Anthony McCoy v. Arde, Inc. ( 2024 )


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  •                                 NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the
    internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-0080-23
    ANTHONY MCCOY,
    Plaintiff-Appellant,
    v.
    ARDE, INC., LORRAINE KUNZ,
    LOUIS TANTILLO, THOMAS
    WILSON, and VINCENT MANCUSO,
    Defendants-Respondents.
    ________________________________
    Argued March 6, 2024 – Decided October 9, 2024
    Before Judges Accurso and Vernoia.
    On appeal from the Superior Court of New Jersey, Law
    Division, Bergen County, Docket No. L-6073-22.
    Andrew Dwyer argued the cause for appellant (The
    Dwyer Law Firm, LLC, attorneys; Andrew Dwyer, of
    counsel and on the briefs).
    Danielle E. Acocella argued the cause for respondents
    (Constangy, Brooks, Smith & Prophete, LLP,
    attorneys; Anjanette Cabrera and Danielle E. Acocella,
    on the brief).
    The opinion of the court was delivered by
    VERNOIA, P.J.A.D.
    In this employment discrimination, harassment, and retaliation case, we
    granted plaintiff Anthony McCoy leave to appeal from an order granting
    defendants Arde, Inc.'s (Arde), Lorraine Kunz's, Louis Tantillo's, Thomas
    Wilson's, and Vincent Mancuso's motion to stay the Law Division proceedings
    and compel arbitration of plaintiff's causes of action under the New Jersey Law
    Against Discrimination (NJLAD), N.J.S.A. 10:5-1 to -49, pursuant to a putative
    arbitration agreement between plaintiff and Arde. We affirm.
    I.
    At all times pertinent to the claims asserted in plaintiff's complaint, Arde
    was party to a collective bargaining agreement (the CBA) with Service,
    Production, Merchandising, Wholesale, Distribution, Clerical and Health
    Related Services, Airline, Airport and Aerospace Employees Union, Local 210,
    International Brotherhood of Teamsters (the Union). The Union is the collective
    bargaining representative for Arde's employees in certain job titles, including
    the title plaintiff held during his employment with the company.1
    1
    The CBA states the Union is the collective bargaining agent for "all" of Arde's
    "employees" in certain specified job titles. Based on the allegations in the
    A-0080-23
    2
    The CBA includes a procedure for the resolution of grievances, which the
    CBA defines as disputes "with respect to the interpretation or application of any
    provision of the" CBA. The CBA does not include state statutory discrimination
    claims within the definition of grievances subject to the CBA's grievance-and
    arbitration-procedure, and plaintiff acknowledges and concedes that the NJLAD
    claims asserted in plaintiff's Law Division complaint are not subject to the
    CBA's grievance-and-arbitration procedure.
    The CBA's grievance-and-arbitration procedure consists of various steps
    that culminate with binding arbitration before the American Arbitration
    Association. The CBA also prohibits the discharge of employees "without good
    and sufficient cause" and provides that the Union may challenge an employee's
    discharge as a violation of that contractual agreement in accordance with the
    grievance procedure.
    In pertinent part, the CBA further provides that neither Arde nor the Union
    will discriminate "against any individual with respect to hiring, compensation,
    [or] terms or conditions of employment because of such individual's race, color,
    complaint, Arde employed plaintiff in one of the job titles within the collective
    bargaining unit. Plaintiff therefore was a member of the collective bargaining
    unit represented by the Union commencing with the start of his employment—
    including during the initial forty-five days of his employment that the CBA
    deems a probationary period—and until the termination of his employment.
    A-0080-23
    3
    creed, religion, sex, national origin, age, disability, or any characteristic
    protected by law" and will not discriminate against any employee because of
    their membership in the Union.
    The CBA also includes a provision, titled "ALTERATION OF
    AGREEMENT," that prohibits agreements between Arde and its employees that
    are inconsistent with the CBA. The provision states, in part, as follows:
    No agreement, alteration, understanding, variation,
    waiver or modification of any of the terms [or]
    conditions or covenants herein, shall be made by any
    employee or group of employees with the Company
    and, in no case, shall it be binding upon the parties
    hereto unless such agreement is made and executed in
    writing between the parties hereto.
    Arde hired plaintiff for a bargaining-unit position, and plaintiff
    commenced his employment in January 2015. On December 5, 2014, prior to
    the commencement of his employment, plaintiff executed Arde's "Mutual
    Agreement to Arbitrate Claims" (MAAC), which, consistent with its name,
    states that plaintiff must submit to arbitration certain claims and controversies—
    including those for violations of state statutes—arising out of his employment
    with Arde and the termination of his employment. On December 10, 2014, prior
    to the commencement of Arde's employment, a company staffing coordinator
    executed the MAAC on Arde's behalf.
    A-0080-23
    4
    The MAAC states that plaintiff "consent[s] to the resolution by arbitration
    of all claims or controversies ('claims'), past, present or future, whether arising
    out of [his] employment (or its termination), that . . . [he] (and no other party)
    may have against" Arde, "its officers, directors, employees or agents" and its
    and their "successors or assigns."      The MAAC further provides that the
    "[a]rbitrable claims include but are not limited to: claims for wages or other
    compensation due"; "claims for discrimination" including claims for racial
    discrimination; and "claims for violation of any federal, state, or other
    governmental law, statute, regulation, or ordinance," except as otherwise
    provided in the MAAC.
    The MAAC excepts from the claims otherwise arbitrable those filed "for
    temporary equitable relief in aid of arbitration, where such an action is otherwise
    available by law," administrative charges made to any "federal, state or local
    equal opportunity or fair employment practices agency," "administrative
    charge[s] to the" National Labor Relations Board, and other specified
    administrative proceedings. Plaintiff does not argue that any of the exceptions
    apply here.
    The MAAC also describes in detail the prescribed procedure for the
    arbitration of any claims falling under the arbitration requirement.           The
    A-0080-23
    5
    procedure requires the submission of such claims to arbitration "under the
    auspices of the Judicial Arbitration [and] Mediation Services."
    The MAAC includes a bolded acknowledgment, which plaintiff signed,
    stating he had reviewed and understood the agreement, entered into it
    voluntarily, and did not rely on any promises that were not expressly set forth
    in the agreement. The acknowledgement further states plaintiff understood that
    by entering into the MAAC, he had given up his right to a jury trial and had been
    provided an opportunity to discuss the agreement with his "private legal
    counsel."
    In November 2020, Arde terminated plaintiff's employment. Plaintiff
    later filed a complaint in the Law Division alleging that during his employment ,
    the individual defendants—who were at various times his co-employees and
    supervisors—harassed and otherwise discriminated against him based on his
    race—Black—and retaliated against him for objecting to the alleged
    discriminatory and harassing conduct.           Plaintiff further alleged the
    discriminatory and retaliatory conduct culminated in Arde's termination of his
    employment.
    Plaintiff's complaint asserted two causes of action under the NJLAD
    against Arde—one for racial discrimination and the other for retaliation. The
    A-0080-23
    6
    complaint also included a cause of action against the individual defendants,
    claiming they violated the NJLAD by aiding and abetting Arde's alleged
    discriminatory and retaliatory actions. The complaint does not include any
    claims alleging that Arde violated the CBA.
    Defendants moved for a stay of plaintiff's lawsuit and to compel
    arbitration of the asserted NJLAD causes of action. Defendants argued plaintiff
    was required under the MAAC to arbitrate his state statutory NJLAD claims .
    Plaintiff opposed the motion, claiming the MAAC was unenforceable
    because "the terms and conditions of [plaintiff's] employment were governed
    by" the CBA. Plaintiff also argued that because the CBA did not require
    arbitration of plaintiff's NJLAD claims and the MAAC was unenforceable, he
    was permitted to prosecute his claims in the Law Division action.
    Plaintiff further asserted that the MAAC and CBA conflict and, as a result,
    the MAAC was not the product of the mutual assent required for a valid waiver
    of plaintiff's right to a jury trial on his NJLAD claims. Plaintiff claimed the
    agreements conflict because the MAAC requires submission of "any
    employment dispute" to arbitration in accordance with the procedure set forth in
    A-0080-23
    7
    that agreement and the CBA requires the submission of "any employment
    dispute" to arbitration in "a completely different procedure." 2
    Plaintiff also claimed the MAAC is unenforceable because the CBA's
    "ALTERATION OF AGREEMENT" provision prohibits Arde's entry "into any
    separate agreement with an employee" and that "if [Arde] did enter into a
    separate agreement with [an] employee, it would not be enforceable unless the
    [U]nion countersigned it, which . . . didn't happen here."
    Arde argued there is no conflict between the CBA and MAAC because the
    CBA does not permit or require the prosecution of an employee's state statutory
    anti-discrimination claims under the grievance-and-arbitration procedure. Arde
    asserted that contrary to plaintiff's claim, the CBA's "ALTERATION OF
    AGREEMENT" provision did not bar Arde's entry into the MAAC with plaintiff
    because the MAAC does not modify or alter the terms of the CBA, and the
    CBA's grievance-and-arbitration provision is otherwise inapplicable to the
    statutory discrimination claims under the NJLAD asserted in plaintiff's
    complaint. Plaintiff concedes the CBA's grievance-and-arbitration provisions
    "do not require arbitration for the statutory claims at issue in this case."
    2
    As noted, the MAAC requires the arbitration of claims before Judicial
    Arbitration and Mediation Services and the CBA requires arbitration before the
    American Arbitration Association.
    A-0080-23
    8
    In a written decision following argument on defendant's motion, the court
    assessed the validity of the MAAC under the standard established in Atalese v.
    U.S. Legal Servs. Grp., LP, 
    219 N.J. 430
     (2014), for a valid agreement waiving
    a right to a jury trial and requiring arbitration of statutory claims under the
    NJLAD. The motion court reasoned that because, in its view, the MAAC
    satisfied the Atalese standard and the CBA did not, the CBA did not require
    arbitration of plaintiff's NJLAD claims and the MAAC required arbitration of
    the asserted NJLAD claims. Based on that reasoning, the court found no conflict
    between the MAAC and the CBA and concluded plaintiff was required to
    arbitrate his NJLAD claims in accordance with the MAAC.
    The court entered an order staying the proceedings in the Law Division
    action and compelling arbitration of plaintiff's NJLAD claims in accordance
    with the MAAC. We granted plaintiff's motion for leave to appeal from the
    court's order.
    II.
    Prior to addressing plaintiff's arguments challenging the court's order, we
    summarize the principles that guide our analysis. "We review a trial court's
    order granting or denying a motion to compel arbitration de novo because the
    validity of an arbitration agreement presents a question of law." Santana v.
    A-0080-23
    9
    SmileDirectClub, LLC, 
    475 N.J. Super. 279
    , 285 (App. Div. 2023) (citing Skuse
    v. Pfizer, Inc., 
    244 N.J. 30
    , 46 (2020)). We therefore "need not give deference
    to the [legal] analysis by the trial court." 
    Ibid.
     (alteration in original) (quoting
    Goffe v. Foulke Mgmt. Corp., 
    238 N.J. 191
    , 207 (2019)). In our review of an
    order compelling arbitration, we "construe the arbitration provision with fresh
    eyes." Morgan v. Sanford Brown Inst., 
    225 N.J. 289
    , 303 (2016).
    We do not review a court's reasoning; we review only the trial court's
    judgment or order. Bandler v. Melillo, 
    443 N.J. Super. 203
    , 210 (App. Div.
    2015). In our analysis of plaintiff's arguments on appeal, we therefore consider
    "only the propriety of the [order] entered by the trial court, not the reasoning
    underlying the court's decision." 
    Ibid.
     (citing Do-Wop Corp. v. City of Rahway,
    
    168 N.J. 191
    , 199 (2001)). We apply these standards here.
    "The Federal Arbitration Act (FAA), 
    9 U.S.C. §§ 1-16
    , and the nearly
    identical New Jersey Arbitration Act, N.J.S.A. 2A:23B-1 to -32, enunciate
    federal and state policies favoring arbitration."      Atalese, 
    219 N.J. at 440
    .
    Pursuant to the FAA, courts must "place arbitration agreements on an equal
    footing with other contracts and enforce them according to their terms." 
    Id. at 441
     (quoting AT&T Mobility LLC v. Concepcion, 
    563 U.S. 333
    , 339 (2011)).
    A-0080-23
    10
    In reviewing orders compelling arbitration, "we are mindful of the strong
    preference to enforce arbitration agreements, both at the state and federal level."
    Hirsch v. Amper Fin. Servs., LLC, 
    215 N.J. 174
    , 186 (2013); see also Flanzman
    v. Jenny Craig, Inc., 
    244 N.J. 119
    , 133 (2020) (explaining "the affirmative policy
    of this State, both legislative and judicial, favors arbitration as a mechanism of
    resolving disputes" (quoting Martindale v. Sandvik, Inc., 
    173 N.J. 76
    , 92
    (2002))). Arbitration, as a favored means for dispute resolution, is not, however
    "without limits." Garfinkel v. Morristown Obstetrics & Gynecology Assocs.,
    PA, 
    168 N.J. 124
    , 132 (2001).
    "Arbitration's favored status does not mean that every arbitration clause,
    however phrased, will be enforceable." Atalese, 
    219 N.J. at
    441 (citing Hirsch,
    
    215 N.J. at 187
    ). Thus, the fact that the MAAC's provisions otherwise satisfy
    the standards for plainly stated waiver of a jury trial and agreement to arbitrate
    under Atalese does not end the inquiry.         A legally enforceable arbitration
    agreement "requires 'a meeting of the minds,'" id. at 442 (quoting Morton v. 4
    Orchard Land Tr., 
    180 N.J. 118
    , 120 (2004)), and the effective waiver of a
    party's right to a jury trial "requires [the] party to have full knowledge of [their]
    legal rights and intent to surrender [that] right," 
    ibid.
     (quoting Knorr v. Smeal,
    
    178 N.J. 169
    , 177 (2003)). "Moreover, because arbitration involves a waiver of
    A-0080-23
    11
    the right to pursue a case in a judicial forum, 'courts take particular care in
    assuring the knowing assent of both parties to arbitrate, and a clear mutual
    understanding of the ramifications of that assent.'"     Id. at 442-43 (quoting
    NAACP of Camden Cnty. E. v. Foulke Mgmt. Corp., 
    421 N.J. Super. 404
    , 425
    (App. Div. 2011)).
    "An arbitration agreement must be the result of the parties' mutual assent,
    according to customary principles of state contract law." Skuse, 244 N.J. at 48
    (citing Atalese, 
    219 N.J. at 442
    ). The mutual assent necessary for a valid
    arbitration agreement "requires that the parties have an understanding of the
    terms to which they have agreed. 'An effective waiver'" of an individual's right
    to pursue a claim in a judicial forum "'requires a party to have full knowledge
    of his [or her] legal rights and intent to surrender those rights.'" Atalese, 
    219 N.J. at 442
     (quoting Knorr, 
    178 N.J. at 177
    ). And, "under New Jersey law, any
    contractual 'waiver-of-rights provision must reflect that [the party] has agreed
    clearly and unambiguously' to its terms." Id. at 443 (alteration in original)
    (quoting Leodori v. CIGNA Corp., 
    175 N.J. 293
    , 302 (2003)); see also
    Martindale, 
    173 N.J. at 96
     (enforcing an arbitration agreement because, among
    other things, it "was clear and unambiguous").
    A-0080-23
    12
    Defendants' motion to stay plaintiff's lawsuit and compel arbitration is
    founded on the MAAC, which plainly provides that plaintiff waives his right to
    a jury trial and agrees to arbitrate any state statutory claims he may have against
    Arde. Plaintiff does not dispute that on its face, the MAAC includes a waiver
    of his right to a jury trial on the NJLAD claims asserted in the complaint and an
    agreement to arbitrate those claims that satisfies the requirements explained by
    the Court in Atalese. See Atalese, 
    219 N.J. at 443
     ("[U]nder New Jersey law,
    any contractual 'waiver-of-rights provision must reflect that [the party] has
    agreed clearly and unambiguously' to its terms." (second alteration in original)
    (quoting Leodori, 
    175 N.J. at 302
    )); see also Drinker Biddle & Reath LLP v.
    N.J. Dep't of L. & Pub. Safety, 
    421 N.J. Super. 489
    , 496 n.5 (App. Div. 2011)
    (explaining an issue not briefed on appeal is deemed abandoned).
    Before the motion court, and on appeal, plaintiff's challenge to the
    MAAC's enforceability is based on his claim that following his execution to the
    MAAC and employment by Arde, he became a member of the collective
    bargaining unit represented by the Union and was therefore subject to the terms
    of the CBA. He contends the MAAC conflicts with the CBA and therefore the
    MAAC does not constitute the clear and unambiguous waiver of his right to a
    jury trial on his NJLAD claims and agreement to arbitrate that is required by
    A-0080-23
    13
    Atalese. 
    219 N.J. at 442-43
    . He also argues the MAAC is unenforceable
    because the Union had exclusive authority to negotiate over the arbitrability of
    plaintiff's employment-related statutory discrimination claims under the United
    States Supreme Court's decision in 14 Penn Plaza LLC v. Pyett, 
    556 U.S. 247
    (2009).
    We reject plaintiff's arguments because they are founded on a premise—
    that the MAAC and CBA conflict in such a manner as to render the MAAC
    unenforceable—that is undermined by the plain language of the two agreements.
    In short, the MAAC and the CBA do not conflict in any manner of consequence
    to the plainly stated waiver of plaintiff's right to a jury trial and agreement to
    arbitrate his state statutory NJLAD causes of action set forth in the MAAC.
    To be sure, and as plaintiff argues, there are differences between the
    dispute resolution procedures in the CBA and the MAAC. The CBA provides
    for the arbitration of contractual grievances before the American Arbitration
    Association and the MAAC requires arbitration of arbitrable disputes—
    including claims arising under state statutes—under the agreement before
    Judicial Arbitration and Mediation Services.
    The differences between those procedures are of no consequence to the
    validity of plaintiff's waiver of his right to a jury trial and agreement to arbitrate
    A-0080-23
    14
    his NJLAD claims for the simple but dispositive reason that the statutory claims
    asserted in the complaint are separate from, and independent of, any contractual
    rights that exist under the CBA. Stated differently, plaintiff could not prosecute
    his state statutory claims under the grievance procedure in the CBA because any
    claimed violation of the NJLAD, like those asserted in plaintiff's Law Division
    complaint, do not constitute cognizable grievances subject to the CBA's
    grievance-and-arbitration   procedure.      This    is   undisputed.     Plaintiff
    acknowledges and concedes that neither he nor the Union could prosecute his
    statutory NJLAD claims in the CBA's grievance-and-arbitration procedure. For
    those reasons, any putative conflict between the dispute resolution procedures
    in the MAAC and CBA are of no moment in the assessment of the validity of
    the MAAC because the CBA does not apply to those claims.
    In Thornton v. Potamkin Chevrolet, the Court considered whether a union
    employee who had failed to raise a statutory racial discrimination claim in a
    grievance arbitration proceeding under a collective bargaining agreement could
    also pursue the claim in a separate proceeding alleging racial discrimination
    under the NJLAD before the New Jersey Division on Civil Rights (DCR). 
    94 N.J. 1
    , 3-4 (1983). The Court found the "[t]he public interest in enforcement of
    the [NJLAD]" required the rejection of the defendant's claim the entire
    A-0080-23
    15
    controversy doctrine should preclude the plaintiff's prosecution of the
    discrimination claim before the DCR. 
    Id. at 6
    .
    In support of its determination, the Court found "an important analogy in"
    the United States Supreme Court's decision in Alexander v. Gardner-Denver
    Co., 
    415 U.S. 36
     (1974), "which held that a proceeding to enforce a
    discrimination claim under Title VII of the Civil Rights Act of 1964 would not
    be foreclosed by a previous unsuccessful labor arbitration of a claim" pursuant
    to the grievance procedure in a collective bargaining agreement. Thornton, 
    94 N.J. at 6
    . The Court in Thornton, quoting the reasoning in Alexander, explained
    that "the federal policy favoring arbitration of labor disputes and the federal
    policy against discriminatory employment practices can best be accommodated
    by permitting an employee to pursue fully both his remedy under the grievance
    arbitration clause of a collective-bargaining agreement and his cause of action
    under Title VII." 
    Ibid.
     (quoting Alexander, 
    415 U.S. at 59-60
    ).
    The Court further cited Alexander's reasoning that the plaintiff "by
    submitting his grievance to arbitration . . . agrees to arbitrate only his
    contractual rights under the collective bargaining agreement" but "[i]n a Title
    VII proceeding he asserts statutory rights guaranteed to him by Congress." Id.
    at 7 (emphasis omitted). And the Court noted that Alexander made a distinction
    A-0080-23
    16
    between the plaintiff's right to pursue his statutory discrimination claims under
    Title VII and his assertion of contractual rights in the arbitration that had been
    filed under the union contract, explaining "the relationship between the forums
    is complementary since consideration of the claim by both forums may promote
    the policies underlying each." Ibid. (quoting Alexander, 
    415 U.S. at 50-51
    ).
    In Thornton, the Court concluded that "complementary jurisdiction" over
    employment-related claims under a collective bargaining agreement grievance
    procedure and in an available forum for claims asserted under the NJLAD
    permitted disposition of such claims in both forums. Id. at 7-8. That is, the
    Court recognized that an employee may assert NJLAD claims in a forum
    permitted under the statute and separately pursue discrimination claims as
    permitted under a collective bargaining agreement in a grievance-and-
    arbitration proceeding. 3 Id. at 8; see also Lingle v. Norge Div. of Magic Chef,
    Inc., 
    486 U.S. 399
    , 411 (1988) (explaining the United States Supreme Court
    3
    We observe that an employee's common law state tort claims and state
    statutory claims are preempted under Section 301 of the Labor Management
    Relations Act of 1947 (LMRA), 
    29 U.S.C. § 185
    (a), and under Section 7 of the
    National Labor Relations Act (NLRA), 
    29 U.S.C. § 157
    , where the state
    statutory claim is dependent on the meaning of a collective bargaining
    agreement, see generally Puglia v. Elk Pipeline, Inc., 
    226 N.J. 258
     (2016)
    (addressing preemption of the plaintiffs' state statutory retaliatory discharge
    claim under the LMRA and NLRA). As alleged in plaintiff's complaint, his
    NJLAD claims are not dependent in whole or in part on the CBA.
    A-0080-23
    17
    "has, on numerous occasions, declined to hold that individual employees are,
    because of the availability of arbitration" under a collective bargaining
    agreement, "barred from bringing claims under federal statutes" (quoting
    Atchinson, T. &. S. F. R. Co. v. Buell, 
    480 U.S. 557
    , 564-65 (1987))); see also
    Puglia, 
    226 N.J. at 264
     (explaining "New Jersey has a significant body of
    statutory and decisional law protecting employee rights—protections that exist
    whether the employee is a union member or not").
    Plaintiff's claim that the MAAC is unenforceable because there is a
    conflict between the arbitration procedure set forth in the CBA and the one
    prescribed in the MAAC ignores that the separate proceedings—plaintiff's
    prosecution of his statutory claims and the Union's right to file grievances under
    the CBA—are complementary, address wholly different issues, and are intended
    to vindicate separate interests. Alexander, 
    415 U.S. at 50-51
    ; Thornton, 
    94 N.J. at 7
    ; see also Puglia, 
    226 N.J. at 285-96
     (explaining a union employee's state
    statutory claim under the Conscientious Employee Protection Act, N.J.S.A.
    34:19-1 to -14, that is not preempted under the LMRA or NLRA may proceed
    in state court independently of the requirements of a collective bargaining
    agreement).
    A-0080-23
    18
    Here, as plaintiff concedes, the CBA does not permit or require resolution
    of his state statutory claim under the NJLAD in the agreement's grievance-and-
    arbitration procedure. Therefore, there is no complementary jurisdiction to
    consider because neither plaintiff nor the Union could assert state statutory
    claims under the CBA. Because plaintiff's NJLAD claims are not, by definition,
    grievances subject to the grievance-and-arbitration provisions of the CBA, the
    NJLAD provided the exclusive means by which plaintiff could prosecute his
    individual state statutory claims against Arde.
    The NJLAD "provides aggrieved employees with a choice of forum to
    prosecute their claims." Garfinkel, 168 N.J. at 130. Employees "may pursue an
    administrative remedy by filing a verified complaint with the [DCR], or may file
    suit in the Law Division of the Superior Court." Ibid. (citing N.J.S.A. 10:5-13).
    In exercising their rights under the NJLAD, aggrieved employees may also enter
    into enforceable agreements with their employers to waive their right to a jury
    trial and proceed to binding arbitration of their NJLAD claims. Id. at 130-36.
    We recognize a union may negotiate on behalf of its members an
    obligation to arbitrate statutory claims under a collective bargain agreement as
    long as the obligation is "explicitly stated" in the agreement, 14 Penn Plaza LLC,
    
    556 U.S. at 258
     (quoting Wright v. Universal Mar. Serv. Corp., 
    525 U.S. 70
    , 80
    A-0080-23
    19
    (1998)). But the Union opted not to negotiate such a requirement with Arde
    here and therefore left plaintiff to pursue his individual statutory claims on his
    own under the NJLAD. See Alexander, 
    415 U.S. at 50-51
    ; Thornton, 
    94 N.J. at 7
    ; see also Puglia, 
    226 N.J. at 285-96
    .
    Given those circumstances, and because it is undisputed plaintiff had an
    independent and personal right to prosecute his NJLAD claims, we discern no
    basis to conclude he could not separately agree to prosecute those claims—
    which he agrees cannot be prosecuted under the CBA's grievance-and-
    arbitration procedure—in a forum and following a procedure different than the
    one Arde and the Union agreed to for the disposition of grievances under the
    CBA, to which only they are parties. For those reasons, we reject plaintiff's
    claim that because the procedure for the resolution of disputes in the CBA is
    different than the arbitration procedure in the MAAC, it results in a conflict that
    renders the MAAC ambiguous and therefore unenforceable.             As the Court
    explained in LePore v. National Tool & Manufacturing Co., 
    115 N.J. 226
    , 228
    (1989), "[t]he fact that plaintiff was covered by a collective-bargaining
    agreement . . . should not preclude a cause of action predicated on an
    independent basis," and "a suit based on an independent state cause of action
    does not undermine a collective-bargaining agreement."
    A-0080-23
    20
    Contrary to plaintiff's contention, our decisions in Rockel v. Cherry Hill
    Dodge, 
    368 N.J. Super. 577
     (App. Div. 2004), and Foulke Management, 
    421 N.J. Super. at 409-11, 431-38
    , do not require a different result. In Rockel, we
    found a putative arbitration agreement was "highly ambiguous" and therefore
    unenforceable because the parties to the agreement had "executed two
    documents which contain[ed] separate and somewhat disparate arbitration
    clauses." 
    368 N.J. Super. at 581
    . There is no similar circumstance extant here.
    Plaintiff and Arde were parties to one agreement—the MAAC—which plaintiff
    recognizes clearly and unambiguously states that he waives his personal right to
    a jury trial and agreed to arbitrate his statutory NJLAD claims.
    Similarly, in Foulke Management, we found unenforceable an alleged
    agreement that a car dealership claimed required arbitration of the plaintiff's
    claims arising out of the purchase of a new car. 421 N.J. Super. at 409-11. We
    found the terms of the claimed arbitration agreement had been spread across a
    series of separate documents signed by the plaintiff in connection with a car
    purchase and that, in many respects, the various documents described aspects of
    the alleged arbitration obligation in different and inconsistent, and in "[e]qually
    murky and conflicting" ways. Id. at 431-37. For those reasons, we determined
    A-0080-23
    21
    there was a lack of mutual assent to the terms of the arbitration obligation and
    found the putative agreement unenforceable on that basis. Id. at 438.
    Again, the circumstances here differ from those in Foulke Management.
    Arde and plaintiff entered into a single agreement—the MAAC—that plainly
    and unambiguously states plaintiff waived his right to a jury trial on his statutory
    claims and agreed to arbitrate those claims. And, as we have explained, plaintiff
    was not a party to the CBA and he concedes that CBA does not permit or require
    that he prosecute his NJLAD claim in the CBA's grievance-and-arbitration
    procedure. As such, there is no ambiguity in plaintiff's contractual obligations
    as set forth in the MAAC; he waived his right to jury trial and agreed to
    prosecute his individual statutory NJLAD claims—that he no right or obligation
    to prosecute under the CBA—in arbitration.
    Arde was free to enter into an agreement—the MAAC—with plaintiff as
    long as it did not conflict with the CBA. J.I. Case Co. v. NLRB, 
    321 U.S. 332
    ,
    339 (1944) ("Individual contracts cannot subtract from collective ones"); Mount
    Holly Twp. Bd. of Educ. v. Mount Holly Twp. Educ. Ass'n, 
    199 N.J. 319
    , 322
    (2009) (reaffirming that "when provisions in an individual employment contract
    conflict with the terms of a" collective bargaining agreement, "and diminish or
    interfere with rights provided by the" agreement, "the language in the individual
    A-0080-23
    22
    contract must yield to the collective agreement").       Our Supreme Court has
    recognized "the federal labor principle that individual contracts" with members
    of a collective bargaining unit "are void only to the extent that they conflict with
    collective [bargaining] agreements or interfere with the principles of collective
    negotiation." Troy v. Rutgers, 
    168 N.J. 354
    , 375-76 (2001); see also Caterpillar
    Inc. v. Williams, 
    482 U.S. 386
    , 396 (1987) (explaining an employee "covered
    by a collective-bargaining agreement is permitted to assert legal rights
    independent of that agreement, including state-law contract rights, so long as
    the contract relied on is not a collective-bargaining agreement" (emphasis
    omitted)).
    For the reasons we have explained, there is no conflict between the MAAC
    and the CBA pertinent to the disposition of plaintiff's statutory NJLAD claims ,
    and the MAAC did not diminish any rights to prosecute the claims under the
    CBA.     The CBA negotiated by the Union did not permit or require the
    prosecution of statutory claims under the grievance-and-arbitration agreement
    and, as result, those claims were reserved by the Union's agreement with Arde
    as individual statutory claims that plaintiff was permitted to prosecute
    individually and independent of the CBA.
    A-0080-23
    23
    Contrary to plaintiff's contention, Article 20 of the CBA did not prohibit
    Arde's entry into the MAAC with plaintiff. Article 20, titled "ALTERATION
    OF AGREEMENT," prohibits Arde's entry into separate agreements with
    members of the collective bargaining unit that alter, modify, or vary the "terms
    and conditions" of the CBA. The MAAC does none of those things. Again, the
    CBA negotiated by the Union allows bargaining unit employees to individually
    prosecute their NJLAD claims and, here, plaintiff opted to prosecute his NJLAD
    claims by agreeing to waive his right to a jury trial and arbitrate his claims in an
    agreement—the MAAC—that fully comports with the Atalese standard. The
    MAAC is therefore in full accord with the CBA negotiated by the Union.
    To the extent we have not expressly addressed any of plaintiff's remaining
    arguments, we find they are without sufficient merit to warrant discussion in a
    written opinion.
    4 R. 2
    :11-3(e)(1)(E).
    4
    Plaintiff argues for the first time in his reply brief that the Union had the
    exclusive authority under the NLRA, as the collective bargaining representative
    of Arde's employees, to negotiate the terms and conditions of plaintiff's exercise
    of his right to prosecute his individual statutory claims, and that the MAAC is
    unenforceable as a matter of law because it violated the NLRA. See generally
    Mendez v. Starwood Hotels & Resorts Worldwide, Inc., 
    346 F. App'x 602
     (2d
    Cir. 2009). We do not address the argument because it is improper to for a party
    to use a reply brief to raise an issue for the first time or enlarge the arguments
    made in its initial brief. L.J. Zucca, Inc. v. Allen Bros. Wholesale Distribs. Inc.,
    
    434 N.J. Super. 60
    , 87 (App. Div. 2014). We note only that plaintiff's reliance
    A-0080-23
    24
    Affirmed.
    on Mendez is misplaced because the court there did not consider that the
    plaintiff's filing of the statutory discrimination claim constituted the exercise of
    the plaintiff's independent right to pursue their individual cause of action against
    their former employer. See, e.g., Alexander, 
    415 U.S. at 50-51
    ; Puglia, 
    226 N.J. at 285-96
    ; LePore, 
    115 N.J. at 227-28
    ; Thornton, 
    94 N.J. at 7
    .
    A-0080-23
    25
    

Document Info

Docket Number: A-0080-23

Filed Date: 10/9/2024

Precedential Status: Non-Precedential

Modified Date: 10/9/2024