Castillo v. Altice USA, Inc.

District Court, S.D. New York·Decided December 14, 2023·No. 1:23-cv-05040·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

CHRISMELLE CASTILLO, Plaintiff, Case No. 1:23-cv-05040 (JLR) -against- OPINION AND ORDER ALTICE USA, INC., et al., Defendants.

JENNIFER L. ROCHON, United States District Judge: Chrismelle Castillo (“Plaintiff” or “Castillo”) brings this action against Altice USA, Inc. (“Altice”), Jesus Reyes (“Reyes”), and Christaly Cruz (“Cruz”) (together, “Defendants”), asserting seven causes of action stemming from allegations that Reyes distributed intimate photographs of her. ECF No. 1 (“Compl.”). Altice and Plaintiff both move for reconsideration of this Court’s prior Opinion and Order, which granted Altice’s motion to compel arbitration of Plaintiff’s claims against it. Castillo v. Altice USA, Inc., No. 23-cv-05040 (JLR), 2023 WL 6690674, at *1 (S.D.N.Y. Oct. 12, 2023); see ECF Nos. 39 (“Altice Br.”), 41 (“Pl. Br.”). Altice urges the Court to further compel Plaintiff to arbitrate most of her claims against Reyes, see generally Altice Br., while Plaintiff challenges the decision to compel arbitration of her claims against Altice, see generally Pl. Br. Following the Court’s issuance of the Opinion, Reyes also moved to compel arbitration of Plaintiff’s claims against him, ECF No. 44 (“Reyes Br.”), and Cruz continues to seek dismissal of Plaintiff’s claims against her, ECF Nos. 27-28, 45. For the reasons stated below, Cruz’s motion to dismiss is GRANTED in part and DENIED in part; Plaintiff’s motion for reconsideration is DENIED; Altice’s motion for reconsideration is GRANTED; and Reyes’s motion to compel arbitration is GRANTED in part and DENIED in part. BACKGROUND The Court presumes familiarity with the facts of this case, as they were stated in the Court’s prior decision, and includes only those necessary to resolve the instant motions. See Castillo, 2023 WL 6690674 at *1-2. Altice hired Plaintiff in April 2018. Compl. ¶ 20. Shortly before accepting her offer of employment, Plaintiff entered into a mutual arbitration agreement with Altice. That agreement states that all “disputes, claims, complaints, or controversies” against Altice or any of its “current and former officers, directors, employees and/or agents” “are subject to arbitration at the election of any party” and “not by a court or jury.” ECF No. 17-1 (the “Arbitration Agreement”) at 1.

The Arbitration Agreement adds that those claims “include, but are not limited to, disputes, claims, complaints, or controversies arising out of and/or directly or indirectly relating to the relationship between [Plaintiff] and [Altice] . . . including . . . tort claims, discrimination and/or harassment claims, retaliation claims, . . . and any other claim under any federal, state, or local statute, constitution, regulation, rule, ordinance, or common law.” Id. In August 2018, Plaintiff began a consensual relationship with Reyes, another Altice employee, which lasted until December 2020. Compl. ¶ 32. Plaintiff alleges that, in September 2021, Reyes and Cruz – another Altice employee with whom Reyes started another relationship – began harassing her. Id. ¶¶ 37, 39, 42. Plaintiff alleges that Reyes sent Cruz nude photos of

Plaintiff and photos containing sexual activities between Plaintiff and Reyes. Id. ¶ 45-46. On September 23, 2021, Cruz texted those photographs to Plaintiff, allegedly at Reyes’s direction. Id. ¶¶ 44-50. Plaintiff complained on September 23 and 24, 2021 to her supervisors and to Altice’s human resources department. Id. ¶¶ 51-59. Plaintiff alleges that, in the days following her complaint, Reyes and Cruz continued to harass Plaintiff in part by calling her from blocked and unknown numbers. Id. ¶ 60. She also alleges that Altice retaliated against her for lodging this complaint by issuing her a written warning in November 2021 for a pretextual reason, id. ¶¶ 61-75; demoting her in December 2021, id. ¶¶ 76-77; and reprimanding her verbally at various points, id. ¶ 79.

On June 15, 2023, Plaintiff filed her complaint with this Court, alleging sex discrimination and retaliation under Title VII of the Civil Rights Act of 1964 (“Title VII”) against Altice (respectively, Counts I and II), id. ¶¶ 85-99; sex discrimination and retaliation under the New York State Human Rights Law (the “NYSHRL”) against all Defendants (respectively, Counts III and IV), id. ¶¶ 100-111; and sex discrimination and retaliation under the New York City Human Rights Law (the “NYCHRL”) against all Defendants (respectively, Counts VI and VII), id. ¶¶ 119-130. Plaintiff also alleges the unlawful disclosure of an intimate image, in violation of New York City Administrative Code Section 10-180, against Reyes and Cruz but not Altice (Count V), id. ¶¶ 112-118. Altice moved to compel Plaintiff to arbitrate her claims against it. See ECF No. 18

(“Mot.”). Altice also argued that Reyes and Cruz are third-party beneficiaries of the Arbitration Agreement. Id. at 5 n.2. On October 12, 2023, the Court granted Altice’s motion, compelling arbitration of Plaintiff’s claims against Altice (Counts I through IV, VI, and VII). See Castillo, 2023 WL 6690674 at *1. The Court found that the Arbitration Agreement was valid and applied to Plaintiff’s claims. Id. at *3. It next held that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the “EFAA”), 9 U.S.C. §§ 401-402, did not apply to Plaintiff’s case because her dispute arose and her claims accrued before the EFAA’s enactment on March 3, 2022, see Castillo, 2023 WL 6690674 at *3-5. The Court, however, stayed the case “as to only Defendant Altice,” because “the claims against the remaining individual defendants are not subject to arbitration.” Id. at *5. On October 26, 2023, Altice moved for reconsideration of the Opinion. See Altice Br.; ECF No. 50 (“Altice Reply”). The same day, Plaintiff also moved for reconsideration of the

Opinion. See Pl. Br.; ECF No. 52 (“Pl. Reply”). Plaintiff opposed Altice’s motion on November 9, 2023. See ECF No. 47 (“Pl. Opp.”). Altice opposed Plaintiff’s motion on the same day. See ECF No. 46. On November 7, 2023, Defendant Reyes moved to compel arbitration of Plaintiff’s claims against him (Counts III through VII). See Reyes Br. Plaintiff opposed the motion. See ECF No. 53 (“Reyes Mot. Opp.”). On November 8, 2023, pro se Defendant Cruz filed a letter requesting leave to file a motion to dismiss Plaintiff’s claims, arguing that Plaintiff had failed to state a claim against her under New York City Administrative Code Section 10-180. ECF No. 45.1 Plaintiff responded to Cruz’s letter on November 22, 2023. ECF No. 55. Plaintiff does not oppose Cruz’s proposed

motion as to Count V for a violation of New York City Administrative Code Section 10-180, but opposes the request as to her other claims. See id. DISCUSSION I. Cruz’s Motion to Dismiss A. Motion-to-Dismiss Standard

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). In

1 Cruz had previously filed a notice and declaration on October 3, 2023, asking the Court to dismiss Plaintiff’s claims against her. See ECF Nos. 27-28. deciding a motion to dismiss, the Court must “accept[] all factual allegations as true and draw[] all reasonable inferences in the plaintiff's favor.” DiFolco v. MSNBC Cable L.L.C., 622 F.3d 104, 110-11 (2d Cir. 2010) (quoting Shomo v.

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