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Kent Bldg. Servs. Inc. v. Kessler

Severance Affirmed; Implied Covenant Barred CEO From Arbitrarily Deciding Job Performance

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OPINION AND ORDER

*1  Petitioner Kent Building Services, LLC (“Kent”) brings this action under Section 10 of the Federal Arbitration Act, 9 U.S.C. §10, to vacate an arbitration award issued against it. Respondent Jonathan Kessler opposes Kent’s petition and cross-moves to confirm the arbitration award. For the reasons that follow, Kent’s motion is denied and Kessler’s motion is granted.I. BackgroundThis action arises from an arbitration commenced by Kessler in February 2016 against Kent, a company that provides janitorial and maintenance services. (Award at 1, 3.)1 Kessler was hired to serve as Kent’s president in April 2013. (Award at 6.) The parties entered into an employment agreement, which obligated them to arbitrate “[a]ny claim or controversy” arising out of the “Agreement, equity ownership or the breach of th[e] Agreement.” (Employment Agreement16.) In December 2013, Kessler was fired by Gil Neuman, Kent’s Chief Executive Officer. Kessler then filed a demand for arbitration pursuant to the arbitration clause, alleging

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