Hurtt v. Del Frisco's Restaurant Group

CourtSuperior Court of Delaware
DecidedJune 18, 2019
DocketN18C-05-201 SKR
StatusPublished

This text of Hurtt v. Del Frisco's Restaurant Group (Hurtt v. Del Frisco's Restaurant Group) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hurtt v. Del Frisco's Restaurant Group, (Del. Ct. App. 2019).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE Jessica Hurtt,

Plaintiff,

C.A. No.: N18C-05-201 SKR

V.

Del Frisco’s Restaurant Group,

Defendant.

Submitted: March 20, 2019 Decided: June 18, 2019

Upon Defendant Del Frisco’s Restaurant Group's Motion to Dismiss and Compel Arbitration: GRANTED.

Arinderjit Dhali, Esq., Dhali & Reimer PLLC, Washington D.C., Kristen S. Swift, Esq., Tybout, Redfearn & Pell, Wilmington, DE, Attorneys for Plaintiff.

James T. McBride, Esq., Jonathan C. Wilson, Esq., Ogletree, Deakins, Nash, Smoak & Stewart, P.C., Dallas, TX, Patricia R. Urban, Esq., Pinckney, Weidinger, Urban & Joyce LLC, Greenville, DE, Attorneys for Defendant.

Rennie, J. MEMORANDUM OPINION

Plaintiff, Jessica Hurtt (“Hurtt”), brought this action against defendant Sullivan’s of Delaware, Inc.! (“Sullivan’s”), Hurtt’s former employer. Hurtt alleges that Sullivan’s violated the Delaware Discrimination in Employment Act. Now before the Court is Sullivan’s Motion to Dismiss and Compel Arbitration. In its Motion, Sullivan’s contends that the case should be dismissed for lack of subject matter jurisdiction, based on an arbitration agreement between Hurtt and Sullivan’s.

I. FACTUAL AND PROCEDURAL BACKGROUND

On May 23, 2018, Hurtt filed this action’ against Sullivan’s, alleging various violations of her civil rights under Delaware’s Discrimination in Employment Act, including racial and sex discrimination, hostile work environment, retaliation, and failure to accommodate religious beliefs.

Hurtt was employed by Sullivan’s as a server/bartender from January 2016 to January 2017. Sullivan’s requires every job applicant to fill out an Employment Application, and every new employee, as a precondition to their employment, to

execute a number of documents.’ All of these documents are accessed and executed

| In the Complaint, Hurtt listed “Del Frisco’s Restaurant Group” as the defendant. Sullivan’s, in its Motion to Dismiss, averred that the defendant was misidentified, and the proper defendant in this case should be “Sullivan’s of Delaware, Inc.” Hurtt does not object to this change.

2 Complaint (Trans. ID. 62062035).

3 Sullivan’s produced those documents that pertain to Hurtt at the evidentiary hearing. See Defendant’s Exhibits B-J of the March 20, 2019 Hearing (hereinafter referred to as “Def. Ex. ___”), These documents include “Employment Application,” “Availability Sheet,” “Pay Selection Sign-up / Authorization Form,” “Emergency Contact Information,” “Employee Setup Worksheet,”

2 via an electronic on-boarding system called talentReef.* An affidavit’ (the “talentReef Affidavit”) from talentReef’s Enterprise Account Manager, the custodian of records for talentReef, states that every potential employee of talentReef’s customers, such as Sullivan’s, must create a unique account to apply for open jobs, including filling out the Employment Application.® Once hired, the new employee is required to complete new hire paperwork through that unique account.’ To create a unique account, the employee must set up her own “log in credentials,” which includes a password known solely by the employee.* The password is required every time the employee logs into her account.” Also, the password is required in each instance that the employee’s electronic signature is requested for a specific document.'®

Among the various documents that a new employee is required to sign when hired by Sullivan’s is a Mandatory Arbitration Agreement and Procedure for Resolving Disputes Arising Out of Its Employees’ Employment or Termination of

Employment (the “Arbitration Agreement”). The Arbitration Agreement contains a

“HIPAA Initial Notice,” “Mandatory Arbitration Agreement,” “Employment Eligibility Verification (I-9 Form),” and “Employee’s Withholding Allowance Certificate (W-4 Form).” 4 Motion to Dismiss and Compel Arbitration (“Mot. to Dismiss”), Ex. 1, Affidavit of Robyn Martin (Trans. ID. 62182892). > Def. Ex. K.1, talentReef Affidavit (“talentReef Aff.”). 6 Id.,4 5. TI. 8 Td. ° Id. F 6. 10 Td. provision which states that the new employee and Sullivan’s agree to resolve claims under Delaware’s Discrimination in Employment Act through binding arbitration, and the parties are precluded from raising such claims in any federal or state court.!! In addition to the Arbitration Agreement, the Employment Application references binding arbitration. That document specifically requires a job applicant, such as Hurtt, to confirm that she understands that the employment with Sullivan’s is “conditioned upon [her] agreement to abide by the [Arbitration Agreement].”!”

On June 27, 2018, Sullivan’s moved to dismiss the case for lack of subject matter jurisdiction pursuant to Superior Court Civil Rule 12(b)(1). In its Motion, Sullivan’s contends that Hurtt signed the Arbitration Agreement when she was initially employed by Sullivan’s. Sullivan’s asserts that, by signing the Arbitration Agreement, Hurtt agreed to arbitrate any disputes arising out of her employment with Sullivan’s, including the claims pending in this case.

Hurtt filed an Opposition to Sullivan’s Motion. Hurtt does not dispute that the claims raised in her Complaint are encompassed by the Arbitration Agreement. Hence, if the Arbitration Agreement is found to be applicable, Hurtt would be unable

to pursue her claims in this Court. Rather, Hurtt contends that she was not aware of

the Arbitration Agreement and did not sign it. As a result, Hurtt asserts that there is

| Def. Ex. H, Arbitration Agreement at A.1. !2 Def. Ex. B, Employment Application at 5. no binding arbitration agreement that precludes the Court from hearing her case. On March 20, 2019, the Court held an evidentiary hearing’’ to resolve the factual disputes surrounding whether or not Hurtt signed the Arbitration Agreement. After considering the testimony and documentary evidence received at the hearing, the Court finds that the Arbitration Agreement is applicable to Hurtt, and therefore deprives the Court of subject matter jurisdiction in this case. Il. STANDARD OF REVIEW “A motion to dismiss based on an arbitration clause goes to the Court’s subject matter jurisdiction over the dispute.”'* In Delaware, the power to compel arbitration lies exclusively with the Court of Chancery, but this Court has the authority to determine whether a valid and enforceable arbitration agreement exists for purposes of determining whether it has subject matter jurisdiction.!° The burden of establishing the Court’s jurisdiction rests with the plaintiff.!° In reviewing such a

motion, the Court may consider documents outside the complaint.'? And “where the

13 Transcript for March 20, 2019 Evidentiary Hearing (“Hearing Transcript”) (Trans. ID. 63373089).

14 NAMA Holdings, LLC v. Related World Mkt. Ctr., LLC, 922 A.2d 417, 429 n.15 (Del. Ch. 2007) (internal citation omitted) (“Delaware courts lack subject matter jurisdiction to resolve disputes that litigants have contractually agreed to arbitrate.”).

'5 Jones v. 810 Broom St. Operations LLC, 2014 WL 1347746, at *1 (Del. Super. Apr. 7, 2014) (internal citations omitted).

16 Maloney-Refaie v. Bridge at Sch., Inc., 958 A.2d 871, 882 (Del. Ch. 2008) (internal citations omitted) (stating that, unlike a Rule 12(b)(6) analysis, the Court’s review of a Rule 12(b)(1) motion is far more demanding of the plaintiff).

17 NAMA Holdings, at 429 n.15.

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Related

NAMA Holdings, LLC v. Related World Market Center, LLC
922 A.2d 417 (Court of Chancery of Delaware, 2007)
Maloney-Refaie v. Bridge at School, Inc.
958 A.2d 871 (Court of Chancery of Delaware, 2008)

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