Manukian v. Pritchard Industries, Inc.

Background

Armen Manukian, proceeding without a lawyer, sued Pritchard Industries, Inc. and New York City. He alleged that Pritchard failed to pay him wages for work performed from June 5, 2021, through September 10, 2021, and that he was left unemployed without a reason. He sought $31,320. Pritchard denied those allegations and asserted that Manukian worked only as a temporary summer or seasonal replacement for permanent employees on vacation. New York City had not appeared in the case, and the opinion describes Manukian’s allegations against the City as unclear.

Pritchard asked the court to require Manukian to use mediation and arbitration under the collective bargaining agreement between the union representing Manukian and the Realty Advisory Board. The agreement required wage-and-hour claims to go through mandatory mediation before a lawsuit was filed. It also provided that unresolved issues covered by the agreement would be decided by an arbitrator through the agreement’s exclusive arbitration procedure.

Court’s analysis

The court applied the Federal Arbitration Act, which generally requires courts to enforce valid written arbitration agreements according to their terms. The party seeking arbitration had to show that an arbitration agreement existed; if that showing was made, Manukian could challenge whether he consented, whether the agreement was valid or enforceable, or whether it covered his claims.

The court found no genuine dispute that Manukian was a union member during his employment and was covered by the collective bargaining agreement. Manukian did not dispute his union membership or that the agreement governed his employment. The court relied in part on documents he submitted, including a union job list and paystubs showing a deduction for union dues. It also found that his unpaid-wage allegations fell within the agreement’s mediation and arbitration provisions.

Manukian had not shown that he filed a grievance with the union or attempted mediation of the claims in this case. The court therefore required him to use the grievance and mandatory mediation procedures first, followed by arbitration if the claims were not resolved. The court did not decide whether Pritchard actually failed to pay wages or improperly ended Manukian’s employment.

Ruling

Judge Ona T. Wang granted the motion to compel mediation and arbitration. The court stayed the case in its entirety pending completion of those processes. To the extent Pritchard moved for fees and costs, the court denied that request. The order did not dismiss the case.