State ex rel. Saylor v. Wilkes, 32042.

Decision Date11 May 2005
Docket NumberNo. 32042.,32042.
Citation613 S.E.2d 914
CourtWest Virginia Supreme Court
PartiesSTATE of West Virginia ex rel. Chrystal SAYLOR, Petitioner, v. Honorable Christopher WILKES, Judge of the Circuit Court of Berkeley County; Ted Smith and Ryan's Family Steak Houses, Inc., Respondents

Barry P. Beck, Power, Beck & Matzureff, Martinsburg, West Virginia, Attorney for the Petitioner.

William D. Turner, Pyles, Haviland, Turner & Smith, LLP, Lewisburg, West Virginia, Attorney for Amicus Curiae WV Employment Lawyers Association.

Glenn P. Hare, Steptoe & Johnson, Martinsburg, Michael S. Pitts (Pro Hac Vice), Nexen Pruet Adams Kleemeier, LLC, Greenville, SC, Attorney for the Respondents.

ALBRIGHT, Chief Justice.

Chrystal Saylor as the plaintiff below (hereinafter referred to as "Petitioner") seeks a writ of prohibition to stop enforcement of the January 5, 2004, order of the Circuit Court of Berkeley County staying proceedings in the employment discrimination and constructive discharge suit she had filed against defendants below, Ted Smith and Ryan's Family Steak Houses, Inc. (hereinafter "Respondents" when referred to collectively), and compelling arbitration of the employment-related claims. We grant the requested relief based on our review of the law, including that offered by the parties in their briefs and during oral presentation, as well as that provided by brief of the amicus curiae.1

I. Factual and Procedural Background

Petitioner is a former employee of the Ryan's Family Steak Houses, Inc. (hereinafter "Ryan's" when only the company is referenced) restaurant in Martinsburg, West Virginia, where she worked as a waitress. Ted Smith was an assistant manager at the restaurant.

A prerequisite for consideration of any applicant for employment with Ryan's is the completion by the candidate of a "Job Applicant Agreement to Arbitration of Employment-Related Disputes" (hereinafter referred to as "Petitioner's Agreement") with Employment Dispute Services, Inc. (hereinafter referred to as "EDSI"). Following are the introductory paragraphs of Petitioner's Agreement:

Your potential Employer ("signatory company" or "Company")2 has entered into an agreement with Employment Dispute Services, Inc. (EDSI) to arbitrate and resolve any and all employment-related disputes between the Company's employees (and job applicants) and the Company under EDSI's program. The following Agreement between you and EDSI is a "selection of forum" agreement by which you agree that employment-related issues between you and the Company shall be resolved through Arbitration. Any arbitration matter shall be heard and decided under the provisions and the authority of the Federal Arbitration Act, 9 U.S.C. sec. 1, as applicable.

The purpose of this agreement is to provide You and the Company a forum in which claims or disputes with the Company and any other signatories may be resolved by arbitration rather than litigation. This Agreement does not restrict you from filing a claim or charge with any state or federal agency, for example, Equal Employment Opportunity Commission, state unemployment agency, state workers' compensation commission, where applicable. Rather, the Agreement applies only to State or Federal court proceedings.

The remainder of the two-page Agreement is divided into two parts, one containing provisions regarding acceptance of the EDSI document and the other detailing the terms of the contract with EDSI. These sections, including internal emphasis by underscore, italics, boldface and capitalization, read as follows:

A. Acceptance of EDSI Agreement

Important aspects of Your acceptance of this Agreement are:

1. You retain all the substantive legal rights and remedies under state and federal law that you would otherwise have as an employee/applicant of the Company, and neither you nor the Company will have any additional substantive legal rights or remedies;

2. YOU WAIVE ANY RIGHT ARISING UNDER EITHER STATE OR FEDERAL LAW TO HAVE YOUR CLAIM RESOLVED BY A JURY. RATHER, ANY CLAIM YOU MAY FILE WILL BE FINALLY RESOLVED BY A PANEL OF THREE NEUTRAL ARBITRATORS.

3. You retain the right to file a claim or charge with any state or federal agency that would otherwise handle your claim or charge;

4. Except as to claims or charges finally resolved within a state or federal agency, you and the Company agree to use EDSI to resolve legal claims concerning you that either party would otherwise bring in state or federal court;

5. An EDSI decision on any dispute shall be FINAL AND BINDING on all parties.

B. Agreement

1. In consideration of my execution of this Agreement and consent to the terms herein, EDSI agrees to provide an unbiased

arbitration forum, impartial Rules and Procedures, and a fair hearing and decision based on my claim or dispute I (employee/job applicant) may file or defend. Further, I acknowledge that by agreeing to resolve any future employment-related claims through arbitration rather than litigation, EDSI agrees to provide through its arbitral forum the additional benefits of a substantially quicker, less burdensome and less expensive procedure for resolution of my claims as compared to typical litigation in state or federal court.

2. In consideration of my receipt of the benefits set forth above in Paragraph 1, I understand and agree to the following:

A. Any employment-related dispute between the Company, me and/or other signatories which would otherwise be brought in state or federal court will be brought ONLY in the EDSI arbitration forum and under EDSI Rules and Procedures. (Other signatories to the same Agreement with EDSI may be, for example, supervisors, managers, and agents of the Company.) I consent to allow EDSI to amend the applicable Rules and Procedures from time to time, at its discretion, in order to insure its ability to meet its obligations set forth in Paragraph 1 of this section. However, should the EDSI Rules and Procedures be amended, I shall have the right to choose to have my employment-related dispute resolved under Rules and Procedures in effect on the date I sign this Agreement or the Rules and Procedures in effect on the date I file a claim with EDSI. I agree that except as to claims or charges finally resolved within a state or federal agency, any and all disputes I may have with the Company, or its officers, managers, or agents, or that the Company, its supervisors, managers or other agents may have with me which would otherwise be decided in court, shall be resolved only through arbitration in the EDSI forum and NOT THROUGH LITIGATION IN STATE OR FEDERAL COURT.

B. The decision of an EDSI arbitration panel is final and binding on all parties. There is no appeal by any party to either state or federal court except as provided under the provisions of the Federal Arbitration Act.

C. This agreement is with EDSI, not with the Company, and is not, nor is it intended to be, an employment contract or any part of an employment contract. This agreement does not affect or alter My "at will" employment relationship with the Company.

D. The Company and any other successor or assign, its signatory superiors, managers and other agents are "third party beneficiary" of My agreement with EDSI, and I am a "third party beneficiary" of others' agreements with EDSI. A "third party beneficiary" is someone who benefits legally from a contract between two other parties.

E. I understand that I must use the EDSI forum for any and all employment-related disputes and/or claims and/or related tort claims I may have against the Company and all other signatories to this Agreement which could otherwise be brought in court, even if the agreement has been terminated since the date the claim arose. I understand that a claim is deemed to arise on the date the conduct giving rise to the claim is alleged to have occurred. In South Carolina and Texas this Agreement shall apply to personal injury tort claims where the Company is a "non-subscriber" and is not a covered employer under the state's workers' compensation insurance program.

F. If any of the foregoing terms of the Agreement are determined to be in violation of any law, rule or regulation or are otherwise unenforceable, that determination shall not affect any other clauses of the Agreement. All other clauses shall remain in full force and effect. If any EDSI Rules or Procedure is determined by any court or competent jurisdiction to be invalid or unenforceable, EDSI shall be permitted a reasonable period of time to amend its Rules and Procedures in order to accomplish the arbitration purpose of this Agreement.

G. My Agreement shall continue for the period of my employment with the Company unless mutually terminated in writing by EDSI and Me. However, I acknowledge that if this Agreement is terminated, any claim that arose prior to the termination of the Agreement shall be covered by this Agreement and must be submitted to arbitration in the EDSI forum.

H. My Agreement supersedes any and all prior understandings and agreements between the parties, or with the Company, concerning the resolution of any and all claims or disputes between the Company, its supervisors, managers, and/or other agents, and me. It contains the entire understanding and agreement of the parties regarding these subjects. My agreement may not be altered or amended, except in writing signed by the President of EDSI and me.

I. The Agreement is effective immediately. I understand I have the right to consult with an attorney of my choice prior to executing this agreement.

J. I have read the Agreement carefully and have been given a copy of full EDSI Rules and Procedures. I knowingly and voluntarily agree to be bound by the terms and conditions of the Agreement and EDSI Rules and Procedures, as modified and/or amended from time to time, except that should the EDSI Rules and Procedures be modified or amended, I shall have the...

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