Plaintiff Jessie I. Papenek sued defendant Dish Network, L.L.C. in the United States District Court for the Northern District of Oklahoma, raising a claim of discrimination under the Americans with Disabilities Act (ADA). Dish Network moved to stay the action and compel arbitration.
Factual Overview
Papenek alleges that he experienced a wrist and elbow injury in November 2022 after donating plasma, which impacted his ability to perform his job duties at full capacity. In March 2023, Papenek went on short-term disability leave due to the pain. He claims that he did not receive the correct compensation while on leave and that Dish Network wrongfully terminated his health insurance coverage when he was fired.
Legal Analysis
Applicability of the Federal Arbitration Act (FAA): The court determined that the FAA applies to the arbitration agreement in Papenek’s employment contract with Dish Network. The FAA governs arbitration agreements in contracts involving commerce, including most employment contracts, unless the contract involves transportation workers engaged in interstate commerce. As Papenek is not a transportation worker, the court concluded that the FAA applies to the arbitration agreement.
Enforceability of the Arbitration Agreement: The court found the arbitration agreement to be enforceable under Oklahoma state contract law. The parties were capable of contracting, consented to the agreement, the contract had a lawful object, and there was sufficient consideration. The court noted that Papenek did not argue that he failed to understand or appreciate the arbitration agreement, which was clearly labeled and conspicuous.
Scope of the Arbitration Agreement: The court held that the responsibility of determining the “question of arbitrability” was delegated to the arbitrator. The arbitration agreement between Papenek and Dish Network was broad, referring all disputes arising out of the contract to arbitration, and incorporated American Arbitration Association (AAA) rules. Under Tenth Circuit case law, this demonstrates a clear and unmistakable intent to delegate the question of arbitrability to the arbitrator.
The court granted Dish Network’s motion to compel arbitration and stay the proceedings, finding that the issues involved in the suit are referable to arbitration pursuant to the enforceable arbitration agreement between Papenek and Dish Network.
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