W.K. v. Farrell

853 N.E.2d 728, 167 Ohio App. 3d 14, 2006 Ohio 2676
CourtOhio Court of Appeals
DecidedMay 26, 2006
DocketNo. 21105.
StatusPublished
Cited by15 cases

This text of 853 N.E.2d 728 (W.K. v. Farrell) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W.K. v. Farrell, 853 N.E.2d 728, 167 Ohio App. 3d 14, 2006 Ohio 2676 (Ohio Ct. App. 2006).

Opinions

Fain, Judge.

{¶ 1} Plaintiff-appellant, W.K., appeals from an order of the Montgomery County Court of Common Pleas compelling arbitration of her complaint. W.K. *17 contends that her claims should not be subject to the arbitration agreement that she had signed prior to becoming employed with defendant-appellee Sterling Jewelers, Inc., because there was no meeting of the minds as to the agreement. She further contends that the arbitration agreement is adhesive and unconscionable. In addition, W.K. contends that the trial court erred in allowing discovery only as to the arbitration issue and that not all of her claims are arbitrable. We find no merit to any of W.K.’s contentions; therefore, the order of the trial court is affirmed.

I

{¶ 2} W.K. began searching for a new job in November 2000. At the age of 21, she had previously been employed in other local jewelry stores. When W.K. applied for employment with Sterling on November 16, 2000, she signed an employment application. Above the signature line, the document stated:

{¶ 3} “If employed by the company, you and the company agree to utilize the company’s binding and mandatory alternative dispute resolution program to resolve certain workplace disputes. By signing this application, and in exchange for being hired by the company, you knowingly and voluntarily waive your applicable statutory rights to file a lawsuit against the company for a covered claim.”

{¶ 4} Sterling’s alternative dispute program, known as “RESOLVE,” covers a variety of potential claims, including contractual and tort claims not covered by worker’s compensation.

{¶ 5} Subsequently, W.K. was offered a position in one of Sterling’s Columbus stores. When W.K. arrived for her first day of work on December 1, 2000, she also signed a separate document entitled “Resolve Program Alternative Dispute Resolution Arbitration Agreement,” which she received as part of a large new-hire packet. The document states, “I hereby agree to utilize the Sterling Resolve Program to pursue any dispute, claim or controversy (‘claim’) against Sterling.” The document further states:

{¶ 6} “I understand that by signing this agreement I am waiving my right to obtain any legal or equitable relief (e.g. monetary, injunctive or reinstatement) through any government agency or court, and I am also waiving my right to commence any court action.”

{¶ 7} Further, the agreement provides, in bold print, “I understand that I would not be or remain employed with Sterling absent signing this agreement.”

{¶ 8} W.K’s educational background includes two years of community college and one year at Ohio State University. W.K. acknowledges that she signed the arbitration agreement. W.K. indicated in her deposition that she did not recall *18 reading the documents that she had signed in conjunction with being employed by Sterling.

{¶ 9} In 2003, W.K. was fired. W.K. filed a complaint alleging retaliation and reprisal in the workplace as a form of discrimination, invasion of privacy, wrongful termination, intentional infliction of emotional distress, negligent retention and supervision of employees, and tortious interference with an employment relationship. In addition to Sterling, W.K. named Sterling employees Bob Farrell and Mike Lynch and Sterling’s attorney, Steve Zashin, as defendants to this action.

{¶ 10} Defendants filed a motion to stay the proceedings pending the outcome of arbitration and, in the alternative, to dismiss the action. The trial court stayed all discovery unrelated to the arbitration clauses, pending the resolution of defendants’ motion to stay. Both sides filed briefs with the trial court on the issue of whether the claims listed in the complaint were properly subject to the arbitration agreement.

{¶ 11} The trial court dismissed the complaint and ordered that it be submitted to arbitration in accordance with the terms of the RESOLVE program. Specifically, the trial court found that an arbitration agreement did exist between W.K. and Sterling. The trial court found that the,language of the arbitration clauses was not ambiguous and that W.K’s claims were within the scope of the plain language of the agreement. The trial court found that the agreement was not unconscionable, because the agreement applied to both W.K. and Sterling equally and W.K. was on notice of the terms of the arbitration because the language was repeated in bold print in several portions of the documents. Likewise, the trial court found that the agreement was not an unenforceable contract of adhesion, because there was no evidence that W.K. could not have understood the words of the agreement had she read them. Despite W.K.’s contention that she was presented with a fat stack of papers to sign and was rushed onto the sales floor on her first day, W.K. herself acknowledged that she did not read the information either before or after she signed the documents. The trial court stated:

{¶ 12} “While Plaintiff further argues that she had no opportunity to negotiate the arbitration agreement, that argument belies logic; she cannot allege that she did not read the agreement and then allege that she had no opportunity to negotiate it.”

{¶ 13} Lastly, the trial court noted that if W.K. had read the agreement and found it unsatisfactory, she could have sought employment with another jewelry store, rather than accept the requirement of arbitration.

{¶ 14} From the order of the trial court compelling arbitration of her claims, W.K. appeals.

*19 II

{¶ 15} The standard of review for a motion to stay proceedings pending arbitration is abuse of discretion. Carter Steel & Fabricating Co. v. Danis Bldg. Constr. Co. (1998), 126 Ohio App.3d 251, 254-255, 710 N.E.2d 299. An abuse of discretion involves more than an error of law or judgment, instead implying that the trial court’s attitude was unreasonable, arbitrary, or unconscionable. Blakemore v. Blakemore (1983), 5 Ohio St.3d 217, 219, 5 OBR 481, 450 N.E.2d 1140. Absent an abuse of discretion, an appellate court will not substitute its judgment for that of the trial court. Pons v. Ohio State Med. Bd. (1993), 66 Ohio St.3d 619, 621, 614 N.E.2d 748.

{¶ 16} When a party challenges an arbitration agreement by asserting that the provisions are unconscionable or that the contract is adhesive, the enforceability of the arbitration provision is an issue of law for the trial court. Lindsey v. Sinclair Broadcast Group, Inc., Montgomery App. No. 19903, 2003-Ohio-6898, 2003 WL 22972357, ¶ 20. Because it involves an issue of law, this court must apply a de novo standard of review to W.K’s unconscionability and adhesion claims.

III

{¶ 17} W.K.’s first assignment of error is as follows:

{¶ 18} “The trial court erred as a matter of law in determining that an arbitration agreement existed between the parties.”

{¶ 19} Under this assignment of error, W.K. alleges that the arbitration clause should not be enforced because there was no meeting of the minds as to the terms of the arbitration agreement.

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Bluebook (online)
853 N.E.2d 728, 167 Ohio App. 3d 14, 2006 Ohio 2676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wk-v-farrell-ohioctapp-2006.