Roger Hembree, Jr. v. Penney OpCo d/b/a JCPenney

Summary

The United States District Court for the District of South Carolina adopted a magistrate judge’s recommendation and granted Penney OpCo’s motion to compel arbitration and stay Roger Hembree, Jr.’s employment-related claims. The court held that Hembree assented to a valid arbitration agreement, that continued employment supplied adequate consideration, and that his attempted opt-out did not follow the agreement’s prescribed procedure. The court also denied requests for discovery and a jury trial on contract formation.

Holdings

1. A party seeking to compel arbitration establishes a rebuttable presumption in favor of an arbitration agreement by showing a dispute, a written agreement containing an arbitration provision covering the dispute, a relationship to interstate or foreign commerce, and the opposing party's failure, neglect, or refusal to arbitrate. Defendant satisfied those requirements, shifting the burden to Plaintiff to show that he did not agree to arbitrate.
2. Continued employment constitutes adequate consideration for an arbitration agreement, even when the agreement is presented after employment has begun.
3. Plaintiff assented to the arbitration agreement by affirmatively clicking the box indicating assent, and his later attempt to uncheck the box did not constitute a valid opt-out because he did not follow the agreement's prescribed written opt-out procedure.
4. Additional discovery and a jury trial were unwarranted because Plaintiff identified no material factual dispute concerning formation or the opt-out procedure.

Questions Presented

1. Whether the parties entered into a valid arbitration agreement covering Plaintiff's employment dispute.
2. Whether continued employment supplied sufficient consideration for the arbitration agreement.
3. Whether Plaintiff assented to the arbitration agreement despite his later attempt to opt out through an improper procedure.
4. Whether Plaintiff was entitled to additional discovery concerning the arbitration agreement.
5. Whether the formation issue had to be submitted to a jury under 9 U.S.C. § 4.

Disposition

other