Panepucci v. Honigman Miller Schwartz and Cohn LLP, 2008 WL 2467979 (6th Cir 2008)
Brief Summary
Because plaintiff’s claims, including sex discrimination, required interpretation of her former firm’s partnership agreement, her claims were subject to the agreement’s broad arbitration clause.
Complete Summary
Plaintiff Lisa Panepucci was an equity partner at defendant Honigman Miller Schwartz and Cohn LLP (“Honigman”). Panepucci sued Honigman for, inter alia, sex discrimination, based in part on allegedly inequitable compensation. Honigman moved to dismiss the case because Panepucci’s claims were subject to arbitration under the firm’s partnership agreement. The district court dismissed the case. On appeal, the Sixth Circuit upheld the dismissal.
Panepucci argued that the arbitration clause did not cover her claims. The arbitration clause governed “controvers[ies] or claim[s] arising under or related to [the Partnership] Agreement or its interpretation.” Id. at *4. The court noted that under Sixth Circuit precedent, the broad “arising under” language suggested that only disputes expressly excluded from arbitration would not be subject to arbitration. More specifically, the proper method of analysis is “to ask if an action could be maintained without reference to the contract or relationship at issue.” Id. (quoting Fazio v. Lehman Bros., Inc., 340 F.3d 386, 395 (6th Cir. 2003). The court held that Panepucci’s claims could not be resolved without reference to the partnership agreement’s methods for calculating partner compensation.
Significance of Opinion
This case highlights the breadth of interpretation that courts may give arbitration clauses.
This alert has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship.
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