Joule, Inc. v. Simmons

29 Mass. L. Rptr. 223
CourtMassachusetts Superior Court
DecidedDecember 5, 2011
DocketNo. SUCV200904929A
StatusPublished

This text of 29 Mass. L. Rptr. 223 (Joule, Inc. v. Simmons) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joule, Inc. v. Simmons, 29 Mass. L. Rptr. 223 (Mass. Ct. App. 2011).

Opinion

Connors, Thomas A., J.

The plaintiff, Joule Technical Staffing, Inc., a subsidiary of plaintiff, Joule, Inc. (collectively Joule), hired the defendant, Randi Simmons, for the position of selling branch manager overseeing sales in a portion of the territory in which it conducted business. Among the items of paperwork presented Simmons by her employer at the time she commenced employment which she did eventually sign, was an agreement that disputes between the two would be subject to arbitration. Roughly eighteen months after she had been hired, Simmons was terminated by Joule.

Simmons instituted action against the Joule entities with the Massachusetts Commission Against Discrimination (MCAD), alleging that she had been subject to unlawful discrimination and retaliation in employment. Her complaint with that agency also listed as defendants the individuals who are plaintiffs in this action, John G. Wellman who is president of the two companies, and Kristin Motta Zwickau and Kari Burke, both of whom work in management at the company’s Boston office.

The plaintiffs challenged the right of Simmons to proceed on her MCAD complaint, alleging that the terms of the agreement she had signed after her hire mandated the arbitration procedure referenced in its terms as the exclusive vehicle for resolution of disputes as the one she was pursuing as a litigant before the MCAD. It filed this action which sought a declaratory judgment to compel arbitration of the parties’ dispute, citing the state and federal arbitration acts and alleging also that Simmons’ actions had constituted a breach of the parties’ contract which had caused harm to Joule.

This court initially ordered the plaintiffs’ action to compel arbitration stayed pending the MCAD’s resolution of the claim which Simmons there had filed. On interlocutory review, the Supreme Judicial Court vacated that order of stay, permitting the plaintiffs to pursue their claimed relief in this court, while the MCAD proceeds under its statutory mandate under G.L.c. 151B to investigate the claim of improper conduct on the part of these plaintiffs. Joule, Inc. v. Simmons, 459 Mass. 88, 91 (2011). That ruling directed that this court rule on the validity of the arbitration agreement, with an affirmative ruling on that issue triggering compulsory arbitration of the dispute, notwithstanding the pendency of the MCAD case, noting that “there is no legal bar to having an arbitration and the MCAD proceeding continue concurrently, on parallel tracks.” Id.

The plaintiffs have now renewed their motion to compel arbitration of Simmons’ claim. Simmons opposes that motion, and argues that the document which references arbitration is not valid and is unenforceable. Hearing on the motion was conducted on October 12, 2011.

Legal Standard

Under both state and federal law, it is clear that parties to an employment agreement can agree to arbitrate claims and disputes which might arise between them. See Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 26-27 (1991). Warfield v. Beth [224]*224Israel Deaconess Medical Center, 454 Mass. 390, 395-96 (2009). Where the agreement states, as here, that it is governed by the Federal Arbitration Act, 9 U.S.C. §§1 et seq., due regard must be given to that act’s expression of a presumption in favor of arbitrability of claims, with any ambiguities as to the scope of the contractual provision resolved in favor of arbitration. Joule, Inc., supra, at 94, citing Volt Info. Sciences, Inc. v. Trustes of Leland Stanford Jr. University, 489 U.S. 468, 475-76 (1989).

G.L.c. 251, §2 provides that a party aggrieved by the refusal of another to proceed to arbitration of a dispute between the two where a written agreement of the parties requires arbitration may apply to this court for an order directing that such a procedure take place. The statute does provide an opposing party who questions the existence of a valid agreement to arbitrate to have the issue addressed by the court, with the proviso that such a determination as to the agreement’s validity be decided summarily. G.L.c. 251, §2(a). See St. Fleur v. WPI Cable Systems/Mutron, 450 Mass. 345, 353 (2008).

Notwithstanding the strong public policy favoring arbitration which underlies c. 251 as well as the presumption contained in the Federal Arbitration Act, Home Gas Corp. of Mass., Inc. v. Walter's of Hadley, Inc., 403 Mass. 772, 774 (1989), it remains available to the party opposing arbitration to assert traditional grounds which would permit the voiding of a contract, such as fraud, duress, and unconscionability to seek to deny an action to compel arbitration. See St. Fleur, supra, at 350, citing Doctor’s Assocs., Inc. v. Casarotto, 517 U.S. 681, 687 (1996), and Miller v. Cotter, 448 Mass. 671, 677 (2007).

Ruling

In its earlier decision which dealt with this selfsame case, the Supreme Judicial Court has already ruled that consideration of the issue concerning validity of the arbitration agreement may still go forward, as already referenced, despite the ongoing nature of the MCAD action. Joule v. Simmons, supra, at 99-100. That Court has also already ruled, favorably to Joule, that the provision in the parties’ agreement concerning Simmons’ employment meets the requirement enunciated in Warfield v. Beth Israel Deaconess Medical Center, 454 Mass. at 398, that its terms are sufficiently “clear and unmistakable” that it properly should apply to the type of claims in dispute between these parties. Id. and n. 15. What then remains for this court’s determination, post-appeal, is Simmons’ contention that the arbitration agreement contained in the materials given her by Joule is rendered unenforceable as a matter of Massachusetts contract law on the grounds that its terms are unconscionable.

Historically, the law has recognized a basis for the avoidance of a contract on grounds of unconscionability if it was “such that no man in his senses and not under delusion would make on the one hand, and no honest and fair man would accept on the other.” Hume v. United States, 132 U.S. 406, 411 (1899), quoting Earl of Chesterfield v. Janssen, 28 Eng.Rep. 82, 100 (Ch. 1750). Our courts have further described the sort of contract which could be viewed as unenforceable by virtue of unconscionability as one where “the sum total of its provisions drives too hard a bargain for a court of conscience to assist.” Waters v. Min. Ltd., 412 Mass. 64, 66 (1992), quoting Covich v. Chambers, 8 Mass.App.Ct. 740, 750 n.13 (1979). As there is no “all-purpose definition” of the term ‘unconscionable’ “ the application of the term must by necessity be addressed on a case-by-case basis. Zapatha v. Dairy Mart, Inc., 381 Mass. 284, 292-93 (1980). The case law has also noted in evaluating this issue, that particular attention must be paid to whether the challenged agreement could result in oppression and unfair surprise to the disadvantaged party, and not to disturbance of the allocation of risks which result from ’’superior bargaining power."

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Related

Hume v. United States
132 U.S. 406 (Supreme Court, 1889)
Gilmer v. Interstate/Johnson Lane Corp.
500 U.S. 20 (Supreme Court, 1991)
Doctor's Associates, Inc. v. Casarotto
517 U.S. 681 (Supreme Court, 1996)
Home Gas Corp. of Massachusetts, Inc. v. Walter's of Hadley, Inc.
532 N.E.2d 681 (Massachusetts Supreme Judicial Court, 1989)
Covich v. Chambers
397 N.E.2d 1115 (Massachusetts Appeals Court, 1979)
Waters v. Min Ltd.
587 N.E.2d 231 (Massachusetts Supreme Judicial Court, 1992)
Zapatha v. Dairy Mart, Inc.
408 N.E.2d 1370 (Massachusetts Supreme Judicial Court, 1980)
Pelletier v. Town of Somerset
939 N.E.2d 717 (Massachusetts Supreme Judicial Court, 2010)
Armendariz v. Found. Health Psychcare Servs., Inc.
6 P.3d 669 (California Supreme Court, 2000)
Miller v. Cotter
448 Mass. 671 (Massachusetts Supreme Judicial Court, 2007)
St. Fleur v. WPI Cable Systems/Mutron
879 N.E.2d 27 (Massachusetts Supreme Judicial Court, 2008)
Warfield v. Beth Israel Deaconess Medical Center, Inc.
910 N.E.2d 317 (Massachusetts Supreme Judicial Court, 2009)
Joulé, Inc. v. Simmons
459 Mass. 88 (Massachusetts Supreme Judicial Court, 2011)

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Bluebook (online)
29 Mass. L. Rptr. 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joule-inc-v-simmons-masssuperct-2011.