Davis v. Crothall Healthcare, Inc.

Background

Prince Davis brought employment discrimination and retaliation claims against Crothall Healthcare, Inc., Compass Group USA, Inc., Ludys Lopez, and Shannon Caples. He asserted claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 1981, the New York State Human Rights Law, and the New York City Human Rights Law.

The defendants moved to compel arbitration and to dismiss the action. Alternatively, they asked the court to stay the action while arbitration took place. The district court referred the motion to Magistrate Judge Stewart Aaron.

Magistrate Judge’s Order and Recommendation

On December 5, 2022, Judge Aaron granted the motion to compel arbitration and stayed the action pending arbitration. He also issued a Report and Recommendation advising the district court to deny the defendants’ motion to dismiss.

The parties had fourteen days to object to the recommendation. The recommendation warned that failing to object would waive judicial review and prevent appellate review. No party objected.

District Court’s Review

Because no party objected, Judge Gardephe reviewed the recommendation for clear error on the record. He found it thorough, well-reasoned, and free of clear error. The court also relied on Second Circuit precedent stating that a stay, rather than dismissal, is appropriate when all claims have been sent to arbitration and a stay has been requested.

Disposition

Judge Gardephe adopted Judge Aaron’s Report and Recommendation in its entirety and denied the defendants’ motion to dismiss. The Clerk of Court was directed to terminate that motion. The action remained stayed pending arbitration; the opinion did not decide the underlying employment discrimination and retaliation claims.