AlixPartners v. Charles Brewington

836 F.3d 543, 2016 FED App. 0237P, 2016 U.S. App. LEXIS 17134, 2016 WL 4578358
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 2, 2016
Docket16-1027
StatusUnpublished
Cited by135 cases

This text of 836 F.3d 543 (AlixPartners v. Charles Brewington) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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AlixPartners v. Charles Brewington, 836 F.3d 543, 2016 FED App. 0237P, 2016 U.S. App. LEXIS 17134, 2016 WL 4578358 (6th Cir. 2016).

Opinion

OPINION

SENTELLE, Senior Circuit Judge.

AlixPartners, LLP (“Alix”) hired Charles Brewington (“Brewington”), a resident of Texas, as a Talent Acquisitions Director in Alix’s Dallas office. After he was terminated by Alix, Brewington filed a demand for arbitration on behalf of himself and a purported class of current, former, and potential Alix employees. Alix filed an action in the Eastern District of Michigan, seeking a declaratory judgment that Brew-ington was precluded from pursuing claims in arbitration on behalf of any purported class. Brewington moved to dismiss Alix’s complaint for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). The district court, finding that Brewington’s contacts with the State of Michigan were sufficient to establish personal jurisdiction, denied the motion. Alix filed a motion for summary judgment, arguing that the arbitration clause in Brew-ington’s employment agreement did not authorize him to pursue classwide arbitration. The district court granted Alix’s motion for summary judgment and enjoined Brewington from pursuing claims in arbitration on behalf of any absent individual or purported class. For the reasons set forth below, we affirm.

I. BACKGROUND

Alix is a global consulting and business advisory firm with offices around the world, including one in Southfield, Michigan. Alix’s Michigan office processes and administers payroll and benefits for employees in the United States and is directly involved in the hiring of new personnel in the United States. In early 2013, Alix hired Brewington, a Texas resident, to serve as a Talent Acquisitions Director and a mem *547 ber of Alix’s Corporate Services team in its Dallas, Texas office. The employment agreement contains two provisions relevant to this case. First, the agreement provides that it “will be construed and interpreted in accordance with the laws of the State of Michigan.” Second, it contains the following arbitration clause:

Except for any action by the Company seeking any injunctive relief or other equitable relief against you, any dispute arising out of or in connection with any aspect of this Agreement and/or any termination of employment thereunder ..., shall be exclusively subject to binding arbitration under the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”), provided all substantive rights and remedies including any applicable damages provided under any pertinent statute(s) related to such claims ... shall be available in the AAA forum. Any decision of the arbitrator shall be final and binding as to both parties, and enforceable by any court of competent jurisdiction....

In March 2014, Brewington was terminated. He responded by filing a demand for arbitration with the AAA, asserting claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq. Brewington filed the demand not only on behalf of himself, but also on behalf of a purported nationwide class of current, former, and potential Alix employees. Alix responded by filing an action in the United States District Court for the Eastern District of Michigan under the Declaratory Judgment Act, 28 U.S.C. §§ 2201-2202, seeking a declaration that Brewington was precluded from pursuing claims in arbitration on behalf of any purported class or absent individuals.

Brewington moved to dismiss Alix’s action, pursuant to Federal Rule of Civil Procedure 12(b)(2), for lack of personal jurisdiction. Alix responded by submitting declarations and record evidence concerning Brewington’s contacts with Michigan. The record shows that, although Brewing-ton lives in Texas, Alix’s Michigan-based personnel were involved in his hiring. As part of the candidate evaluation process, for example, Brewington communicated with Dr. Leslie Evola, an on-staff psychologist in the Michigan office, and completed a personality and skills assessment that was reviewed by Dr. Evola. After Alix extended an offer to Brewington, Alix’s Director of Human Resources signed the proposed agreement in Michigan and sent it to Brewington in Texas to be signed and returned. Brewington sent the completed agreement, which included the Michigan choice-of-law provision, back to Alix’s Michigan office. In late April 2018, Brew-ington travelled to Alix’s Michigan office to attend a mandatory orientation program before beginning his full-time work in Texas.

While working in Dallas, Brewington maintained a substantial connection with Alix’s Michigan office. As a member of the Talent Acquisition Team, Brewington was responsible for recruiting candidates for Alix’s Financial Advisory Services (“FAS”) group, which required him to communicate directly with Alix’s Michigan-based personnel. He worked directly with Patricia Diefenbacher, Alix’s Director of Talent Management for FAS, who was based in the Michigan office. According to Diefen-bacher, she had numerous email and telephone communications with Brewington concerning candidates and available positions in the FAS group. On at least one occasion, Brewington worked with Ray Kantor, an Internal Audit Director based in the Michigan office, to recruit and network with Michigan candidates for Alix’s “Detroit Internal Audit Manager” position.

*548 Based on these facts, the district court denied Brewingtoris motion to dismiss. AlixPartners, LLP v. Brewington, 133 F.Supp.3d 947 (E.D. Mich. 2015). Relying on “factually similar cases,” the district court found that Brewington “established connections with Michigan and availed himself of the forum.” Id. at 957-58. The district court emphasized: (1) Brewingtoris “semi-regular” email and telephone contact with his supervisors in Michigan; (2) the agreement’s Michigan choice-of-law provision; (3) Brewingtoris visit to Michigan for an orientation session; and (4) Brewing-ton’s work in recruiting Michigan candidates to fill positions in the Michigan office. 1 Id. at 958. The district court also determined that the cause of action had a “ ‘substantial connection’ ”' with Brewing-ton’s in-state activities, id. at 959 (quoting S. Mach. Co. v. Mohasco Indus., Inc., 401 F.2d 374, 384 (6th Cir. 1968)), and concluded that the forum was “a reasonable one” for Brewington, “given that the contract was formed, and partly carried out, in Michigan,” id. at 960.

While the motion to dismiss was pending, Alix filed its motion for summary judgment. Relying on our decision in Reed Elsevier, Inc. ex rel. LexisNexis Division v. Crockett, 734 F.3d 594 (6th Cir. 2013), Alix argued that Brewingtoris arbitration agreement did not authorize him to pursue arbitration on behalf of a class. In Reed Elsevier,

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836 F.3d 543, 2016 FED App. 0237P, 2016 U.S. App. LEXIS 17134, 2016 WL 4578358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alixpartners-v-charles-brewington-ca6-2016.