Roberts v. Central Refrigerated Service

27 F. Supp. 3d 1256, 2014 WL 2765542, 2014 U.S. Dist. LEXIS 83695
CourtDistrict Court, D. Utah
DecidedJune 18, 2014
DocketCase No. 2:13-cv-911
StatusPublished
Cited by4 cases

This text of 27 F. Supp. 3d 1256 (Roberts v. Central Refrigerated Service) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roberts v. Central Refrigerated Service, 27 F. Supp. 3d 1256, 2014 WL 2765542, 2014 U.S. Dist. LEXIS 83695 (D. Utah 2014).

Opinion

MEMORANDUM DECISION AND ORDER

CLARK WADDOUPS, District Judge.

INTRODUCTION

Defendants Central Refrigerated Service, Inc. (“Central”), Jon Isaacson and Bob Baer move to compel arbitration of Plaintiff Jacob Roberts’ individual claim and to dismiss the Complaint (Dkt. No. 2). In the alternative, Defendants request that the court stay further proceedings in the action pending the conclusion of arbitration. Defendants’ Motion to Compel Arbitration asserts that the parties’ written employment agreement mandates that the present dispute be arbitrated under the laws of Utah. Def.’s Mot. to Compel at 1 (Dkt. No. 15).

[1258]*1258The court heard argument on February 13, 2014 and took the motion under advisement. After carefully reviewing the parties’ filings and relevant legal authorities, the court GRANTS Defendant Central’s Motion to Compel Arbitration and DISMISSES the case without prejudice.

FACTUAL BACKGROUND

Central is a Utah-based refrigerated trucking company that is incorporated under the laws of Nebraska and headquartered in Salt Lake City, Utah. Plaintiff Jacob Roberts was employed by Central as a company truck driver. Mr. Roberts filed a Complaint on October 8, 2013 alleging that Central failed to fully compensate him for wages earned while under their employ. Mr. Roberts also alleges “unlawful pay practices and policies” in violation of the Fair Labor Standards Act (“FLSA”) and that Central failed to pay at least the minimum wage for orientation time, travel time, and training time.

Defendants assert that Mr. Roberts signed an agreement containing a mandatory binding arbitration clause that encompasses all claims related to Mr. Roberts’ employment with Central. The agreement specifies that it be governed by Utah law. At or near the beginning of his employment with Central, Mr. Roberts was provided several documents to read and sign. One of the documents Mr. Roberts signed is the “Memorandum of Understanding Form” (the “Memorandum”) which sets forth certain terms of the driver’s employment with Central.

Directly above Mr. Roberts’ signature is the following provision:

I agree to and will be bound by the laws of Utah in all respects relating to the employee-employer relationship. I understand that I am a Utah employee for all employment issues, which may include, but are not limited to wages, unemployment insurance, workers compensation, Title VII, ADA, ADEA, FMLA, Title 29 and so forth. I understand that I must report all work-related injuries to the Worker’s Compensation department within 24 hours of occurrence. I have been issued a written policy with the proper procedure for the reporting of an injury. Since I am now a Utah employee, I expressly agree to have all employment matters settled under the laws and jurisdiction of Utah.
I agree in the event of any dispute, claim or controversy arising between me or the company relating to my employment relationship, any claim of discrimination, wrongful termination, sexual harassment, Title VII, ADA, ADEA, or FMLA, that any such dispute or controversy will be settled by final, mandatory binding arbitration in accordance with the arbitration rules of the American Arbitration Association and any judgment upon the award rendered by the arbitrator may be entered into the court system of the State of Utah.

See Def.’s Mot. to Compel, Ex. B (Dkt. No. 15-2) (emphasis added).

ANALYSIS

I. APPLICABLE LAW

A. Utah Contract Law

Under Utah law, generally, formation of a contract requires only an offer, an acceptance, and consideration. Cea v. Hoffman, 2012 UT App 101, P24, 276 P.3d 1178 (Utah Ct.App.2012). Where only the appearance of a promise exists, i.e., a statement made in such vague or conditional terms that the person making it commits himself to do nothing, the alleged promise is illusory and unenforceable. Resource Management Co. v. Weston Ranch & Livestock Co., 706 P.2d 1028, 1036 (Utah 1985). Where one party reserves an abso[1259]*1259lute and unconditional power to terminate a contract, the contract is illusory and unenforceable. Id. at 1037.

B. Utah Arbitration Law

Under the Utah Arbitration Act, a written agreement to arbitrate an existing or future controversy arising between the parties to an agreement is “valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract.” Utah Code Ann. § 78B-11-107(1). The court decides whether an agreement to arbitrate exists or whether a controversy is covered by the agreement. Id. at § 78B — 11—107(2). An arbitrator decides whether “a condition precedent to arbitrability has been fulfilled” and whether “a contract containing a valid agreement to arbitrate is enforceable.” Id. at § 78B-11-107(3).

Thus, Utah law prescribes that the arbitration agreement is severable from the contract as a whole and the court need only determine whether the arbitration provision is enforceable. If the court determines that it is enforceable, all other issues must then bfe turned over to the arbitrator. See id.; cf. Rent-A-Center, W., Inc. v. Jackson, 561 U.S. 63, 70-72, 130 S.Ct. 2772, 177 L.Ed.2d 403 (2010) (under federal arbitration law an arbitration provision is severable from the remainder of the contract and any challenge to the contract as a whole is to be left for the arbitrator). Upon a showing of an agreement between the parties to a dispute to arbitrate, the court shall proceed summarily to decide the issue and order the parties to arbitrate. Id. at § 7813 — 11—108(l)(b). If the court finds that there is no enforceable agreement, it may not order the parties to arbitrate. Id. at § 7813-11-108(3).

Whether the arbitration agreement here constitutes a valid and enforceable agreement is a question of law. Reed v. Davis County Sch. Dist., 892 P.2d 1063, 1064 (Utah App.1995). In interpreting the arbitration agreement, the court looks first to the document itself. Id. When a written contract’s language is not ambiguous, the parties’ intent “must be determined from the words of the agreement.” Id. at 1065. The policy of the law in Utah is to “interpret contracts in favor of • arbitration, in keeping with our policy of encouraging extrajudicial resolution of disputes when the parties have not agreed to litigate.” Id. (internal quotation marks and citations omitted).

Arbitration is a contractual remedy for the settlement of disputes. The parties are free to structure their agreement in any manner they desire. We respect the parties’ freedom to contract by enforcing arbitration agreements according to their terms and ensuring that arbitration proceedings are conducted in the manner to which the parties have agreed. As with any contract, we determine what the parties have agreed upon by looking first to the plain language within the four corners of the document.

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27 F. Supp. 3d 1256, 2014 WL 2765542, 2014 U.S. Dist. LEXIS 83695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberts-v-central-refrigerated-service-utd-2014.