EAST ST. LOUIS - U.S. District Judge Stephen McGlynn ordered arbitration of a class action claim that auto dealer Christopher Auffenberg didn’t fully pay commissions on used car sales.
McGlynn ruled on March 7 that plaintiffs Anthony Collins and James Powell signed employment applications that contained a valid arbitration provision.
Collins and Powell claimed Auffenberg waived the provision by litigating in district court for six months but McGlynn found the delay neither substantial nor inexcusable.
“It is clear from the facts and procedural history of this case that Auffenberg has not intentionally or implicitly waived his right to arbitrate in this manner," he wrote.
He found Auffenberg didn’t personally possess employment records for Collins and Powell but the documents were kept in the course of the business he operates.
“Upon discovering these records Auffenberg acted promptly to compel arbitration," he wrote.
Nathaniel Brown of Belleville filed the complaint last April and served it on Auffenberg in May.
Brown alleged violations of Missouri law on sales commissions and Illinois wage law, and he alleged interference with a contract.
He claimed Auffenberg employed Collins as a general manager in Herrin for eight months in 2023 and Powell as a salesperson in Herrin for five months in 2023.
He claimed Auffenberg skimmed amounts off commissions, “using false pretenses and employing a device to conceal the amounts wrongly retained.”
He claimed Auffenberg personally directed dealerships to retain the funds.
He claimed the class had at least 40 members and the number could exceed 100.
He sought recovery under Missouri law on sales commissions and Illinois wage law.
Auffenberg’s counsel Debbie Champion of St. Louis moved in June to dismiss the complaint or quash it for insufficient service of process.
She withdrew the motion in September and answered the complaint.
In November, she amended the answer and moved to compel arbitration.
Brown opposed arbitration in December, claiming Auffenberg waived it by meaningfully participating in litigation.
Champion replied that Auffenberg participated only to the extent the court required.
McGlynn resolved the question of waiver in his order and proceeded to the question of whether he could enforce the provision.
“Courts have found sufficient consideration where an employer promises to consider an applicant for employment in exchange for the applicant’s return promise to abide by company rules upon employment including the arbitration of certain claims," he wrote.
He found both the applicants and the company gave up the right to trial by jury.
The provision specified that a retired Missouri judge would conduct the arbitration.