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

CourtCourt of Appeals of Texas
DecidedSeptember 30, 2020
Docket08-18-00226-CV
StatusPublished

This text of OEP Holdings, LLC, MVT Services, LLC, and Mesilla Valley Transportation Solutions, LLC v. Javier Rodriguez (OEP Holdings, LLC, MVT Services, LLC, and Mesilla Valley Transportation Solutions, LLC v. Javier Rodriguez) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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).

2 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

3 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?

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

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

Related

Gilmer v. Interstate/Johnson Lane Corp.
500 U.S. 20 (Supreme Court, 1991)
J.M. Davidson, Inc. v. Webster
128 S.W.3d 223 (Texas Supreme Court, 2003)
In Re AdvancePCS Health L.P.
172 S.W.3d 603 (Texas Supreme Court, 2005)
In Re Palm Harbor Homes, Inc.
195 S.W.3d 672 (Texas Supreme Court, 2006)
In Re Poly-America, L.P.
262 S.W.3d 337 (Texas Supreme Court, 2008)
Perry v. Cohen
272 S.W.3d 585 (Texas Supreme Court, 2008)
In Re Department of Family & Protective Services
273 S.W.3d 637 (Texas Supreme Court, 2009)
Strather v. Dolgencorp of Texas, Inc.
96 S.W.3d 420 (Court of Appeals of Texas, 2003)
Fox v. Maguire
224 S.W.3d 304 (Court of Appeals of Texas, 2005)
In Re Firstmerit Bank, N.A.
52 S.W.3d 749 (Texas Supreme Court, 2001)
In Re Halliburton Co.
80 S.W.3d 566 (Texas Supreme Court, 2002)
Capital Finance & Commerce AG v. Sinopec Overseas Oil & Gas, Ltd.
260 S.W.3d 67 (Court of Appeals of Texas, 2008)
Berry v. Segall
315 S.W.3d 141 (Court of Appeals of Texas, 2010)
Furnace v. Furnace
783 S.W.2d 682 (Court of Appeals of Texas, 1989)
Jack B. Anglin Co., Inc. v. Tipps
842 S.W.2d 266 (Texas Supreme Court, 1992)
U.S. Lawns, Inc. v. Castillo
347 S.W.3d 844 (Court of Appeals of Texas, 2011)
Shamrock Foods Co. v. Munn & Associates, Ltd.
392 S.W.3d 839 (Court of Appeals of Texas, 2013)
Delfingen US-Texas, LP v. Guadalupe Valenzuela
407 S.W.3d 791 (Court of Appeals of Texas, 2013)
the Inland Sea, Inc. v. Christopher Castro
420 S.W.3d 55 (Court of Appeals of Texas, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
OEP Holdings, LLC, MVT Services, LLC, and Mesilla Valley Transportation Solutions, LLC v. Javier Rodriguez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oep-holdings-llc-mvt-services-llc-and-mesilla-valley-transportation-texapp-2020.