Evidentiary Hearing to Determine Whether There Was an Agreement to Arbitrate

Evidentiary Hearing to Determine Whether There Was an Agreement to Arbitrate

Consequent to a recent decision, the defendant will be required to respond to certain discovery request so that there can be a substantive ruling as to whether the named plaintiff, on behalf of an as of yet uncertified class, is otherwise obligated to arbitrate the dispute. Tassy v. Lindsay Entertainment Enterprises, Inc., Civ. Act. No. 3:16-CV-00077-TDR, 2018 WL 1702335 (W.D. Ky. April 6, 2018).

At its core, this dispute involves whether or not there existed a valid agreement to arbitrate disputes. The question was whether the individual was properly classified as an independent contractor versus an employee. If classification should have been as an employee, there is a claim for failure to pay appropriate wages as mandated by federal law.

Tassy, an individual, on her behalf and on behalf of similarly situated persons, sought to bring a class action to resolve this dispute. In response, Lindsay Entertainment asserted that Tassy was bound by an agreement to arbitrate any disputes. Lindsay Entertainment could not, however, produce a copy of the allegedly signed agreement to arbitrate. In this dispute, the Sixth Circuit had directed that the District Court “‘summarily’ determine whether the parties had agreed to arbitrate.” Lindsay Entertainment wanted to rely upon testimony from Scott Lindsay, owner of Lindsay Entertainment, and another employee to that effect. Tassy, in part to collect testimonial evidence to the contrary, sought from Lindsay Entertainment a listing of all of the employees/independent contractors for a particular period, including their dates of service, last known address, last known phone number, etc. Lindsay Entertainment objected. That objection was overruled. To that end, the court wrote:

Allowing parties to conduct limited discovery prior to holding an evidentiary hearing, and for the purpose of determining the validity of arbitration agreements, is an accepted practice.

2018 WL 1702335,*4.

Still, Tassy was not granted free range but rather “discovery shall be limited to only the information necessary to prepare for the upcoming evidentiary hearing regarding whether there exists a valid agreement to arbitrate.”