Hardwick v. Sherwin-Williams Co., Unpublished Decision (2-13-2002)
Hardwick v. Sherwin-Williams Co., Unpublished Decision (2-13-2002)
Opinion of the Court
{¶ 2} Plaintiffs-appellees Barbara Hardwick ("Hardwick") and Carmen Beverly ("Beverly") commenced this action for discrimination against their former employer, defendant-appellee The Sherwin-Williams Co. ("defendant"). Defendant moved the trial court to stay proceedings and to compel plaintiffs to submit their discrimination claims to arbitration. Defendant appeals from the trial court's denial of that motion. For the reasons that follow, we affirm.
{¶ 3} Both plaintiffs worked for defendant for many years. Beverly and Hardwick served as Sherwin-Williams employees for approximately seventeen and twenty years, respectively. At some undetermined point during plaintiffs' employment, Sherwin-Williams created a "Problem Resolution Procedures" ("PRP") leaflet. In part, the one-page leaflet provides that the PRP "may be used by employees to challenge unresolved differences regarding application of Company policies, procedures or practices which affect their employment situation, and will be the exclusive method for addressing the work-related issues as they arise * * * Further understand that if this procedure is not used, it may preclude employees from pursuing any legal rights they may have in court or in other forums." (R. 8, Ex. 1, emphasis added). The policy applies unilaterally to the employees because "it does not cover any legal claims that the Company may have against its employees." Id.
{¶ 4} Also, the leaflet clearly disclaims the existence of any type of contract either expressed or implied as follows: "[t]he Problem Resolution Procedures do not create, and shall not be construed to create, any contract of employment, either expressed or implied. These procedures do not in any way alter the `at-will' status of any individual's employment. `At-will' means that an employee may resign at any time, and Sherwin-Williams may discharge an employee at any time with or without cause." Id.
{¶ 5} While the leaflet provides that "[a]ll regular full and part-time employees at the Headquarters Site are eligible to use the Problem Resolution Procedures * * *", the terms do not explicitly condition continued employment upon use of the procedures. Id, emphasis added. There is no record evidence indicating that any employee has ever been or would be terminated for failure to comply with the procedures.
{¶ 6} In 1999, and subsequent to receiving Harwick's complaints, defendant purportedly federal expressed her a copy of the "Problem Resolution Procedure, Non-harassment policy" and "encouraged" her "to use the process if [she did] have issues." (R. 8, Ex. 3). Likewise, there is evidence that Beverly knew, subsequent to making her complaints, that defendant "want[ed] her to participate in the Problem Resolution Process * * *." (R. 8, Ex. 2). Defendant's correspondence to plaintiffs contained in this record fails to refer to the procedures as exclusive remedies and does not condition the women's continued employment on their agreement to use the procedures. There is no evidence in the record indicating that either plaintiff assented, or otherwise agreed, to use the PRP as the sole means of redress.
{¶ 7} Plaintiffs each allege that they suffered sexual harassment and other tortious misconduct during their respective employments with defendant. Both claim that defendant's failure to effectively remedy their complaints resulted in their constructive discharges in 1999 and 2000. Both advanced claims against defendant first through the U.S. Equal Employment Opportunity Commission and then through the complaint filed in this matter in the Cuyahoga County Court of Common Pleas. In both instances, defendant sought to compel plaintiffs to submit to arbitration based on the terms of the above-detailed leaflet. In this case, the trial court denied defendant's efforts to stay the proceedings and to compel arbitration. It is from this ruling that defendant appeals, assigning the following assignment error for our review:
{¶ 8} "I. The trial court erred in refusing to stay the proceedings below and compel appellees to arbitrate their claims, because a valid and enforceable arbitration agreement existed between appellees and appellant The Sherwin-Williams Co. (`Sherwin-Williams')."
{¶ 9} In its sole assignment of error, defendant alleges that the trial court erred in denying its motion for stay of proceedings and to compel arbitration. We disagree.
{¶ 10} In urging reversal, defendant primarily urges that plaintiffs' continued employment after receiving knowledge of the PRP provides the requisite consideration to support the alleged arbitration agreement. Because we find a lack of mutual assent dispositive of this error, we do not reach the issue of consideration or lack thereof.
{¶ 11} It is well settled that an arbitration agreement will not be enforced if the parties did not agree to the clause. Harmon v. PhillipMorris Incorporated (1997),
{¶ 12} In Harmon, an employer distributed a brochure containing exclusive remedies for resolving employment termination disputes. That employer further required the employees to admit receipt of same by written acknowledgment. In that case, the employer allegedly gave its employees the option to agree to the dispute resolution program or reject the program and work elsewhere. Harmon,
{¶ 13} The facts before us now present an even more compelling case for finding a lack of mutual assent than those examined in Harmon. Primarily, neither plaintiff signed or acknowledged receipt of the PRP at the time of its distribution. Accordingly, as Harmon found that an acknowledgment did not equate with mutual assent, the total absence of even an acknowledgment is indicative of the lack of mutual assent.
{¶ 14} Also, some of the terminology defendant used to describe the PRP arguably made it seem optional, such as, "[t]hese procedures may be used by employees * * *"4 and "[a]ll regular full and part-time employees * * * are eligible to use the Problem Resolution Procedures * * *." (Emphasis added). The leaflet advises that failure to use the procedures "may preclude employees from pursuing any legal rights they may have in court or in other forums." (Emphasis added). Nowhere in the leaflet does it suggest that employees must agree to comply with the procedures in order to continue employment with defendant. Despite record evidence of correspondence from defendant to the plaintiffs on the topic of the PRP, defendant never mentions the alleged binding or mandatory nature of the PRP. Rather, defendant simply indicates the PRP "remains available" to plaintiffs and/or "encourages" the plaintiffs to use the PRP. Nowhere in the record can we find any agreement by either of the plaintiffs to be bound by the PRP as their exclusive remedy.
{¶ 15} In Harmon, we cited the lack of mutual assent as grounds for the unenforceability of an arbitration clause. Under the same rationale, we refuse to force arbitration on plaintiffs here due to the absence of any evidence of mutual assent. Plaintiffs never manifested an assent to arbitrate these disputes. Plaintiffs had no reason to object to the terms or existence of the PRP.5 Defendant never indicated that it would terminate anyone who did not wish to comply with the PRP. Defendant never solicited, required, or obtained plaintiffs' assent to the PRP. As such, the mere fact that the plaintiffs continued working for defendant in and of itself fails to provide sufficient evidence of an agreement to be bound to arbitrate disputes through the PRP.
{¶ 16} Based on the language defendant chose to employ in describing the PRP to its employees, we reject defendant's contention that such procedures were clear and unambiguous, mandatory conditions of employment. In addition, we find a lack of evidence to establish that either plaintiff mutually assented to the PRP. Consequently, we find that the record supports the trial court's decision to deny defendant's application to stay proceedings and to compel arbitration. The assignment of error is overruled.
Judgment affirmed.
It is ordered that appellees recover of appellant their costs herein taxed.
The Court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this Court directing the Court of Common Pleas to carry this judgment into execution.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure.
TIMOTHY E. McMONAGLE, A.J., and DIANE KARPINSKI, J., concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.