United States District Court, S.D. Indiana, Indianapolis Division
ENTRY
HON.
JANE MAGNUS-STINSON, CHIEF JUDGE
Plaintiff
Matthew Hynan filed this action on September 13, 2018 against
Defendant XPO Logistics Freight, Inc.
(“XPO”) alleging violations of the
Family and Medical Leave Act and the Americans with
Disabilities Act. XPO now moves to dismiss and compel
arbitration under the Federal Arbitration Act, 9 U.S.C.
§ 2. [Filing No. 12.] In addition to the
arbitration clause (which provides for arbitration of certain
issues in Charlotte, North Carolina), the Confidential
Information Protection Agreement
(“Agreement”) at issue contains a forum
selection clause providing for venue in the state and federal
courts in North Carolina.
Both
parties ultimately recognize in their briefing that this
Court cannot compel arbitration in Charlotte, which is
outside of this District. But the North Carolina federal
court can. Therefore, after addressing Mr. Hynan's lone
argument against venue in North Carolina, the Court
TRANSFERS this matter to the U.S. District
Court for the Western District of North Carolina, Charlotte
Division. Insofar as it pertains to this Court's docket,
the Court DENIES XPO's Motion.
I.
Background
The
following facts are drawn from the allegations in Mr.
Hynan's Complaint, [Filing No. 1], and the
evidence submitted by XPO in conjunction with its Motion.
Cf. Faulkenberg v. CB Tax Franchise Sys.,
LP, 637 F.3d 801, 809-10 (7th Cir. 2011) (noting that
courts may consider “evidence outside the
pleadings” in addressing venue issues). XPO hired Mr.
Hynan in July 2016 as a Service Center Manager in Grand
Rapids, Michigan, and later promoted him to District General
Manager serving the Indianapolis, Indiana region. [Filing
No. 1 at 3-4.] In his role as a District General
Manager, Mr. Hynan was responsible for overseeing XPO's
business operations in the Indianapolis region. [Filing
No. 17-1 at 2.]
As a
condition of his employment, Mr. Hynan signed the Agreement,
which contains two separate provisions addressing the proper
forum for resolving disputes between Mr. Hynan and XPO. The
first is section 18(b), which provides:
(b) Arbitration of Claims Initiated By
You: Any claim you wish to initiate arising out
of or relating to this Agreement, the breach thereof, your
employment with us, or the termination of that employment
will be resolved by binding arbitration before a single
arbitrator in the City of Charlotte, North Carolina
administered by the American Arbitration Association in
accordance with its Labor, Employment & Elections
Arbitration Rules, and judgment on the award rendered by the
arbitrator may be entered in any court having jurisdiction
thereof.
[Filing No. 12-1 at 11.] Section 18(d) sets forth
where any lawsuit must be filed:
(d) Consent to Jurisdiction and Waiver of Jury
Trial: You hereby irrevocably submit to the
jurisdiction of any state or federal court located in
Mecklenburg County North Carolina . . . . To the extent that,
notwithstanding Section 18(b), you bring an action in any
court, you agree to do so exclusively in the state or federal
court located in Mecklenburg County, North Carolina,
provided that nothing herein shall waive the
Company's right to demand that you comply with Section
18(b).
[Filing No. 12-1 at 11 (emphasis in original).] The
Agreement also contains a choice-of-law clause which
provides: “This Agreement shall be governed by and
construed in accordance with its express terms, and otherwise
in accordance with the laws of the State of North Carolina,
without reference to its principles of conflicts of
law.” [Filing No. 12-1 at 11.]
XPO
terminated Mr. Hynan's employment on November 27, 2017.
[Filing No. 1 at 4.] According to Mr. Hynan,
however, the termination violated his rights under the ADA
and FMLA. [Filing No. 1.] After filing a charge with
the EEOC and receiving a right to sue letter, Mr. Hynan filed
this lawsuit. [Filing No. 1 at 2.] On December 12,
2018, XPO requested that Mr. Hynan voluntarily dismiss his
lawsuit and pursue arbitration under the Agreement.
[Filing No. 12-2 at 2.] On December 26, 2018, XPO
filed its Motion to Dismiss and to Compel Arbitration, which
is ripe for decision. [Filing No. 12.]
II.
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