Rebecca Shupe v. Asplundh Tree Expert Company , 566 F. App'x 476 ( 2014 )


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  •                NOT RECOMMENDED FOR FULL-TEXT PUBLICATION
    File Name: 14a0382n.06
    No. 13-5747
    FILED
    UNITED STATES COURT OF APPEALS                    May 22, 2014
    FOR THE SIXTH CIRCUIT                    DEBORAH S. HUNT, Clerk
    Rebecca Shupe,                                )
    )         ON APPEAL FROM THE UNITED
    Plaintiff-Appellant,                    )         STATES DISTRICT COURT FOR
    )         THE EASTERN DISTRICT OF
    v.                                                      KENTUCKY
    )
    Asplundh Tree Expert Company,                 )
    )
    Defendant-Appellee.                     )         OPINION
    )
    BEFORE:    CLAY and DONALD, Circuit Judges; MAYS, District Judge.*
    Samuel    H.    Mays,      District      Judge.         Plaintiff-Appellant
    Rebecca    Shupe     (“Shupe”)    appeals         the    district   court’s    order
    granting   summary     judgment     to   her      former    employer,      Defendant-
    Appellee Asplundh Tree Expert Company (“Asplundh”) in her suit
    for   sexual    harassment,       gender      discrimination,        and    wrongful
    termination.       For the reasons below, we AFFIRM the judgment of
    the district court.
    I.
    Asplundh hired Shupe to work as a Permission Taker/Pre-
    Planner in its Lexington, Kentucky offices in August 2008.                      As a
    *
    The Honorable Samuel H. Mays, Jr., United States District Judge for the
    Western District of Tennessee, sitting by designation.
    No. 13-5747
    Rebecca Shupe v. Asplundh Tree Expert Company
    condition to her at-will employment, Shupe was a required to
    sign several forms, including               a “Limitation on Time to File
    Claims or Lawsuits” (the “Waiver”).                   Shupe signed and dated the
    Waiver on August 15, 2008.
    The single-page Waiver provides that:
    I agree that any claim, administrative claim or
    lawsuit relating to my service with [Asplundh] or any
    of its subsidiaries must be filed no more than six (6)
    months after the date of the employment action that is
    the subject of the claim or lawsuit, except as may be
    provided   otherwise   in   a  collective   bargaining
    agreement currently in effect. I waive any statute of
    limitations to the contrary.
    I have read and understand the contents of this
    limitation and am fully able and competent to complete
    it.
    The words “IMPORTANT NOTICE” in larger font appear at the
    top and bottom of the Waiver.               The words “LIMITATION ON TIME TO
    FILE CLAIMS OR LAWSUITS” and “READ CAREFULLY BEFORE SIGNING”
    also appear at the top of the Waiver.                    The words “PLEASE READ”
    in larger font appear at the bottom of the Waiver.
    Shupe     continued      to    work       for    Asplundh   until   she   was
    terminated in August 2011. Shupe claims that she was wrongfully
    terminated in retaliation for complaining of sexual harassment
    and gender discrimination by her supervisor at Asplundh, who was
    also her ex-husband.
    Shupe filed a complaint against Asplundh in the Circuit
    Court of Fayette County, Kentucky, on August 10, 2012.                          The
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    Rebecca Shupe v. Asplundh Tree Expert Company
    complaint was filed more than six months after she had been
    terminated.         Shupe    alleged     that     Asplundh         had   violated   the
    Kentucky Civil Rights Act, K.R.S. §§ 344.010, et seq., when she
    was (1) subjected to sexual harassment by her supervisor, her
    former husband; (2) terminated based on her gender and age; and
    (3) terminated in retaliation for complaining about her former
    husband’s actions.
    When   Asplundh      removed    the      action    to       the   United   States
    District Court for the Eastern District of Kentucky, Shupe filed
    a motion to remand the case to the state court on the basis that
    her claims did not meet the minimum amount in controversy for
    diversity jurisdiction.           The district court disagreed and denied
    her motion to remand.
    Asplundh then filed a motion for summary judgment, arguing
    that    Shupe’s      complaint,       filed      almost        a    year    after   her
    termination, was barred by the six-month limitations period in
    the Waiver she had signed as a condition of her employment.
    The district court granted the motion and Shupe filed this
    timely appeal.         On appeal, Shupe argues (1) that the district
    court lacked subject matter jurisdiction because her claims did
    not    meet   the   minimum     amount     in    controversy         requirement     for
    diversity jurisdiction, and (2) that her waiver concerning the
    six-month limitations period was invalid and unenforceable.
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    Rebecca Shupe v. Asplundh Tree Expert Company
    II.
    Under 28 U.S.C. § 1291, this Court has “jurisdiction of
    appeals from all final decisions of the district courts of the
    United States.”            Because the district court’s grant of summary
    judgment for Asplundh disposed of all issues relevant to this
    appeal, this Court has jurisdiction.
    A.        Diversity Jurisdiction and the Minimum
    Amount-In-Controversy Requirement
    The denial of a motion to remand for lack of subject matter
    jurisdiction is reviewed de novo.                     Music v. Arrowood Indem. Co.,
    
    632 F.3d 284
    , 286 (6th Cir. 2011) (internal citation omitted).
    “If removal of a civil action is sought on the basis of the
    jurisdiction         conferred          by    [28    U.S.C.           §   1332(a)],       the   sum
    demanded in good faith in the initial pleading shall be deemed
    to   be   the    amount          in    controversy       .       .    .   .”      28    U.S.C.    §
    1446(c)(2).           A    court       must   conduct        a       “fair     reading”    of   the
    allegations          in    the        complaint     to   determine              the    amount    in
    controversy.          Hayes v. Equitable Energy Res. Co., 
    266 F.3d 560
    ,
    573 (6th Cir. 2001).
    “[T]he         notice       of     removal      may        assert        the     amount    in
    controversy if the initial pleading seeks . . . (ii) a money
    judgment, but the State practice either does not permit demand
    for a specific sum or permits recovery of damages in excess of
    the amount demanded . . . .”                        28 U.S.C. § 1446(c)(2)(A)(ii).
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    Rebecca Shupe v. Asplundh Tree Expert Company
    Kentucky has such a practice.                Kentucky Rule of Civil Procedure
    8.01(2) states that, “In any action for unliquidated damages the
    prayer for damages in any pleading shall not recite any sum as
    alleged damages other than an allegation that damages are in
    excess of any minimum dollar amount necessary to establish the
    jurisdiction of the court . . . .”
    A removal action is only proper based on the amount in
    controversy      asserted     in    the   removal     notice   “if   the   district
    court finds, by the preponderance of the evidence, that the
    amount in controversy exceeds the amount specified in [28 U.S.C.
    § 1332(a)].”         28 U.S.C. § 1446(c)(2)(B).            This Court has held
    that federal jurisdiction in a diversity case is determined at
    the time of removal.          Ahearn v. Charter Township of Bloomfield,
    
    100 F.3d 451
    , 453 (6th Cir. 1996) (internal citations omitted).
    “The party seeking removal bears the burden of demonstrating
    that the district court has original jurisdiction.”                      Eastman v.
    Marine Mech. Corp., 
    438 F.3d 544
    , 549 (6th Cir. 2006) (internal
    citations     omitted).        “The    party      requesting   removal     must   set
    forth, in the notice of removal, specific facts supporting the
    assertion     that    the   amount     in    controversy   exceeds     the   amount
    required by statute.”          Nat’l Nail Corp. v. Moore, 
    139 F. Supp. 2d 848
    , 850     (W.D. Mich. 2001)            (citing    Laughlin v. Kmart Corp.,
    
    50 F.3d 871
    ,     873    (10th     Cir.      1995)).    “[B]ecause      lack    of
    jurisdiction would make any decree in the case void and the
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    Rebecca Shupe v. Asplundh Tree Expert Company
    continuation of litigation in federal court futile, the removal
    statute should be strictly construed and all doubts resolved in
    favor of remand.”              
    Eastman, 438 F.3d at 549-50
    (alteration in
    original) (internal citations omitted).
    A   successful         claim    under    the      Kentucky   Civil      Rights    Act
    entitles a plaintiff to “actual damages.”                           K.R.S. § 344.450.
    “Actual      damage      is    most     appropriately        defined     as     all    those
    damages directly and naturally resulting, in the ordinary course
    of events, from the injury in question.” Mitchell v. Seaboard
    Sys. R.R., 
    883 F.2d 451
    , 453 (6th Cir. 1989) (internal citation
    omitted).         Actual damages include broader relief than Title VII.
    
    Id. at 454
    (internal citation omitted).                      Actual damages include
    back    pay,      front     pay,      lost    benefits,      humiliation,        emotional
    distress,        embarrassment,        and    attorney’s      fees.        Williamson     v.
    Aetna      Life    Ins.     Co.,      
    481 F.3d 369
    ,   376    (6th      Cir.    2007);
    
    Mitchell, 883 F.2d at 452-53
    ; Meyers v. Chapman Printing Co.,
    Inc.,      
    840 S.W.2d 814
    ,    817      (Ky.     1992)     (internal     citation
    omitted).
    It is appropriate to consider back pay beyond the time of
    removal     when     a    plaintiff         seeks   an    award    for   back    pay    that
    includes future accruals.                    Weaver v. A.T.&T. Corp., 
    2010 WL 2521462
    , at *2 (W.D. Ky. June 18, 2010) (citing Gafford v. Gen.
    Elec., 
    997 F.2d 150
    , 160-61 (6th Cir. 1993)).                               There is no
    statutory limit on damages for “emotional distress” under the
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    Rebecca Shupe v. Asplundh Tree Expert Company
    Kentucky Civil Rights Act.                   Childers Oil Co., Inc. v. Adkins,
    
    256 S.W.3d 19
    , 28 (Ky. 2008).
    Claims      for     punitive       damages      should    be     included            in    the
    amount-in-controversy,              “unless       it    is     apparent          to     a    legal
    certainty that such cannot be recovered.”                          Hayes v. Equitable
    Energy Res. Co., 
    266 F.3d 560
    , 572 (6th Cir. 2001) (internal
    citation omitted).           Punitive damages are not available under the
    Kentucky         Civil     Rights     Act.        Kentucky       Dep’t       of        Corr.       v.
    McCullough, 
    123 S.W.3d 130
    , 139-40 (Ky. 2003).
    Punitive       damages       are   available         against     a   defendant             who
    acted       grossly      negligently       toward       a     plaintiff.              Kinney       v.
    Butcher, 
    131 S.W.3d 357
    , 358-59 (Ky. Ct. App. 2004).                                        “[T]he
    prevailing understanding defines gross negligence as a ‘wanton
    or reckless disregard for the safety of other persons.’”                                          
    Id. “It is
    not necessary that the jury find the defendant to have
    acted with express malice; rather, it is possible that a certain
    course      of    conduct    can     be    so    outrageous      that       malice          can    be
    implied from the facts of the situation.”                        
    Id. Punitive damages
    must be proven by clear and convincing evidence under Kentucky
    law.    K.R.S. § 411.184(2).
    B. The District Court Properly Determined that
    Plaintiff’s Claims Exceeded $75,000.00.
    In     compliance       with       Kentucky      Rule     of     Civil          Procedure
    8.01(2),         Shupe’s     complaint          does    not     state       an        amount       in
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    Rebecca Shupe v. Asplundh Tree Expert Company
    controversy.        She alleges that her damages exceed the minimum
    amount necessary to confer jurisdiction on the Fayette County
    Circuit       Court.       The      minimum     amount       necessary      to   confer
    jurisdiction in Fayette County is $5,000.00.
    Shupe’s      complaint      alleges      that    she   suffered      damages     for
    “embarrassment,          physical    pain      and     suffering,     and    emotional
    distress,        requiring      [her]    to     incur      medical   treatment         and
    expenses for same” as a result of Asplundh’s failure to stop the
    sexual harassment to which she was subjected.                         The complaint
    alleges that Shupe is entitled to damages for “loss of wages and
    employment benefits, and that she continues and will continue to
    suffer said damages . . .” due to her wrongful termination.
    Shupe      alleges     that    Asplundh        “falsely    accus[ed]       her    of
    knowing     of     the    wrongful      conduct       of   Defendant’s      supervisor
    concerning Defendant’s property.”                     That conduct was allegedly
    “grossly      negligent,        outrageous,       extreme,      intentional,      [and]
    designed to hold her in false light to others within the company
    and    done      with    such     reckless      disregard       to   the    Plaintiff,
    entitling her to [p]unitive damages.”                   Shupe alleges that she is
    entitled to attorney’s fees.
    Defendant-Appellee’s Notice of Removal states the following
    specific facts about the amount in controversy.                      Shupe was laid
    off in August 2011.             She was working approximately 42.5 hours a
    week when she was terminated.                 Her pay rate was $15.00 an hour.
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    Rebecca Shupe v. Asplundh Tree Expert Company
    Shupe    could    have   earned      approximately    $34,123.00   if   she   had
    remained employed from August 2011, to September 10, 2012, when
    the action was removed.
    Asplundh alleges that trial would not occur until September
    2013.     Shupe would then be seeking more than two years of back
    pay.    Two years of unmitigated back pay would be approximately
    $68,250.00.       Asplundh alleges that this figure and “Plaintiff’s
    request for punitive damages, damages for ‘actual damages’ of
    emotional        distress,      humiliation,     or      embarrassment”       and
    attorney’s fees total more than $75,000.00.
    The    district       court     agreed   with     Asplundh’s     damages
    calculation and found by a preponderance of the evidence that
    Shupe’s claim for damages exceeded $75,000.00.                The calculation
    of Shupe’s backpay appropriately included accruals through the
    projected trial date, because she alleged that “she continues
    and will continue to suffer” damage from her loss of wages.                   See
    Weaver, 
    2010 WL 2521462
    , at *2 (citing 
    Gafford, 997 F.2d at 160
    -
    61) (“[Plaintiff] seeks back pay ‘for wages and other monetary
    damages incurred and to be incurred in the future.’ . . . Thus,
    because at the time of removal [Plaintiff] sought an award for
    back pay that included future accruals, it is appropriate to
    consider back pay beyond the time of removal.”)               Shupe’s damages
    for humiliation, embarrassment, and attorney’s fees would be in
    addition to that amount.
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    Rebecca Shupe v. Asplundh Tree Expert Company
    Shupe alleges that she is entitled to punitive damages for
    Asplundh’s      grossly    negligent      conduct.          Although    she    is   not
    entitled to punitive damages under the Kentucky Civil Rights
    Act, a fair reading of Shupe’s complaint demonstrates that she
    brings additional claims for gross negligence.                         Shupe alleges
    that Asplundh’s conduct was outrageous and extreme.                           If Shupe
    presented evidence of that conduct, she could show that Asplundh
    was grossly negligent.           A plaintiff must prove punitive damages
    by clear and convincing evidence.                    K.R.S. § 411.184(2).           That
    standard does not amount to a legal certainty.
    Evaluating Shupe’s request for damages, it is more likely
    than not that the amount in controversy is at least $75,000.00.
    The district court did not err in its calculation of the amount
    in controversy.
    C. Neither the Pre-Suit Demand Letter nor the
    Subsequent Affidavit Changes Our Analysis
    Shupe relies on her pre-suit settlement demand letter to
    show that she does not seek more than $75,000.00 in damages.
    The letter states that “Ms. Shupe will waive all claims and
    causes    of    actions    arising     out      of   this   wrongful     termination
    matter against Asplundh Company, in exchange for the Company
    paying Ms. Shupe her salary through August 31, 2012, back-dated
    to her date of termination, commencing immediately.”                      The letter
    states that Shupe will “need to be reimbursed for the value of
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    Rebecca Shupe v. Asplundh Tree Expert Company
    the company’s medical, dental, and other insurance benefits she
    did   not    receive.”        Alternatively,          “Ms.   Shupe    will    consider
    taking a lump sum cash payment in the sum of $60,000.00 . . . .”
    “It      is   settled    that,      in    ascertaining         the   amount   in
    controversy for jurisdictional purposes, where the law gives the
    rule,    the    legal    causes     of   action,      and    not   the     plaintiff’s
    demand, must be regarded.”               Smith v. Phillips & Jordan, Inc.,
    
    2011 WL 250435
    , at *2 (E.D. Ky. January 24, 2011) (internal
    quotations       and    citations    omitted).          “[A]   settlement       demand
    letter is ‘some evidence’ regarding the amount in controversy.”
    
    Id. (emphasis in
    original) (internal citation omitted)                         “[T]he
    fact that Plaintiff attempted to settle the claim for less than
    the amount in controversy is not probative of the true amount
    because litigants often settle claims for less than the amount
    in controversy.”         Hollon v. Consumer Plumbing Recovery Ctr., 
    417 F. Supp. 2d 849
    , 854 (E.D. Ky. 2006) (internal citations omitted).
    “[A]n    offer      falling   just    below     the    jurisdictional        threshold
    tends to suggest that the amount in controversy exceeds this
    threshold, especially since parties ‘routinely offer and accept
    settlement amounts significantly below the total amount placed
    into controversy . . . .’”                Osborne v. Pinsonneault, 
    2007 WL 710131
    , at *2 (W.D. Ky. March 2, 2007) (quoting Sayre v. Potts,
    
    32 F. Supp. 2d 881
    , 888 (S.D.W. Va. 1999).
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    Rebecca Shupe v. Asplundh Tree Expert Company
    Shupe’s settlement demand letter requested a lump sum of
    $60,000.00 to cover her lost pay and benefits.                   That falls below
    the federal jurisdictional limit of $75,000.00.                       It does not
    take into account the request in her complaint for damages for
    embarrassment,        humiliation,        or    emotional      distress,   or    for
    punitive damages or attorney’s fees.                   Shupe’s settlement demand
    letter is not inconsistent with the district court’s finding
    that     her    claims         meet   the       federal    amount-in-controversy
    requirement.
    Shupe also relies on her post-suit affidavit to limit the
    amount of damages she seeks.                Shupe states that, “I have never
    believed or been led to believe that I could recover or receive
    more than $75,000 . . . by asserting this lawsuit.”                        She also
    states    that,    “I    have    never      demanded,     claimed,   requested   or
    otherwise indicated in any way to any person that I seek or
    desire more than $75,000 . . . to settle or compromise this
    lawsuit.”      Finally, Shupe states that, “I have never sought more
    than $75,000 . . . for any and all claims which could be, or
    have been raised in this lawsuit.”
    “[A] post-removal stipulation [or affidavit] reducing the
    amount in controversy to below the jurisdictional limit does not
    require remand to the state court.”                   Rogers v. Wal-Mart Stores,
    Inc.,    
    230 F.3d 868
    ,    872   (6th     Cir.   2000).     A   plaintiff   may
    stipulate to a claim less than the federal jurisdictional amount
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    Rebecca Shupe v. Asplundh Tree Expert Company
    “where    a   plaintiff        provides     specific        information        about    the
    amount in controversy for the first time . . . .”                                Egan v.
    Premier Scales & Sys., 
    237 F. Supp. 2d 774
    , 778 (W.D. Ky. 2002).
    That is a clarification rather than a reduction of the amount in
    controversy.       
    Id. at 778.
             “[O]nly unequivocal statement[s] and
    stipulation[s] limiting damages will serve this purpose.”                               
    Id. An actual
    limitation on the amount of a potential judgment “is
    essential to any such stipulation.”                     
    Id. “To merely
    say that
    one will not accept money in excess of a certain amount limits
    neither the judgment nor the demand.”                  
    Id. The district
    court in Egan found that the statement that
    the   plaintiff      “will      accept     a    sum    of     $74,999       exclusive   of
    interest and costs as a judgment regardless of what any court
    finds    in    excess     of     that     amount”       was      not   an    unequivocal
    stipulation.       
    Id. at 775,
    778.              The same district court found
    that the statement that the plaintiff “hereby certifies to the
    Court that he will not be making a claim nor pursuing damages in
    amount    equal    to   or     exceeding       the    sum   of    $75,000.00”     was   an
    unequivocal stipulation limiting damages.                        Van Etten v. Boston
    Scientific Corp., 
    2009 WL 3485909
    , at *1 (W.D. Ky. Oct. 23,
    2009).    That district court did find that the statement that the
    plaintiff “will not seek or accept an award of damages in excess
    of $74,999.00 inclusive of punitive damages, attorney’s fees,
    and the fair value of any injunctive relief” was an unequivocal
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    Rebecca Shupe v. Asplundh Tree Expert Company
    stipulation        limiting      damages.         Spence     v.     Centerplate,        
    931 F. Supp. 2d 779
    , 780, 782 (W.D. Ky. 2013) (emphasis in original).
    Counsel for Shupe argued that there was no guidance about
    the words a post-suit limitation on damages should contain when
    Shupe filed her affidavit.                That argument is not well taken.
    Both Egan and Van Etten were decided before Shupe filed her
    complaint in Kentucky court.              None of the statements in Shupe’s
    post-suit     affidavit       is   an   unequivocal        limitation      on    damages.
    None   of   her    statements      is    an    actual      limit   on    the    potential
    judgment     she    would     receive.         All    of   Shupe’s      statements      are
    backward looking.           She does not mention the potential judgment
    in   her    case    at    all.      Her       post-suit      affidavit     is     not    an
    unequivocal statement limiting her damages to an amount below
    the jurisdictional limit. The district court did not err in
    denying Shupe’s motion for remand.
    III.
    We now turn to the merits of the district court’s summary
    judgment order.          The granting of a motion for summary judgment
    is   reviewed      de    novo.     Tysinger      v.    Police      Dep’t   of    City    of
    Zanesville, 
    463 F.3d 569
    , 572 (6th Cir. 2006).
    Waivers      of     statutes       of     limitations         are       valid    and
    enforceable under Kentucky law.                   Dunn v. Gordon Food Servs.,
    Inc., 
    780 F. Supp. 2d 570
    , 573 (W.D. Ky. 2011) (citing Edmondson
    v. Pa. Nat. Mut. Cas. Ins. Co., 
    781 S.W.2d 753
    , 755-56 (Ky.
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    Rebecca Shupe v. Asplundh Tree Expert Company
    1989)).         “[T]his       Court         determined          that    there     is     nothing
    inherently      unreasonable            about       a    six-month      limitations       period
    contained       in      an        employment             agreement.”              Thurman      v.
    DaimlerChrysler,           Inc.,     
    397 F.3d 352
    ,    357     (6th    Cir.      2004)
    (internal quotations and citation omitted).                             Kentucky’s highest
    court     has    held        that       a     six-month          limitations       period      is
    reasonable.       Ashland Fin. Co. v. Hartford Acc. & Indem. Co.,
    
    474 S.W.2d 364
    ,    366       (Ky.       1971)       (internal      citation       omitted).
    Shupe    does    not    dispute         the        enforceability        of   a    statute-of-
    limitations waiver.               She admits that she signed the Waiver at
    issue.     Shupe argues that her acceptance of the Waiver was not
    “knowing and voluntary.”
    “In evaluating whether a [waiver] has been knowingly and
    voluntarily      executed,         we       look    to    (1)    plaintiff’s       experience,
    background, and education; (2) the amount of time the plaintiff
    had to consider whether to sign the waiver, including whether
    the   employee       had     an     opportunity           to    consult    with     a    lawyer;
    (3) the clarity of the waiver; (4) consideration for the waiver;
    as well as (5) the totality of the circumstances.”                                Morrison v.
    Circuit City Stores, Inc., 
    317 F.3d 646
    , 668 (6th Cir. 2003)
    (internal quotations and citation omitted).
    The record contains no evidence about Shupe’s education or
    experience.       Courts have upheld statute-of-limitations waivers
    when the plaintiff had only a high school education.                                    Sako v.
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    No. 13-5747
    Rebecca Shupe v. Asplundh Tree Expert Company
    Ohio Dept. of Admin. Servs., 278 F. App’x 514, 518 (6th Cir.
    2008); 
    Dunn, 780 F. Supp. 2d at 577
    (internal citations omitted).
    Without more, this factor is neutral.
    Shupe has stated that she “was presented several documents
    and directed to sign them, which were not explained to me nor
    did I understand what or why I was signing said documents other
    than I was told I had to sign said documents in order to obtain
    employment with the Defendant.”             (Shupe Aff. ¶ 2.)        Shupe stated
    that, “I was not allowed an opportunity to have [the Waiver] or
    other    documents      I   was   forced        to   sign   in   order    to   obtain
    employ[ment] reviewed by an attorney of my choosing.”                          (Id. ¶
    3.)     Shupe stated that, “I was never provided a copy of the
    Waiver or any other document I was required to sign . . . .”
    (Id. ¶ 4.)
    There is no evidence that Shupe asked for more time to
    complete the Waiver or to speak to an attorney.                          There is no
    evidence that Shupe indicated she did not understand the terms
    of the Waiver when she signed it.                    There is no evidence that
    Shupe asked for a copy of the Waiver after she signed it.                       There
    is no evidence of fraud when Shupe signed the Waiver.
    “In general, a person who has the opportunity to read a
    contract, but does not do so and signs the agreement, is bound
    to the contract terms unless there was some fraud in the process
    of obtaining his signature.”             Aytes v. Federal Exp. Corp., 2012
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    Rebecca Shupe v. Asplundh Tree Expert Company
    WL 1831272, at *13 (E.D. Ky. May 18, 2012) (citing Cline v.
    Allis-Chalmers Corp., 
    690 S.W.2d 764
    , 766 (Ky. 1985)).                                        This
    Court    has   held     that       a   plaintiff       “had      an    obligation        to   seek
    assistance before she signed if she felt she did not understand
    the application.”            Reid v. Sears, Roebuck and Co., 
    790 F.2d 453
    ,
    461    (6th    Cir.    1986).              This    Court   has    upheld      a     statute-of-
    limitations waiver when “[t]he [district] court also noted that
    despite [the plaintiff’s] claim that he was given only a few
    minutes to decide whether or not to sign the waiver, there was
    no indication that he had requested more time to consider the
    situation or that he was pressured into signing the agreement.”
    Sako, 278 F. App’x at 519.                    “Even assuming the verification of
    [the    plaintiff’s]         .    .    .      inability     to    consult          an   attorney,
    standing alone these facts do not show lack of knowledge [or]
    voluntariness.”         
    Dunn, 780 F. Supp. 2d at 577
    .                      In the absence of
    any    evidence       that       Shupe      requested      more       time    to    review     the
    Waiver, indicated she did not understand the Waiver, or asked
    for time to have an attorney review the Waiver, this factor
    weighs    in   favor     of       Shupe’s         having   knowingly         and    voluntarily
    executed the Waiver.
    The district court found that “[t]he waiver is quite clear,
    both in content and in form.                       The font directing the reader’s
    attention is bold and capitalized, and the font containing the
    actual language of the waiver is clear from a normal reading
    - 17 -
    No. 13-5747
    Rebecca Shupe v. Asplundh Tree Expert Company
    distance.      The language itself is relatively plain and clear.”
    (Order on Mot. Summ. Judg. at 4, ECF No. 16.)                              Shupe does not
    dispute that the font is appropriate and that the language is
    clear and unambiguous.
    The Eastern District of Kentucky has upheld a waiver that
    stated: “To the extent the law allows an employee to bring legal
    action against Federal Express, I agree to bring that complaint
    within the time prescribed by law or 6 months from the date of
    the event forming the basis of my lawsuit, whichever expires
    first.”       Aytes,      
    2012 WL 1831272
    ,       at   *12.          The    language     in
    Asplundh’s Waiver is similar to the language in Aytes.                                      This
    factor     weighs      in    favor      of     Shupe’s          knowing     and    voluntary
    execution of the Waiver.
    Shupe does not dispute that there was consideration for
    Asplundh’s     Waiver.           Asplundh      provided         consideration          when   it
    employed Shupe and paid her wages.                     
    Dunn, 780 F. Supp. 2d at 574
    .
    This factor weighs in favor of Shupe’s knowing and voluntary
    execution of the Waiver.
    Shupe argues that the cases in which courts have upheld
    statute-of-limitations            waivers       have    turned       on     “the       negative
    circumstances presented in [her] case in isolation, as opposed
    to a combination of all of them in one case . . . .”                                    To the
    contrary,     the    court       in    Dunn    upheld       a    statute-of-limitations
    waiver    where     the     plaintiff         allegedly         “received       only    a   high
    - 18 -
    No. 13-5747
    Rebecca Shupe v. Asplundh Tree Expert Company
    school    education,      was   given    insufficient      time      to   review     the
    Application,      and    was    unable    to     consult   an     attorney        before
    signing [the 
    waiver].” 780 F. Supp. 2d at 577
    .            Shupe’s argument
    is not well taken.
    Shupe also relies on this Court’s decision in Walker v.
    Ryan’s Family Steak Houses, Inc., 
    400 F.3d 370
    (6th Cir. 2005).
    This Court held that an arbitration agreement was not knowingly
    and voluntarily signed when:
    Plaintiffs typically were hired on the spot after a
    brief interview, during which the hiring manager
    hurriedly presented them with various documents that
    they were instructed to sign in order to be considered
    for a job.   According to one . . . plaintiff, Ryan’s
    managers would place an ‘x’ in every spot an applicant
    is required to sign, and applicants would be told to
    sign every ‘x’ without any explanation.     The hiring
    manager usually would not mention the arbitration
    agreement, and Plaintiffs had no opportunity to take
    the Arbitration Agreement home or consult an attorney,
    even though the agreement purports to afford them that
    right. . . . Plaintiffs were given no option to revoke
    their consent to the Arbitration Agreement.
    
    Id. at 381-82.
    Walker is distinguishable for three reasons.                   The waiver of
    an   arbitration      agreement      involves     a    substantive        right    to   a
    judicial forum.         
    Id. at 382.
         The shorter statute of limitations
    here involves a procedural right.                 Aytes, 
    2012 WL 1831272
    , at
    *13.      The   waiver     in   Walker    was    contained      in   a    twelve-page
    application packet that contained five pages of single-spaced
    rules    and    procedures       governing       the    arbitration        procedure.
    - 19 -
    No. 13-5747
    Rebecca Shupe v. Asplundh Tree Expert Company
    
    Walker, 400 F.3d at 373
    .                    The Waiver in this case was a single
    page and was clear and direct.                        The management in Walker also
    provided          misleading      information          about        what    the       arbitration
    agreement         meant.        
    Id. at 382.
         Shupe        has    not    provided        any
    evidence that Asplundh attempted to mislead her in any way.
    Walker is not controlling or persuasive in this case.
    Shupe also argues that Asplundh should have provided her
    with a copy of the Waiver when she was terminated in August
    2011.     An employer is not required to provide an employee with
    notice       of     a    statute-of-limitations              waiver        at    the    time      of
    termination.            “One who signs a contract cannot seek to avoid it
    on the basis that he did not read it or that he supposed it was
    different in its terms.”                    Mannix v. Cnty. of Monroe, 
    348 F.3d 526
    ,    533       (6th   Cir.    2003).         This    factor        weighs      in    favor      of
    Shupe’s knowing and voluntary execution of the Waiver.
    The    district         court    did     not    err     in    deciding         that    Shupe
    knowingly         and    voluntarily         signed     the    Waiver.            There      is   no
    genuine       dispute      of    material       fact    about        the    validity         of   the
    Waiver.       Shupe did not bring her claims within six months of her
    termination.             The    district       court     did        not    err    in    granting
    Asplundh’s motion for summary judgment.
    IV.
    The     district         court       properly    found        that       the    amount     in
    controversy         exceeded      $75,000.00.           The    district          court’s      order
    - 20 -
    No. 13-5747
    Rebecca Shupe v. Asplundh Tree Expert Company
    denying Shupe’s motion to remand is             AFFIRMED.   The district
    court properly found that Shupe knowingly and voluntarily signed
    the   six-month      statute-of-limitations     waiver.     The   district
    court’s order granting Asplundh’s motion for summary judgment is
    AFFIRMED.
    - 21 -
    

Document Info

Docket Number: 13-5747

Citation Numbers: 566 F. App'x 476

Judges: Clay, Donald, Mays

Filed Date: 5/22/2014

Precedential Status: Non-Precedential

Modified Date: 11/6/2024

Authorities (22)

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Shirley K. Rogers v. Wal-Mart Stores, Inc. , 230 F.3d 868 ( 2000 )

Donald Mannix v. County of Monroe , 348 F.3d 526 ( 2003 )

Sayre v. Potts , 32 F. Supp. 2d 881 ( 1999 )

Dunn v. Gordon Food Services, Inc. , 780 F. Supp. 2d 570 ( 2011 )

National Nail Corp. v. Moore , 139 F. Supp. 2d 848 ( 2001 )

Larry Laughlin v. Kmart Corporation , 50 F.3d 871 ( 1995 )

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