Ciago v. Ameriquest Mortgage Co.

295 F. Supp. 2d 324, 2003 U.S. Dist. LEXIS 22852, 2003 WL 22974611
CourtDistrict Court, S.D. New York
DecidedDecember 15, 2003
Docket03 Civ. 1742(WCC)
StatusPublished
Cited by22 cases

This text of 295 F. Supp. 2d 324 (Ciago v. Ameriquest Mortgage Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ciago v. Ameriquest Mortgage Co., 295 F. Supp. 2d 324, 2003 U.S. Dist. LEXIS 22852, 2003 WL 22974611 (S.D.N.Y. 2003).

Opinion

OPINION AND ORDER

WILLIAM C. CONNER, Senior District Judge.

Plaintiff Angela Ciago brought this action naming as defendant Ameriquest Mortgage Company (“Ameriquest”), alleging violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 203, 207 et seq., and state law for failure to pay overtime wages. Plaintiff also alleges a claim under New York law for retaliation that allegedly occurred after she complained of age discrimination by defendant. 1 Defendant has moved for an order dismissing the action and compelling arbitration pursuant to sections three and four of the Federal Arbitration Act (“FAA”). 9 U.S.C. §§ 3, 4. For the reasons stated hereinafter, the motion is granted.

*327 BACKGROUND

Ameriquest is a residential mortgage lender that has its principal place of business in Orange County, California, and employees located throughout the United States. (Am. Complt. ¶ 14; Wright Aff. ¶ 2.) Plaintiff completed an application for employment with Ameriquest dated December 22, 1998. (Wright Aff., Ex. 1.) On this application, plaintiff signed a statement indicating that she understood future employment would be conditioned upon, inter alia, her assent to an arbitration agreement. (Id.) Ameriquest later tendered a job offer to plaintiff memorialized in a letter dated January 29, 1999. In the text of this letter, Ameriquest explained once again that plaintiff would be required to sign an arbitration agreement as a condition of employment. (Id., Ex. 2.) When plaintiff started work for Ameriquest in Poughkeepsie, New York on February 1, 1999, she was given the Arbitration Agreement (“Arbitration Agreement” or “Agreement”) and other employment-related documents to sign. (Ciago Deck ¶ 6.) While plaintiff does not deny that she signed the Agreement, she claims that she has no recollection of signing it or of its contents. (Id. ¶ 7.) Defendant has provided a copy of the Arbitration Agreement signed by plaintiff. (Wright Aff., Ex. 3.)

The Arbitration Agreement provided for arbitration of “all claims” between the parties except workers’ compensation and unemployment claims or claims that Am-eriquest might have against plaintiff for unfair competition or theft of trade secrets. (Id.) It contained the following provisions regarding notice of claims, forum selection and cost sharing:

The Company and I agree that the aggrieved party must give written notice of any claim to the other party within one (1) year of the date the aggrieved party first has knowledge of the event giving rise to the claim; otherwise the claim shall be void and deemed waived even if there is a federal or state statute of limitations which would have given more time to pursue the claim....
If I am or was employed outside the State of California, [the arbitration shall take place] ... at the Company’s headquarters in Orange, California....
The Company and I shall equally share the fees and costs of the Arbitrator. Each party will deposit funds or other appropriate security for its share of the Arbitrator’s fee, in an amount and manner determined by the Arbitrator, 10 days before the first day of hearing. ...

(Id.) The Agreement also contained provisions relating to discovery, the substantive law and procedural rules to govern arbitration and the severability of clauses in the Arbitration Agreement adjudged to be invalid. (Id.) Finally, the Arbitration Agreement provided that “[t]he Arbitrator... shall have exclusive authority to resolve any dispute relating to interpretation, applicability, enforceability or formation of this Agreement....” (Id.) Defendant claims that pursuant to the Arbitration Agreement, the Court must dismiss this action in favor of arbitration. Plaintiff contends that the Arbitration Agreement should not be given effect because it is invalid.

DISCUSSION

The FAA provides, in relevant part: “A written provision in any ... contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction ... shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. § 2. The FAA manifests “a ‘liberal federal policy favoring arbitration agree *328 ments.’” Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 25, 111 S.Ct. 1647, 114 L.Ed.2d 26 (1991) (quoting Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24, 103 S.Ct. 927, 74 L.Ed.2d 765 (1983)). Therefore, even where an arbitration agreement requires the arbitration of disputes involving a federal statute, the parties to a valid arbitration agreement are compelled to arbitrate “ ‘so long as the prospective litigant effectively may vindicate [his or her] statutory cause of action in the arbitral forum Gilmer, 500 U.S. at 28, 111 S.Ct. 1647 (quoting Mitsubishi Motors Corp. v. Soler Chrysler Plymouth, Inc., 473 U.S. 614, 637, 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985)). The Second Circuit has enumerated the following factors to be considered when deciding whether to compel arbitration: (1) whether the parties agreed to arbitrate; (2) the scope of that agreement; (3) whether Congress intended the plaintiffs statutory claims to be nonarbitrable; and (4) if not all claims are arbitrable, the court must determine whether to stay the balance of the proceedings pending arbitration. See Oldroyd v. Elmira Sav. Bank, FSB, 134 F.3d 72, 75-76 (2d Cir.1998) (citing Genesco, Inc. v. T. Kakiuchi & Co., Ltd., 815 F.2d 840, 844 (2d Cir.1987)); Bird v. Shearson Lehman/American Express, Inc., 926 F.2d 116, 118 (2d Cir.1991). Because the Court concludes that the fourth consideration outlined by the Second Circuit is inapplicable here, we will consider only the first three.

I. Whether the Parties Agreed to Arbitrate

Whether the parties agreed to arbitrate is determined by state contract law. See First Options of Chi., Inc. v. Kaplan, 514 U.S. 938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995) (noting that state law governs determination of whether parties agreed to arbitrate). See also 9 U.S.C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Crespo v. Kapnisis
E.D. New York, 2022
Suqin Zhu v. Hakkasan NYC LLC
291 F. Supp. 3d 378 (S.D. Illinois, 2017)
Bynum v. Maplebear Inc.
160 F. Supp. 3d 527 (E.D. New York, 2016)
Hojnowski v. Buffalo Bills, Inc.
995 F. Supp. 2d 232 (W.D. New York, 2014)
Isaacs v. OCE Business Services Inc.
968 F. Supp. 2d 564 (S.D. New York, 2013)
Silc v. Crossetti
956 F. Supp. 2d 957 (N.D. Illinois, 2013)
Marzano v. Proficio Mortgage Ventures, LLC
942 F. Supp. 2d 781 (N.D. Illinois, 2013)
Technology in Partnership, Inc. v. Rudin
894 F. Supp. 2d 274 (S.D. New York, 2012)
Daniels v. Commerzbank
79 A.D.3d 506 (Appellate Division of the Supreme Court of New York, 2010)
Arrigo v. BLUE FISH COMMODITIES, INC.
704 F. Supp. 2d 299 (S.D. New York, 2010)
Nayal v. HIP Network Services IPA, Inc.
620 F. Supp. 2d 566 (S.D. New York, 2009)
Davis v. ECPI College of Technology, L.C.
227 F. App'x 250 (Fourth Circuit, 2007)
Seabury Const. v. Dist. Council Ny and Vicinity
461 F. Supp. 2d 193 (S.D. New York, 2006)
Chew v. KPMG, LLP
407 F. Supp. 2d 790 (S.D. Mississippi, 2006)
Ragan v. AT & T CORP.
824 N.E.2d 1183 (Appellate Court of Illinois, 2005)
Ragan v. AT&T Corp.
Appellate Court of Illinois, 2005

Cite This Page — Counsel Stack

Bluebook (online)
295 F. Supp. 2d 324, 2003 U.S. Dist. LEXIS 22852, 2003 WL 22974611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ciago-v-ameriquest-mortgage-co-nysd-2003.