United Rentals, Inc. and United Rentals Northwest, Inc. v. Thomas T. Smith
445 S.W.3d 808
Tex. App.2014Background
- Thomas T. Smith, a former employee, sued United Rentals for age discrimination after being terminated in a reduction-in-force and refusing to sign a severance-and-release.
- United Rentals moved to compel arbitration relying on an arbitration clause in Smith’s alleged original Employment Agreement (Exhibit A) that invoked AAA rules and listed ADEA and other statutory claims as arbitrable.
- Appellants attached Exhibit A to their motion and filed an unsworn declaration by former HR director Eunji Yoo averring Smith signed an Employment Agreement; Yoo quoted arbitration provisions but did not state Exhibit A was a true and correct copy.
- At the hearing, defense counsel conceded uncertainty about existence/availability of the original document; Yoo’s declaration contained a jurat with formal defects but a perjury attestation.
- The trial court denied the motion to compel arbitration (reason not specified). The court of appeals reviewed de novo whether appellants met their evidentiary burden to prove a valid arbitration agreement existed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellants proved existence/authenticity of an arbitration agreement sufficient to compel arbitration | Smith: Exhibit A was unauthenticated; Yoo’s declaration was defective, incomplete, and included inadmissible hearsay; therefore appellants failed their evidentiary burden | United Rentals: Exhibit A and Yoo’s declaration establish the signed Employment Agreement and arbitration clause; unsworn declaration jurat is sufficient | Held: Affirmed trial court — appellants failed to authenticate Exhibit A and Yoo’s declaration alone was insufficient to prove the full agreement, so they did not meet the burden to compel arbitration |
Key Cases Cited
- In re ReadyOne Indus., 294 S.W.3d 764 (Tex.App.--El Paso 2009) (existence of valid arbitration agreement is a question of law)
- J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) (strong presumption in favor of arbitration arises only after proving a valid arbitration agreement exists)
- Jack B. Anglin Co., Inc. v. Tipps, 842 S.W.2d 266 (Tex. 1992) (trial court may resolve arbitration motion on affidavits and pleadings but must hold an evidentiary hearing if material facts are controverted)
- Sanchez v. Tex. State Bd. of Med. Exam’rs, 229 S.W.3d 498 (Tex.App.--Austin 2007) (authentication may be proven by circumstantial evidence)
- Ceramic Tile Int’l, Inc. v. Balusek, 137 S.W.3d 722 (Tex.App.--San Antonio 2004) (attaching a document to a pleading does not render it admissible without proper foundation)
- In re Big 8 Food Stores, Ltd., 166 S.W.3d 869 (Tex.App.--El Paso 2005) (party’s signature is strong evidence of assent but authentication of handwriting or exemplar may be required)