Legair v. Circuit City Stores, Inc.

213 F. App'x 436
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 12, 2007
Docket05-4179, 06-3361
StatusUnpublished
Cited by10 cases

This text of 213 F. App'x 436 (Legair v. Circuit City Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Legair v. Circuit City Stores, Inc., 213 F. App'x 436 (6th Cir. 2007).

Opinion

TARNOW, District Judge.

Plaintiff Randolph Legair sued Circuit City Stores, Inc., for racially discriminatory practices in violation of Title VII of the Civil Rights Act (42 U.S.C. § 2000e, et seq.). In this consolidated appeal, Legair challenges the District Court’s grant of defendant’s motion to compel arbitration, and its confirmation of the arbitrator’s award. Plaintiff’s counsel appeals the amount of attorney fees awarded as a sanction against him for contempt. For the reasons that follow, we AFFIRM the District Court’s rulings on all issues.

I

Plaintiff Randolph Legair, an African-American male, began working for Circuit City in Miami, Florida in 1989. In February 1995, Circuit City implemented a new policy, mandating binding arbitration for employee dispute resolution.

The program was introduced to employees via video meetings and information packages. The program was mandatory for new hires, but voluntary for existing employees. However, existing employees were informed that they would be bound by the new program unless they opted out of it. Opting out required sending a form to Circuit City within 30 days of receiving the program information. Plaintiff signed a form indicating that he understood his obligations in respect to the opt-out provision. However, he did not send Circuit City an opt-out form.

Plaintiff moved to Ohio in 1997, and continued working for defendant. In April 2000, plaintiff was terminated. He filed a complaint in August 2001 in state court, alleging both breach of contract and racially discriminatory practices in violation of Title VII (42 U.S.C. § 2000e) and Ohio’s analogous provisions (Ohio Rev.Code Ann. § § 4112.02(A) and 4112.99). Defendant removed the action to the Southern District of Ohio, and moved to compel arbitration.

The district court reserved its ruling on defendant’s motion until the Sixth Circuit ruled in Morrison v. Circuit City Stores, *438 Inc., 317 F.3d 646 (6th Cir.2003), because it addressed the same arbitration agreement at issue. The Morrison decision was released in January 2003. It held that the Circuit City dispute resolution program was not unconscionable, and was enforceable. Id. at 667. In May 2003, the district court granted defendant’s motion to compel arbitration, and stayed all other proceedings.

Plaintiffs motions for reconsideration and relief from judgment were denied. An appeal to the Sixth Circuit was dismissed. An arbitrator was named in June 2004. Plaintiffs counsel resisted the arbitration process, by failing to conduct discovery, seeking to have the arbitrator removed for alleged bias, and refusing to participate in scheduled conferences or hearings.

A week before the arbitration hearing, the plaintiff sought to dismiss the arbitration. The arbitrator conditioned accepting the dismissal on receipt of a signed writing from the plaintiff, indicating that plaintiff had been advised of the legal ramifications of a dismissal with prejudice. No writing was provided. The arbitrator proceeded with the scheduled arbitration hearing. He ruled for the defendant.

In July 2005, the district court ruled on a number of motions, including the plaintiffs motion to remove and replace the arbitrator and stay the arbitration. Legair v. Circuit City Stores, Inc., 2005 WL 1865373 (S.D.Ohio, July 26, 2005). It confirmed the arbitrator’s award, finding it “solidly based in the facts and law.” Id. at *6.

In its July 2005 Opinion and Order, the district court also granted defendant’s motion for contempt sanctions against plaintiffs counsel. It ordered counsel to compensate the defendant for excess costs associated with three specified motions.

In February 2006, 2006 WL 278405, the district court ordered plaintiffs counsel to pay defendant’s fees of $7,822, according to an itemized schedule. Plaintiffs counsel challenged the fee as excessive, and claimed in an affidavit that any sanction over several hundred dollars was likely to bankrupt him. However, he provided no additional supporting documentation of his financial status. Counsel’s appeal of the sanctions order was consolidated with the plaintiffs.

II

A

An order to compel arbitration is reviewed de novo. Morrison, 317 F.3d at 665. When a district court decides to confirm or vacate an arbitration award, the appellate court “review[s] its legal conclusions de novo and its factual findings for clear error.” International Brotherhood of Teamsters, Local 519 v. United Parcel Service, Inc., 335 F.3d 497, 503 (6th Cir. 2003). However, review of arbitration awards is extremely deferential, and the Federal Arbitration Act presumes confirmation. Dawahare v. Spencer, 210 F.3d 666, 669 (6th Cir.2000). The award should only be vacated if a party demonstrates manifest disregard of the law, or that one of the few available statutory grounds are met. Id. (citing Glennon v. Dean Witter Reynolds, Inc., 83 F.3d 132, 136 (6th Cir. 1996); 9 U.S.C. § 10(a) (1994)).

Plaintiff Legair claims the district court erred when it granted defendant’s motion to compel arbitration. Courts are obligated to enforce an arbitration agreement unless grounds exist to revoke it. Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 218, 105 S.Ct. 1238, 84 L.Ed.2d 158 (1985). The agreement to arbitrate here was valid and enforceable.

*439 Morrison applied Ohio law, and found the arbitration agreement to be enforceable, and not unconscionable. 317 F.3d at 666. The court expressed concerns about the fairness of some of the terms (for example, it struck a remedy limitation provision as unenforceable but severable, id. at 670). Id. However, the absence of procedural unconscionability led the court to conclude that the agreement overall was enforceable. Id.

The factors to determine procedural unconscionability include relative bargaining position, age, education, experience, and whether terms were explained to the weaker party. Id. As in Morrison, the circumstances here do not establish unconseionability. On the issue of experience, Plaintiff was a manager for Circuit City for several years before the program was introduced.

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Bluebook (online)
213 F. App'x 436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/legair-v-circuit-city-stores-inc-ca6-2007.