Chambers v. Groome Transportation

41 F. Supp. 3d 1327, 2014 U.S. Dist. LEXIS 118705, 2014 WL 4230056
CourtDistrict Court, M.D. Alabama
DecidedAugust 26, 2014
DocketCase No. 3:14-CV-237-WKW
StatusPublished
Cited by15 cases

This text of 41 F. Supp. 3d 1327 (Chambers v. Groome Transportation) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chambers v. Groome Transportation, 41 F. Supp. 3d 1327, 2014 U.S. Dist. LEXIS 118705, 2014 WL 4230056 (M.D. Ala. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

W. KEITH WATKINS, Chief Judge.

I.INTRODUCTION

■ Forty-five Plaintiffs bring this complaint against their former employer, alleging violations of the Workers’ Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101-09 (“WARN Act”) and the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201-19. In lieu of an answer, Defendant Groome Transportation of Alabama, Inc. (“Groome Transportation”) filed a motion to compel arbitration. (Doc. #8.) Groome Transportation argues that an arbitration agreement and the Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 1-16 require Plaintiffs to submit their claims to binding arbitration rather than file suit. Plaintiffs oppose the motion. After careful consideration of the arguments of counsel, the relevant law, and the evidence, the court finds that, as to all but one Plaintiff, there exists a genuine dispute with respect to the “making” of an arbitration agreement. As to those forty-four Plaintiffs, this action will proceed to a bench trial pursuant to 9 U.S.C. § 4 regarding the making of agreements to arbitrate. As to Plaintiff Annie L. Adams, Groome Transportation’s motion to compel arbitration is due to be granted.

II.JURISDICTION AND VENUE

Subject-matter jurisdiction is proper pursuant to 28 U.S.C. § 1331. Personal jurisdiction and venue are uncontested.

III.BACKGROUND

The forty-five Plaintiffs are former employees of Groome Transportation, which had contracted with Auburn University to provide shuttle bus services for its students. Plaintiffs worked as shuttle bus drivers, transporting students within Auburn’s city limits and principally on Auburn University’s campus, beginning prior to April 2012 and continuing until July 2013 when Groome Transportation closed its area plant. (Compl-¶ 16.)

Until April 2012, Groome Transportation paid Plaintiffs at a rate of time-and-a-half for all hours worked over forty per week. However, in April 2012, Groome Transportation ceased paying its shuttle' bus drivers overtime wages, even though the drivers continued to perform the same duties and work the same shifts with overtime hours. Plaintiffs allege that, at this time, Groome Transportation created a bogus shuttle service to the Atlanta, Georgia airport in an attempt to “create a loophole in the [FLSA] overtime laws” presumably under the motor-carrier exemption, see 29 U.S.C. § 213(b)(1).1 In October 2012, Groome Transportation drivers “staged a walkout.” (PI. Cassandra Young Aff., at 2 (Doc. # 18-1).) As a result of the walk-out and concomitant pressure from Auburn University, Groome Transportation recommenced paying overtime wages in December 2012.

Additionally, in October 2012, around the time of the walk-out, Groome Transportation presented its employees with a [1333]*1333one-page Arbitration Agreement, which was added to the Personnel Policy Handbook. The Arbitration Clause and Agreement provides:

The parties agree that any dispute, controversy or claim arising out of or related to Employee’s employment with Groome Transportation of Alabama, shall be submitted to and decided by binding arbitration in Richmond, Virginia. Arbitration shall be administered and conducted under the Mediation Rules by mediators of the American Arbitration Association (“AAA”). The rules are available online at www.adr. org. You may also call the AAA at 1-800-778-7879 if there are any questions about the arbitration process. Discovery in any arbitration proceeding shall be conducted according to the American Arbitration Association Rules.

(Arbitration Agreement (Ex. A to Doc. # 8).) The Arbitration Agreement also contains an acknowledgement with signature lines for the employee and a Groome Transportation official to sign. The acknowledgment provides:

This agreement to arbitrate is freely negotiated between Employee and Groome Transportation of Alabama, and is mutually entered into between the parties. Each party fully understands and agrees that they are giving up certain rights otherwise afforded to them by civil court actions, including but not limited to a jury trial.

(Arbitration Agreement.)

The record does not reveal how many Plaintiffs signed the acknowledgement. Groome Transportation submits only one signed Arbitration Agreement, and that agreement bears the signature of Plaintiff Annie L. Adams, dated January 23, 2013. (PI. Adams’s Arbitration Agreement (Ex. A to Doc. # 8).) Plaintiffs, in turn, submit one affidavit from Plaintiff Cassandra Young, who says that' she “refused to- sign the arbitration agreement.” (Young’s Aff., at 2.) While Ms. Young further attests that “many [other] employees” also refused to sign, she does not identify which Plaintiffs, if any, are in the group of employees who did not sign an Arbitration Agreement. (Young’s Aff., at 2.) On this record then, the facts known are that one Arbitration Agreement bears the signature of Annie L. Adams (who has not disputed the authenticity of the signature) and that one Plaintiff has refused to sign the agreement. The status of whether the remaining forty-three Plaintiffs signed or did not sign an Arbitration Agreement is unknown.

Groome Transportation’s Regional Director, Kristie Holcombe, also attests that, “[a]s a condition of employment and/or continued employment, the Personnel Policy Handbook has contained a mutually binding arbitration agreement since October 19/2012.” (Holcombe’s Aff., at ¶4 (Ex. 1 to Doc. # 8).) Groome Transportation has not submitted an excerpt from the Personnel Policy Handbook that contains a written provision indicating that continued employment equates acceptance of the Arbitration Agreement. (Holcombe’s Aff., at ¶ 4.) It is unclear from Ms. Holcombe’s affidavit how Groome Transportation notified its employees of this condition of employment. Ms. Young attests, though, that Groome Transportation officials orally informed her, that if she did not sign the Arbitration Agreement, her employment would be terminated. But she also says that, when she refused to sign the agreement, she was not fired. Ms. Young also attests that she is “not aware of any coworkers who were terminated for refusing to sign the arbitration agreement.” (Young’s Aff., at 2.)

Ms. Young, along with her co-Plaintiffs, continued to work for Groome Transportation until July 2013, when Groome Trans[1334]*1334portation closed its Lee County facility. At that time, Plaintiffs’ employment ended.

On April 2, 2014, Plaintiffs filed this action against Groome Transportation and three of its corporate officers. The Complaint contains two counts. In Count One, which alleges violations of the FLSA, Plaintiffs contend that from approximately April 1, 2012, to November 30, 2012, Groome Transportation did not adequately compensate them for hours worked in excess of forty hours per week. See 29 U.S.C.

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41 F. Supp. 3d 1327, 2014 U.S. Dist. LEXIS 118705, 2014 WL 4230056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chambers-v-groome-transportation-almd-2014.