Sinclair Broadcasting System and Ring of Honor are attempting to move Kelly Klein’s case to arbitration according to court records. The former ROH wrestler is suing the company alleging sexual harassment, unsafe work conditions and negligence.
Klein’s lawsuit argues that she is misclassified as an Independent Contractor and should be an Employee. As such, an arbitration agreement included in her contract should be made void or voidable. In addition, she has sought discovery to determine the need to compel arbitration. However, Sinclair and ROH are moving to compel arbitration in lieu of defending the lawsuit in federal court.
In its moving papers Sinclair and ROH argue that Klein fails to demonstrate that discovery is warranted for this motion. Klein argues that the contract was one of “adhesion” and is “unconscionable.” This is based on the bargaining position she was in at the time of signing. Defendants blow off Klein’s request stating that the request does not identify a single fact for the need for discovery and that she is making the demand just for the sake of discovery.
Klein’s attorney has moved the court to conduct limited discovery on the issue of whether the arbitrability of her contract. One of the arguments submitted was the fact that she was unsophisticated with contracts and did not have money to hire a lawyer to look over the contract she signed prior to signing.
Payout Perspective:
Klein amended her complaint this summer with additional information related to the arbitration clause in her contract with Sinclair/ROH. While arbitration is a simpler, quicker process than litigating the case in court there are some drawbacks including the opportunity for broader discovery to occur. Arbitration usually is binding and there are no alternatives to appeal a ruling. Also, the publicity from a trial to shed light on the practices the employer may affect change. We will see how the court rules but it does appear that Klein faces an uphill battle with respect to keeping the lawsuit in court.
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