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Colorado Court of Appeals·Decided July 9, 2026·No. 25CA1446·Unpublished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

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.

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

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 otherwise enforceable arbitration agreements for claims arising from sexual harassment.” Turner v. Tulsa, Inc., 686 F. Supp. 3d 917, 921 (N.D. Cal. 2023). It 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); see also 9 U.S.C. § 401(4) (“The term ‘sexual harassment dispute’

means a dispute relating to conduct that is alleged to constitute sexual harassment under applicable . . . [s]tate law.”).

¶ 10 Glenarm argued that Dreifus’s new factual allegations were too far removed in time and subject from her sexual harassment claim to trigger the EFAA. As a result, Glenarm asserted that all of Dreifus’s claims premised on allegations that did not involve sexual harassment were subject to arbitration.

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

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

Dreifus v. Glenarm Dining Services, Inc. (Dreifus v. Glenarm Dining Services, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Trinity Broadcasting of Denver, Inc. v. City of Westminster
848 P.2d 916 (Supreme Court of Colorado, 1993)
Allen v. Steele
252 P.3d 476 (Supreme Court of Colorado, 2011)
Murry v. GuideOne Specialty Mutual Insurance Co.
194 P.3d 489 (Colorado Court of Appeals, 2008)
Winter Park Real Estate & Investments, Inc. v. Anderson
160 P.3d 399 (Colorado Court of Appeals, 2007)
JA Walker Co., Inc. v. Cambria Corp.
159 P.3d 126 (Supreme Court of Colorado, 2007)
Dubray v. Intertribal Bison Cooperative
192 P.3d 604 (Colorado Court of Appeals, 2008)
City of Aurora v. ACJ PARTNERSHIP
209 P.3d 1076 (Supreme Court of Colorado, 2009)
Tidwell v. City and County of Denver
83 P.3d 75 (Supreme Court of Colorado, 2003)
Smith v. Multi-Financial Securities Corp.
171 P.3d 1267 (Colorado Court of Appeals, 2007)
Lane v. Urgitus
145 P.3d 672 (Supreme Court of Colorado, 2006)
Miller v. Bank of New York Mellon
2016 COA 95 (Colorado Court of Appeals, 2016)
Andres Trucking Co. v. United Fire and Casualty Co
2018 COA 144 (Colorado Court of Appeals, 2018)
Medina v. State
35 P.3d 443 (Supreme Court of Colorado, 2001)
Olivieri v. Stifel, Nicolaus & Company, Inc.
112 F.4th 74 (Second Circuit, 2024)
Kevin Klabon v. Travelers Property Casualty Company of America.
2024 CO 66 (Supreme Court of Colorado, 2024)