Hagan v. Katz Communications, Inc.

200 F. Supp. 3d 435, 2016 U.S. Dist. LEXIS 101777, 2016 WL 4147194
CourtDistrict Court, S.D. New York
DecidedAugust 3, 2016
DocketNo. 12-CV-5987 (RA)
StatusPublished
Cited by2 cases

This text of 200 F. Supp. 3d 435 (Hagan v. Katz Communications, Inc.) 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
Hagan v. Katz Communications, Inc., 200 F. Supp. 3d 435, 2016 U.S. Dist. LEXIS 101777, 2016 WL 4147194 (S.D.N.Y. 2016).

Opinion

OPINION & ORDER

RONNIE ABRAMS, United States District Judge:

On July 16, 2014, the Honorable Theodore Katz (ret.), serving as arbitrator in the discrimination case between Petitioner Laura Hagan and Respondent Katz Communications, Inc., entered an arbitral award in favor of Respondent. Now before the Court is Hagan’s petition to vacate that award (the “Petition”) and Respondent’s cross-petition to confirm it (the “Cross-Petition”). For the reasons that follow, the Petition to vacate the arbitration decision is denied, and Respondent’s Cross-Petition is granted.

BACKGROUND

In December 1999, Hagan was promoted to President of Univision Radio Sales, a division of Katz charged with “obtaining advertisers to fill radio airtime for the stations of Univision Communications.” Lucciola Decl. Ex. 2, at 2. On October 14, 2008, Katz terminated Hagan’s employment. Id. at 3. On November 4, 2008, Hagan filed a charge with the Equal Employment Opportunity Commission (“EEOC”) claiming that Katz discriminated against her on the basis of her age and national origin. Petr.’s Mem. at 1. The EEOC issued a right-to-sue letter, which Hagan received on May 17, 2012. Petr.’s Reply at 6. On August 3, 2012, Hagan filed a complaint in this Court alleging violations of Title VII and the Age Discrimination in Employment Act (“ADEA”). Petr.’s Reply at 6; Compl. at 9-10.

On September 5, 2012, the parties had a telephone conversation during which they “agree[d] that the dispute is subject to binding arbitration” in light of the arbitration clause contained in Petitioner’s employment contract. Gorman Decl. Ex. E. The contract reads, in relevant part:

The parties agree that any dispute, controversy or claim, whether based on contract, tort, statute, discrimination, retaliation, or otherwise ... arising out of or relating to Employee’s employment or termination of employment, shall, upon timely written request of either party be submitted to and resolved by binding arbitration.... Any claims received after the applicable/relevant statute of limitations period. has passed shall be deemed null and void— [I]n actions seeking to vacate an award, the standard of review to be applied by said court to the arbitrator’s findings of fact and conclusions of law will be the same as that applied by an appellate court reviewing a decision of a trial court sitting without a jury.

Id. Ex. C, ¶ 14 (hereinafter the “Employment Agreement”).

On October 2, 2012, Petitioner requested that “Respondent draft a stipulation memorializing the terms of the parties’ agreement to dismiss the federal action and initiate the arbitration,” which was “sent to [Petitioner’s] counsel on October 16, 2012, with a request for a response by the end of the week.” Lucciola Decl. Ex. 2, at 17-18. When “[t]here was no response ... the proposed stipulation was sent again on October 25, 2012,” and “[fjurther requests for a response were sent on December 8 and [440]*44012, 2012.” Id. at 18. “On January 9, 2013, a slightly revised draft of the stipulation was sent to [Petitioner’s] counsel for his signature” but “[b]y April 24, 2013 Petitioner had still not signed the stipulation, which was sent once again.” Id.

On June 24, 2013, more. than nine months after the case was filed, the parties “informed the Court that this matter would be proceeding to arbitration and that they had mutually agreed on a foruna for arbitration.” Gorman Decl. ¶ 26. At that time, Petitioner’s counsel “represented to the Court that it would take no more than a few days to file his demand for arbitration.” Id. The next day, on June 25, 2013, the Court ordered “that the above-captioned action is discontinued without costs to any party and without prejudice to restoring the action to this Court’s docket if the application to restore the action is made within thirty (30) days.” Dkt. 10 at 1. Neither party did so, although seven days after the deadline, on August 1, 2013, Petitioner requested that “the Court hold its order in abeyance for an additional 30 days.” Dkt. 11 at 1. Also on August 1, 2013, Petitioner filed her demand for arbitration. Gorman Decl. Ex. H.

On August 29,2013, the parties executed a stipulation of dismissal. See Lucciola Decl. Ex. 4. This stipulation stated that “Katz reserves and retains all defenses to [Petitioner’s] claims and does not waive any defenses to [Petitioner’s] claims, including those based on the timeliness of [Petitioner’s] alleged claims.” Id. ¶ 4, On September 3, 2013, the Court endorsed a letter from Petitioner requesting “that the Court enter a docket [sic] indicating that the Complaint is withdrawn as the parties have agreed, to submit the claims contained therein to binding arbitration.” Dkt. 18 at 1.

Arbitration then proceeded before , the Honorable Theodore Katz (ret.) (the “Arbitrator”). Prior to discovery, Respondent, “over [Petitioner’s] objection, made a ... motion to dismiss the arbitration ... based on their claim that Plaintiff failed to ‘timely demand arbitration,’ ” Petr.’s Mem. at 3. On July 16, 2014, the Arbitrator denied the motion to dismiss, concluding that although Petitioner’s claims likely ran afoul of the statute of limitations, “there are issues of fact relevant to whether equitable estoppel or equitable tolling would bar a statute of limitations defense.” Lucciola Decl. Ex. 1, at 18 (hereinafter the “Motion to Dismiss Decision”). The parties thus proceeded to discovery. Id.

Following discovery, Respondent moved for summary judgment on the same statute of limitations grounds. On July 1, 2015, the Arbitrator concluded that Petitioner’s claims were time-barred, that no tolling or estoppel' doctrines prevented dismissal, and that the discrimination claims' should thus be dismissed. Lucciola Decl. Ex. 2 (hereinafter' the “Summary Judgment Decision” or “SJ Decision”), at 9. He first evaluated the Employment Agreement’s arbitration clause, which required claims to “be received within the applicable/relevant statute of limitations period.” Id. at 7. The Arbitrator found that this provision mandated that Petitioner file her demand for arbitration within ninety days of her receipt of the right-to-sue letter from the EEOC, because the ninety-day limitation applicable to Title VII and the ADEA was the only statute of limitations to which the Employment Agreement might refer. He reasoned .that “[a]ny other construction would result in there being no limitations period for commencing an arbitration”—an unreasonable construction given that the Employment Agreement expressly incorporated some statute of limitations. Id. at 7-8. In light of this limitations period, the Arbitrator found that Petitioner’s action was untimely because her demand for arbitration was filed more than fourteen [441]*441months after she received the right-to-sue letter. Id. at 9.

In reaching his conclusion, the Arbitrator rejected Petitioner’s argument that the demand for arbitration was timely because Respondent received notice of Petitioner’s allegations within the limitations period as a result of Petitioner’s timely filing of the federal complaint. Id. at 8 n.3. The Arbitrator noted that this notice argument was contrary to the arbitration provision, which “states that if the claims are received after the limitations period has passed they shall be deemed null and void (obviously, by the arbitrator).” Id.

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Bluebook (online)
200 F. Supp. 3d 435, 2016 U.S. Dist. LEXIS 101777, 2016 WL 4147194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hagan-v-katz-communications-inc-nysd-2016.