Hatkoff v. Portland Adventist Medical Center

287 P.3d 1113, 252 Or. App. 210, 2012 WL 3985547, 2012 Ore. App. LEXIS 1127
CourtCourt of Appeals of Oregon
DecidedSeptember 12, 2012
Docket090404600; A143162
StatusPublished
Cited by15 cases

This text of 287 P.3d 1113 (Hatkoff v. Portland Adventist Medical Center) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hatkoff v. Portland Adventist Medical Center, 287 P.3d 1113, 252 Or. App. 210, 2012 WL 3985547, 2012 Ore. App. LEXIS 1127 (Or. Ct. App. 2012).

Opinion

HASELTON, C. J.

In this employment age discrimination action, ORS 659A.030, plaintiff appeals from a general judgment of dismissal, ORCP 21 A, that was predicated on plaintiffs failure to follow the alternative dispute resolution procedure prescribed in his employee handbook. Plaintiff contends that the prescribed grievance and arbitration procedure is unenforceable for three reasons: (1) the procedure in the employee handbook was “not presented explicitly enough to constitute a knowing and voluntary waiver of statutory rights”; (2) defendant waived its right to assert plaintiffs failure to utilize the procedure as a defense; and (3) the procedure is unconscionable. For reasons explained below, we conclude that the prescribed grievance and arbitration procedure is not unconscionable either substantively or procedurally, and we reject plaintiffs waiver arguments. Accordingly, we affirm.

The facts material to our review are undisputed. Plaintiff worked for defendant from November 2000 until defendant terminated plaintiffs employment on July 7, 2008. At that time, plaintiff, who had worked in sales and marketing for most of his professional life, was 65 years old. Plaintiff questioned the sincerity of defendant’s explanation that he had been laid off for financial reasons, because defendant had recently hired a younger woman to fulfill some of the job duties that plaintiff had performed. In response to plaintiffs inquiry, defendant’s vice president sent him a letter reiterating, and further explaining, the reasons for his termination. The vice president denied any discriminatory motive and closed her letter as follows:

“In the event that you disagree with my decision, I have enclosed a copy of the ‘Grievance and Arbitration Procedure’ from the Employee Handbook. Please contact [the human resources director] if you have remaining questions.”

As we describe more precisely below, in general under the grievance and arbitration procedure set out in the employee handbook, an employee with an employment-related dispute must submit a written grievance to his or her immediate supervisor, which commences an informal [212]*212grievance process with three levels of internal “appeal.” If that grievance process fails to resolve the matter to the employee’s satisfaction, he or she is entitled to initiate arbitration for certain types of disputes — including disputes regarding employment discrimination and termination. Here, plaintiff did not contact the human resources director; nor did he submit a written grievance in accordance with the procedure. Instead, in September 2008, he filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) and, on April 2, 2009, filed this age discrimination action under ORS 659A.030.1

Defendant moved to dismiss the action under ORCP 21 A, arguing that plaintiff was precluded from raising his employment-related claim in court because he had failed to follow the internal grievance and arbitration procedure. Defendant alternatively moved the court to abate the action and refer it to arbitration. Plaintiff opposed the motion to dismiss and the alternative motion to abate, arguing that the grievance process is unenforceable because (a) the grievance process is unconscionable; (b) the mandatory internal dispute resolution procedure was not “explicitly presented” to plaintiff and, thus, he did not “knowingly and voluntarily” waive his right to pursue his claim in court; (c) his agreement lacked consideration; and (d) defendant had waived the application of the grievance and arbitration procedure “by not pressing the issue” after plaintiff had filed a charge with the EEOC. The court granted defendant’s motion to dismiss and entered a general judgment dismissing the complaint with prejudice, thereby implicitly rejecting all of plaintiff’s arguments regarding the enforceability of the procedure.2 Plaintiff appeals from the general judgment of dismissal, raising essentially the same arguments regarding waiver and unconscionability.

[213]*213Because it is the predicate for the trial court’s order of dismissal — and the object of plaintiff’s challenge— we begin with a detailed description of the internal grievance and arbitration process, as well as the documents describing and prescribing that process and plaintiff’s conduct in relation to those documents. When plaintiff started working for defendant in 2000, defendant provided him with an employee handbook, and plaintiff signed an acknowledgement recognizing his receipt of the handbook and his responsibility to read and understand its contents. Additionally, plaintiff agreed that,

“[i]n the event that I am dissatisfied or disagree with any action taken by [defendant], I agree to submit the matter to the hospital’s Grievance and Arbitration Procedures for final and binding resolution.”3

Defendant updated its employee handbook in 2003 and again in 2006. As pertinent here, defendant most recently signed an acknowledgement in 2006, which provides, in part:

“I acknowledge that I have received a copy of [defendant’s] Employee Handbook. I further acknowledge and agree that my employment is governed by the Handbook and the policies contained therein. I understand that this Handbook supersedes and replaces any inconsistent Policies and all prior handbooks.”

Thus, unlike the 2000 acknowledgement, the 2006 acknowledgement did not explicitly reference the grievance and arbitration procedure.

The 2006 employee handbook stated that employees

“should initiate the Grievance and Arbitration Procedure (‘Procedure’) for any event, action, failure to act, condition, rule, or practice arising out of or relating to your employment which you believe to be improper or in conflict with your civil rights (‘grievance’). This Procedure covers the full range of employment disputes, including those [214]*214based on state and federal civil rights laws, other state and federal statutes, torts, public policies, and those involving terminations.”

The prescribed procedure for resolving employee complaints and claims consists of two seriatim components: (a) the grievance process and (b) with respect to certain specified matters that either party elects to pursue beyond the final level of the grievance process, the arbitration process. The handbook precisely delineates those types of matters that are subject to arbitration upon demand following timely and complete pursuit of the grievance process:

“Arbitrable disputes are those disputes that * * * [a] rose out of or are related to a claim of (i) employment discrimination (including, but not limited to, discriminatory retaliation, discriminatory or sexual harassment), (ii) termination of employment, including claims of constructive discharge, or (iii) any other claim(s) (whether brought by or on behalf of one or more employees) for wages or other compensation with an actual aggregate value of $75,000 or more.”

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Cite This Page — Counsel Stack

Bluebook (online)
287 P.3d 1113, 252 Or. App. 210, 2012 WL 3985547, 2012 Ore. App. LEXIS 1127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hatkoff-v-portland-adventist-medical-center-orctapp-2012.