Court Compels Bills’ Former Equipment Manager to Arbitrate Legal Dispute

Mar 27, 2014

A federal judge from the Western District of New York has ordered that a legal dispute involving an age discrimination claim between the former equipment manager of the Buffalo Bills and the organization must go through arbitration
 
Plaintiff David Hojnowski argued that the courts should decide the issue “because the rules governing arbitration were not included in, or even explicitly referenced by the employment agreement.
 
“Hojnowski knowingly entered into a contract requiring him to submit his employment-related disputes to arbitration,” wrote the court. “Although the procedures governing the NFL’s arbitration process should have been made more transparent, their absence does not invalidate the agreement. Further, the agreement was not unconscionable.”
 
The underlying dispute centered on Hojnowski’s claim that his age was a key factor in the Bills’ decision to fire him. Specifically, he claimed that the relationship turned south when his wife made an inquiry about a health insurance benefit that he would qualify for upon turning 55. A week later, Hojnowski was allegedly told by Bills’ General Manager Charles “Buddy” Nix that “things weren’t going well” and that he was being fired.
 
Hojnowski sued, claiming the Bills violated his rights under the Age Discrimination in Employment Act, the New York State Human Rights Law, and the Employee Retirement Income Security Act.
 
The Bills moved to dismiss the claims and compel Hojnowksi to pursue the dispute in arbitration. For the following reasons, the motion was granted.
 
In its review of the facts, the court noted that during Hojnowski’s 37-year stint with the Bills, the two parties executed successive one- or two-year contracts. His most recent employment contract was executed on February 15, 2011. It covered a two-year term beginning on March 1, 2011 and ending on February 28, 2013. On September 5, 2012, Nix terminated his employment. The Bills, however, paid his full salary through February 28, 2013.
 
Section 12 of the employment agreement that Hojnowski and James Overdorf, the Senior Vice President of Football Administration, executed on February 15, 2011 contains an arbitration clause that provides:
 
“Employee agrees that all matters in dispute between Employee and Employer, including without limitation any dispute arising from the terms of this Agreement, shall be referred to the NFL Commissioner for binding arbitration, and his decision shall be accepted as final, complete, conclusive, binding and unappealable by the Employee and Employer.”
 
The court added that the National Football League has also issued procedural guidelines to govern arbitration proceedings. But a copy of those rules was not provided to Hojnowski or attached to the employment agreement. Because of this Hojnowski claimed “no enforceable arbitration agreement exists.”
 
The court disagreed.
 
“Hojnowski was fully aware any dispute would be arbitrated before the NFL Commissioner, and because that tribunal clearly had an established set of rules governing arbitration procedure, those rules (which Hojnowski does not argue were inaccessible) were sufficiently incorporated into the agreement and knowledge thereof can be imputed to Hojnowski,” it held.
 
The court also considered whether the arbitration agreement was “unconscionable,” which would invalidate it. The plaintiff claimed this was so “because he was not provided the arbitration guidelines and he was in an unfair bargaining position. Neither of these contentions meet the rigorous standard necessary to show procedural unconscionability.” See, e.g., Hume v. United States, 132 U.S. 406, 10 S. Ct. 134, 136, 33 L. Ed. 393 (1889)
 
David Hojnowski v. Buffalo Bills, INC., W.D. N.Y.; 13-CV-388S, 2014 U.S. Dist. LEXIS 13153; 121 Fair Empl. Prac. Cas. (BNA) 1016; 2/3/14
 
Attorneys of Record: (for plaintiff) Andrew P. Fleming, Brent S. Salevsky, LEAD ATTORNEYS, Chiacchia & Fleming, LLP, Hamburg, NY. (for defendant) Scott Patrick Horton, LEAD ATTORNEY, Jaeckle Fleischmann & Mugel, LLP (Bflo), Buffalo, NY; Michael E. Hickey, Jaeckle Fleischmann & Mugel, LLP (Bflo), Buffalo, NY.


 

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