OEP Holdings, LLC, MVT Services, LLC, and Mesilla Valley Transportation Solutions, LLC v. Javier Rodriguez

Court of Appeals of Texas·Decided September 30, 2020·No. 08-18-00226-CV·Published

Opinion

COURT OF APPEALS

EIGHTH DISTRICT OF TEXAS

EL PASO, TEXAS

OEP HOLDINGS, LLC, § MVT SERVICES, LLC, AND No. 08-18-00226-CV MESILLA VALLEY § TRANSPORTATION SOLUTIONS, Appeal from the LLC, § 327th District Court

Appellants, § of El Paso County, Texas

v. § (TC# 2017-DCV-3020)

JAVIER RODRIGUEZ, §

Appellee.

MEMORANDUM OPINION

This appeal is brought by three distinct but affiliated companies. (collectively, Appellants).

OEP Holdings, LLC (“OEP”), is a licensed staff leasing company leasing employees to MVT Services, LLC (“MVT”) and Mesilla Valley Transportation Solutions, LLC (“Mesilla Valley Transportation”). MVT and Mesilla Valley Transportation are trucking and transportation companies. By their leasing arrangement, Appellants employed Appellee Javier Rodriguez as a “Truck Washer/Detailer.” Rodriguez filed suit against Appellants in which he alleged claims of employment discrimination in violation of Texas law. In response, Appellants generally denied Rodriguez’ claims, asserted affirmative defenses, and made a demand for arbitration.

Appellants later filed a motion to stay proceedings and compel arbitration based on their

assertion that Rodriguez had signed two enforceable arbitration agreements. In a response filed shortly before the hearing set on Appellants’ motion, Rodriguez argued against arbitration by asserting: (1) that, based on his assigned job duties, he was deemed a transportation worker who was exempt from the application of the Federal Arbitration Act (FAA); (2) that the purported arbitration agreement relevant to this claims was procedurally unenforceable given that he did not read English fluently, did not understand the documents, and they were not explained to him when he asked for an explanation; and (3) that the purported arbitration agreement was substantively unconscionable because it improperly attempted to limit legally-available remedies. Following a hearing without live testimony, the trial court entered an order denying Appellants’ motion without specifying the grounds for its ruling. Appellants argue here that the trial court abused its discretion in denying the motion to compel arbitration because: (1) the trial court was obligated to hold a Tipps hearing1 based on Appellants’ hearing request; (2) Rodriguez did not qualify as a transportation worker under the FAA; and (3) the arbitration agreements at issue were not procedurally unconscionable. We affirm.

I. BACKGROUND

Rodriguez filed a lawsuit against Appellants alleging he was unlawfully terminated on February 8, 2017, based on discrimination due to age and disability, or perceived disability. Appellants filed a motion to stay proceedings and compel arbitration based on two arbitration agreements Rodriguez had signed during his employment with Appellants. Appellants attached to their motion the two agreements signed by Rodriguez, an affidavit from Greg Ginger, Director of

1 See Jack B. Anglin Co., Inc. v. Tipps, 842 S.W.2d 266, 269 (Tex. 1992) (orig. proceeding) (describing the evidentiary hearing pertaining to the determination of a motion to compel arbitration).

Human Resources for OEP, and a formal job description signed by Rodriguez in which he acknowledged the duties that corresponded to his assigned position. By his affidavit, Ginger attested that Rodriguez was employed as a “Truck Washer/Detailer” at Mesilla Valley Transportation at all times relevant to the suit. Rodriguez’ formal job description assigned tasks such as leading trucks through a wash bay, hand-cleaning certain parts or areas of the trucks, maintaining the grounds of the wash bay, ensuring that equipment on the truck was not missing, and reporting any truck damage to his supervisor. Additionally, the job description noted that “[o]ther duties may be assigned.” Ginger further attested that the two separate, written agreements were signed by Rodriguez pursuant to a mandatory company policy as a condition of employment. Both agreements are printed in English. These agreements required that all claims and disputes arising from Rodriguez’ employment, including discrimination claims based on age and disability, would be submitted to binding arbitration rather than to a court or jury. Rodriguez signed the first agreement in October 2014 and the second in January 2017.

The trial court set a hearing on Appellants’ motion to compel arbitration for 1:30 p.m. on December 3, 2018. On the day of the hearing, at 12:52 p.m., Rodriguez filed his written response in opposition to the motion. Rodriguez attached to his response his own affidavit and portions of a transcript from the deposition taken of Greg Ginger. In his affidavit, Rodriguez acknowledged he had received the arbitration agreements. He further attested, however, that he did not read English fluently, he did not understand the documents, and he was not provided with any translation. Rodriguez attested that, “I asked what they were, and was told something like, they were if there was a problem with the company.” Rodriguez stated further, “[t]he meaning of arbitration and the process were not explained to me.” Yet, he also claimed he was told that he had

to sign the documents. As for the transcript included with the response, it showed that Ginger had testified that Rodriguez’ personnel record did not reflect that he had received a Spanish version of the arbitration agreements.

The trial court proceeded to hold the scheduled hearing set on Appellants’ motion. Counsel for Appellants reported he had just been handed a copy of Rodriguez’ response and he had not yet had a chance to study it. Counsel added, “I don’t have a problem with that. I’m not complaining . . . and kind of scanning through it, they’re raising some issues that I believe are going to necessitate a Tipps hearing.” Counsel discussed further the reasons why he believed such a hearing was necessary to address the grounds raised.

Counsel for Rodriguez responded by claiming, “this is the Tipps hearing. This is the hearing that the Court set for the evidentiary hearing on their motion to compel arbitration. . . . They attached affidavits to their motion. I questioned the witness under oath.” Addressing the grounds of his opposition, Rodriguez’ counsel then argued that the transportation exception applied to exempt Rodriguez, that the agreement at issue was procedurally unconscionable due to Rodriguez being a Spanish speaker, and that the agreement was unconscionable “because it excludes certain remedies that the law provides; specifically, exemplary and punitive damages.” Appellants’ counsel responded to the argument by reiterating that he had no complaint about Rodriguez’ late filing of his response as long as an evidentiary hearing was held to enable him to explore with Rodriguez the issues raised by his affidavit and response.

Next, the trial court queried about what additional evidence Appellants would be able to offer at such a hearing and counsel further responded as follows:

[Trial Court]: So I guess my question is: What more would Mr. Ginger add to what he’s already put into his affidavit?

[Appellants’ Counsel]: I’m not saying Mr. Ginger would be the only witness we’d call to testify. For example, Mr. Rodriguez could testify.

And I will say this: I’ll concede to the Court and to their point, if the Court believes -- it’s up to the Judge – that you don’t need to hear any additional facts and you believe what you have in front [of you] is necessary to make the determination, you certainly can. It’s just my position that we should be allowed the Tipps hearing.

[Emphasis added].

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OEP Holdings, LLC, MVT Services, LLC, and Mesilla Valley Transportation Solutions, LLC v. Javier Rodriguez, (Tex. Ct. App. 2020).

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