Moon v. Breathless — civil / employment / arbitration — reversal — Greenaway

The Third Circuit today reversed a district court’s ruling granting summary judgment in favor of arbitration. The case arose when a woman who performed at the Breathless Men’s Club sued the club under the Fair Labor Standards Act and two state laws alleging employee wage-and-hour violations. The club argued, and the district court agreed, that her suit was barred by an arbitration clause in its contract with the woman, which by its terms applied to disputes “under this Agreement.” Applying New Jersey law, the Third Circuit held that courts should decide the arbitrability issue and that the clause did not cover this suit mainly because it arose under statutes, not under the contract.

Joining Greenaway were Fisher and Hardiman. Arguing counsel were Jeremy Abay of Sacks Weston for the woman and Marc Gross, formerly of Greenbaum Rowe but now at Fox Rothschild, for the club.