Richard Parsons v. Halliburton Energy Services, Inc.

785 S.E.2d 844, 237 W. Va. 138, 26 Wage & Hour Cas.2d (BNA) 520, 2016 WL 1564376, 2016 W. Va. LEXIS 229
West Virginia Supreme Court·Decided April 11, 2016·No. 14-1288·Published·Cited by 44 cases

Opinions

Chief Justice, KETCHUM:

In this appeal from the Circuit Court of Kanawha County, we address the state common law doctrine of waiver as it relates to arbitration. The plaintiff asserts that the defendant implicitly waived a contractual right to arbitration by participating in litigation.

The circuit court entered an order finding the defendant had not waived its right to arbitration because it did not participate in the plaintiffs lawsuit, and because the defendant’s first court filing asserted the contractual right to arbitration. As set forth below, we affirm the circuit court’s order compelling the parties to arbitrate their dispute.

I.

FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff Richard Parsons was employed by defendant Halliburton Energy Services, Inc. Within the plaintiffs employment agreement was a provision that all disputes with the defendant “shall be finally and conclusively resolved through arbitration .., instead of through trial before a court.”

The plaintiff worked for the defendant from June until October 2013. On December 3, 2013, the plaintiff filed a complaint in the Circuit Court of Kanawha County alleging that the defendant did not timely pay him his final wages as required by the West Virginia [143] Wage Payment and Collection Act- (“the WPCA”).1 The plaintiffs complaint also sought to create a class action composed of other former employees of the defendant who were not timely paid their final wages.

On July 7, 2014, some seven months after the plaintiff filed his complaint, the defendant’s first court filing was a motion seeMng to compel the plaintiff to participate in arbitration. The plaintiff responded to the motion by arguing that the defendant had waived its contractual right to arbitration by failing to timely raise arbitration, and by acting inconsistently with its contractual right to arbitration in the previous seven months. The defendant never filed an answer to the plaintiffs complaint before moving to compel .arbitration, yet the plaintiff contends the defendant still participated in the litigation.

As evidence of the defendant’s participation, the plaintiff asserts that shortly after the complaint was filed, on December 16, 2013, counsel for the defendant exchanged emails with plaintiffs counsel asking for a 45-to-60 day filing extension to plead in the lawsuit. Defense counsel stated the defendant was “in the process of tracking down whether and to what extent” other employees were not paid in accordance with the WPCA, and offered to produce information about other employees to “short-circuit” discovery and litigation. Plaintiffs counsel agreed to the delay by the defendant.

On April 21, 2014, defense counsel contacted plaintiffs counsel by e-mail and asked for additional time to plead. Defense counsel asked if he was “still okay with the responsive pleading deadline and, if we’re close, can I ask that it be pushed out again?” In a subsequent phone conversation with plaintiffs counsel, defense counsel said he expected to respond to the plaintiffs needs within two to three weeks.

Some five months after the complaint was filed, on May 22, 2014, plaintiffs counsel wrote an e-mail to defense counsel. Plaintiffs counsel noted that defense counsel had not produced the promised information, and said the plaintiff was not providing “an open-ended extension for Halliburton to re-spondí)]? . A new defense lawyer (within the same firm) promptly responded to the e-mail from plaintiffs counsel. The new defense lawyer stated the prior lawyer was no longer working on the case, and said she would need additional time to “get a handle on the status” of the case. Two new lawyers noted their appearances as counsel for the defendant in the last week of June 2014, and the defendant’s. first substantive filing in the court record—the motion to compel arbitration—-was filed on July 7, 2014.

In an order dated November 14, 2014, the circuit court granted the defendant’s motion, dismissed the plaintiffs complaint and compelled the parties to participate in arbitration. - The circuit court determined that the defendant had not waived its rights under the arbitration provision. Although the defendant admitted to a seven-month delay before moving for arbitration, the circuit court found that the defendant had “not actively participated in this lawsuit.” Moreover, the circuit court found the plaintiff was required, but had failed, to prove he was prejudiced by the defendant’s actions or delay.

The plaintiff now appeals the circuit court’s order dismissing his complaint and compelling him to arbitrate his claims against the defendant.

II.

STANDARD OF REVIEW

“Appellate review of a circuit court’s order granting a motion to dismiss a complaint is de novo.” Syllabus Point 2, State ex rel. McGraw v. Scott Runyan Pontiac-Buick, Inc., 194 W.Va. 770, 461 S.E.2d 516 (1995).

III.

ANALYSIS

The facts below are not disputed, and the parties agree that the plaintiffs claims fall within the scope of a clear and unambiguous arbitration agreement. Additionally, the plaintiff does not challenge the enforceability [144] of the arbitration agreement under West Virginia’s general contract law. The sole question on appeal is whether the defendant’s actions, viewed under principles of state contract law, served to waive its contractual right to arbitration.

The plaintiff insists the defendant actively participated in the underlying litigation by volunteering to produce class-wide discovery and by repeatedly seeking extensions of time to file a responsive pleading. The plaintiff argues the defendant’s actions were contrary to its contractual right to avoid the court system and demonstrated the defendant’s intent to waive the protection afforded by the contractual arbitration provision.

The defendant counters that these actions did not rise to a level of “substantial participation” in the litigation process, and on balance are not of enough significance to demonstrate waiver. Furthermore, the defendant asserts the plaintiff was required to establish “actual prejudice” before a court could find waiver of a contract right, and asserts the plaintiff failed to meet this burden.

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

Richard Parsons v. Halliburton Energy Services, Inc., 785 S.E.2d 844, 237 W. Va. 138, 26 Wage & Hour Cas.2d (BNA) 520, 2016 WL 1564376, 2016 W. Va. LEXIS 229 (W. Va. 2016).

785 S.E.2d 844 (Richard Parsons v. Halliburton Energy Services, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Canal Insurance Company v. Sammons
S.D. West Virginia, 2024
Vega v. Beck
N.D. West Virginia, 2024
Kimberly Mahdavi v. Malek Mahdavi
Int. Ct. of App. of W.Va., 2023
Frashuer v. Altice USA, Inc.
N.D. West Virginia, 2023
Dow v. Liberty Insurance Company
S.D. West Virginia, 2022
Fitness, Fun and Freedom, Inc. v. David Perdue
West Virginia Supreme Court, 2021
Welded Construction, L.P.
D. Delaware, 2020