Nazareth Hall Nursing Center v. Esperanza Melendez
372 S.W.3d 301
| Tex. App. | 2012Background
- Nazareth Hall Employment Handbook included an arbitration agreement signed by Melendez in 2006; Nazareth Hall was not a signatory.
- The 2006 agreement allowed Nazareth Hall to unilaterally amend the arbitration provision at any time without notice.
- In May 2009 Nazareth Hall separated the arbitration policy from the Employee Acknowledgment and Arbitration Agreement and added a prospective-notice requirement for changes; no evidence Melendez signed or received the 2009 modification.
- Melendez was terminated on July 23, 2009 and later sued for age discrimination and retaliation; Nazareth Hall moved to compel arbitration.
- The trial court denied the motion to compel arbitration; Nazareth Hall appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Exists and validity of arbitration agreement | Melendez: no valid contract due to lack of consideration and unilateral changes; not signed by Nazareth Hall | Nazareth Hall: valid agreement; changes may be accepted by continued employment; courts should defer to arbitration if an agreement exists | No valid arbitration agreement existed; trial court's denial affirmed |
Key Cases Cited
- In re Palm Harbor Homes, Inc., 195 S.W.3d 672 (Tex. 2006) (contract-law principles govern arbitration formation)
- In re D. Wilson Constr. Co., 196 S.W.3d 774 (Tex. 2006) (gateway issue on existence of arbitration agreement)
- Rent-A-Center, W., Inc. v. Jackson, 130 S. Ct. 2772 (2010) (parties may arbitrate questions of arbitrability)
- In re Morgan Stanley & Co., 293 S.W.3d 182 (Tex. 2009) (existence of arbitration agreement is a court question)