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Johnson v. Orkin, LLC

Citation: 556 F. App'x 543Docket: No. 14-1130

Court: Court of Appeals for the Seventh Circuit; June 4, 2014; Federal Appellate Court

Narrative Opinion Summary

This case involves an appeal by a former employee against a district court's decision that compelled arbitration and dismissed his employment discrimination lawsuit against his employer, Orkin, LLC. The plaintiff signed arbitration agreements during his job application and upon hiring, waiving his right to litigate disputes in federal court. After being terminated, he filed discrimination claims under Title VII, which he sought to litigate in federal court. Orkin moved to compel arbitration, asserting the agreements deprived the court of jurisdiction. The district court upheld the arbitration agreements, dismissing his claims and denying his motion to reconsider and amend his complaint to add more defendants. On appeal, the plaintiff argued unenforceability due to not receiving the arbitration policy and alleged procedural errors. However, the appellate court affirmed the district court's decisions, noting that the claims arose from employment and thus required arbitration. It also held that procedural errors in the dismissal motion did not prejudice the outcome and that new arguments were waived when not initially raised. Consequently, the plaintiff's attempts to litigate in federal court were unsuccessful.

Legal Issues Addressed

Claims Arising from Employment Subject to Arbitration

Application: Johnson's claims, including discrimination and retaliation, arose from his employment and were subject to the arbitration agreements he signed.

Reasoning: Johnson's claims clearly arose from his employment, thus necessitating arbitration.

Enforceability of Arbitration Agreements

Application: The court enforced arbitration agreements signed by Johnson, determining they precluded federal litigation of his employment discrimination claims.

Reasoning: The court determined that arbitration agreements Johnson signed with Orkin precluded his claims from being litigated in federal court.

Futile Amendment of Complaint

Application: The court found Johnson's attempt to amend his complaint to add Orkin employees as defendants futile due to the arbitration agreements covering claims against the company's agents.

Reasoning: Lastly, Johnson sought to amend his complaint to add Orkin employees as defendants, but such amendments were deemed futile due to the arbitration agreements encompassing claims against the company’s agents as well.

Procedural Misstep in Motion to Dismiss

Application: The motion to dismiss should have been grounded on improper venue under Rule 12(b)(3) rather than lack of subject-matter jurisdiction under Rule 12(b)(1), but this procedural error was not prejudicial to the appeal's outcome.

Reasoning: Orkin's motion to dismiss should have been based on improper venue under Rule 12(b)(3), rather than lack of subject-matter jurisdiction under Rule 12(b)(1)...

Waiver of Arguments Not Raised Initially

Application: Johnson's argument regarding Orkin's failure to provide the Dispute Resolution Policy was deemed waived because it was raised too late in the proceedings.

Reasoning: This argument was deemed waived since it was not presented in the original motion and was introduced too late for Orkin to respond.

Waiver of Right to Trial by Arbitration Agreement

Application: Johnson waived his right to a trial by judge or jury by signing arbitration agreements, which explicitly required arbitration for disputes arising from his employment.

Reasoning: Both agreements indicated that he waived his right to a trial by judge or jury in favor of arbitration.