Ragone v. Atlantic Video at the Manhattan Center

595 F.3d 115, 2010 U.S. App. LEXIS 3018, 93 Empl. Prac. Dec. (CCH) 43,822, 108 Fair Empl. Prac. Cas. (BNA) 781, 2010 WL 536070
CourtCourt of Appeals for the Second Circuit
DecidedFebruary 17, 2010
DocketDocket 08-4666-cv
StatusPublished
Cited by267 cases

This text of 595 F.3d 115 (Ragone v. Atlantic Video at the Manhattan Center) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Ragone v. Atlantic Video at the Manhattan Center, 595 F.3d 115, 2010 U.S. App. LEXIS 3018, 93 Empl. Prac. Dec. (CCH) 43,822, 108 Fair Empl. Prac. Cas. (BNA) 781, 2010 WL 536070 (2d Cir. 2010).

Opinion

POOLER, Circuit Judge:

This case presents questions of law regarding the enforcement of arbitration agreements. After the defendants announced their intention to waive enforcement of certain provisions of the arbitration agreement at issue, the district court (Koeltl, J.) granted the defendants’ motion to dismiss the complaint and compel arbitration. We affirm the district court because we believe that the arbitration agreement, as modified by the defendants’ waivers, will allow the plaintiff to “vindicate [her] statutory cause[s] of action in the arbitral forum.” Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 637, 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985). We emphasize, however, that it is not at all clear that we would reach the same result had the defendants attempted to enforce the arbitration agreement in its entirety.

PACTS

Plaintiff-appellant Rita Ragone brings this employment discrimination action under Title VII of the Civil Rights Act of 1964 (“Title VII”), 42 U.S.C. § 2000e et seq. She also asserts claims under the New York State Human Rights Law (“NYSHRL”), N.Y. Exec. Law § 290 et seq., and the New York City Human Rights Law (“NYCHRL”), N.Y.C. Admin. Code § 8-101 et seq. Specifically, Ragone contends that the defendants, for whom she worked, subjected her to “continuous sexual harassment [which] made [her] work environment hostile, abusive and intolerable____” (¶ 21) 1

Ragone devotes a substantial portion of her brief on this appeal to setting forth the details of her allegations of harassment. But while this recitation would certainly be relevant if the instant appeal called for us *118 to review the district court’s decision on a dispositive motion, such a motion is not under consideration here. Rather, the instant appeal considers whether the district court correctly held that Ragone’s claims should be heard in an arbitral forum. Properly considered, this question takes no account of the merits of claims asserted in the complaint. See JLM Indus., Inc. v. Stolt-Nielsen SA, 387 F.3d 163, 171 (2d Cir.2004) (“Determination of the arbitrability of ... claims ... does not in any way rest upon the strength of those claims.”). Accordingly, whether or not they amount to a meritorious claim, the allegations of sexual harassment made by Ragone are not relevant here. The facts that are relevant to this appeal are few and straightforward.

A. The Arbitration Agreement. Ragone alleges that she “is a well-known and well-respected makeup artist and hairstylist to television and movie stars, dignitaries, athletes and houses of fashion.” (¶ 12) Atlantic Video (“AVI”), which apparently operates under the name MCP-AV, Inc., is alleged to be “a digital broadcast and film production and post production company” which maintains a large television studio in New York City. (¶ 2) ESPN, the well-known cable television sports news service, “was a client of [AVI’s] and operated various shows, including ‘Cold Pizza,’ ” a morning sports news show, “out of [AVI’s New York] studio.” (¶ 3) 2

Ragone was employed by AVI as a make-up artist from February 28, 2005 until April 11, 2006. (¶ 11) Ragone alleges that her termination by AVI on this latter date was an act of retaliation taken in response to her numerous complaints regarding acts of sexual harassment. (¶¶ 120)

Ragone’s employment with AVI was made subject to her assent to an arbitration agreement, which contains the following provision:

1. I shall submit to the American Arbitration Association (“AAA”) for final and binding arbitration by one arbitrator ... any and all claims or controversies arising out of my employment or its termination including, but not limited to, claims concerning discipline and discharge; ... claims for discrimination ...; claims of sexual harassment;....
2.... I further understand, acknowledge, and agree that this Agreement shall be construed and enforced in accordance with the laws of the State of New York, without regard to principles of conflicts of law.

The arbitration agreement also contains a number of provisions regarding not only the conduct of arbitration proceedings, but also the conduct of any court proceeding that Ragone might initiate. Ragone asserts that several of these provisions are unconscionable, and therefore unenforceable. Specifically, as set forth by the district court, Ragone asserts that the arbitration agreement:

(a) impermissibly shortens the statute of limitations [for bringing any demand for arbitration] to ninety days, (b) it *119 requires that attorney’s fees must be awarded to the prevailing party, (c) it prevents the plaintiff from appealing the arbitrator’s award in court, and (d) it denies the plaintiff some of her rights in court by limiting her discovery rights and eliminating her right to a jury trial.

Further, the arbitration agreement contains the following severability clause:

In the event that any provision of this Agreement, or the application of such provision shall be held by a court of competent jurisdiction to be contrary to law, the remaining provisions of the Agreement shall remain in full force and effect. If any provisions regarding discovery or the time to make a demand for arbitration of claims ... is deemed unenforceable, then such provision shall be modified automatically such that it comports with the applicable federal and/or New York law.

B. The Status of ESPN. It is undisputed that ESPN is not a signatory to the arbitration agreement. ESPN is also not mentioned, expressly or by implication, in either the arbitration agreement, or in any of the other documents relating to Ragone’s initial employment that are contained in the record. Nevertheless, Ra-gone’s complaint contains numerous allegations which support the district court’s conclusion that her “claims of unlawful harassment and retaliation against AVI and ESPN rely on the concerted actions of both defendants and are therefore substantially interdependent.” Ragone, 2008 WL 4058480, at *10.

First, Ragone asserts that she “was hired by [AVI] as a make-up artist for one of [its] significant clients, Defendant ESPN.

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595 F.3d 115, 2010 U.S. App. LEXIS 3018, 93 Empl. Prac. Dec. (CCH) 43,822, 108 Fair Empl. Prac. Cas. (BNA) 781, 2010 WL 536070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ragone-v-atlantic-video-at-the-manhattan-center-ca2-2010.