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Robert Keymer v. Management Recruiters International, Inc.

Citations: 169 F.3d 501; 1999 U.S. App. LEXIS 1631; 78 Fair Empl. Prac. Cas. (BNA) 1864; 1999 WL 71722Docket: 98-1635

Court: Court of Appeals for the Eighth Circuit; February 5, 1999; Federal Appellate Court

Narrative Opinion Summary

In this case, the plaintiff filed a lawsuit against a former employer, alleging wrongful termination due to age discrimination under the Age Discrimination in Employment Act (ADEA) and the Missouri Human Rights Act. The defendant sought to compel arbitration based on an employment agreement that included a mediation and arbitration clause. However, the plaintiff argued that a specific subsection of the agreement exempted his claims from arbitration. The dispute centered on whether the age discrimination claims were arbitrable under the agreement's terms, governed by Ohio law. The District Court found that the language of the arbitration exclusion was clear and unambiguous, excluding disputes over the employer's right to terminate the agreement, including those under the ADEA. Consequently, the court affirmed the denial of the motion to compel arbitration, allowing the lawsuit to proceed. Additionally, the court addressed procedural issues regarding jurisdiction, affirming the priority of the Missouri District Court under the first-filed rule. The court also noted that statutory employment discrimination claims require explicit agreement to arbitrate, distinguishing them from collective bargaining agreements. The outcome favored the plaintiff, allowing the age discrimination claims to be litigated in court.

Legal Issues Addressed

Arbitrability under the Federal Arbitration Act

Application: The court examined whether Keymer's age discrimination claims were subject to arbitration under their employment agreement, applying ordinary state law contract principles to assess the intent of the parties.

Reasoning: Ordinary state law contract principles are applied to determine if MRI and Keymer agreed to arbitrate their dispute, governed by Ohio law per their Agreement.

Contract Interpretation and Ambiguity

Application: The court found the language in subsection 6(b) of the Agreement clear and unambiguous, meaning the express terms dictate the parties' rights without needing to reference extrinsic evidence of intent.

Reasoning: The District Court found the language in subsection 6(b) of the Agreement clear and unambiguous, meaning the express terms dictate the parties' rights without needing to reference extrinsic evidence of intent.

Exclusion of Age Discrimination Claims from Arbitration

Application: The court determined that Keymer's ADEA challenge was excluded from arbitration based on the plain language of the Agreement, which specifically excludes disputes regarding the employer's right to terminate the Agreement.

Reasoning: This subsection specifically excludes disputes regarding the employer's right to terminate the Agreement from arbitration, which includes challenges under the Age Discrimination in Employment Act (ADEA).

First-Filed Rule in Concurrent Jurisdiction Cases

Application: The Missouri District Court, being the first to establish jurisdiction, was given priority to address the arbitrability question, rejecting the Ohio court's subsequent ruling.

Reasoning: The District Court in Missouri was the first to establish jurisdiction and, therefore, had priority to address the arbitrability question based on comity.

Presumption of Arbitrability in Employment Discrimination Claims

Application: The court emphasized that the presumption of arbitrability in collective bargaining agreements does not extend to statutory employment discrimination claims, unless explicitly stated.

Reasoning: The Supreme Court has clarified that the presumption of arbitrability in collective bargaining agreements does not apply to statutory employment discrimination claims, and any requirement to arbitrate such claims must be explicitly stated.