C. N. v Sigma Delta Tau Society
Categories
Attorneys and Parties
Brief Summary
Whether the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) (9 USC §§ 401, 402) [renders predispute arbitration agreements invalid and unenforceable, at the election of the complainant, in sexual assault and sexual harassment cases] bars enforcement of a sorority membership arbitration clause when the plaintiff's claims sound in negligence against a third party that allegedly failed to protect her from a sexual assault committed by someone else.
The Supreme Court granted the defendants' motion under CPLR 7503(a) [procedure to compel arbitration and stay an action] and directed the plaintiff to arbitrate her negligence claims in Indiana pursuant to the sorority membership contract.
The Appellate Division reversed the order compelling arbitration and staying the action.
The court held that the plaintiff alleged a dispute involving a nonconsensual sexual act and that her negligence claim against the sorority had a clear logical nexus to that sexual assault because she alleged the sorority required her to attend the event and failed to supervise or protect her there. Because the case 'relates to' a sexual assault dispute, the EFAA made the predispute arbitration agreement unenforceable.
Background
The plaintiff, a SUNY Cortland student and member of Sigma Delta Tau, alleged that her sorority required members to attend a fraternity mixer hosted by Pi Kappa Phi. She claimed the fraternity had a history of dangerous conduct, that alcohol and intoxicating substances were provided at the event, and that she became impaired. According to the complaint, a fraternity member then took her to a nearby premises and sexually assaulted her. The plaintiff sued the sorority for negligence, alleging it required attendance at the event and failed to supervise and protect its members. She also brought a separate action against the alleged assailant and the fraternity.
Lower Court Decision
The lower court enforced the arbitration clause in the plaintiff's February 2023 sorority membership contract, which required any dispute, claim, or controversy raised against Sigma Delta Tau to be arbitrated in Indiana before one arbitrator. It granted the defendants' motion to compel arbitration and stayed the negligence action.
Appellate Division Reversal
The Appellate Division held, as a matter of first impression for that court, that the EFAA can prevent arbitration even where the defendant seeking arbitration did not itself commit the sexual assault. The court interpreted the statutory phrase 'relates to' broadly and concluded that the plaintiff's negligence claim was sufficiently connected to the alleged sexual assault because the claimed negligent failure to supervise and protect allegedly placed her in the circumstances that led to the assault. The court therefore denied the motion to compel arbitration and to stay the action.
Legal Significance
This decision recognizes a broad application of the EFAA in New York appellate practice. It confirms that a plaintiff need not plead a direct sexual assault cause of action against the party seeking arbitration. A negligence case against a third party may still fall within the EFAA if the action involves alleged sexual assault and the claims bear a logical or causal connection to that assault. The ruling aligns with federal authority construing the EFAA expansively.
A predispute arbitration clause cannot be enforced against a plaintiff who elects court litigation when the case, even if framed as negligence, is logically connected to an alleged sexual assault dispute within the meaning of the EFAA.