KANTZ v. AT&T, INC.

CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 19, 2021
Docket2:20-cv-00531
StatusUnknown

This text of KANTZ v. AT&T, INC. (KANTZ v. AT&T, INC.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KANTZ v. AT&T, INC., (E.D. Pa. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA PATRICE KANTZ, on behalf of CIVIL ACTION herself individually and on behalf of those similarly situated, Plaintiff, NO. 20-531 v. AT&T, INC. and AT&T SERVICES, INC., Defendants. MEMORANDUM Joyner, J. 2021 March 19, Presently before the Court is Defendants’ Motion for Court Order to Compel Individual Arbitration and Stay Proceedings. I. Background Plaintiff Patrice Kantz brings this putative collective action claiming violations of the Age Discrimination in Employment Act (“ADEA”), as amended, 29 U.S.C. § 621, et seq. (Compl., Doc. No. 1 at 6-7, ¶151.) Kantz asserts that she has satisfied all administrative remedies, (id. ¶¶19-22), and requests a jury trial, (id. at 4). The Complaint alleges that Defendants AT&T Services, Inc. and AT&T, Inc. (“AT&T”): (1) intentionally terminated Kantz because of her age in violation of the ADEA; (2) in the alternative, terminated Kantz because of her age through the use of AT&T’s facially neutral employment policies and practices that disparately impacted older workers in violation of the ADEA; and (3) obtained a non-compliant Older Workers Benefit Protection Act (“OWBPA”) release from Kantz at the time of her termination. (Compl., Doc. No. 1 at 6-7.) Defendants bring this Motion to Compel Individual Arbitration and Stay Proceedings on the grounds that a 2012

Management Arbitration Agreement (“MAA”) relegates Plaintiff’s age discrimination employment claims to individual arbitration under the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1, et seq. (Defs.’ Mot. for Ct. Order to Compel Individual Arbitration and Stay Proceedings, Doc. No. 7 at 18.) The MAA stated that “any claim” against AT&T and related entities including “those arising out of or related to [Kantz’s] employment or termination of employment” be decided by “final and binding arbitration instead of court litigation,” but that a “court of competent jurisdiction” must decide all disputes as to the “enforceability, revocability or validity of the Agreement or

any portion of the Agreement.” (Defs.’ Mot. for Ct. Order to Compel Individual Arbitration and Stay Proceedings, Doc. No. 7, Ex. A at 78-79.) The agreement also included a collective action waiver. (Id. at 79.) Plaintiff opposes the Motion on many grounds. In particular, she argues that a 2019 General Release and Waiver agreement (“General Release”) between her and AT&T, signed at the time of her termination, superseded the MAA because the two agreements are on the same subject matter and by the agreement’s terms. The General Release did not contain a promise to arbitrate disputes and so, she argues, this Court cannot compel arbitration. (Pl.’s Br. in Opp’n to Defs.’ Mot. for Ct. Order to Compel Individual Arbitration and Stay Proceedings, Doc. No.

13 at 48-49.) The General Release stated, in pertinent part: By signing this General Release and Waiver, I intend to release any claims I may have under [local, state, and federal laws] or any other laws with respect to my employment and to the termination of my employment . . . I expressly understand and agree that this is a General Release that, to the fullest extent permitted by law, waives, surrenders, and extinguishes all claims that I have or may have against the Released Parties . . . The provisions of this General Release and Waiver set forth the entire agreement between me and the Companies concerning termination of my employment. Any other promises or representations, written or oral, are replaced by the provisions of this document and are no longer effective unless they are contained in this document. If a court determines that any part of this General Release and Waiver is not valid, the other parts will still remain valid and enforceable.

(Pl.’s Br. in Further Opp’n to Defs.’ Mot. for Ct. Order to Compel Individual Arbitration and Stay Proceedings, Doc. No. 34, Ex. B at 52-53.) Defendants argue that the General Release did not supersede the MAA because the agreements are not on the same subject matter and because, if the General Release is invalid, then the General Release cannot supersede the MAA as a matter of law. (Defs.’ Reply Mem. of Law in Further Supp. of Defs.’ Mot. for Ct. Order to Compel Individual Arbitration and Stay Proceedings, Doc. No. 14 at 21-22.) Plaintiff contends that she has not alleged that the General Release is invalid in its entirety, but “rather, she has alleged that it is not a valid and enforceable waiver of her rights and claims under the ADEA.” (Statement

Letter to Judge Joyner, Doc. No. 15 at 1 (emphasis in original).) On July 13, 2020, in consideration of the Defendants’ Motion for Court Order to Compel Individual Arbitration and Stay Proceedings, (Defs.’ Mot. for Ct. Order to Compel Individual Arbitration and Stay Proceedings, Doc. No. 7), this Court ordered a stay of ninety days for limited discovery as to the factual issue of whether there is a valid arbitration agreement. (Doc. No. 17.) During those ninety days, Defendants moved for a lift of the stay of proceedings and further argued that the General Release did not supersede the MAA. (Defs.’ Mot. for Ct.

Order to Lift the Stay of Proceedings, Doc. No. 18.) Defendants also argued, for the first time, that an arbitrator, not this Court, should decide the question of whether the General Release superseded the MAA. (Id. at 10.) Plaintiff opposed the Motion to Lift the Stay, (Pl.’s Br. in Opp’n to Defs.’ Mot. for Ct. Order to Lift the Stay of Proceedings, Doc. No. 22), and AT&T filed a reply brief in further support of its motion, (Reply Mem. of Law in Further Supp. Of Defs.’ Mot. for Ct. Order to Lift the Stay of Proceedings, Doc. No. 23.) The Court did not rule on the Motion to Lift the Stay of Proceedings and the stay was extended until October 20, 2020 to allow for the completion of the limited discovery. (Doc. No. 32.) After the close of discovery, Defendants submitted further briefing in support of

their Motion to Compel Individual Arbitration and Stay Proceedings, (Mem. of Law in Further Supp. Of Defs.’ Mot. to Compel Individual Arbitration and Stay Proceedings, Doc. No. 33; Reply Mem. of Law in Further Supp. of Defs.’ Mot. to Compel Individual Arbitration and Stay Proceedings, Doc. No. 36.) Plaintiff filed further briefing in opposition to the Motion. (Pl.’s Br. in Further Opp’n to Defs.’ Mot. to Compel Individual Arbitration and Stay Proceedings, Doc. No. 34.) Defendants in further support of the Motion argue: (1) Plaintiff agreed to the terms of the MAA; (2) the question of whether the General Release superseded the MAA should be decided

by an arbitrator according to the severability principle of federal common law; and (3) the General Release did not supersede the MAA. (Mem. of Law in Further Supp. Of Defs.’ Mot. to Compel Individual Arbitration and Stay Proceedings, Doc. No. 33, at 6; Reply Mem. of Law in Further Supp. of Defs.’ Mot. to Compel Individual Arbitration and Stay Proceedings, Doc. No. 36 at 6.) Plaintiff opposes AT&T on all points and maintains that the Court cannot compel arbitration. (See Pl. Br. in Further Opposition to Def. Mot. to Compel Individual Arbitration and Stay Proceedings, Doc. No. 34.) II. Analysis a. Subject-Matter Jurisdiction Subject-matter jurisdiction is proper under 28 U.S.C. §

1331. (Compl., Doc. No. 1 at ¶17; Defs.’ Mot. for Ct. Order to Compel Individual Arbitration and Stay Proceedings, Doc. No. 7 at 17.) b. Standard of Review We review this Motion under the summary judgment standard. In general, if a valid agreement to arbitrate exists and a dispute falls within the scope of the agreement’s terms, the Court must mandate arbitration. 9 U.S.C.

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