Worman v. FedEx Ground Package System Inc.

76 Pa. D. & C.4th 292
CourtPennsylvania Court of Common Pleas, Lehigh County
DecidedApril 28, 2005
Docketno. 2004-C-1446
StatusPublished
Cited by1 cases

This text of 76 Pa. D. & C.4th 292 (Worman v. FedEx Ground Package System Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lehigh County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Worman v. FedEx Ground Package System Inc., 76 Pa. D. & C.4th 292 (Pa. Super. Ct. 2005).

Opinion

JOHNSON, J.,

The plaintiff filed the within suit against the defendant for breach of contract and wrongful termination.

Before the court for consideration is the defendant’s motion to dismiss/motion to compel arbitration seeking an order dismissing the within civil action and compelling the parties to submit to arbitration according to the terms of the arbitration clause of a written employment contract between the parties on the bases that: (1) a valid agreement to arbitrate exists between the parties; and that (2) the dispute involved is within the scope of the arbitration provision. For the following reasons, the court will grant the defendant’s motion.

I. RELEVANT FACTUAL BACKGROUND

The parties agree that hearing exhibit P-1 is the subject written employment contract. It is an employment contract in which the plaintiff is the employee and is identified in the contract as “contractor,” and the defendant is the employer and is identified in the contract as “FHD” (agreement).

The agreement contains an arbitration clause, which reads as follows:

“P.5 Arbitration of asserted wrongful termination. In the event FHD acts to terminate this agreement (which [295]*295acts shall include any claim by contractor of constructive termination) and contractor disagrees with such termination or asserts that the actions of FHD are not authorized under the terms of this agreement, then each such disagreement (but no others) shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (AAA) in accordance with the terms and conditions set forth in addendum 7 to this agreement.” (emphasis added)

Addendum 7 to the agreement as follows (section 9.3 and addendum 7 shall be referred to as the arbitration provision):

“FHD Standard Contractor Operating Agreement Arbitration
“The arbitration of contract termination shall be instituted and conducted in accordance with the following terms and conditions:
“(1) Contractor must mail written notice of a demand for arbitration to FHD and to the AAA by certified mail within 90 days of the occurrence of the claimed wrongful termination. Failure to mail written notice of a demand for arbitration within such 90-day period and comply with all procedural requirements set forth in the Commercial Arbitration Rules of the AAA shall constitute an absolute bar to the institution of any proceedings and a waiver of the claimed wrongful termination. The copy of the demand sent to the American Arbitration Association shall be addressed to Four Gateway Center, Suite 419, Pittsburgh, PA 15222-1207, with a request that the demand be forwarded to the appropriate AAA regional office.
[296]*296“(2) The dispute shall be heard and determined by a single arbitrator, chosen pursuant to the procedures of the AAA.
“(3) The arbitrator shall set the date, time, and place for each hearing, and shall schedule the hearing and make his or her determination in an expeditious manner. Neither party shall be entitled to written or deposition discovery from the other, except with respect to damages.
“(4) As to any dispute or controversy which under the terms hereof is made subject to arbitration, no suit at law or in equity based on such dispute or controversy shall be instituted by either party hereto, other than a suit to confirm, enforce, vacate, modify or correct the award of the arbitrator as provided by law; ■ provided, however, that this clause shall not limit FHD’s right to obtain any provisional remedy including, without limitation, injunctive relief, writ for recovery or possession or similar relief from any court of competent jurisdiction, as may be necessary in FHD’s sole subjective judgment to protect its property rights, (emphasis added)
“(5) The arbitrator shall have the authority only to conclude whether the termination of contractor was within the terms of this agreement, to determine damages if required to do so under this subparagraph, and to provide for the division of the AAA fees and AAA assessed expenses of the arbitration between the parties; provided, however, each party shall bear the cost of attorneys, expert witnesses, or other expenses incurred by that party, and the arbitrator shall have no authority to allocate or apportion such costs. If the arbitrator con-[297]*297eludes the termination was within the terms of this agreement, the termination shall be effective on the date specified in the notice of termination from FHD to contractor. If the arbitrator concludes the termination was not within the terms of this agreement, then, at the option ofFHD: (1) the contractor shall be reinstated within a reasonable period of time, not to exceed 90 days from the company’s receipt of the arbitrator’s decision, and in that event shall be entitled to damages equal to the arbitrator’s determination of what contractor’s net earnings (after payment of all expenses which are borne by contractor pursuant to this agreement) would have been during the period between the date of termination and the date of reinstatement; or (2) contractor shall nevertheless be terminated, and, in that event, shall be entitled to damages equal to the arbitrator’s determination of what contractor’s net earnings (after payment of all expenses which are borne by contractor pursuant to this agreement) would have been during the period between the date of termination to the last day of the term of this agreement (without any renewals). Contractor shall have no claim for damages in any other amount, and the arbitrator shall have no power to award punitive or any other damages, (emphasis added)
“(6) The arbitrator shall provide the parties with only a written determination of the outcome of the arbitration, without accompanying opinion, and shall have no authority to alter, amend or modify any of the terms and conditions of this agreement, and further, the arbitrator may not enter any award which alters, amends or modifies the terms of conditions of this agreement in any form or manner.
[298]*298“(7) Judgment upon the award of the arbitrator may be rendered in any court having jurisdiction thereof.”

II. DISCUSSION

Because arbitration is a matter of contract, the court must determine, as a matter of law, whether an express agreement exists between the parties to arbitrate their dispute. Smith v. Cumberland Group Ltd., 455 Pa. Super. 276, 284, 687 A.2d 1167, 1171 (1997). When a party to an agreement seeks to avoid arbitration, as the plaintiff does in the within case, judicial inquiry is limited to determining (1) whether a valid agreement to arbitrate exists between the parties and, if so, (2) whether the dispute involved is within the scope of the arbitration provision. Id. If a valid arbitration agreement exists between the parties and the plaintiff’s claims fall within the scope of the agreement, the controversy must be submitted to arbitration as a matter of law. Id.; see also, Circuit City Stores Inc. v. Adams, 532 U.S. 105, 121 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
76 Pa. D. & C.4th 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worman-v-fedex-ground-package-system-inc-pactcompllehigh-2005.