Benjamin-Coleman v. Praxair, Inc.

216 F. Supp. 2d 750, 2002 U.S. Dist. LEXIS 16790, 2002 WL 31005176
CourtDistrict Court, N.D. Illinois
DecidedSeptember 5, 2002
Docket01 C 9231
StatusPublished
Cited by1 cases

This text of 216 F. Supp. 2d 750 (Benjamin-Coleman v. Praxair, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benjamin-Coleman v. Praxair, Inc., 216 F. Supp. 2d 750, 2002 U.S. Dist. LEXIS 16790, 2002 WL 31005176 (N.D. Ill. 2002).

Opinion

MEMORANDUM OPINION AND ORDER

GETTLEMAN, District Judge.

BACKGROUND

Plaintiff Stephanie Benjamin-Coleman has sued her former employer, defendant Praxair, Inc., alleging race and sex discrimination. Defendant has moved to stay the current proceedings pending arbitration. For the reasons set forth below, the motion is granted.

On May 23, 2000, plaintiff signed an agreement with defendant as part of her application for employment. This agreement included an arbitration clause that provides:

I agree to pursue any dispute in connection with any future separation from employment by the Company promptly through binding arbitration pursuant to the rules of the American Arbitration Association before an arbitrator selected by the Company and me by striking from no more than three panels of arbitrators obtained from the Federal Mediation and Conciliation Service, or through such equivalent alternative dispute resolution procedure as the Company may designate, except as provided by express contract; I agree that to the extent permitted by law, this will be my sole and exclusive remedy for any such dispute.

Plaintiff was hired by defendant on June 1, 2000, as a Human Resource Manager in its North America Industrial Gases division. Plaintiff worked for defendant until December 8, 2000, when her employment was terminated. Plaintiff then filed a charge with the Equal Employment Opportunity Commission (“EEOC”) alleging her termination was discriminatory. The EEOC issued plaintiff a right to sue letter on August 31, 2001. On December 3, 2001, plaintiff filed a six-count complaint in this court alleging racially and sexually discriminatory conduct by defendant. All six counts were brought under Title VII of the Civfi Rights Act of 1964, 42 U.S.C. § 2000e, with counts I and VI also brought under 42 U.S.C. § 1981.

*752 On January 4, 2002, defendant filed a motion to dismiss and/or for judgment on the pleadings with respect to Counts II through V and the sections of Counts I and VI that were brought under Title VII. On January 4, 2002, defendant additionally filed an answer which included affirmative defenses in response to the counts not covered in the motion to dismiss. In its answer defendant asserts, as its third affirmative defense to Count I, “this court lacks jurisdiction to adjudicate the claims in Count I because Plaintiff is contractually obligated to resolve such claims through final and binding arbitration.” A substantially similar claim is raised in defendant’s third affirmative defense to Count VI.

On March 12, 2002, this court granted defendant’s motion to dismiss the Title VII claims because they were not filed in a timely manner. On March 18, 2002, defendant moved to stay proceedings on the remaining claims pending arbitration.

DISCUSSION

Defendant’s motion to stay is based on the Federal Arbitration Act, 9 U.S.C. § 3, which directs the court to stay any proceeding referable to arbitration under any agreement in writing for such arbitration, upon application of one of the parties. Plaintiff agrees that there is a valid agreement providing for arbitration, and that her claims based on § 1981 are arbitrable. Instead, she argues that defendant waived its contractual right to arbitrate by electing to proceed in this court.

Although the enforcement of arbitration agreements is favored by federal policy, the Federal Arbitration Act recognizes situations under which the agreements will not be upheld. St. Mary’s Medical Center of Evansville, Inc. v. Disco Aluminum Products Company, Inc., 969 F.2d 585, 587 (7th Cir.1992) (citing 9 U.S.C. § 2; Shearson/American Express, Inc. v. McMahon, 482 U.S. 220, 225-26, 107 S.Ct. 2332, 96 L.Ed.2d 185 (1987); Midwest Window Systems, Inc. v. Amcor Industries, Inc., 630 F.2d 535, 536 (7th Cir.1980)). “Courts may refuse to enforce arbitration agreements on a number of grounds, and federal courts have consistently held that among those grounds is waiver of the right to arbitrate.” Id. In St. Mary’s Medical Center, the Seventh Circuit noted that the federal policy favoring enforcement of arbitration agreements does not manifest preference for arbitration over litigation, but rather recognizes an emphasis on upholding private contracts. Thus, waiver of the right to arbitrate should be treated the same as waiving any contractual right. Id. at 590.

A waiver may be express or implied. Id. Because there has been no express waiver by defendant, the court must determine whether a waiver may be implied from defendant’s actions. Because there is no rigid rule as to what constitutes a waiver of the right to arbitrate, the court must examine the circumstances of each case and determine whether the alleged defaulting party has acted inconsistently with the right to arbitrate. Id. at 587-88.

The Seventh Circuit has held that a party’s “election to proceed before a nonarbitral tribunal for the resolution of a contractual dispute is a presumptive waiver of the right to arbitrate.” Cabinetree of Wisconsin, Inc. v. Kraftmaid Cabinetry, Inc., 50 F.3d 388, 390 (7th Cir.1995). This presumptive waiver “prevents parties from proceeding, ‘either simultaneously or sequentially, in multiple forums. Selection of a forum in which to resolve a legal dispute should be made at the earliest possible opportunity.’ ” Ernst & Young, LLP v. Baker O’Neal Holdings, Inc., 2001 WL 1397310 (S.D.Ind.2001) (quoting Cabinetree, 50 F.3d at 390-91).

*753 In the instant case, plaintiff argues that by bringing its motion to dismiss the Title VII claims as untimely, defendant elected to proceed in this court rather than in arbitration. The court might agree if that motion stood alone, but it does not. At the same time that it filed its motion to dismiss, defendant also answered the § 1981 counts, raising the arbitration clause as an affirmative defense, putting plaintiff on notice of its intent to seek arbitration. As noted in Cabinetree, the presumptive waiver arises in cases were the invocation of judicial process signifies an intent to proceed in court to the exclusion of arbitration. Cabinetree, 50 F.3d at 390-91. Defendant’s actions in the instant case do not signify that intent.

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216 F. Supp. 2d 750, 2002 U.S. Dist. LEXIS 16790, 2002 WL 31005176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benjamin-coleman-v-praxair-inc-ilnd-2002.