Heads v. Paradigm Inv. Grp., CIVIL ACTION NO. 1:20-cv-284-TFM-M
| Decision Date | 07 August 2020 |
| Docket Number | CIVIL ACTION NO. 1:20-cv-284-TFM-M |
| Parties | VERONICA HEADS, Plaintiff, v. PARADIGM INVESTMENT GROUP, LLC., Defendant. |
| Court | U.S. District Court — Southern District of Alabama |
Pending before the Court is Defendant's Motion to Dismiss or, in the Alternative, Stay Pending Arbitration and to Compel Arbitration and brief in support. Docs. 4, 5, filed June 23, 2020. Defendant Paradigm Investment Group, LLC, requests the Court dismiss or, in the alternative, stay this matter and compel Plaintiff Veronica Heads to arbitrate her claims. Id. Having considered the motion, the evidence in support of the motion, and the relevant law, the Court finds the motion is due to be GRANTED as to Paradigm Investment Group, LLC's, alternative request to stay this matter and compel arbitration and DENIED as to its request to dismiss this matter.
The Court has subject matter jurisdiction over the claims in this action pursuant to 28 U.S.C. § 1331 (federal question) and 28 U.S.C. § 1343 (civil rights) as Plaintiff brings claims pursuant to 42 U.S.C. §2000e, et seq. ("Title VII") and 42 U.S.C. § 1981.
The Court has personal jurisdiction over Defendant Paradigm Investment Group ("Paradigm"), because Plaintiff Veronica Heads ("Plaintiff") alleges she is a resident of Alabama and Paradigm, a foreign limited liability company, employed her to manage three (3) of their Baldwin County, Alabama fast food locations. Doc. 1 ¶¶ 4-72; see also Burger King Corp. v. Rudzewicz, 471 U.S. 462, 471-78, 105 S. Ct. 2174, 2181-85, 85 L. Ed. 2d 528 (1985) (); Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 416, 104 S. Ct. 1868, 1873, 80 L. Ed. 2d 404 (1984) (); Prewitt Enters., Inc. v. Org. of Petroleum Exporting Countries, 353 F.3d 916, 925 n.15 (11th Cir. 2003) (quoting DeMelo v. Toche Marine, Inc., 711 F.2d 1260, 1264 (5th Cir. 1983)) ("Personal jurisdiction is a composite notion of two separate ideas: amenability to jurisdiction, or predicate, and notice to the defendant through valid service of process.").
Venue is proper in this Court because Plaintiff alleges a substantial part of the events or omissions that form the basis of her claims occurred in Baldwin County, which is within this Court's jurisdiction, and venue is not contested. Doc. 1 ¶¶ 16-72; see also 28 U.S.C. § 1391(b)(2).
Plaintiff exhausted her administrative remedies when she timely filed her charges of race and sex discrimination and retaliation with the Equal Employment Opportunity Commission ("EEOC"), which issued her a Notice of Right to Sue. Doc. 1 ¶¶ 10-15 at 3.
Plaintiff originally filed her Complaint with this Court on May 22, 2020, within ninety (90) days of the date that she received her Notice of Right to Sue. Id. ¶ 15. Plaintiff brings claims for race discrimination and retaliation in violation of Title VII of the Civil Rights Act, 42 U.S.C. § 2000e to 2000e(17), and 42 U.S.C. § 1981. Id. ¶¶ 73-129. On June 23, 2020, Paradigm filed the instant Motion to Dismiss or, in the Alternative, Stay Pending Arbitration and to CompelArbitration ("motion to compel arbitration") and brief in support, for which the Court entered a submission order. Docs. 4, 5, 8. Plaintiff timely filed her response, and Paradigm did not file a reply. Docs. 9, 10. Paradigm's motion to compel arbitration is ripe for review, and the Court finds an evidentiary hearing unnecessary.
Paradigm is a Hardee's franchisee that operates Hardee's restaurants in multiple Southeastern states, including Alabama. Doc. 5-1 at 2. On October 28, 2018, Plaintiff applied for a job as a District Manager with Paradigm. Id. at 2- 3. Plaintiff applied for the position through an online portal that is used by Paradigm for prospective employee-application generation and new-hire-onboarding purposes. Id. To access the online portal, Plaintiff was required to create her own unique username and password. Id. After Plaintiff logged in, she completed the application and submitted it electronically through the online portal. Id. The application that Plaintiff submitted includes a provision that states she understands and agrees, as a condition of employment, she would be "required to sign and/or agree to an arbitration agreement and/or the Company's Alternate Dispute Resolution ("ADR") Plan." Id. at 2-3, 12.
On November 14, 2018, Paradigm sent Plaintiff a letter that offered her a position as a District Manager who would be responsible for three (3) Hardee's locations in Alabama ("offer letter"). Id. at 3, 15-16. The offer letter contains an arbitration provision that states, "You agree to be bound by Paradigm's Arbitration Agreement as a condition of your employment with Paradigm." Id. at 15-16. Plaintiff hand-signed the offer letter on November 14, 2018, and returned it to Paradigm via email on the same date. Id. at 3.
Potential new hires for Paradigm are required to electronically complete standard paperwork as part of the new-hire-onboarding process. Id. Potential new hires are sent an email that contains a link to the online portal, and they must click the link to reach the onboarding task manager. Id. Plaintiff received such an email at the email address that she provided to Paradigm when she submitted her job application. Id. Plaintiff was required to complete the onboarding process, during which employee information is gathered and various documents are signed, including payroll tax withholding forms, company policies, and an arbitration agreement. Id. As part of the onboarding process, Plaintiff was required to provide her Social Security number, date of birth, address, and other identifying information. Id.
On November 14, 2018, the same day that Plaintiff returned her signed offer letter, she logged in to the online portal to sign the new-employee-onboarding paperwork that is required by Paradigm. Id. at 3-4. Plaintiff entered her unique username and password to log in to the online portal and completed her onboarding paperwork. Id. The onboarding paperwork includes: (1) Form I-9 (authorization to work); (2) Form W-4 (federal payroll taxes); (3) Form A-4 (state payroll taxes); (4) Paradigm's cash-handling policy; (5) 401k Plan Disclosure Statement; (6) Insurance Options: (7) Paradigm's Rules, Regulations, and Procedures; (8) Paradigm's Employee Guide to Health and Safety; (9) EEO and Anti-Harassment Policy; (10) Paradigm's Supplemental Management Guide; (11) Paradigm's Employee Handbook; and (12) an Alternative Dispute Resolution Plan and Arbitration Agreement ("arbitration agreement"). Id. Plaintiff digitally signed each of the aforementioned onboarding documents. Id. at 3-4, 18-138.
The arbitration agreement provides in pertinent part:
During the online portal's electronic-onboarding process, each new employee is presented with a series of pages that must be viewed and completed in sequential order; it is not possible to advance to the next page without acknowledging the preceding page. Id. at 5. During the onboarding process, the new employee is shown a PDF copy of Paradigm's Alternative Dispute Resolution Plan, and below it, the new employee is required to check a box that is beside the statement "I have read and agree to the above information" and then click a button that is labeled "Acknowledge and Continue" to proceed with the onboarding process. Id. After, the new employee is shown a PDF copy of the arbitration agreement, and below it, the new employee must check a box that is beside the statement "I have read and agree to the above information" and then click a button that is labeled "Acknowledge and Continue" to proceed with the onboarding process. Id. During the onboarding process, Plaintiff also signed Paradigm's Rules, Regulations, and Procedures, which contains provisions that state Plaintiff had an opportunity to read and review the arbitration agreement and agreed to follow the procedures in the arbitration agreement to resolve any employment-related disputes. Id. at 5, 154-55.
[A] district court may conclude as a matter of law that parties did or did not enter into an arbitration agreement only if "there is no genuine dispute as to any material fact" concerning the formation of such an agreement. FED. R. CIV. P. 56(a). A dispute is not "'genuine' if it is unsupported by the evidence or is created by evidence that is 'merely colorable' or 'not significantly probative.'" Baloco v. Drummond Co., 767 F.3d 1229, 1246 (11th Cir. 2014) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S....
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