20230112_C359710_39_359710.Opn.Pdf

CourtMichigan Court of Appeals
DecidedJanuary 12, 2023
Docket20230112
StatusUnpublished

This text of 20230112_C359710_39_359710.Opn.Pdf (20230112_C359710_39_359710.Opn.Pdf) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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20230112_C359710_39_359710.Opn.Pdf, (Mich. Ct. App. 2023).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

S.P., UNPUBLISHED January 12, 2023 Plaintiff-Appellant/Cross-Appellee,

v No. 359710 Livingston Circuit Court LAKELANDS GOLF AND COUNTRY CLUB and LC No. 21-31247-CD ROBERT BAIDEL,

Defendants-Appellees/Cross- Appellants.

Before: M. J. KELLY, P.J., and BOONSTRA and SWARTZLE, JJ.

PER CURIAM.

Plaintiff appeals by right the trial court’s order granting in part and denying in part defendant Lakelands Golf and Country Club’s (LGCC) motion to dismiss and compel arbitration. LGCC and defendant Robert Baidel (Baidel) both cross-appeal that same order. We affirm in all respects, except to note that to the extent the trial court may have dismissed, rather than stayed, Counts I through IV of plaintiff’s complaint, it erred by doing so and those complaints are hereby reinstated and stayed.

I. PERTINENT FACTS AND PROCEDURAL HISTORY

Plaintiff worked at LGCC as a bartender from 2017 until May 2021. In September 2021, plaintiff filed suit against LGCC and Baidel, alleging that Baidel had sexually assaulted her while she was working as a bartender on April 3, 2021. According to plaintiff, at the time of the alleged assault, Baidel was a “member-owner” of LGCC, while LGCC describes Baidel as a “former member.” Plaintiff further alleged that she reported Baidel’s assault to LGCC, but that LGCC “did not meaningfully respond and Plaintiff was forced to encounter Defendant Baidel at work.” Plaintiff alleged that she was constructively discharged from her employment with LGCC in May 2021 “due to a traumatic work environment.”

Plaintiff’s complaint set forth six claims. Counts I, II, and III alleged that LGCC had violated the Elliot-Larsen Civil Rights Act (ELCRA), MCL 37.2101 et seq., through sex discrimination (Count I), a hostile work environment (Count II), and retaliation (Count III). Count

-1- IV was entitled “Constructive Discharge.” Counts V and VI were common-law assault and battery claims against Baidel based on the alleged sexual assault. Defendants answered the complaint. LGCC subsequently filed a motion to dismiss and compel arbitration, arguing that plaintiff’s claims were subject to arbitration under the mandatory arbitration provision of the LGCC employee handbook (the arbitration agreement), which plaintiff had signed in 2019. Baidel filed a concurrence with that motion and also argued that he was entitled to enforce the arbitration agreement despite not being a signatory to that agreement; additionally, Baidel argued that the question of the arbitrability of plaintiff’s claims was, itself, a question for the arbitrator.

The trial court held a hearing on LGCC’s motion on December 16, 2021. LGCC argued that all of plaintiff’s claims, including the assault and battery claims, were related to the termination of her employment and therefore covered by the arbitration agreement. Baidel agreed with that argument and also argued that Baidel could enforce the arbitration agreement and that the arbitrability of plaintiff’s claims should be decided by the arbitrator. Baidel asked the trial court to either stay or dismiss the case pending the arbitrator’s decision on arbitrability and the resolution of arbitrable issues. Plaintiff responded that Baidel was not acting within the scope of his employment when he allegedly sexually assaulted plaintiff, and that the assault and battery claims were therefore unrelated to plaintiff’s employment relationship with Lakelands and not covered by the arbitration agreement. Plaintiff also argued that her first three claims under the ELCRA were claims for sexual harassment and were not related to the termination of plaintiff’s employment; therefore, they were not covered by the arbitration agreement. At best, plaintiff argued, only her claim for constructive discharge was covered by the arbitration agreement.

The trial court held that the issue of the arbitrability of plaintiff’s claims was for the court to decide. The court then held that the first four counts of plaintiff’s complaint were subject to the arbitration agreement and granted LGCC’s motion with respect to those claims. The trial court denied LGCC’s motion with regard to the assault and battery claims against Baidel, and stated that it was “just going to stay the case on those, on those matters until the arbitration process is completed.” The court subsequently entered an order reflecting its ruling.

This appeal and the cross-appeals followed. After plaintiff’s claim of appeal was filed, the trial court entered an order staying any arbitration proceedings and further trial court proceedings pending this Court’s decision.

II. MAIN APPEAL

On appeal, plaintiff does not challenge the trial court’s ruling regarding the arbitrability of Counts I, III, and IV of her complaint, but argues that the trial court erred by determining that Count II of her complaint (hostile work environment) was subject to the arbitration agreement. Plaintiff also argues that the trial court should have stayed, rather than dismissed, Counts I through IV of her complaint, and that the trial court should not have stayed Counts V and VI, but rather

-2- should have allowed those claims to move forward into discovery. We will address each argument in turn.1

A. ARBITRABILITY OF COUNT II

Plaintiff argues that Count II of her complaint was not subject to the arbitration agreement. We disagree. We review de novo a trial court’s determination that a claim is barred by an agreement to arbitrate. Lebenbom v UBS Fin Servs, 326 Mich App 200, 208; 926 NW2d 865 (2018). We also review de novo questions regarding the interpretation of contractual language. Id.

The goal of contractual interpretation is to ascertain the intent of the parties; to that end, clear and unambiguous contractual language will be interpreted according to its plain sense and meaning. Id. at 209 (citation omitted). Because of the strong policy promoting arbitration, ambiguity regarding whether a specific matter falls within the scope of an arbitration agreement is to be resolved in favor of submitting the matter to arbitration. Id. at 209-210. [T]he party seeking to avoid the arbitration agreement bears the burden of establishing that his or her claims fall outside the ambit of the arbitration agreement. Id. at 211, citing Altobelli v Hartmann, 499 Mich 284, 295; 884 NW2d 537 (2016). In determining whether a claim falls within the scope of an arbitration agreement, “a reviewing court must look beyond the mere procedural labels to determine the exact nature of the claim to avoid artful pleading.” Id. at 211 (quotation marks and citations omitted).

The arbitration agreement provides, in relevant part:

In consideration for your employment by the Club, it is agreed by the Club and the employee that all legal and equitable claims or disputes arising out of or in connection with any termination of employment shall be settled under the following procedure:

1 Defendants also argue that plaintiff’s appeal is not properly before this Court, because it is not an appeal taken from an order granting a motion to stay arbitration or otherwise a final order appealable by right. See MCL 691.1708(1)(b), MCR 7.202(6)(a)(i), (ii). We disagree. MCL 691.1708(1)(a) provides that “an appeal may be taken from . . . [a]n order denying a motion to compel arbitration.” The trial court’s order from which plaintiff appeals did, among other things, deny in part a motion to compel arbitration.

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