EVANS v. LIMETREE BAY TERMINALS, LLC

District Court, Virgin Islands·Decided November 22, 2023·No. 1:23-cv-00042·Unknown

Opinion

DISTRICT COURT OF THE VIRGIN ISLANDS

DIVISION OF ST. CROIX ║ REGINA EVANS, ║ ║ Plaintiff, ║ v. ║ ║ 1:23-cv-00042-WAL-EAH LIMETREE BAY TERMINALS d/b/a ║ OCEAN POINT TERMINALS, ║ ║ Defendant. ║ ________________________________________________ ║

TO: Lee J. Rohn, Esq. Alicia M. Chiu, Esq.

MEMORANDUM OPINION AND ORDER

THIS MATTER comes before the Court on the Motion to Stay Proceedings and Compel Arbitration filed by Defendant Limetree Bay Terminals, LLC d/b/a Ocean Point Terminals, LLC (“Terminals”). Dkt. No. 3. Plaintiff Regina Evans has opposed the motion, Dkt. No. 10, and Terminals filed a reply, Dkt. No. 12. For the reasons that follow, the Court will grant the motion. BACKGROUND Evans filed a complaint in the Superior Court of the Virgin Islands on September 8, 2023 alleging claims under the Virgin Islands Wrongful Discharge Act, the Family Medical Leave Act (“FMLA”), and a claim for Intentional Infliction of Emotional Distress against her former employer, Limetree Bay Terminals, LLC d/b/a Ocean Point Terminals, LLC. Dkt. No. 1-1. The complaint described how Evans suffered a work-related injury in January 2022 and was out of work for eight months. Dkt. No. 1-1, ¶¶ 5, 7. ISdh.e suffered a fall in February 2023, Evans v. Limetree Bay Terminals 1:23-cv-00042-WAL-EAH Order Page 2

supervisor asked what happened to her, and Ilda.ter told Evans to leave the unit. The supervisor escorted her to the Human Resources office. ¶ 24-26, 32. Evans wrote a written Isdta.tement, and was told to go home and stay home and that there would be an investigation. ¶ 33. At an April 14, 2023 meeting, Evans was told she would be terminated, having vioIdlated Terminals’s rules by coming to work on Icdrutches without informing her supervisor. . ¶¶ 38-40. Evans sought monetary damages. ., “Wherefore” Clause. On October 5, 2023, Terminals removed the case to district court based on federal question jurisdiction, with supplemental jurisdiction over the remaining claims. Dkt. No. 1. A week later, Terminals filed the instant Motion to Stay Proceedings and Compel Arbitration (the “Motion”), Dkt. No. 3, with a memorandum in support, Dkt. No. 4. In its memorandum, Terminals relied on a Declaration from Brian Dore, its current Human Resources Manager, to provide additional background facts. Dore averred that Evans was “continuously employed by Defendant or its affiliate Limetree Bay Refining, LLC (“LBR”) from April 1, 2019 to April 14, 2023.” Dkt. No 4-1, ¶ 3. He added that Evans was initially employed by Terminals as an intern from April 1 to May 5, 2019; prior to the end of her internship, she “transferred” to LBR as a process operator, and worked there from May 6, 2019 to September 19, 2021. When LBR ended its business operations, Evans “transferred” back to TeIrdm. inals and worked as a waste water operator from Septembeidr 20, 2021 to April 14, 2023. Evans signed an Arbitration Agreement on April 1, 2019, . ¶ 4, which Dore

attached to his Declaration, Dkt. No. 4-1 at 3-7. Evans v. Limetree Bay Terminals 1:23-cv-00042-WAL-EAH Order Page 3

Terminals quoted language from the Arbitration Agreement stating that Terminals, “its parent corporation (if any), affiliates, subsidiaries, divisions, successors, assigns (hereafter referred to as ‘the Company’)” and “you” (i.e. Evans) “agree pursuant to this Arbitration Agreement (“Agreement”) to arbitrate covered disputes, in lieu of litigating in court.” Dkt. No. 4-1 at 3. The Agreement stated that “[t]he arbitrator, and not any federal, territorial or local court or agency, shall have exclusive authority to resolve any dispute, relating to the interpretation, applicability, enforceability or formation of this Agreement including, but not limited to any claim that all or any part of this Agreement is void or voidable[.]” Dkt. No. 4-1 at 4 (¶C). It covered claims arising out of Evans’s employment, including termination, and specified that Family Medical Leave Act, Virgin Islands WIrdo.ngful Discharge Act, and common law territorial claims were covered by the Agreement. at 3. By signing the Agreement, Evans agreed tIhdat she understood its terms and that covered claims were to be submitted to arbitration. . at 7. Terminals argued that, to the extent Evans would contend that the Agreement was unenforceable, the parties assigned the question of arbitrability to the arbitrator, and the Court must grant the motion to compel despite any issue regarding arbitrability. Dkt. No. 4 at 5-6 (citing Dkt. No. 4-1, ¶C). Further, Evans’s transfers between Terminals and LBR did not invalidate the Agreement, which was in effect throughout her employment with Terminals and LBR because LBR was an affiliate of Terminals, and the Agreement appIldie.d to

claims arising from Evans’s employment with Terminals or an affiliate such as LBR. The Evans v. Limetree Bay Terminals 1:23-cv-00042-WAL-EAH Order Page 4

Agreement also remained in efIfdect given that it survived termination of Evans’s employment with Terminals or an affiliate. . at 6. Terminals went on to argue that the Agreement was a valid agreement to arbitrate, as Virgin Islands law enforces such agreementIsd .as contracts. Evans signed the Agreement, establishing her intent to arbitrate her claims. at 6-7. Finally, her claims were within the scope of the Agreement as they arose out of her employment (including termination), and hIder FMLA and Wrongful Discharge Act claims were specifically mentioned as being covered. . at 8. ConIsde.quently, Terminals sought an Order compelling arbitration between Evans and Terminals. On October 17, 2023, Evans filed a First Amended Complaint. Dkt. No. 5. Her primary amendments were to remove the FMLA claim and to add a Negligent Infliction of Emotional 1 Distress claim to her Intentional Infliction of Emotional Distress Claim. Dkt. No 5-2. In opposing Terminals’ Motion, Evans argued that the Court could decide issues concerning whether a valid arbitration agreement existed, which had to bIde. determined before addressing whether the actual claims were subject to arbitration. at 2. Evans disputed that such a valid contract existed because she entered into the Agreement when she was an intern, and it did not apply to the unrelated position she was hired for two years

1 Evans then filed a motion to remand, arguing that without the FMLA claim, federal question jurisdiction no longer existed over her action. Dkt. No. 6. Terminals opposed the motion to Evans v. Limetree Bay Terminals 1:23-cv-00042-WAL-EAH Order Page 5

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