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Magdy M. Mahmoud v. Carmax Auto Superstores

January 5, 2011

MAGDY M. MAHMOUD, PLAINTIFF,
v.
CARMAX AUTO SUPERSTORES, INC., DEFENDANT.



) ORDER

This matter is before the court upon motion of the Defendant to Dismiss or Alternatively to Stay Pursuant to the Federal Arbitration Act. Defendant seeks to compel arbitration pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure and Sections 2 - 4 of the Federal Arbitration Act ("FAA").

I. Background:

Plaintiff is a former employee of the Defendant Carmax. At the time he applied for employment with Carmax, Plaintiff received and signed a copy of Carmax's Dispute Resolution Agreement, which states in bold letters at the top of the document:

If you wish to be considered for employment, you must read and sign the following agreement. You will be considered as an applicant when you have signed the Agreement. Included with this application are the Carmax Dispute Resolution Rules and Procedures. You should familiarize yourself with these rules and the procedures prior to signing the Agreement. If the Rules and Procedures are not included in this booklet, you must request a copy from a Carmax representative prior to signing the Agreement. You will note that if you sign at this time, you do have three (3) days to withdraw your consent. You may, of course, take the package with you and return it signed, if you wish to continue your application process.

The Agreement provides that all employment-related claims, including claims under Title VII of the Civil Rights Act of 1964, as amended, including the amendments of the Civil Rights Act of 1991, as well as corresponding state discrimination law claims are subject to final and binding arbitration. The Dispute Resolution Rules and Procedures apply to and bind both Carmax and the Plaintiff and operate to ensure that the arbitration process is fair and neutral. The Rules provide that Carmax must pay the costs of arbitration.

After Plaintiff signed the Agreement, he was hired by Carmax. If he had not consented to and executed the Agreement, he would not have been considered for employment by Carmax. Plaintiff was later terminated from his employment, and filed a charge of discrimination with the EEOC. After receiving a Right to Sue letter, Plaintiff filed the present lawsuit, alleging claims of harassment, discrimination, and retaliation based on his race, color, national origin and religion in violation of Title VII of ...


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