Vernal Ezekiel Herbert v. National Industrial Services, LLC

CourtSuperior Court of The Virgin Islands
DecidedMarch 18, 2022
DocketSX-19-CV-629
StatusPublished

This text of Vernal Ezekiel Herbert v. National Industrial Services, LLC (Vernal Ezekiel Herbert v. National Industrial Services, LLC) is published on Counsel Stack Legal Research, covering Superior Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vernal Ezekiel Herbert v. National Industrial Services, LLC, (visuper 2022).

Opinion

SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST CROIX

VERNAL EZEKIEL HERBERT Civil N0 SX 19 CV 629 PLAINTIFF, ACTION FOR DAMAGES V

NATIONAL INDUSTRIAL SERVICES, LLC, JURY TRIAL DEMANDED DEFENDANT CITE AS 2022 v1 SUPER A

Appearances Eugenio W A Geigel Simounet, Esq GS Law Offices P C St Croix, U S Virgin Islands 1"or Plamttff

Gaylin Vogel Kevin F D’Amour, P C St Thomas, U S Virgin Islands For Defiandant

MEMORANDUM OPINION AND ORDER

WILLOCKS Presiding Judge

1] 1 THIS MATTER came before the Court on Defendant National Industrial Services, LLC’s

(hereinafter ‘Defendant’) motion to dismiss or in the alternative, motion to stay pending

arbitration and motion to dismiss Count I for failure to state a claim upon which relief can be

granted, filed on January 18, 2022 ' In response, Plaintiff Vernal Ezekiel Herbert (hereinafter

“Plaintiff’) filed an opposition, and Defendant filed a reply thereto

' This motion was joined with Defendant s motion to set aside entry of default and motion to dismiss or in the alternative motion to stay, filed on January I8 7022?. Defendant 5 January [8 2022 motion actually consisted of three separate motions (i) a motion to set aside entry of default, (ii) a motion to dismiss or in the alternative, motion to stay pending arbitration and (iii) a motion to dismiss Count I for failure to state a claim upon which relief can be granted On February 19 2022, the Court entered an order whereby the Court disposed of Defendant s motion to set aside entry of default Thus the Court will address the motion to dismiss or in the alternative motion to stay pending arbitration, Herbert v National Industrial Services LLC SX 19 CV 629 Memorandum Opinion and Order 2022 VI SUPER ZS ‘ Page 2 of 8 BACKGROUND: 1] 2 On December 17 2019, Plaintiff filed a complaint against Defendant in connection with

Plaintiff’s employment with Defendant In his complaint, Plaintiff alleged the following cause of

action Count I for civil rights violations, Count [I for wrongful discharge, and Count 111 for

punitive damages 3 (Compl 1 2)

"3 On January 18 2022, Defendant filed this instant motion to dismiss or in the alternative,

motion to stay

DISCUSSION

1 Motion to Dismiss or in the Alternative, Motion to Stay Pending Arbitration

1M In its motion Defendant argued that ‘[t]his Court must dismiss the Complaint in favor of

arbitration as the claims are governed by the Arbitration Agreement” or “[i[n the alternative,

issue a stay pending arbitration ” (Motion, p 5) Defendant made the following assertions in

support of its argument (i) “As part of [Plaintiff’s] employment paperwork, he signed an

arbitration agreement where he agreed to arbitrate all disputes related to his employment ”

(Motion, p 2); (ii) ‘The arbitration agreement is a valid contract ” (Id at p 4), (iii) The

arbitration agreement specifically states it shall govern all disputes or controversies arising out of

[sic] related to the relationship between [Plaintiff] and [Defendant], and any termination of his

employment with [Defendant] ’ (Id , at pp 4 5); and (iv) “The contract also touches on interstate

and the motion to dismiss Count I for failure to state a claim upon which relief can be granted together in this memorandum opinion and order 2 A thorough description of the procedural background is provided in the Court 5 February I9 2022 order 3 The Court must note that in Bertrand v Mystic Granite & Marble Inc , the Virgin Islands Supreme Court affirmed the Superior Court 5 ruling that “a request for punitive damages is not an independent cause of action 63 V I 772 784 n 6 (V1 2015) see also Der Weerv Hess 011 VI Corp 60 V I 9| 95 n l (VI Super Ct 2014)( Although labeled as a ‘claim for punitive damages in the complaint punitive damages is not a separate cause of action but rather a demand for a certain type of damages ”) Herbert v Natlonal Industrial Servzces LL( SX [9 CV 629 Memorandum Opinion and Order 2022 VI SUPER Zfi Page 3 of8 The Limetree Bay refinery exports oil out of the territory " (Id at p 5 ) A copy of a document

titled Arbitration Policy and DiSpute Resolution Program,” dated August 29, 2017, executed by

Plaintiff and Defendant was attached as an exhibit to the motion

1: 5 In his opposition Plaintiff argued that the Court should deny Defendant’s motion Plaintiff

indicated that he “incorporates and adopts by references the arguments contained in [his motion

for relief from the February 19, 2022 order],’ (Opp , p 2), and made the following assertion in

support of his argument ‘The Defendant after having defaulted and the facts claimed having been

deemed admitted, Defendant has waived its defenses including the claim for arbitration clause

(request for stay) (Id at pp 3 4)

f6 In its reply, Defendant reiterated his argument that this matter is subject to the Arbitration

Agreement (Reply at p 3 )

A Standard of Review

1] 7 In Whyte v Bockmo, the Virgin Islands Supreme Court determined that Federal Arbitration

Act (hereinafter “FAA”) applies to the Virgin Islands but the “party seeking to compel arbitration

must not only show that an agreement to arbitrate exists, but also show that the contract evidences

an interstate nexus ” 69 V I 749, 760 61 (V I 2018) (“Wher 11”) “In ruling on a motion to compel

arbitration, the court must first determine whether the parties agreed to arbitrate and then whether

they agreed to arbitrate the claims at issue, unless they agreed otherwise,” Cornwall v V] Indus

Mam! Corp 71 V I 203 224 (Super Ct Aug 26 2019) (citing Whyte II 69 V I at 7630 ( [I]n

the absence of an agreement to the contrary [courts] are limited to determining which

subjects the parties have agreed to arbitrate, according to their contract ”) (quotation marks,

brackets, ellipsis and citations omitted» “‘General principles of contract apply’ to these

determinations ” Id (quoting Whyte II, 69 V I at 764) Once the court concludes that the parties Herbertv National Industrial Services LLC 8X 19 CV 629 Memorandum Opinion and Order 2022 VI SUPER 2 I Page 4 of 8 agreed to arbitrate some or all of the claims at issue, assuming the parties did not leave the

arbitrability issue to the arbitrator, then the court must determine whether the parties’ contract has

an interstate nexus See Id As the Whyte II court explained, “the burden on the compelling party

to show that a contract evidences an interstate nexus is relatively low” and “for an interstate nexus

to exist, the parties' agreement need not be m interstate commerce nor have a substantzal effect on

interstate commerce ” 69 V I at 761 (citations omitted) (emphasis in original) In other words,

“the contract between the parties need only ‘affect[] interstate commerce,’ such as where the

economic activities of at least one of the parties demonstrates a nexus to interstate commerce ” Id

(citations omitted) “It is apparent then, that the FAA applies to the Virgin Islands when an

interstate nexus can be demonstrated ” Ayala v World Fresh Mk! , No SX 20 CV 728, 2021 V I

LEXIS 53 at *2 (V I Super Ct Feb 10 2021)

B Analysis

1 Whether the FAA is Applicable

a Agreement to Arbitrate

'8 The document titled ‘ Arbitration Policy and Dispute Resolution Program” (hereinafter

Arbitration Agreement’ ) provides in relevant part

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Related

Davis v. Allied Mortgage Capital Corp.
53 V.I. 490 (Supreme Court of The Virgin Islands, 2010)
In re Q.G.
60 V.I. 654 (Supreme Court of The Virgin Islands, 2014)

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