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World Wrestling Entertainment filed a Motion today before the U.S. District Court for the District of Connecticut, arguing that Janel Grant's lawsuit against the company should be moved to arbitration, citing that under the parameters of the agreement she signed, Grant makes it clear that arbitration is the proper path for any isssues. WWE is also arguing that Grant never attempted to approach the company or enter into private arbitration before filing her lawsuit and is asking the Court to direct everything back to private arbitration.
The company is also asking the Court to "schedule oral argument for this motion, and such other and further relief as the Court may deem just and proper."
WWE's Motion notes:
Plaintiff Janel Grant brings this action against Vincent K. McMahon, John Laurinaitis, and WWE alleging that, while employed at WWE, she was subjected to physical and emotional abuse, sexual assault, and sex trafficking by McMahon and Laurinaitis. WWE disputes Grant’s allegations. But, as a threshold matter, this dispute cannot be heard in court because Grant agreed to arbitrate her claims. WWE therefore moves to compel this action to arbitration.
Simply put, Grant has no claims actionable in this Court because the separation and non-disclosure agreement she signed with McMahon and WWE (the “Agreement”)—the monetary benefits of which she concededly accepted and retained—contains an arbitration provision that unambiguously precludes this Court from adjudicating her claims. In particular, Grant agreed that “the sole and exclusive legal method to resolve any and all disputes and/or controversies is to commence binding arbitration under the Federal Arbitration Act.” The language is clear and unconditional. Not only are Grant’s allegations squarely within the scope of the arbitration provision, but the Agreement also expressly commits to arbitration the issue of arbitrability itself. Accordingly, this Court should enforce the parties’ agreed-upon method of addressing Grant’s claims and compel this action to arbitration.
WWE disputes Grant’s allegations. But for purposes of this Motion only, we assume the truth of facts alleged in the Complaint. The Complaint also incorporates by reference and attaches the Agreement, dated January 28, 2022, between Grant, McMahon, and WWE.
Grant’s Employment with WWE. Grant alleges that she met McMahon in March 2019 and, soon after, McMahon promised her “a yet-to-be-determined role at WWE.” See Defendant World Wrestling Entertainment, LLC’s Local Rule 56(a)(1) Statement of Undisputed Material Facts in Support of its Motion to Compel Arbitration (“SUMF”), ¶ 1. McMahon and Grant began a sexual relationship in May 2019 and, on June 17, 2019, Grant began working in WWE’s legal department in an “entry-level position as an ‘administrator-coordinator’” with a starting salary of $75,000. SUMF ¶¶ 2, 3. On February 10, 2020, she was “temporarily relocated to the XFL workforce.” SUMF ¶ 3. “On or around January 25, 2021,” Grant was reassigned to support a high-ranking hire in WWE’s legal department. Id. In early March 2021, Grant was transferred to the Talent Relations department, where she worked as a director of operations and reported to the head of the department, John Laurinaitis. Id. Grant worked in Talent Relations for the remainder of her tenure at WWE.
The Agreement. According to the Complaint, in early January 2022, McMahon told Grant that his wife had found out about their relationship and threatened to divorce him. SUMF ¶ 4. McMahon allegedly told Grant that “if she left WWE and signed an NDA,” his wife would not leave him, and “Grant would avoid reputational harm.” Id. The Complaint claims that McMahon initially offered Grant $1 million in “exchange[] for the NDA.” SUMF ¶ 5. Grant allegedly told McMahon that $1 million was not enough, and McMahon ultimately agreed to pay Grant $3 million in installments. Id. On or about January 19, 2022, Grant retained counsel to help her navigate her separation from WWE and to negotiate the proposed NDA. SUMF ¶ 6. Grant’s counsel actively represented her interests during the course of the negotiations. SUMF ¶ 7. On January 28, 2022, McMahon and Grant executed the six-page Agreement, titled the “Confidential Settlement Agreement, General Release and Covenant Not to Sue.” SUMF ¶ 8. Grant and McMahon both signed the Agreement, with McMahon signing both on his own behalf and, in his capacity as Chairman, on behalf of WWE.
Relevant here, the Agreement contains the following provisions:
1. Grant’s Obligations: Resignation from WWE, Confidentiality, and NonDisparagement. Grant agreed to resign from her employment with WWE upon execution of the Agreement. SUMF ¶ 10. And in a section titled “Grant’s Consideration, Representation and Warranties to McMahon and WWE,” Grant agreed: (i) to keep confidential her relationship with McMahon and the existence and terms of the Agreement; and (ii) not to disparage McMahon or WWE. SUMF ¶ 11.
2. McMahon’s Payment Obligations. In exchange for Grant’s promise of confidentiality, McMahon assumed exclusive responsibility for paying Grant, in installments over a four-year period, a total of $3 million. SUMF ¶ 12. As the first installment, McMahon agreed to pay Grant $1 million within 10 days of execution of the Agreement. Id. McMahon committed to make further payments of $500,000 each year, on February 1, for the next four years, “[p]rovided all confidentiality obligations of Grant under this Agreement are complied with in ensuing years.” Id. However, “[i]n the event of any disclosure by Grant of the matters required to be kept confidential under this Agreement,” the Agreement provides that “all monies previously paid to Grant pursuant to this Agreement shall be returned to McMahon[.]” SUMF ¶ 13. In addition to monetary payments by McMahon, the Agreement provides, as “Additional Consideration to Grant,” that WWE will provide a “positive evaluation and recommendation to any . . . possible employer of Grant,” either via Laurinaitis or another WWE employee. SUMF ¶ 14.
3. Mutual Releases. The parties to the Agreement, including WWE, provided mutual releases of any and all potential claims related to Grant’s and McMahon’s relationship and Grant’s employment at WWE. SUMF ¶ 15.
Grant’s release language reads: Except for any rights under this Agreement, and as otherwise stated herein, Grant hereby agrees to release, remise and forever discharge, and by these presents does, for herself, her heirs, executors, and administrators, release, remise and forever discharge McMahon, WWE, and the present, former and future directors, officers, employees, agents and representatives of WWE personally and as directors, officers, employees, agents and representatives of WWE from all manner of action and actions, causes of action, sums of money, covenants, contracts, controversies, agreements, promises, damages, claims and demands whatsoever, in law or in equity, that she ever had, may have had, now has or that her heirs, executors or administrators can, shall or may have as a result of, or in connection with her employment relationship with WWE, the termination of that employment relationship, and/or any and all matters involved in her relationship with McMahon and/or other WWE personnel, and whether known or unknown, asserted or unasserted, suspected or unsuspected which she may have as a result of any act which has occurred at any time up to and including the date of her execution of this Agreement.
The Agreement also provides that Grant “will not cause, and has not caused, to be filed any legal actions, administrative proceeding s, arbitrations or charges of any nature whatsoever relating to McMahon or WWE concerning matters within the scope of this Agreement.” SUMF ¶ 17. Grant further “covenants and agrees that she will forever forbear from pursuing any legal proceedings (except if necessary to enforce this Agreement), and that she will not in any other way make any additional demand or claims against McMahon and/or WWE.”
For the avoidance of doubt, Grant specifically agreed—in a passage set apart in allcaps—that: BY SIGNING THIS AGREEMENT, GRANT ACKNOWLEDGES THAT SHE WILL HAVE WAIVED ANY RIGHT SHE MAY HAVE HAD TO PURSUE OR BRING A LAWSUIT OR MAKE ANY LEGAL CLAIMS AGAINST MCMAHON AND/OR WWE, AND/OR ANY OF ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS AND REPRESENTATIVES.
McMahon and WWE provided a reciprocal release to Grant: McMahon and WWE, individually and jointly, for and in consideration of the representations, warranties and covenants of Grant contained herein, hereby release and forever discharge Grant, her heirs, executors, administrators, successors and assigns from any and all disputes and causes of action, claims, demands, suits, damages, attorneys’ fees, expenses, debts, contracts, agreements, and any and all other claims of any other nature whatsoever against Grant whether known or unknown or whether asserted or unasserted from the beginning of time to the date of execution of this Agreement, which McMahon and/or WWE might have or could claim against Grant.
4. Agreement to Arbitrate.
The Agreement provides that any dispute between the parties must be resolved through informal discussion and, failing resolution, by arbitration. Specifically, the parties must first attempt to resolve their dispute informally:
In the event of any dispute arising under or out of this Agreement, its construction, interpretation, application, performance or breach, the parties agree to first attempt to resolve such disputes informally and prior to taking any formal legal action to resolve such disputes.
If the parties are unable to resolve their dispute informally, the matter must be adjudicated in arbitration, pursuant to the rules of the American Arbitration Association (“AAA”): In the event any such dispute cannot be resolved informally, all parties hereto agree that the sole and exclusive legal method to resolve any and all disputes and/or controversies is to commence binding arbitration under the Federal Arbitration Act pursuant to the procedures of the American Arbitration Association and to do so by sealed proceedings which preserve the confidential and private nature of this Agreement.
5. Severability.
If any part of the Agreement is found to be void or unenforceable, the Agreement’s severability provision provides that the remainder of the Agreement will remain in effect and enforceable: In the event that any provision of this Agreement is held to be void or unenforceable by any arbitration panel or court reviewing an arbitration decision, the remaining provisions shall nevertheless be binding provided, however, if any of the confidentiality obligations of this Agreement are ever contended to be unenforceable by Grant, or are found to be unenforceable by any tribunal, Grant agrees that she shall return all monies paid pursuant to this Agreement to McMahon.
The Agreement provided that Plaintiff was to be paid $1,000,000 within ten (10) days of the execution of the Agreement and the remaining $2,000,000 in four equal installments of $500,000:
6. Additional Representations.
Finally, Grant explicitly represented that “she is able to read the language and to understand the meaning and effect of this Agreement.” SUMF ¶ 23.
Moreover, Grant represented “that she has read and understands this Agreement and the effect of it and that her attorney, Mr. Jonathan Shapiro, has explained it to her.”
Post-Agreement Events. Following execution of the Agreement, and pursuant to its Section V, McMahon wired the initial payment of $1 million to Grant on February 4, 2022. McMahon also made additional payments not provided for in the Agreement. McMahon wired Grant $10,000 to cover her attorneys’ fees in connection with the Agreement, and paid for certain of her medical expenses until April 15, 2022,
On February 9 and 10, 2022, less than a week after receiving McMahon’s initial $1 million payment, Grant provided notice to Laurinaitis and WWE’s Human Resources department that she was leaving WWE.
On March 30, 2022, McMahon’s counsel notified Grant’s counsel of “an anonymous email about the relationship between Ms. Grant and McMahon and Laurinaitis.” Subsequently, in June and July 2022, various media stories were published “regarding the matter of McMahon’s multiple NDAs with various women.” Under the Agreement, McMahon’s second scheduled payment of $500,000 would have been due on February 1, 2023, on the condition that “all confidentiality obligations of Grant under this Agreement are complied with.”
Grant alleges that McMahon did not make this payment or any subsequent payment provided for under the Agreement’s payment schedule.
Without first notifying WWE or attempting to resolve the dispute informally or through arbitration, as required by Section X of the Agreement, Grant filed the Complaint on January 25, 2024 and initiated the present lawsuit.
PREVIOUS JANEL GRANT LAWSUIT COVERAGE
VINCE MCMAHON, WWE SUED BY FORMER EMPLOYEE ALLEGING SEX TRAFFICKING AND ABUSE AT HANDS OF MCMAHON, JOHN LAUIRINAITIS
by Mike Johnson
1/25/2024 12:57 PM
STATEMENT FROM ATTORNEY REPRESENTING JANEL GRANT, WHO IS SUING WWE AND VINCE MCMAHON
by Mike Johnson
1/25/2024 1:04 PM
NBC AFFILIATE IN RI PUBLISHES COMPLETE MCMAHON LAWSUIT, MORE ON WHY JANEL GRANT FILED SUIT
by Mike Johnson
1/25/2024 2:43 PM
HORRIFIC' - TKO GROUP HOLDING ISSUES STATEMENT ON VINCE MCMAHON ALLEGATIONS IN LAWSUIT
by Mike Johnson
1/25/2024 4:46 PM
ANSWERING SOME OF YOUR VINCE MCMAHON LAWSUIT QUESTIONS
by Mike Johnson
1/26/2024 9:13 AM
FIRST SIGN WWE MAY BE DISTANCING FROM VINCE MCMAHON
by Mike Johnson
1/26/2024 10:33 AM
WWE PULLS VINCE MCMAHON SHIRT FROM ONLINE SALES
by Mike Johnson
1/26/2024 2:06 PM
FORMER WWE BOARD OF DIRECTORS MEMBER STATES INVESTIGATION INTO VINCE MCMAHON INCLUDED 'OUTREACH' TO JANEL GRANT, HER ATTORNEY
by Mike Johnson
1/26/2024 4:56 PM
JANEL GRANT STATEMENT REGARDING MCMAHON, WWE LAWSUIT TO BE RELEASED THIS EVENING VIA CRIME PODCAST
by Mike Johnson
1/26/2024 5:30 PM
INTERNAL WWE REACTION TO VINCE MCMAHON RESIGNATION
by Mike Johnson
1/26/2024 8:49 PM
JANEL GRANT'S ATTORNEY MAKING ROUNDS DISCUSSING VINCE MCMAHON LAWSUIT
by Steven Fernandes
1/27/2024 12:09 PM
INTERNAL REACTION TO VINCE MCMAHON'S TKO & WWE RESIGNATION, WHERE THINGS STAND WITH THE JANEL GRANT LAWSUIT AND LOTS MORE
by Mike Johnson
1/29/2024 9:10 AM
WWE HALL OF FAMERS THE BELLAS COMMENT ON WWE ALLEGATIONS IN GRANT LAWSUIT
by Mike Johnson
1/29/2024 5:26 PM
NEWSWEEK COVERS CALLS FOR BOYCOTT AGAINST WWE ON SOCIAL MEDIA
by Mike Johnson
1/29/2024 7:07 PM
DAVE SCHERER DISCUSSES THE VINCE MCMAHON LAWSUIT, HIS RESIGNATION AND MORE ON SLATE.COM'S WHAT NEXT PODCAST
by Mike Johnson
2/1/2024 9:09 AM
JOHN LAURINAITIS' ATTORNEY COMMENTS ON JANEL GRANT LAWSUIT, SAYS HE WAS A VICTIM OF VINCE MCMAHON AS WELL
by Mike Johnson
2/1/2024 4:09 PM
BROCK LESNAR PULLED FROM WWE 2K SUPERCARD GAME
by Mike Johnson
2/1/2024 8:33 PM
VINCE MCMAHON UNDER FEDERAL CRIMINAL INVESTIGATION, MCMAHON COMMENTS
by Mike Johnson
2/2/2024 8:38 AM
REPORT: VINCE MCMAHON NDAS WERE CREATED WITHOUT WWE KNOWLEDGE
by Mike Johnson
2/2/2024 5:01 PM
WHO TOLD VINCE MCMAHON TO RESIGN FROM TKO AND WWE
by Mike Johnson
2/7/2024 10:00 AM
BRET HART RIPS APART VINCE MCMAHON
by Mike Johnson
2/9/2024 11:24 AM
BROCK LESNAR-WWE 2K UPDATE
by Mike Johnson
2/22/2024 12:44 PM
VINCE MCMAHON LOOKING TO SELL MORE TKO STOCK
by Mike Johnson
3/4/2024 7:10 PM
NICK KHAN, BRAD BLUM AND MORE IDENTIFIED AS WWE CORPORATE OFFICERS IN JANEL GRANT LAWSUIT, WWE COMMENTS
by Mike Johnson
3/11/2024 5:54 PM
JOHN LAURINAITIS ACKNOWLEDGES JANEL GRANT LAWSUIT BEFORE COURT IN CT, WILL RESPOND WITHIN 60 DAYS
by Mike Johnson
3/21/2024 12:29 PM
NEW YORK POST OBTAINS LOVE LETTER FROM JANEL GRANT TO VINCE MCMAHON, GRANT CLAIMS SHE WAS 'COERCED' TO WRITE IT
by Mike Johnson
4/1/2024 12:50 PM
NBC COVERS VINCE MCMAHON'S LIFE AFTER WWE
by Mike Johnson
4/17/2024 2:54 PM
JANEL GRANT FIRES BACK AT VINCE MCMAHON, FILES MOTION ASKING COURT TO STRIKE 'INFLAMMATORY LIES' AGAINST HER
by Mike Johnson
4/24/2024 9:03 PM
JOHN LAURINAITIS ALIGNS WITH VINCE MCMAHON IN JANEL GRANT LAWSUIT
by Mike Johnson
5/2/2024 3:26 PM
HUGE RESIGNATION FROM WWE HAS EYEBROWS RAISED
by Mike Johnson
5/3/2024 10:02 AM
WWE FILES MOTION IN JANEL GRANT CASE, THEY 'ANTICIPATE' THEY TOO WILL SEEK PRIVATE ARBITRATION
by Mike Johnson
5/8/2024 10:33 AM
VINCE MCMAHON RESPONDS TO JANEL GRANT'S ATTEMPTS TO STRIKE MCMAHON'S STATEMENTS FROM THE RECORD
by Mike Johnson
5/13/2024 5:54 PM
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