Severinghaus v. Docusign, Inc.

CourtDistrict Court, N.D. Illinois
DecidedMarch 28, 2024
Docket1:22-cv-00170
StatusUnknown

This text of Severinghaus v. Docusign, Inc. (Severinghaus v. Docusign, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Severinghaus v. Docusign, Inc., (N.D. Ill. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

ERIK SEVERINGHAUS, ) ) Plaintiff, ) No. 1:22-CV-00170 ) v. ) ) Judge Edmond E. Chang DOCUSIGN, INC. ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

Erik Severinghaus brought this action against his former employer, DocuSign, Inc., alleging violations of the Family and Medical Leave Act (FMLA), Title VII of the Civil Rights Act of 1964 (Title VII), and the Illinois Human Rights Act.1 R. 1, Compl. ¶¶ 1–2.2 DocuSign now moves to dismiss for improper venue under Civil Rule 12(b)(3), or alternatively, to transfer the case pursuant to a forum-selection clause and the doctrine of forum non conveniens under 28 U.S.C. § 1404(a). Specifically, DocuSign contends that the parties agreed to arbitrate employment claims in King County, Washington.3 R. 9, Def.’s Mot. at 1–2. In response, Severinghaus argues that he should not be forced to arbitrate because the arbitration agreement requires Sever- inghaus to (1) arbitrate this dispute in Washington state, which has no connection to this case; (2) pay his own attorney’s fees and costs regardless of outcome,

1 The Court has federal-question jurisdiction over the federal law claims and supple- mental jurisdiction over the related state law claim. 28 U.S.C. §§ 1331, 1367(a). 2 Citations to the record are noted as “R.” followed by the docket number and the page or paragraph number. 3 DocuSign has offered to arbitrate in Chicago, Illinois to reduce Severinghaus’s finan- cial burden associated with arbitrating in the State of Washington. R. 16, Def.’s Reply at 4. contravening the fee-shifting provisions in Title VII, the FMLA, and the IHRA; and (3) pay half of the costs and expenses of the arbitration, overriding the default Amer- ican Arbitration Association (AAA) rules. R. 11, Pl.’s Resp. at 1–2. For the reasons

explained in this Opinion, the case is dismissed without prejudice: the case must be arbitrated. But the arbitration-agreement provision that prohibits an award of attor- ney’s fees if Severinghaus prevails is severed and is unenforceable. I. Background

In evaluating a motion to dismiss for improper venue, the Court “takes all the allegations in the complaint as true unless contradicted by the defendant’s affidavit and may examine facts outside the complaint.” Interlease Aviation Inv’rs II (Aloha) L.L.C. v. Vanguard Airlines, Inc., 262 F. Supp. 2d 898, 913 (N.D. Ill. 2003) (cleaned up). The Court also “constru[es] all facts and draw[s] reasonable inferences in favor of the plaintiff.” Faulkenberg v. CB Tax Franchise Sys., LP, 637 F.3d 801, 806 (7th Cir. 2011). Severinghaus was previously employed by DocuSign as Senior Director of Business Development in Chicago, Illinois. Compl. ¶ 5. Severinghaus began working

for DocuSign in September 2018, when DocuSign acquired his then-current employer, SpringCM. Id. ¶ 7. In August 2018, as a condition of employment with DocuSign, Severinghaus executed an employment agreement entitled “Confidential Information, Invention Assignment, Non-Competition and Arbitration Agreement.” Def.’s Mot. at 1; R. 9-1, Exh. A, Shinkfield Decl. ¶¶ 6–7. The arbitration provision requires the par- ties to submit (except for an irrelevant exception) “ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP” to arbitration in King County, Washington. R. 9-1, Agr. §§ 11.1, 11.2 (attached as Exhibit 1 to Shinkfield Decl.) (capitalization in original). The arbitration provision further in-

structs, again in capital letters, that “ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL, STATE[,] OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT ...” must be submitted to arbitration. Id. § 11.2(b) (capitalization in original). According to the Complaint, Severinghaus enjoyed an excellent reputation at DocuSign for the quality of his work, as reflected in his employee reviews, which praised him for his engagement and leadership. Compl. ¶ 8. Severinghaus was rou-

tinely among the top performers based on assigned quantitative metrics. Id. But Sev- eringhaus’s relationship with DocuSign began to sour when he took his first parental leave between August 2019 and January 2020, after his first child was born. Id. ¶¶ 9– 10. Chief Operating Officer Scott Olrich and Senior Vice President of Business Devel- opment & Channels Mark Register allegedly made negative comments towards Sev- eringhaus, communicated their disappointment that he had taken parental leave,

and wanted to punish him for taking parental leave. Id. ¶¶ 11–13. To Severinghaus, it appeared that the negativity directed at him stemmed from gender-based stereo- types that men are not the primary caregivers in their families. Id. Severinghaus contends that DocuSign took other adverse actions against him to punish him for taking paternity leave, such as: taking away his office, repeatedly criticizing him on leadership calls, and denying him additional restricted stock units that were otherwise regularly awarded to top performers—while awarding restricted stock units to other employees who had not taken parental leave. Id. ¶ 13. Severinghaus raised his concerns to human resources and explained that he was subjected to hos-

tility by his supervisor following his return from parental leave. Id. ¶ 14. After Sev- eringhaus contacted human resources, his supervisor’s hostility subsided and Sever- inghaus earned a favorable review in August 2020. Id. ¶ 15. But the circumstances of Severinghaus’s employment again deteriorated after he announced on November 9, 2020, that he would again need to take parental leave in July 2021. Id. He was fired shortly thereafter, “within a matter of weeks.” Id. DocuSign asserted that Sev- eringhaus’s role was eliminated due to restructuring, but also rejected Severinghaus’s

request for an internal transfer. Id. ¶¶ 16–17. In this lawsuit, Severinghaus alleges six claims: (1) gender discrimination in violation of Title VII; (2) retaliation in violation of Title VII; (3) unlawful conduct in violation of the FMLA; (4) retaliation in violation of the FMLA; (5) gender discrimi- nation in violation of the Illinois Human Rights Act; and (6) retaliation in violation of the Human Rights Act. Id. ¶¶ 29–50. In light of the arbitration agreement,

DocuSign moves to dismiss the complaint under Civil Rule 12(b)(3), or alternatively, to transfer the case. Def.’s Mot. at 1. Severinghaus argues that the arbitration agree- ment that he signed is unenforceable because it compels him to (1) arbitrate this case in King County, Washington; (2) pay his own attorney’s fees—even if he wins—in contravention of the fee-shifting provisions in Title VII, the FMLA, and the Human Rights Act; and (3) pay one-half of the costs and expenses of the arbitration despite rules of the American Arbitration Association rules. Pl.’s Resp. at 1–2. II. Legal Standard

The Federal Arbitration Act provides that when arbitration is proper, a “court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement.” 9 U.S.C. § 4. Interpreting this provision, the Seventh Circuit has held that “where the arbitration agreement contains a forum selection clause, only the district court in that forum can issue a § 4 order compelling arbitra- tion.” Merrill Lynch, Pierce, Fenner & Smith, Inc. v.

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