AlixPartners v. Charles Brewington

Procedural entryThis page is a short order in AlixPartners v. Charles Brewington. Read the opinion of the Court — 836 F.3d 543
Court of Appeals for the Sixth Circuit·Decided September 20, 2016·No. 16-1027·Published

Opinion

RECOMMENDED FOR FULL-TEXT PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 16a0237p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT _________________

ALIXPARTNERS, LLP, ┐ Plaintiff-Appellee, │ │ │ v. > No. 16-1027 │ │ CHARLES BREWINGTON, │ Defendant-Appellant. │ ┘ Appeal from the United States District Court for the Eastern District of Michigan at Detroit. No. 2:14-cv-14942—Gerald E. Rosen, District Judge.

Decided and Filed: September 2, 2016*

Before: MOORE, ROGERS, and SENTELLE,** Circuit Judges.

_________________

COUNSEL

ON BRIEF: Steven E. Aldous, FORSHEY PROSTOK, LLP, Dallas, Texas, for Appellant. Jason C. Schwartz, David J. Debold, GIBSON, DUNN & CRUTCHER LLP, Washington, D.C., Karl G. Nelson, GIBSON, DUNN & CRUTCHER LLP, Dallas, Texas, for Appellee. _________________

OPINION _________________

SENTELLE, Circuit Judge. AlixPartners, LLP (“Alix”) hired Charles Brewington (“Brewington”), a resident of Texas, as a Talent Acquisitions Director in Alix’s Dallas office.

* This decision originally issued as an unpublished opinion filed on September 2, 2016. The court has now designated the opinion as one recommended for full-text publication. ** The Honorable David B. Sentelle, Senior Circuit Judge for United States Court of Appeals for the District of Columbia Circuit, sitting by designation.

1 No. 16-1027 AlixPartners v. Brewington Page 2

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 Brewington 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 Brewington’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 member 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, No. 16-1027 AlixPartners v. Brewington Page 3

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 Brewington 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 2013, Brewington 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 Diefenbacher, 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. No. 16-1027 AlixPartners v. Brewington Page 4

Based on these facts, the district court denied Brewington’s 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) Brewington’s “semi-regular” email and telephone contact with his supervisors in Michigan; (2) the agreement’s Michigan choice-of-law provision; (3) Brewington’s visit to Michigan for an orientation session; and (4) Brewington’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 Brewington’s in-state activities, id. at 959 (quoting S. Mach. Co. v.

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