Rame, LLC v. Popovich

878 F. Supp. 2d 439, 2012 WL 2719159, 2012 U.S. Dist. LEXIS 94746
CourtDistrict Court, S.D. New York
DecidedJuly 9, 2012
DocketNo. 12 Civ. 1684
StatusPublished
Cited by4 cases

This text of 878 F. Supp. 2d 439 (Rame, LLC v. Popovich) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rame, LLC v. Popovich, 878 F. Supp. 2d 439, 2012 WL 2719159, 2012 U.S. Dist. LEXIS 94746 (S.D.N.Y. 2012).

Opinion

OPINION

SWEET, District Judge.

Petitioners Rame, LLC d/b/a Cafe Centro and Patina Restaurant Group (collectively, the “Petitioners”) have filed a petition to (1) vacate arbitrator Bonnie Weinstock’s (the “Arbitrator”) Partial Final Award on Clause Construction, dated February 6, 2012 (the “Award”), pursuant to 9 U.S.C. § 10, and (2) remand the matter to the Arbitrator, directing her to proceed with each respondents’ claims in separate arbitrations on an individual basis. In her Award, the Arbitrator ruled that the arbitration agreement (the “Agreement”) between the Petitioners and the respondents Mishi Popovich (“Popovich”), Sandra Aguilera (“Aguilera”), Brendan Casey (“Casey”), Johan Mestanza (“Mestanza”), David Hewetson (“Hewetson”), Samuel Cuevas (“Cuevas”) and Bonnie Wickeraad (“Wickeraad”) (collectively, the “Respondents”) permits collective proceedings in arbitration. Upon the facts and conclusions set forth below, the petition to vacate is denied.

I. Prior Proceedings

Respondents filed a complaint against Petitioners in Popovich, et al. v. Rame, LLC d/b/a Cafe Centro, et ano, 11 Civ. 680(LBS) on January 31, 2011, which asserted class and collective action claims for unpaid wages under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and under the New York Labor Law (“NYLL”), § 190 et seq. On May 20, 2011, the Petitioners filed a motion to dismiss and compel arbitration, alleging that, under the Agreement, the Respondents were required to arbitrate their claims. In response to the motion to compel arbitration, on July 1, 2011, the Respondents voluntarily dismissed, without prejudice, the complaint and commenced arbitration.

Pursuant to the parties’ joint stipulation, dated September 23, 2011, the parties agreed to and selected the Arbitrator. They also agreed to engage in motion practice to obtain a threshold clause construction award from the Arbitrator on whether the Respondents’ claims could be brought in arbitration on a class or collective action basis.1 After several rounds of briefing, on February 6, 2012, the Arbitrator issued the Award, permitting the Respondents to pursue their claims on a class-wide or collective action basis. The Arbitrator stayed its decision to permit the parties to seek judicial review and the Petitioners filed an application to vacate the Award.

The instant motion was heard and marked fully submitted on April 11, 2012.

II. The Facts

The facts are set forth in the Award, the complaint and the declarations submitted [442]*442by the parties and are not in dispute except as noted below.

Café Centro is a restaurant located at 200 Park Avenue, New York, New York. Patina is a corporate parent of Cafe Centro. The Respondents are individuals who were former employees at Cafe Centro, who worked as a waiter, waitress, bartender, food runner and busser at various times from 1995 to June 2010 in periods ranging from nine months to more than seven years.

Beginning in November 2007, Cafe Centro’s management distributed a new Hourly Team Member Handbook (the “Handbook”) and a copy of a Dispute Resolution Agreement (the “DRA”) to the restaurant’s hourly employees for their review and execution.

In connection with the distribution of the Handbook, in November 2007, Cafe Centro’s management conducted a series of mandatory staff meetings with its hourly employees. Each employee was required to attend at least one of these meetings.

The Handbook contains a Dispute Resolution Policy (the “DR Policy”), which provides that all claims relating to an individual hourly employee’s employment must be submitted to final and binding arbitration. More specifically, the DR Policy provides, in pertinent part:

By accepting or continuing your employment with the Company, you will be agreeing that both you and the Company will resolve by mediation and final and binding arbitration any claim that would otherwise be resolved in a court of law. The claims governed by this agreement are those that you or the Company may have relating to your employment with, behavior during, or termination from the Company. Claims for workers’ compensation or unemployment compensation benefits are not subject to this agreement ... The arbitrator will decide all claims according to law, may award all damages and relief allowed by law, and will make an award with a written opinion with findings of facts and conclusions of law.

Similar to the DR Policy, the DRA requires that all claims relating to an individual’s employment be submitted to final and binding arbitration. Specifically, the DRA provides in pertinent part that;

... The claims governed by this agreement are those that you or the Company may have relating to your employment with, behavior during or termination from, the Company. Claims for workers’ compensation or unemployment compensation benefits are not subject to this agreement.
By accepting or continuing employment with the Company, you and the Company both agree to resolve such claims through final and binding arbitration. This includes, but is not limited to, claims of employment discrimination because of race, sex, religion, national origin, color, age, disability, medical condition, marital status, gender identity, sexual preference or any sexual harassment and unlawful retaliation; any claims under contract or tort law; any claim for wages, compensation or benefits; and any claim for trade secret violations, unlawful competition or breach of fiduciary duty.
... You and the Company agree that the dispute will be resolved by final and binding arbitration ... The arbitrator may award any remedy or relief as a court could award on the same claim.

Notably, the DR Policy and the DRA are devoid of any reference to arbitration on a class-wide or collective basis.

The Respondents have admitted that they received the Handbook containing the [443]*443DR Policy, which they read and understood. In addition, Aguilera, Hewetson, Cuevas and Wickeraad each commenced their employment at Cafe Centre after November 2007 and, thus, signed a DRA when they began their employment at Cafe Centro. They also signed an Employment Acknowledgement and Agreement (the “Acknowledgment”) that provides, in pertinent part:

I acknowledge that I have received a copy of the Company’s Handbook and understand that it contains important information on the Company’s general policies. I acknowledge that I am expected to read, understand, and adhere to company policies and will familiarize myself with the material in the Handbook, Team Member understands and acknowledges that this Agreement is subject to the terms and conditions of the Dispute Resolution provisions contained in the Team Member Handbook and Dispute Resolution Agreement Your signature below acknowledges that you have been given sufficient time to read and understand this document and that you agree to comply with the standards herein.

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Cite This Page — Counsel Stack

Bluebook (online)
878 F. Supp. 2d 439, 2012 WL 2719159, 2012 U.S. Dist. LEXIS 94746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rame-llc-v-popovich-nysd-2012.