Torgerson v. LCC International, Inc.

227 F. Supp. 3d 1224, 2017 WL 25387, 2017 U.S. Dist. LEXIS 955
CourtDistrict Court, D. Kansas
DecidedJanuary 3, 2017
DocketCase No. 16-cv-2495-DDC-TJJ
StatusPublished
Cited by3 cases

This text of 227 F. Supp. 3d 1224 (Torgerson v. LCC International, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Torgerson v. LCC International, Inc., 227 F. Supp. 3d 1224, 2017 WL 25387, 2017 U.S. Dist. LEXIS 955 (D. Kan. 2017).

Opinion

MEMORANDUM AND ORDER

Daniel D. Crabtree, United States District Judge

Plaintiffs bring this action alleging that defendants LCC International, Inc. (“LCC”), Kenny Young, Brian Dunn, Rebecca Stahl, and Dan Moss violated the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq. Specifically, plaintiffs claim that defendants improperly classified all LCC employees working in a Migration Analyst position as employees exempt from the FLSA’s overtime requirements. Plaintiffs, on behalf of themselves and other, similarly situated Migration Analysts, seek to recover unpaid overtime compensation under the FLSA.

On August 10, 2016, the court granted in part and denied in part defendants’ Cross Motion to Dismiss or, in" the Alternative, to Stay Proceedings and Compel Arbitration (“August 10, 2016 Order”). Doc. 62. In its August 10,' 2016 Order, the court concluded that each plaintiff signed an employment agreement that requires them to arbitrate their FLSA claims. Id. at 6. The court granted defendants’ request to stay the case and compelled the parties to proceed to arbitration. Id. at 6. Also, the court denied the portion of defendants’ motion asking the court to decide whether the employment agreement permits class arbitration because it determined that the arbitrator must decide that issue. Id. at 8. And, for the same reasons, the court declined to decide plaintiffs’ Motion for Conditional Certification of Class Claims Under § 216(b) of the FLSA without prejudice to their right to present this request to an arbitrator. Id.

Plaintiffs have filed a Motion for Reconsideration of the court’s August 10, 2016 Order. Doc. 63. Plaintiffs seek reconsideration on two bases. First, plaintiffs ask the court to reconsider its decision to compel arbitration because, plaintiffs contend, a recent Tenth Circuit case presents a change in the controlling law that renders the parties’ arbitration agreement unenforceable. Second, even if the court declines to reconsider its decision to compel arbitration, plaintiffs ask the court to grant conditional certification of a collective action because, plaintiffs contend, the court must decide this issue—not the arbitrator—and, if the court refrains from deciding this issue, plaintiffs and the putative plaintiffs will suffer manifest injustice.

Defendants have filed a Brief in Opposition to Plaintiffs Motion for Reconsideration. Doc. 65. Plaintiffs have filed a Reply. Doc. 68. After considering the parties’ arguments, the court denies plaintiffs’ Motion for Reconsideration. Doc. 63.

I. Background

Plaintiffs each signed an Employee Agreement on Ideas, Inventions and Confidential Information (“Employee Agreement”) as a condition of their employment. Doc. 27-2. In it, they agreed to: (1) protect LCC’s confidential information; (2) disclose and assign to LCC any invention plaintiffs created during their employment; and (3) refrain from competing with LCC or soliciting LCC employees for 12 months after plaintiffs’ employment with LCC con-[1227]*1227eluded. Id. at 1-4. The Employee Agreement also provides that plaintiffs’ employment at LCC is on an at-will basis. Id. at 4. Also, each plaintiff agreed to arbitrate certain disputes under Section 5.4 of the Agreement. It provides:

5.4 Arbitration: Any controversy or claim arising ou[t] of or relating to this Agreement, the breach or interpretation thereof or Employee’s employment with LCC shall be settled by arbitration in Arlington, Virginia in accordance with the then prevailing rules of the American Arbitration Association, and judgment upon the award shall be final, conclusive and binding. All costs of arbitration shall be borne by the losing party, unless the arbitrators decide such costs should be allocated between the parties in particular proportions. Notwithstanding the foregoing, LCC shall be entitled to seek injunctive or other equitable relief pursuant to the provisions of Section 5.1 hereof in any federal or state court having jurisdiction.

Id. at 5. The Employment Agreement also includes a governing law and attorney’s fees provision. It provides:

5.5 Governing Law; Attorney’s Fees. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia, without regard to principles of conflicts of law. In the event it is necessary to retain the services of legal counsel in connection with any controversy or claim arising hereunder, the prevailing party shall be entitled to reimbursement of its reasonable attorney’s fees and cost of suit.

Id.

II. Legal Standard

D. Kan. Rule 7.3(b) requires that a motion to reconsider “must be based on: (1) an intervening change in controlling law; (2) the availability of new evidence; or (3) the need to correct clear error or prevent manifest injustice.” “A motion to reconsider is appropriate where the court has obviously misapprehended a party’s position or the facts or applicable law, or where the party produces new evidence that could not have been obtained through the exercise of due diligence.” Comean v. Rupp, 810 F.Supp. 1172, 1174-75 (D. Kan. 1992). A party seeking reconsideration may not revisit issues already addressed or assert new arguments or supporting facts that otherwise were available when the' party' filed the original motion. Id. A court has discretion when deciding to grant or deny a motion to reconsider. Hancock v. Okla. City, 857 F.2d 1394, 1395 (10th Cir. 1988); Shannon v. Pac. Rail Servs., 70 F.Supp.2d 1243, 1251 (D. Kan. 1999).

III. Analysis

Plaintiffs’ motion asks the court to reconsider two rulings in its August 10, 2016 Order. First, plaintiffs ask the court to reconsider its decision to compel arbitration. Second, even if the court declines to reconsider its decision to compel arbitration, plaintiffs ask the court to reconsider its decision declining to decide the class certification question. The court addresses each request, in turn, below.

A, Should the Court Reconsider Its Decision to Compel Arbitration?.

Plaintiffs assert that a Tenth Circuit case, Nesbitt v. FCNH, Inc., 811 F.3d 371 (10th Cir. 2016), presents a change in controlling law that requires the court to reconsider its decision to compel the parties to arbitrate this dispute. In Nesbitt, the Tenth Circuit applied the “effective vindication exception” to the Federal Arbitration Act (“FAA”) to invalidate an arbitration agreement. Id. at 377. The effective vindication exception “originated as dictum [1228]*1228in Mitsubishi Motors [Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 106 S.Ct. 3346, 87 L.Ed.2d 444 (1985)], where [the Supreme Court] expressed a willingness to invalidate, on ‘public policy’ grounds, arbitration agreements that operate] ... as a prospective waiver of a party’s right to pursue statutory remedies.” Id. (quoting Am. Express Co. v. Italian Colors Rest., — U.S. -, 133 S.Ct.

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227 F. Supp. 3d 1224, 2017 WL 25387, 2017 U.S. Dist. LEXIS 955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/torgerson-v-lcc-international-inc-ksd-2017.