Jeffrey Bouey v. The RealReal Inc., a Delaware Corporation; and Michael Sollenberger, individually

District Court, D. New Jersey·Decided August 12, 2026·No. 2:26-cv-00394·Unknown

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

JEFFREY BOUEY, Plaintiff, Case No. 2:26-cv-00394 (BRM) (JBC) v.

THE REALREAL INC., a Delaware OPINION Corporation; and MICHAEL SOLLENBERGER, individually, Defendants.

MARTINOTTI, DISTRICT JUDGE

Before the Court is Defendants The RealReal, Inc. (“TRR”) and Michael Sollenberger’s (“Sollenberger”) (together, “Defendants”) Motion to Stay and Compel Arbitration (“Motion”). (ECF No. 10.) Pro se Plaintiff Jeffrey Bouey (“Plaintiff”) filed an Opposition. (ECF No 13.) Defendants replied. (ECF No. 14.) Having reviewed and considered the parties’ submissions filed in connection with the Motion and having declined to hold oral argument pursuant to Federal Rule of Civil Procedure (“Rule”) 78(b), for the reasons set forth below and for good cause having been shown, Defendants’ Motion is GRANTED. I. BACKGROUND A. Factual Background The Complaint does not reference the parties’ agreement to arbitrate (see ECF No. 1), and therefore, for the purposes of this Motion, the Court relies on the Certification of Francis J. Giambalvo in Support of Defendants’ Motion (ECF No. 11), which includes the agreement to arbitrate. See infra Section III.A. (concluding the Court is required to consider the Motion under the Rule 56 standard of review). TRR operates as “an online marketplace for authenticated luxury consignment.” (ECF No. 1 ¶ 9.) On November 24, 2023, Plaintiff electronically signed an offer of employment (“Offer

Letter”) to join TRR as a Senior Systems Engineer. (Ex. B to Giambalvo Cert. (ECF No. 11-2) at 2–4.) In that role, Plaintiff was responsible for supporting TRR’s IT infrastructure. (ECF No. 1 ¶ 11.) Sollenberger “is an individual who, at all relevant times, was employed by TRR as IT Manager and served as Plaintiff’s direct supervisor from April 2024 until Plaintiff’s termination.” (Id. ¶ 10.) The first page of the Offer Letter contained a section with a bolded heading stating, “Business Protection and Arbitration Agreement.” (ECF No. 11-2 at 2.) Under that heading, the Offer Letter provided “[t]his offer and your employment are conditioned on your execution prior to the Start Date,” which was anticipated to be December 11, 2023, “and your continued compliance with[] a Business Protection and Arbitration Agreement.” (Id.) This section then noted

a copy of the Business Protection and Arbitration Agreement is enclosed for Plaintiff to review and consider. (Id.) The section further clarified the Business Protection and Arbitration Agreement is “an integral part of this employment offer.” (Id.) The title on the enclosed agreement, which stated “BUSINESS PROTECTION AND ARBITRATION AGREEMENT,” was bold, underlined, and in all capital letters. (Id. at 5.) This enclosed Business Protection and Arbitration Agreement included an arbitration clause, which is found on the third and fourth pages of the document under a bolded title stating “Arbitration” (the “Arbitration Agreement”). (Id. at 7–8.) Subsection (a)1 of the Arbitration Agreement provided: the Employee and the Company agree that, to the extent permitted by law, all claims or disputes arising out of or relating to this Agreement, the parties’ employment relationship, or the termination of such relationship that may exist or arise between (i) the Employee and (ii) any of the Company, or any subsidiary, parent, other affiliate, other related entity, benefit plan, successor or permitted assign of the Company, or any owner, director, officer, member, employee, owner, shareholder, agent, or representative of any of them (in their respective capacities as such), shall be submitted for final and binding arbitration . . . . [C]laims subject to arbitration hereunder include without limitation claims by the Company relating to the Employee’s employment and claims by the Employee for employment discrimination, harassment, retaliation, wrongful termination or defamation under any federal, state, or local law, regulation, ordinance, or executive order or under common law, and further include without limitation claims under any of the following statutes (as in effect or amended from time to time): Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans With Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, and any applicable state, local or other laws and regulations.

(Id. at 7–8.) For those claims subject to arbitration, the arbitration must be conducted “in accordance with the JAMS Employment Arbitration Rules and Procedures.” (Id. at 7.) Subsection (b) described the limits of the arbitrator’s powers. (Id. at 8.) For example, “[t]he arbitrator shall have no power to . . . make an award or impose a remedy that is not available to a court of general jurisdiction.” (Id.) Moreover, subsection (b) provided “[t]he arbitrator’s decision

1 The parties refer to portions of the Business Protection and Arbitration Agreement by “paragraph” or “section” number. (See, e.g., ECF No. 11-4 at 2; ECF No. 13 at 4.) However, the Business Protection and Arbitration Agreement contains bolded paragraph headings with lettered subsections. (See ECF No. 11-2.) For purposes of this Opinion, the Court will refer to “section” numbers as the bolded paragraph headings, and “subsections” as the lettered paragraphs under those headings. For example, the Arbitration Agreement, as defined in this Opinion, is Section 4 of the Business Protection and Arbitration Agreement and is found in the fourth paragraph with a bolded heading that states, “Arbitration.” (Id. at 4.) or award . . . shall be final and binding . . . and judgment thereupon may be entered in any court of competent jurisdiction.” (Id.) Subsection (c) of the Arbitration Agreement set forth certain exceptions to arbitration. (See id.) The following claims and disputes were excluded from mandatory arbitration: (1) “claims for

which a binding arbitration agreement is invalid as a matter of federal law, and claims for workers’ compensation and unemployment benefits,” (2) “any and all claims arising under any provision of Section 2” of the Business Protection and Arbitration Agreement, which was entitled “Confidentiality, Intellectual Property and Restrictive Covenants,” and (3) “[a]ny dispute arising out of or relating to the waiver of or prohibition on Class Claims.” (Id.) Claims in this third exclusion category “shall be brought exclusively in and decided exclusively by a state or federal court . . . and shall not be brought in arbitration or decided by any arbitrator.” (Id.) Without mentioning the above Arbitration Agreement in the Complaint, Plaintiff brought this action asserting claims for race discrimination and retaliation. (See ECF No. 1.) Plaintiff, who is an African American, alleges Defendants discriminated against him on the basis of race by

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Jeffrey Bouey v. The RealReal Inc., a Delaware Corporation; and Michael Sollenberger, individually, (D.N.J. 2026).

Jeffrey Bouey v. The RealReal Inc., a Delaware Corporation; and Michael Sollenberger, individually (Jeffrey Bouey v. The RealReal Inc., a Delaware Corporation; and Michael Sollenberger, individually) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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