Kirleis v. Dickie McCamey

CourtCourt of Appeals for the Third Circuit
DecidedMarch 24, 2009
Docket07-3504
StatusPublished

This text of Kirleis v. Dickie McCamey (Kirleis v. Dickie McCamey) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirleis v. Dickie McCamey, (3d Cir. 2009).

Opinion

Opinions of the United 2009 Decisions States Court of Appeals for the Third Circuit

3-24-2009

Kirleis v. Dickie McCamey Precedential or Non-Precedential: Precedential

Docket No. 07-3504

Follow this and additional works at: http://digitalcommons.law.villanova.edu/thirdcircuit_2009

Recommended Citation "Kirleis v. Dickie McCamey" (2009). 2009 Decisions. Paper 1620. http://digitalcommons.law.villanova.edu/thirdcircuit_2009/1620

This decision is brought to you for free and open access by the Opinions of the United States Court of Appeals for the Third Circuit at Villanova University School of Law Digital Repository. It has been accepted for inclusion in 2009 Decisions by an authorized administrator of Villanova University School of Law Digital Repository. For more information, please contact Benjamin.Carlson@law.villanova.edu. PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

No. 07-3504

ALYSON J. KIRLEIS,

Appellee,

v.

DICKIE, MCCAMEY & CHILCOTE, P.C.,

Appellant.

On Appeal from the United States District Court for the Western District of Pennsylvania (D.C. Nos. 06-cv-01495 & 06-cv-01666) District Judge: Honorable Gary L. Lancaster

Argued May 22, 2008 Before: SMITH, HARDIMAN and NYGAARD, Circuit Judges.

Filed: March 24, 2009 Edward B. Friedman (Argued) Gloria A. Aiello Friedman & Friedman 900 Fifth Avenue Pittsburgh, PA 15219-0000 Attorneys for Appellee

Martin J. Saunders (Argued) Sunshine R. Fellows Donna J. Geary Jackson Lewis One PPG Place 28th Floor Pittsburgh, PA 15222-0000 Attorneys for Appellant

OPINION OF THE COURT

HARDIMAN, Circuit Judge.

In this appeal we consider a question of first impression under Pennsylvania law: whether a shareholder/director may be compelled to arbitrate her civil rights claims pursuant to corporate bylaws to which she has not explicitly assented. When first presented with this issue, we petitioned the Pennsylvania Supreme Court to certify the question because we found that it exposed tension between corporate law principles

2 and arbitration contract principles. The Pennsylvania Supreme Court denied the petition, so we shall answer the question.

I. Alyson J. Kirleis practices law with the Pittsburgh firm of Dickie, McCamey & Chilcote, P.C. (Firm). She worked at the Firm as a summer associate in 1987 and became a full-time associate the following year. In 1998, Kirleis became a Class B shareholder and was promoted to Class A shareholder/director in 2001. Since she became a shareholder/director, Kirleis’s relationship with the Firm has been governed by the Firm’s corporate bylaws.

Kirleis filed two complaints against the Firm in the United States District Court for the Western District of Pennsylvania alleging sex discrimination, retaliation, and hostile work environment in violation of federal and state law.1 The Firm filed a motion to compel arbitration pursuant to 9 U.S.C. § 4, citing a mandatory arbitration provision in its bylaws. The District Court denied the motion and the Firm filed this timely appeal.2

1 Kirleis’s claims arose under the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Fair Labor Standards Act of 1938, 29 U.S.C. § 201 et seq., and the Pennsylvania Human Relations Act, 43 Pa. Stat. Ann. § 951 et seq. 2 The Firm also filed a motion to dismiss for lack of jurisdiction pursuant to Rule 12(b) of the Federal Rules of Civil Procedure. Therein, the Firm challenged Kirleis’s averment that

3 II. The District Court had jurisdiction under 28 U.S.C. § 1331. We have jurisdiction pursuant to 9 U.S.C. § 16(a)(1)(B). Our review of the District Court’s order denying the motion to compel arbitration is plenary. First Liberty Inv. Group v. Nicholsberg, 145 F.3d 647, 649 (3d Cir. 1998). We apply the same standard as the District Court, compelling arbitration only where there is “no genuine issue of fact concerning the formation of the agreement” to arbitrate. See Par-Knit Mills, Inc. v. Stockbridge Fabrics Co., 636 F.2d 51, 54 (3d Cir. 1980).3 In making this determination, the party opposing arbitration is entitled to “the benefit of all reasonable doubts and inferences that may arise.” Id.

III. The Firm’s motion to compel arbitration was based on the following provision of its bylaws: Section 9.01. ARBITRATION. (a) General Rule: Any dispute arising under these By-Laws including disputes related to the right to

she is an employee of the Firm. The District Court denied the motion without prejudice to the Firm’s ability to raise it following discovery and this decision is not at issue on appeal. 3 The standard for determining whether a genuine issue of material fact exists regarding the existence of an agreement to arbitrate is “quickly recognized as the standard used by district courts in resolving summary judgment motions pursuant to Fed. R. Civ. P. 56(c).” Par-Knit Mills, 636 F.2d at 54 n.9.

4 indemnification, contribution or advancement of expenses as provided under these By-Laws, shall be decided only by arbitration in Pittsburgh, Pennsylvania, in accordance with the commercial arbitration rules of the American Arbitration Association, before a panel of three arbitrators, one of whom shall be selected by the corporation, the second of whom shall be selected by the shareholder, director, officer, or indemnified representative and the third of whom shall be selected by the other two arbitrators.

As relevant to this appeal, Kirleis averred in her affidavit:

15. I was never provided with a copy of the By- Laws of defendant Firm at the time that I was made a Class B shareholder or at anytime thereafter. In fact, I only saw the documents which Mr. Wiley purports to be Firm’s By-Laws for the first time when I received Mr. Wiley’s Affidavit in connection with this case, approximately 9 years after being made a Class B shareholder-employee and 19 years after commencing the practice of law with the firm.

16. I was never informed of the presence of the arbitration provision in the By-Laws which Firm is now seeking to enforce against me.

5 17. I never signed any agreement or document which refers to or incorporates the arbitration provision in the By-Laws.

18. I never agreed to arbitrate my claims against Firm.

At this stage of the litigation, the Firm has not challenged the veracity of Kirleis’s averments. Instead, the Firm argues that her status as a shareholder/director charged Kirleis with constructive knowledge of the terms of the bylaws and manifested her acceptance of the arbitration provision. In support of this argument, the Firm notes that Kirleis accepted compensation and perquisites pursuant to the bylaws.

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