In September 1998, the EEOC district office in Baltimore, Maryland brought this suit against World Savings & Loan Association, Inc., a general lending association, in the U.S. District Court for the District of Maryland, alleging discrimination on the basis of race, religion, and national origin. The defendant moved to stay the proceedings and to compel arbitration on the grounds that the charging parties had signed agreements requiring them to arbitrate all disputes arising out of their employment, including allegations of discrimination. The court declined to stay the case or to compel arbitration, but agreed with the basic premise of the defendant's argument, and simply dismissed the case sua sponte. EEOC v. World Sav. & Loan Ass'n, Inc., 32 F.Supp.2d 833 (D.Md. 1999).

However, the court stipulated that the EEOC was not barred from pursuing class-based equitable relief, and was dismissing the case immediately because it was unclear whether the EEOC wished to pursue such a course or whether it would appeal the court's decision at once. The court said that the case could be reopened if the EEOC wished to continue on without pursuing relief for the charging parties. The EEOC took the court up on this offer. In June 1999, the case was settled; the settlement agreement, eventually approved by the court in October 1999, is not available.

Jason Chester - 06/21/2007


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