Johnson v. Acb Ideas, LLC

CourtDistrict Court, District of Columbia
DecidedJune 28, 2024
DocketCivil Action No. 2023-2944
StatusPublished

This text of Johnson v. Acb Ideas, LLC (Johnson v. Acb Ideas, LLC) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Acb Ideas, LLC, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

JENNIFER JOHNSON,

Plaintiff,

v. Case No. 1:23-cv-02944 (RCL)

ACB IDEAS, LLC,

Defendant.

MEMORANDUM OPINION

Before the Court in this employment dispute is defendant ACB Ideas, LLC’s motion to

compel arbitration and to stay proceedings pending the outcome of arbitration. Plaintiff Jennifer

Johnson opposes the motion. She contends first that ACB’s motion must be denied for failure to

comply with Local Civil Rule 7(m); second, that no valid agreement to arbitrate exists between

ACB and her; and third, that even if such an agreement exists, it is for the Court rather than an

arbitrator to determine the threshold matters of arbitrability in this dispute (e.g., whether her claims

fall within the ambit of the independent contractor agreement’s arbitration clause). ACB argues

first that it complied with Rule 7(m), or alternatively that the motion should not be denied for

failure to comply; second, that Johnson is bound by the independent contractor agreement on

which her name appears; and third, that the parties have delegated arbitrability determinations to

the arbitrator by agreeing to arbitration before Judicial Arbitration and Mediation Services

(“JAMS”), the rules of which assign arbitrability decisions to the arbitrators themselves. The

Court agrees with the defendant, and accordingly will GRANT the motion to compel arbitration

and stay the proceedings.

1 I. BACKGROUND

A. Factual & Procedural Background

Johnson, a citizen of the District of Columbia, is a public relations professional and the

founder of a company called Phillips Public Relations (“Phillips PR”), which also does business

as Red Light Public Relations (“Red Light”). Opp’n 5, ECF No. 8; see also id., Ex. B (showing

that Johnson had registered “Red Light Public Relations” as a DBA from 2006 to 2011). In June

of 2022, Johnson executed an Independent Contractor Agreement (the “Agreement”) with ACB,

a Virginia limited liability corporation, according to which Phillips PR would manage ACB’s

social media marketing, distribute a newsletter on ACB’s behalf, and publicize events related to

ACB’s release of a book. Compl. ¶ 20, ECF No. 1-1; Opp’n 5–6; Indep. Contractor Agreement

10, Mot. to Compel Arbitration and Stay Ex. E, ECF No. 4-5. The parties dispute the identity of

ACB’s counterparty in this Agreement. Johnson’s signature appears on the Agreement’s signature

page, identifying her as the CEO of Phillips PR. Indep. Contractor Agreement 9. The same page

also lists “Phillips PR, Inc.” as the contractor. Id. However, the signature page is the only part of

the Agreement that contains a reference to Phillips PR. In contrast, the preamble to the agreement

names the contractor as “Red Light PR”, the scope of work appendix refers only to “RLPR,” and

Johnson’s email domain appears on the signature page as “@redlightpr.com.” Id. at 2, 9, 10.

The Agreement contains an arbitration clause, which provides that “[a]ny controversy,

claim or dispute arising out of, in connection with, or by reason of this Operating Agreement shall

be resolved by confidential binding arbitration before Judicial Arbitration and Mediation Service

(“JAMS”), pursuant to the Federal Arbitration Act (9 U.S.C. § 1, et seq.).” Indep. Contractor

Agreement 6–7. It also contains a District of Columbia choice of law provision. Id. at 7.

Johnson alleges that in October of 2022, acting in her personal capacity, she formed a

separate oral employment agreement between herself and ACB, according to which Johnson would

2 serve as ACB’s Chief of Staff. Compl. ¶ 30. If this agreement ever existed, it was never reduced

to writing. Opp’n 6. Johnson avers that she worked as ACB’s Chief of Staff pursuant to this oral

contract from October 2022 until December 2022, but received no payment during that time. Id.

Johnson claims that she performed functions not contemplated by the Independent Contractor

Agreement, including “fix[ing] the company’s financials, operations, and policies.” Compl. ¶ 5.

She further alleges that she discovered various violations of the D.C. Labor Code while serving as

ACB’s Chief of Staff, to wit, that ACB was misclassifying several employees as independent

contractors in order to dodge wage regulations and avoid paying employee benefits and taxes. Id.

¶ 33. Johnson alleges that ACB terminated another employee for complaining about being

misclassified as an independent contractor. Opp’n 6. When Johnson complained about ACB’s

treatment of that employee and herself, ACB allegedly constructively terminated Johnson by

telling her that her compensation going forward would be substantially less than what they had

agreed to, and that ACB would not pay her for the work she had already performed. Compl. ¶ 49.

Johnson resigned and filed this lawsuit, alleging that ACB violated the DC Labor Code’s

provisions on minimum wage, wage theft, taxes and benefits, breached their oral employment

contract, committed wrongful constructive discharge and retaliation, and intentionally inflicted

emotion distress upon her.

Johnson filed her complaint in D.C. Superior Court in September 2023. The following

month, ACB removed the case to this Court. 28 U.S.C. §1441(a); Notice of Removal 1–4, ECF

No. 1. ACB moved one week later to compel arbitration and stay the proceedings, arguing that

the Agreement’s arbitration clause commits the determination of both arbitrability and the merits

of Johnson’s claims to the arbitrator. See generally Mot. to Compel Arbitration and Stay, ECF

No. 4. Johnson opposes this motion, arguing first that ACB failed to comply with Local Civil Rule

3 7(m) when filing its motion, Opp’n 7–10; second, that Johnson herself is not a party to, and

therefore not bound by, the arbitration agreement between her public relations firm and ACB, id.

at 10–14; and third, that even if she is bound by the agreement, the arbitration clause does not

delegate the threshold determination of arbitrability to the arbitrator, id. at 17–19.

II. LEGAL STANDARD

A. Local Rule 7(m)

Local Civil Rule 7(m) “imposes twin duties of consultation and certification” for any party

intending to file a nondispositive motion. Steele v. United States, No. 1:14-cv-1523-RCL, 2023

WL 6215790, at *3 (D.D.C. Sept. 25, 2023). Specifically, the moving party must meet and confer

with opposing counsel “in a good faith effort to determine whether there is any opposition to the

relief sought and . . . to narrow the areas of disagreement.” LCvR 7(m). Further, the moving party

must append to its motion “a statement that the required discussion occurred, and a statement as

to whether the motion is opposed.” Id.

By its own terms, Rule 7(m) applies only to nondispositive motions. See Campaign Legal

Ctr. v. Iowa Values, No. 1:21-cv-389-RCL, 2024 WL 81278, at *6 (D.D.C. Jan. 8, 2024) (“The

threshold question for Local Civil Rule 7(m) is whether the motion in question is

‘nondispositive.’”). The D.C. Circuit has defined a dispositive motion as one that, “if granted,

would result either in the determination of a particular claim on the merits or elimination of such

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