal

    staffing agency, assisting with document reviews. (Compl. 10.) That temporary association

    terminated in or around April 2009 with the conclusion of the project for which Plaintiff was

    hired. (Id.) In December 2009, BuckleySandler hired Plaintiff as an employee on a temporary

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    basis to perform document review work. (Id. 11.) BuckleySandler reclassified Plaintiff from a

    temporary staff attorney to a full-time, at-will employee in September 2010. (Id. 13.)

    When BuckleySandler hired Plaintiff in December 2009, the parties agreed that, should

    any disputes related to Plaintiffs employment (or termination of his employment) arise, those

    disputes would be resolved by binding arbitration. This agreement was memorialized in a

    written Employee Agreement to Arbitrate (Arbitration Agreement), which Plaintiff executed

    as a condition of my employment or continued employment. (Declaration of Terri Carnahan

    (Carnahan Decl.), Ex. 1.) The contours of the parties Arbitration Agreement were explained

    both on the face of the agreement and in a separate document provided to Plaintiff entitled

    Notice to Employees About Our Mutual Arbitration Policy. (Carnahan Decl., Ex. 2.)

    BuckleySandler also provided Plaintiff with a copy of the Mutual Arbitration Policy, and

    Plaintiff expressly acknowledged his receipt, review, and acceptance of the Mutual Arbitration

    Policy in the Arbitration Agreement, the first sentence of which reads, I acknowledge that I

    have received and reviewed a copy of BuckleySandler LLPs Mutual Arbitration Policy

    (MAP), which is incorporated by reference into this Agreement. (Carnahan Decl., Ex. 1.)

    Plaintiff agreed that binding arbitration would be his sole remedy for all employment-

    related claims that might arise against BuckleySandler or any of its employees, officers,

    directors or agents. (Carnahan Decl., Ex. 1, at 1.) The Mutual Arbitration Policy expressly

    states that the potential claims within the scope of the Arbitration Agreement include, but are not

    limited to, claims raised under the Age Discrimination in Employment Act and the D.C.

    Human Rights Act. (Carnahan Decl., Ex. 2, at 1.)

    In exchange for Plaintiffs agreement to arbitrate his claims, BuckleySandler agreed to

    employ Plaintiff and further agreed to submit itself to binding arbitration for any claims it might

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    have against him. (Carnahan Decl., Ex. 1, at 1.) BuckleySandler also agreed that if Plaintiff

    submitted a request for binding arbitration of a claim, BuckleySandler would pay the entire cost

    of such arbitration, except for an amount equal to the civil action filing fee in Plaintiffs local

    court. (Id.)

    BuckleySandler terminated Plaintiffs employment on January 31, 2013 when it

    eliminated its staff attorney program. (Compl. 111.) In March 2013, Plaintiff executed a

    severance agreement waiving all claims against BuckleySandler in exchange for a severance

    payment. (Id. 121.) In July 2013, Plaintiff filed a charge with the U.S. Equal Employment

    Opportunity Commission (EEOC) alleging age discrimination. (Compl. 7.) After

    investigating the charge, the EEOC found no probable cause and dismissed it. (Compl.,

    Attachment.)

    In direct violation of his agreement to arbitrate and his severance agreement, Plaintiff has

    filed the present action alleging causes of action under (1) the Age Discrimination In

    Employment Act (ADEA) (Compl. 125-30) and (2) the D.C. Human Rights Act

    (DCHRA). (Compl. 131-34.) At the appropriate time and in the appropriate forum,

    Defendants will vigorously contest Plaintiffs gratuitous and untrue allegations and show them to

    be false.1 But this is not the proper forum to resolve Plaintiffs dispute, because Plaintiff is

    obligated to arbitrate his claims against Defendants. Accordingly, Defendants move to dismiss

    the Complaint and to compel arbitration, and seek attorneys fees and costs for bringing this

    motion.

    1 Even a cursory reading of the complaint demonstrates that Plaintiff has failed to comply with the notice pleadingrequirements of the Federal Rules and evidences his intent to smear Defendants in a public filing containingscurrilous, impertinent, and immaterial allegations. Although such allegations are ripe for a motion to strike underRule 12(f), Defendants prefer to deal with these matters in the mutually agreed upon arbitration forum.

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    ARGUMENT

    I. The Parties Have A Valid Agreement To Arbitrate The Claims At Issue In ThisLitigation, And That Agreement Is Enforceable Pursuant To The FederalArbitration Act.

    Plaintiff should be compelled to submit his claims to binding arbitration because (1)

    federal law favors the enforcement of arbitration agreements, (2) Plaintiff agreed to resolve his

    disputes with BuckleySandler through binding arbitration, and (3) that agreement encompasses

    the present dispute.

    A. Federal Law Favors The Enforcement Of Arbitration Agreements.

    Federal law and the settled policy of federal courts strongly favor arbitration where an

    agreement to arbitrate matters exists. Under the Federal Arbitration Act (FAA), a district court

    is required to compel arbitration when it finds that (1) the arbitration agreement is valid and

    enforceable and (2) the claims raised in the complaint fall within the scope of the arbitration

    agreement. Pearce v. E.F. Hutton Grp., Inc., 828 F.2d 826, 829 (D.C. Cir. 1987) (reversing and

    remanding to district court with instructions to stay proceedings and compel arbitration); 9

    U.S.C. 3 (upon being satisfied that the issue involved in such suit or proceeding is referable to

    arbitration under such an agreement, [the court] 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).

    The federal policy favoring arbitration counsels that doubts about the intended scope of

    an agreement to arbitrate be resolved in favor of the arbitral process. Pearce, 828 F.2d at 829.

    The party resisting arbitration bears the burden of proving the claims at issue are unsuitable for

    arbitration. Green Tree Fin. Corp-Ala v. Randolph, 531 U.S. 79, 91 (2000). Agreements to

    arbitrate employment disputes are routinely found enforceable by courts and are even favored.

    See Pearce, 828 F.2d at 829 (noting that arbitration of labor disputes is favored because

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    arbitrators and the arbitration process have particular expertise and procedures designed to

    handle labor claims); Hobley v. Kentucky Fried Chicken, Inc., 168 Fed. Appx. 443, 2005 WL

    3783027, *1 (D.C. Cir. Sept. 9, 2005) (upholding enforcement of arbitration agreement executed

    as part of employment application). Further, it is well settled that ADEA and DCHRA claims

    fall within the scope of mandatory arbitration agreements such as the one signed by Plaintiff.

    See, e.g., Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 35 (1991) (finding no evidence

    that Congress intended to preclude arbitration claims under the ADEA); Booker v. Robert Half

    Int'l, Inc., 315 F. Supp. 2d 94, 100 (D.D.C. 2004), aff'd, 413 F.3d 77 (D.C. Cir. 2005) (finding

    employee was required to arbitrate DCHRA claims even where arbitration agreement did not

    specifically mention statutory claims and rejecting any presumption against the arbitrability of

    statutory claims); Fox v. Computer World Servs. Corp., 920 F. Supp. 2d 90, 93, 104-05 (D.D.C.

    2013) (finding employees DCHRA and DC common law claims were required to be submitted

    to arbitration per arbitration agreement).

    B. Plaintiff Executed A Binding Arbitration Agreement.

    The Arbitration Agreement is valid and enforceable. Whether an arbitration agreement

    is enforceable is a question of state contract law. Arthur Andersen LLP v. Carlisle, 556 U.S.

    624, 630-31 (2009). Under District of Columbia law,2 a signature on a contract indicates

    mutuality of assent and a party is bound by the contract unless he or she can show special

    circumstances relieving him or her of such an obligation. Sapiro v. VeriSign, 310 F. Supp. 2d

    208, 212 (D.D.C. 2004) (enforcing arbitration agreement executed by employee); Emeronye v.

    CACI Intl, 141 F. Supp. 2d 82, 86 (D.D.C. 2001) (same). Further, an agreement to arbitrate

    claims in an employment context is supported by adequate consideration where it is either

    2 District of Columbia law governs the interpretation of the Arbitration Agreement because it was entered into in theDistrict, BuckleySandler is based in the District, and the subject matter of the contract (Plaintiffs employment) tookplace within the District. Ideal Elec. Sec. Co., Inc. v. Intl Fidelity Ins., 129 F.3d 143, 158 (D.C. Cir. 1997).

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    required as a condition of employment, or given as part of a mutual agreement to arbitrate

    claims. Sapiro, 310 F. Supp. 2d at 212.

    Here, Plaintiff executed the Arbitration Agreement on December 30, 2009 as an express

    condition of employment. (Carnahan Decl., Ex. 1, at 1.) Plaintiffs execution of the Arbitration

    Agreement binds him to the terms of the parties agreement to arbitrate disputes. Emeronye, 141

    F. Supp. 2d at 86. The agreement contains adequate consideration because it is supported both

    by an offer of employment and a mutual promise to arbitrate disputes. Id. For all of these

    reasons, the Arbitration Agreement is valid under District of Columbia law.

    C. Plaintiff Must Submit His Claims To Binding Arbitration.

    Both of Plaintiffs claims fall squarely within the scope of the Arbitration Agreement.

    Plaintiff agreed to submit to binding arbitration any and all claims and disputes that are related

    in any way to my employment or termination. (Carnahan Decl., Ex. 1, at 1.) Moreover, the

    Mutual Arbitration Policy explicitly states that claims under the Age Discrimination In

    Employment Act and the D.C. Human Rights Act are within the scope of the Arbitration

    Agreement. (Carnahan Decl., Ex. 2, at 1). Because it is incorporated by reference into the

    Arbitration Agreement, the Mutual Arbitration Policy is a part of the Arbitration Agreement.

    Sheriff v. Medel Elec. Co., 412 A.2d 38, 41 (D.C. 1980) ([w]hen a contract incorporates another

    writing, the two must be read together as the contract between the parties).

    The crux of Plaintiffs complaint is that Defendants discriminated against him based on

    his age by failing to promote him and terminating his employment. (Compl. 129, 133.) He

    brings these claims under the ADEA and the DCHRA. (Id.) Plaintiffs claims are solely against

    BuckleySandler and its partners, relate entirely to his employment, and are specifically listed in

    the Mutual Arbitration Policy as within the scope of the parties agreement to arbitrate. There is

    simply no dispute that all of Plaintiffs claims against all of the Defendants fall within the

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    Arbitration Agreement and must be submitted to binding arbitration. (Carnahan Decl., Ex. 1, at

    1) (stating that any and all claims and disputes that are related in any way to my employment or

    termination against BuckleySandler and each of its and/or their employees, officers, directors

    or agents must be submitted to binding arbitration).

    II. Plaintiffs Complaint Should Be Dismissed With Prejudice.

    Plaintiffs claims should be dismissed with prejudice. When all issues raised in the

    complaint must be submitted to arbitration . . . dismissal of th[e] action is within the discretion of

    the Court and is appropriate. Emeronye, 141 F. Supp. 2d at 88. Courts in this District routinely

    grant such relief. See, e.g., Shorts v. Parsons Transp. Grp., Inc., 679 F. Supp. 2d 63, 67 (D.D.C.

    2010) (dismissing complaint where all claims were subject to arbitration); Aliron Intern., Inc. v.

    Cherokee Nation Indus., Inc., No. 05-151 (GK), 2006 WL 1793295, *3 (June 28, 2006) (all of

    Plaintiff's claims must be submitted to arbitration . . . [s]ince there is no further action to be taken

    by this Court, it is appropriate to dismiss this case in its entirety). In the alternative, if the Court

    declines to dismiss the case in favor of arbitration, Defendants request that the Court stay all

    proceedings pending the completion of any arbitration, in accordance with Section 3 of the FAA.

    See 9 U.S.C. 3; Pearce, 828 F.2d at 829; 9 U.S.C. 3.

    III. Defendants Should Be Awarded Fees and Costs.

    After the complaint was filed, Defendants contacted Plaintiff by telephone and left a

    recorded message reminding him of the Arbitration Agreement and requesting that he withdraw

    the lawsuit and proceed instead to initiate arbitration as provided in the agreement. Defendants

    followed up with an email attaching a signed copy of the Arbitration Agreement. Defendants

    advised Plaintiff in both the telephone message and the email that if he did not withdraw the

    complaint, Defendants would move to compel arbitration and see all costs related to the motion.

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    In light of Plaintiffs deliberate refusal to withdraw his lawsuit in the face of the

    Arbitration Agreement, Defendants should be awarded their attorneys fees and costs incurred in

    bringing this motion.

    CONCLUSION

    Plaintiff is obligated to resolve his claims against Defendants through binding arbitration.

    Defendants respectfully request that this Court enter an order (1) compelling the parties to

    proceed to arbitration as set forth in Arbitration Agreement, (2) dismissing this case or, in the

    alternative, staying all proceedings, and (3) awarding Defendants fees and costs.

    Dated: November 29, 2013Respectfully submitted,

    BUCKLEYSANDLER LLP, KIRK JENSENAND ELIZABETH MCGINN

    By: /s/Christopher A. WealsChristopher A. Weals (Bar No. 414754)Andrew G. Sakallaris (Bar. No. 983166)MORGAN, LEWIS & BOCKIUS, LLP1111 Pennsylvania Avenue, NWWashington, DC 20004Telephone: 202.739.3000Facsimile: [email protected]@morganlewis.com

    Attorneys for Defendants

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    CERTIFICATE OF SERVICE

    I, Christopher A. Weals, hereby certify that on November 29, 2013, a true and correct

    copy of the foregoing was electronically filed with the Clerk of Court using the CM/ECF system,

    which will send electronic notification of such filing to all counsel of record registered to receive

    it.

    /s/ Christopher A. Weals

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