OneMain Financial Inc. and Raul Rincon v. Aida Flores
13-15-00194-CV
Tex. App.May 21, 2015Background
- Appellee Flores sued OneMain Financial, Inc. and Rincon for age and disability discrimination, hostile environment, and defamation.
- OneMain and Rincon moved to compel arbitration and stay litigation; the trial court denied the motion.
- Appellants asserted a valid arbitration agreement existed, binding the claims to arbitration.
- Evidence showed Flores received notice of the arbitration policy multiple times and continued employment.
- The arbitration agreement expressly covers discrimination, and defamation claims arising out of employment.
- An agreed order later granted arbitration, but an ensuing order denied it; this appeal follows.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of a valid arbitration agreement | Flores argues no valid arbitration exists | OneMain shows notice and acceptance; agreement valid | Yes; arbitration agreement valid and enforceable |
| Scope of arbitration | Flores claims her issues are outside scope | Discrimination and defamation within scope | Yes; claims fall within arbitration scope |
| Franken Amendment applicability | Franken Amendment may apply to this matter | Franken Amendment inapplicable to here | Franken Amendment inapplicable |
| Indefiniteness/illusory nature of the agreement | Arbitration agreement is illusory/unconscionable | Agreement is definite and not illusory | Not illusory; agreement definite and enforceable |
Key Cases Cited
- In re Kellogg Brown & Root, Inc., 166 S.W.3d 732 (Tex. 2005) (scope and enforceability of arbitration agreements in TX)
- In re FirstMerit Bank, N.A., 52 S.W.3d 749 (Tex. 2001) (strong presumption in favor of arbitration; de novo scope review)
- Circuit City Stores, Inc. v. Adams, 532 U.S. 105 (2001) (FAA allows enforcement of employer-employee arbitration as a condition of employment)
- Moses H. Cone Mem. Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (1983) (doubts about scope resolved in favor of arbitration; national policy)
- Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213 (1985) (federal policy favoring arbitration; enforce contracts)
- ATT Technologies, Inc. v. CWA, 475 U.S. 643 (1986) (presence of arbitration clause; broad view of scope)