01 Civ. 533 (SAS)
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK
198 F. Supp. 2d 377; 2002 U.S. Dist. January 2, 2002, Decided
January 3, 2002, Filed
DISPOSITION: [**1] Defendant 's motion to compel Brennan to arbitrate denied. Brennan 's cross-motion to strike the defense of arbitration and stay arbitration granted.
COUNSEL: For Plaintiff: Mona C. Engel, Esq., Law Offices of Robert F. Danzi, Westbury, New York. For Defendant: Jed L. Marcus, Esq., Gotta, Glassman & Hoffman, P.A., Roseland, New Jersey.
JUDGES: SHIRA A. SCHEINDLIN, U.S.D.J.
OPINIONBY: SHIRA A. SCHEINDLIN
OPINION: [*378] OPINION AND ORDER SHIRA A. SCHEINDLIN, U.S.D.J.:
In January 2001, Kathryn Brennan sued her former employer, Bally Total Fitness Corp. ("Bally"), pursuant to Title VII of the Civil Rights Act of 1964 ("Title VII"), 42 U.S.C. § 2000e et seq., and the Americans with Disabilities Act of 1990 ("ADA"), 42 U.S.C. § 12101 et seq., alleging that she was the victim of sexual harassment and disability discrimination. Relying on the fact that Brennan signed an arbitration agreement, Bally moved to dismiss the Complaint and compel arbitration in accordance with Sections 3 and 4 of the Federal Arbitration Act ("FAA"), 9 U.S.C. §§ 3 and 4.
In July 2001, this motion was denied pending further discovery on the issue [**2] of whether the arbitration agreement that Brennan signed was an unconscionable contract. See Brennan v. Bally Total Fitness, 153 F. Supp. 2d 408 (S.D.N.Y. 2001)("Brennan I"). After the parties conducted discovery, they presented witnesses along with other evidence at a jurisdictional hearing held in October 2001. See 10/30/01 Transcript of Jurisdictional Hearing ("Tr.").
Because I now conclude that the agreement to arbitrate was unconscionable and therefore unenforceable, Bally 's motion to dismiss the Complaint and to compel arbitration