Dreifus v. Glenarm Dining Services, Inc.

Colorado Court of Appeals·Decided July 9, 2026·No. 25CA1446·Unpublished

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY July 9, 2026

2026 COA 59

No. 25CA1446, Dreifus v. Glenarm Dining Services, Inc. — Arbitration — Colorado Uniform Arbitration Act — Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021

The Ending Forced Arbitration of Sexual Assault and Sexual

Harassment Act of 2021 (the EFAA) precludes a party from

compelling a litigant to arbitrate sexual harassment claims based

on a predispute arbitration agreement. The EFAA provides that, “at

the election of the person alleging conduct constituting a sexual

harassment dispute . . . , no predispute arbitration agreement . . .

shall be valid or enforceable with respect to a case which is filed

under . . . [s]tate law and relates to . . . the sexual harassment

dispute.” 9 U.S.C. § 402(a). No reported Colorado case has

addressed the extent to which the EFAA applies to a case in which some, but not all, of the allegations underlying the claims asserted

by the plaintiff pertain to sexual harassment.

For the first time in a published Colorado opinion, a division of

the court of appeals addresses this question. The division

concludes that the EFAA applies to an entire case, rather than to

individual claims, provided the claims are “relate[d] to” allegations

of sexual harassment. Id. The division concludes that all the

plaintiff’s claims relate to her allegations of sexual harassment and

therefore affirms the district court’s order denying the defendant’s

motion to compel arbitration. COLORADO COURT OF APPEALS 2026 COA 59

Court of Appeals No. 25CA1446 City and County of Denver District Court No. 24CV32956 Honorable Andrew P. McCallin, Judge

Dana Dreifus,

Plaintiff-Appellee,

v.

Glenarm Dining Services, Inc., d/b/a Diamond Cabaret; RCI Hospitality Holdings, Inc.; and Big Sky Hospitality Holdings, Inc.,

Defendants-Appellants.

ORDER AFFIRMED

Division V Opinion by JUDGE SCHUTZ Lipinsky and Yun, JJ., concur

Announced July 9, 2026

Livelihood Law, LLC, Rachel E. Ellis, Kit. E. Longnecker, Denver, Colorado, for Plaintiff-Appellee

The Litigation Boutique LLC, Leah P. VanLandschoot, Ruth A. McLeod, Denver, Colorado, for Defendants-Appellants

Arckey & Steele, LLC, Thomas J. Arckey, Denver, Colorado; Ogborn Mihm LLP, Clayton E. Wire, Denver, Colorado, for Amicus Curiae Colorado Plaintiff Employment Lawyers Association ¶1 This appeal arises from a lawsuit that plaintiff, Dana Dreifus,

filed against her former employer, Glenarm Dining Services, Inc.,

d/b/a Diamond Cabaret (Glenarm), asserting sexual harassment

and related retaliation claims. Glenarm moved to dismiss Dreifus’s

claims and to compel arbitration under an arbitration agreement

that she signed as part of her employment. The district court

entered an order denying Glenarm’s motion, prompting this appeal.

We affirm the order.

I. Background

¶2 Glenarm owns and operates the Diamond Cabaret, a Denver

adult nightclub. Dreifus worked at the Diamond Cabaret as a

bartender. As part of her employment, Dreifus signed an

arbitration agreement with Glenarm that provides, in relevant part,

as follows:

The parties agree that any and all controversies, disputes, or claims between the parties, including, but not limited to, any and all controversies, disputes, or claims arising out of or related in any way to [Dreifus’s] employment, or other relationships, with [Glenarm], or in connection with any future relationship of any kind between the parties, whether contractual, in tort, or based upon statute, shall be exclusively decided by binding arbitration . . . . The parties waive any right to

1 litigate such controversies, disputes, or claims covered by this Arbitration Agreement . . . .

¶3 Dreifus filed her complaint against Glenarm in the Denver

District Court. Her initial complaint contained seven claims:

(1) sexual harassment under the Colorado Anti-Discrimination Act

(CADA), §§ 24-34-400.2 to -408, C.R.S. 2025; (2) sex discrimination

under CADA; (3) retaliation under CADA; (4) intentional infliction of

emotional distress; (5) negligent infliction of emotional distress;

(6) negligent supervision; and (7) false representation.

¶4 In her complaint, Dreifus alleged that one of her supervisors,

John Gay, sent her unwelcome messages over a social media

messaging app. She alleged that these messages escalated over

several months, even after she made clear to Gay that she did not

want to be in a romantic relationship with him. Dreifus also alleged

that the process for reporting his behavior was both difficult and

emotionally taxing.

¶5 Glenarm moved to dismiss Dreifus’s complaint under C.R.C.P.

12(b)(5), arguing that she had failed to state a claim. The court

denied the motion. Glenarm then filed its answer to the complaint.

2 Dreifus later moved to amend her complaint to add facts that

allegedly occurred after she filed her initial complaint.

¶6 The amended complaint added factual allegations that

Glenarm placed Dreifus on administrative leave the day before filing

its motion to dismiss and fired her five days later. The amended

complaint also included new factual allegations that Denver Labor,

a division of the Denver Auditor’s Office, had disclosed Dreifus as a

potential witness in a wage violation investigation involving the

Diamond Cabaret. Dreifus alleged that Glenarm terminated her

employment in retaliation for her participation as a potential

witness and for filing a sexual harassment and discrimination

lawsuit. The amended complaint did not add any new claims or

alter Dreifus’s original claims — it only updated her factual

allegations.

¶7 Glenarm opposed the motion to amend, arguing that the

factual allegations Dreifus sought to add to her complaint were

unrelated to her sexual harassment claim, which Glenarm had

conceded was not subject to arbitration under the Ending Forced

Arbitration of Sexual Assault and Sexual Harassment Act of 2021

(the EFAA), 9 U.S.C. §§ 401-402. For this reason, according to

3 Glenarm, Dreifus’s new factual allegations were subject to

mandatory arbitration under the arbitration agreement. The court

granted Dreifus’s motion to amend, without explanation.

¶8 Dreifus then moved for partial summary judgment concerning

the relationship between Glenarm and two holding companies, Big

Sky Hospitality Holdings, Inc., and RCI Hospitality Holdings, Inc.

Contemporaneously, Glenarm filed a motion to dismiss under

C.R.C.P. 12(b)(1) and to compel arbitration, arguing the EFAA only

applied to Dreifus’s sexual harassment claim.

¶9 Congress enacted the EFAA in 2021, as an amendment to the

Federal Arbitration Act, and President Biden signed the bill into law

on March 3, 2022. The EFAA prevents the “enforcement of

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Dreifus v. Glenarm Dining Services, Inc., (Colo. Ct. App. 2026).

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