Norris v. Aon PLC

CourtDistrict Court, N.D. California
DecidedApril 2, 2021
Docket3:21-cv-00932
StatusUnknown

This text of Norris v. Aon PLC (Norris v. Aon PLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norris v. Aon PLC, (N.D. Cal. 2021).

Opinion

1 2 3 4 5 IN THE UNITED STATES DISTRICT COURT 6 FOR THE NORTHERN DISTRICT OF CALIFORNIA 7 8 GISELE NORRIS et al., Case No. 21-cv-00932-CRB

9 Plaintiffs, ORDER GRANTING DEFENDANTS’ MOTION TO COMPEL ARBITRATION 10 v. AND DENYING PLAINTIFFS’ MOTION FOR A PRELIMINARY INJUNCTION 11 AON PLC et al., 12 Defendants.

13 Plaintiffs Gisele Norris and Henry Yuan have sued Defendants Aon PLC, Aon 14 Group, Inc., and Aon Risk Services Companies, Inc. (collectively, Aon) for declaratory 15 and injunctive relief relating to agreements they signed while employed by Aon. Norris 16 and Yuan allege that the Restricted Stock Unit Agreements (“RSU Agreements”) that they 17 both signed, and the Confidentiality and Non-Solicitation Agreement that Yuan signed, 18 “contain a number of void, illegal, and unenforceable provisions, including restrictive 19 covenants that violate well-established California law.” See Compl. (dkt. 1) at ¶¶ 15, 19, 20 27. 21 Norris and Yuan have moved for a preliminary injunction to prevent Aon from 22 enforcing those provisions. See Mot. for Prelim. Injunction (dkt. 12) at 17. Aon has 23 opposed that motion, arguing that Norris and Yuan’s claims are subject to enforceable 24 arbitration agreements. See Opp. to Mot. for Prelim. Injunction (dkt. 20) at 4–5. Aon has 25 also moved to compel arbitration. See Mot. to Compel (dkt. 21). 26 The Court grants the motion to compel arbitration and denies the motion for a 27 preliminary injunction. The Court determines that oral argument is not necessary. 1 I. BACKGROUND 2 The Aon Defendants are corporations organized under the laws of the United 3 Kingdom and Maryland, with their principal places of business outside California. Compl. 4 ¶¶ 3–5. Collectively, they provide “risk management services, insurance and reinsurance 5 brokerage, and human resource consulting and outsourcing.” Id. ¶ 8. Norris and Yuan, 6 both California residents, were employed by Aon in California. See id. ¶¶ 1–2, 7. In 7 January 2021, they resigned and began working at Aon’s competitor, Marsh USA Inc. 8 (Marsh). Id. ¶ 20. Approximately a week later, Aon sent them letters stating Aon’s intent 9 to enforce the restrictive covenants contained in the RSU Agreements that Norris and 10 Yuan signed while employed at Aon. Id. ¶ 21. Aon “demanded assurance from Plaintiffs 11 that they ‘have not and will not solicit, accept service[,] or perform work for Marsh or any 12 other party with AON clients.’” Id. ¶ 22. Norris and Yuan allege that Aon has “threatened 13 to take action to enforce the purported restrictive covenants of the RSU Agreements to try 14 to prevent Plaintiffs from their gainful employment in California with Marsh and their 15 right to compete lawfully against Aon for business.” Id. ¶ 25. 16 A. Plaintiffs’ RSU Agreements and Yuan’s Confidentiality and Non- Solicitation Agreement 17 Norris entered into two RSU Agreements with Aon, one on December 4, 2009, see 18 2009 RSU (dkt. 1 Ex. A), and a second on June 11, 2015, see 2015 RSU (dkt. 1 Ex. B); see 19 Compl. ¶ 13. Yuan entered into a Confidentiality and Non-Solicitation Agreement with 20 Aon on July 14, 2016, see 2016 Agreement (dkt. 1 Ex D); Compl. ¶ 14, and an RSU 21 Agreement with Aon on June 7, 2020, see 2020 RSU (dkt. 1 Ex. C). 22 The RSU Agreements granted Norris and Yuan “restricted stock units . . . each RSU 23 representing the right to receive a share of Aon common stock . . . to encourage the 24 Employee to remain in the employ of [Aon], to provide the Employee with an incentive to 25 contribute to the financial progress of the Company, and to encourage ownership of the 26 Company’s stock by the employee.” See e.g., 2009 RSU at 1. Although Norris and Yuan 27 initially alleged that they entered into the RSU Agreements as conditions of their 1 continued employment at Aon, see Compl. ¶¶ 13–14, they do not dispute Aon’s assertion 2 that Aon “employees are free to accept or reject such . . . RSU Agreements,” such that 3 these agreements “are not conditions of employment,” see Mot. to Compel at 3; see 4 generally Opp. to Mot. to Compel (dkt. 26).1 5 According to the Complaint, the RSU Agreements contain non-compete provisions 6 that “purport to restrict Plaintiffs from doing business with or soliciting the customers or 7 employees of AON for two years after Plaintiffs leave their employment with AON, even 8 if the solicitation does not involve the use of confidential or trade secret information.” 9 Compl. ¶ 15. Norris and Yuan also allege that the RSU Agreements “purport to restrict 10 Plaintiffs from communicating with AON’s employees to discuss employment 11 opportunities with [Marsh] or any other employer.” Id. ¶ 16. Yuan’s 2016 Confidentiality 12 and Non-Solicitation Agreement contains a similar employee non-solicitation provision. 13 See 2016 Agreement; Compl. ¶¶ 15, 18. 14 B. Arbitration Provisions 15 Section 10(a) of Norris’s 2015 RSU Agreement and Yuan’s 2020 RSU Agreement 16 provides in relevant part: 17 The Participant and the Company . . . agree that . . . all claims or disputes between or involving the Participant and Aon 18 (including without limitation any subsidiary of the Company) (i) arising under or relating to this Agreement (including 19 without limitation Section 9 hereof) or any Other Covenant, or (ii) involving the interpretation, applicability, enforceability or 20 formation of this Agreement, any Other Covenant, or any portion thereof (including without limitation the agreement to 21 arbitrate in this Section 10, and further including without limitation any claim or dispute alleging that this Agreement, 22 any Other Covenant, or any portion thereof is a contract of adhesion, lacks consideration, is substantively or procedurally 23 unconscionable, is void against public policy, or otherwise is void or voidable for any reason) shall be determined and 24 resolved exclusively by arbitration in Chicago, Illinois (or such other location to which the Participant and the Company agree) 25 before a single neutral arbitrator . . . in compliance with and as 26 1 And, as discussed below, Norris and Yuan do not argue that the arbitration agreements in the 27 RSU Agreements were invalid because the RSU Agreements or any portion thereof were further provided in Section 10. 1 2015 RSU at 6; 2020 RSU at 7. Section 10(b) then clarifies: 2 For avoidance of doubt, the parties hereby acknowledge and 3 agree that the Company . . . or the Participant may assert a claim or dispute encompassed by this Section 10, and seek a 4 remedy or relief for or associated with such claim or dispute (including without limitation emergency, injunctive or other 5 interim relief, or final relief) only in arbitration pursuant to this Section 10, and may not pursue an action in court for or 6 relating to any such claim, dispute, remedy or relief. 7 Id. 8 Section 11(k) provides for judicial enforcement of any arbitral decision or award in 9 federal or state court in Chicago, Illinois: 10 Venue for any arbitration proceedings instituted under this Agreement shall be exclusively in Chicago, Illinois (unless the 11 parties otherwise agree), and the parties hereby submit and agree to the exclusive jurisdiction of the State of Illinois for the 12 purposes of any such arbitration. The parties also hereby submit and agree to the exclusive venue and exclusive 13 jurisdiction of the federal and state courts in Chicago, Illinois for the purpose of any claim or action to enter judgment 14 enforcing an arbitration decision or award (whether interim or final) rendered pursuant to Section 10 above, and for any other 15 claim or action (if any) arising under or relating to this Agreement (whether or not such claim or action is validly 16 asserted in light of Section 10 above), and the parties hereby agree that any such claim or action (if any) shall be brought 17 exclusively in such federal and state courts in Chicago, Illinois.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

At&T Technologies, Inc. v. Communications Workers
475 U.S. 643 (Supreme Court, 1986)
First Options of Chicago, Inc. v. Kaplan
514 U.S. 938 (Supreme Court, 1995)
Kinney v. United Healthcare Services, Inc.
83 Cal. Rptr. 2d 348 (California Court of Appeal, 1999)
Pinela v. Neiman Marcus Group, Inc.
238 Cal. App. 4th 227 (California Court of Appeal, 2015)
Lorrie Poublon v. C.H. Robinson Co.
846 F.3d 1251 (Ninth Circuit, 2017)
Spring Valley Water Works v. Board of Supervisors
61 Cal. 3 (California Supreme Court, 1881)
Rent-A-Center, West, Inc. v. Jackson
177 L. Ed. 2d 403 (Supreme Court, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
Norris v. Aon PLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norris-v-aon-plc-cand-2021.