Laurich v. Red Lobster Rests., LLC

• Decision Date: 08 November 2017
• Docket Number: No. CIV 17–0150 JB/KRS,CIV 17–0150 JB/KRS
• Citation: 295 F.Supp.3d 1186
• Parties: Mary Grace LAURICH, Plaintiff, v. RED LOBSTER RESTAURANTS, LLC, Defendant.
• Court: U.S. District Court — District of New Mexico

295 F.Supp.3d 1186

Mary Grace LAURICH, Plaintiff,

v.RED LOBSTER RESTAURANTS, LLC, Defendant.

No. CIV 17–0150 JB/KRS

United States District Court, D. New Mexico.

Filed November 8, 2017

Sam Bregman, Bregman & Loman, P.C., Albuquerque, New Mexico, Attorneys for the Plaintiff

Charlotte A. Lamont, Littler Mendelson, P.C., Albuquerque, New Mexico, Attorneys for the Defendant

MEMORANDUM OPINION AND ORDER

James O. Browning, UNITED STATES DISTRICT JUDGE

THIS MATTER comes before the Court on the Defendant's Motion to Compel Arbitration, filed March 2, 2017 (Doc. 5)("Motion"). The Court held a hearing on July 12, 2017. The primary issues are: (i) whether the parties' Arbitration Agreement is illusory, which depends on whether Defendant Red Lobster Restaurants, LLC ("Red Lobster") provided consideration; (ii) whether asking Plaintiff Mary Grace Laurich to sign the 2014 Dispute Resolution Process Acknowledgment, filed March 2, 2017 (Doc. 5–2)("2014 Agreement") during a work shift makes the Arbitration Agreement procedurally unconscionable; and whether (iii) Red Lobster breached the Arbitration Agreement in such a way that precludes it from enforcing the Arbitration Agreement. The Court concludes that: (i) the Arbitration Agreement is not illusory, because both parties provided consideration; (ii) the Arbitration Agreement is not unconscionable, because Laurich was not deprived of meaningful choice to enter the arbitration agreement; and (iii) whether Red Lobster breached the Arbitration Agreement in such a way that precludes it from enforcing the Arbitration Agreement is a question for the arbitrator and not for the Court. Accordingly, the Court grants the Motion, and stays the proceeding pending the arbitration's resolution.

FACTUAL BACKGROUND

The Court draws its facts from Laurich's Complaint for Violation of Title VII of the Civil Rights Act of 1964 and the New Mexico Human Rights Act, Wrongful Discharge and Negligent Hiring and Supervision, filed February 2, 2017 (Doc. 1)("Complaint"), from the Plaintiff's Response to Defendant's Motion to Compel Arbitration ¶ 1, at 2, filed March 16, 2017 (Doc. 9) ("Response"), and from the Motion hearing, Draft Hearing Transcript, taken July 12, 2017 ("Tr.").¹ The Court recites Laurich's version of the facts not out of any predisposition to believe her side of the story, but to establish a cogent, internally consistent version of events for its analysis. Moreover, Red Lobster stated, at the Motion hearing, that the Court may assume Laurich's version of events to be correct when deciding the Motion, because Laurich's account allegedly supports Red Lobster's position. See Tr. at 4:21–5:10 (Court, Lamont).

Laurich began working as a server at a Red Lobster restaurant in Albuquerque, New Mexico in 2008. See Complaint ¶ 11, at 2; Response ¶ 1, at 2. In 2014, Red Lobster purchased the Red Lobster restaurant chain—which included the Albuquerque Red Lobster restaurant—from GMRI, Inc. See Response ¶ 2, at 2. Around that time, Laurich was working a shift when one of her managers instructed Laurich to "review a lengthy employment agreement on a computer terminal." Response ¶¶ 4–5, at 3. Laurich asked for a hard copy to review, but "was told that none were available." Response ¶ 4, at 3. The manager told her that, if she did not sign the electronic document, "she would be taken off the work schedule." Response ¶ 5, at 3. Laurich then "registered her initials on the computer terminal" and returned to work. Response ¶ 6, at 3. The employment documents which Laurich electronically signed included a provision stating that both she and Red Lobster would be subject to Red Lobster's Dispute Resolution Process. See Response at 6; Motion at 3; 2014 Agreement at 1; Dispute Resolution Process, filed March 2, 2017 (Doc. 5–3)("DRP").

Starting in July, 2016, a Red Lobster cook named Willie Prather "began harassing [Laurich] based on her race and sex," Complaint ¶ 15, at 2, calling her names like "fat bitch" and "white bitch," and making threatening statements, Complaint ¶¶ 16–17, at 2–3. Laurich complained to management about Prather, but they "did nothing to address Mr. Prather's behavior or Plaintiff's work environment." Complaint ¶ 21, at 3. Laurich asserts that, on or about August 5, 2016, Prather "continued to harass her verbally" and intentionally gave her incorrect orders to serve to customers. Complaint ¶ 23, at 3. Laurich alleges that, after Laurich complained about Prather's actions, Prather "accused her of ‘snitching’ to the manager, and told her that ‘snitches get stiches’ " and then "shoved [Laurich] into a shelf." Complaint ¶ 25, at 3. Laurich was, at the time, about seven-and-a-half months pregnant. See Complaint ¶ 12, at 2. After Prather shoved Laurich, a manager intervened and told Laurich to wait outside the restaurant, near the restaurant's entrance, while, Laurich asserts, "[u]pon information and belief, the manager took Mr. Prather into an office." Complaint ¶ 26, at 3. While standing outside the restaurant, Laurich used her cellular telephone to call her boyfriend. See Complaint ¶ 27, at 3. Laurich alleges that, while she was on her cellular telephone, "Mr. Prather then emerged from the restaurant, incorrectly assumed that Plaintiff was using the cellphone to call the police, and punched Plaintiff in the face, knocking the cell phone out of her hand. Mr. Prather took the Plaintiff's phone and ran away." Complaint ¶ 27, at 3. Afterwards, Laurich told Red Lobster that she "was not comfortable returning to work unless she could be assured that Mr. Prather would not be there." Complaint ¶ 28, at 4. Laurich asserts that, "[w]hile waiting and hoping that a reasonable accommodation could be made, [Laurich] learned that she had been terminated by Defendant." Complaint ¶ 30, at 4.

PROCEDURAL BACKGROUND

Laurich filed her Complaint on February 2, 2017. First, Laurich asserts that Red Lobster violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq. ("Title VII"), by subjecting her to "a hostile working environment as a result of discrimination based on her sex and race." Complaint ¶ 37, at 5. Laurich asserts that Red Lobster either "knew or should have known" of Prather's history of violence, including violence against women, and had received "numerous complaints of [Prather's] threats and harassment from multiple female employees." Complaint ¶ 44, at 5. Despite this knowledge, Laurich asserts, Red Lobster "did nothing to remedy an obviously dangerous situation," and "made no good-faith effort to remedy the hostile working environment or to protect its female employees, or to otherwise comply with the requirements of Title VII." Complaint ¶ 44–45, at 5. Laurich also contends that Red Lobster's decision to terminate her employment "was discriminatory and based on her sex and race," and her "late state of pregnancy," as Red Lobster knew she was "about take maternity leave." Complaint ¶ 46, at 5. Laurich contends, in summary, that Red Lobster "acted intentionally, willfully and with reckless disregard and deliberate indifference to [her] safety and well being." Complaint ¶ 48, at 6.

Second, Laurich asserts that Red Lobster's actions violate the New Mexico Human Rights Act, N.M. Stat. Ann. § 28–1–1 et seq.See Complaint ¶¶ 50–63, at 6–7. In support of this count, Laurich proffers the same allegations made in support of her Title VII claim. See Complaint ¶¶ 50–63, at 6–7.

Third, Laurich alleges that Red Lobster was negligent in hiring and supervising its employees. See Complaint ¶¶ 64–72, at 7–8. She argues that Red Lobster had a duty to exercise reasonable care for its employees' safety, and Red Lobster breached that duty by hiring and continuing to employ Prather "despite his criminal record, history of violence, history of violence toward women, and continued threats and acts of violence toward women during his employment." Complaint ¶¶ 65–66, at 7. Laurich asserts that, as a result of Red Lobster's negligence, she "was harassed and physically battered by Mr. Prather while she was at work." Complaint ¶ 67, at 8. Laurich also contends that Red Lobster is vicariously liable for Prather's actions, because, by "refus[ing] to address multiple complaints by multiple female employees," Red Lobster "implicitly and tacitly authorized and ratified Mr. Prather's behavior." Complaint ¶¶ 71–72, at 8.

Finally, Laurich asserts that she was wrongfully discharged. See Complaint ¶¶ 73–76, at 8. She argues that Red Lobster terminated her employment for reasons "contrary to public policy," because Red Lobster terminated her employment "based on her race, sex and pregnancy," and "in retaliation for her repeated complaints of harassment and/or pregnancy." Complaint ¶ 74, at 8.

1. Motion to Compel Arbitration.

Red Lobster moves to compel arbitration and requests that the Court "stay this proceeding pending resolution of the arbitration." Motion at 1. Red Lobster contends that Laurich's "claims are barred from this proceeding in this Court by a binding arbitration agreement" covered by the Federal Arbitration Act, 9 U.S.C. § 1 et seq. ("FAA"). Motion at 2. First, Red Lobster asserts that, when Laurich applied for a job at the Red Lobster restaurant on August 11, 2008—then owned by a different company, GMRI, Inc.—she signed and submitted application form which featured the following provision:

I UNDERSTAND THAT GMRI, INC. D/B/A RED LOBSTER HAS IN PLACE A DISPUTE RESOLUTION PROCEDURE, AND I FURTHER ACKNOWLEDGE AND AGREE THAT IF I AM OFFERED AND ACCEPT EMPLOYMENT, ANY DISPUTE BETWEEN ME AND GMRI, INC., RELATING TO MY EMPLOYMENT AND/OR MY SEPARATION FROM EMPLOYMENT, SHALL BE SUBMITTED WITHIN ONE (1) YEAR OF THE DAY WHICH I LEARNED OF THE EVENT AND SHALL BE RESOLVED PURSUANT TO THE TERMS AND CONDITIONS OF THE DISPUTE RESOLUTION PROCEDURE.

Motion at 2 (quoting Laurich Application Form at 2, filed March 2, 2017 (Doc. 5–1)). Red Lobster then asserts that Laurich, when she was hired, signed a "Dispute Resolution Process...