Whitworth v. McBRIDE & SON HOMES, INC.
2011 Mo. App. LEXIS 447
| Mo. Ct. App. | 2011Background
- Whitworth, a former McBride & Son employee, was presented with a Sales Manager Employment Contract containing a general arbitration clause.
- Whitworth signed the Employment Contract without the Handbook’s dispute procedures, which were later introduced via Handbook and separate documents.
- Whitworth later signed an Application and an Arbitration Agreement that referenced the Handbook’s procedures, which were not signed by McBride & Son.
- McBride & Son’s Handbook stated it was informational and not a contract, and that only the President could bind the company to employment terms unless in writing.
- Whitworth signed a February 2006 “Statement” acknowledging receipt of the Handbook and its non-contractual nature, further indicating unilateral modification rights by the Company.
- The trial court denied McBride & Son’s motion to compel arbitration; Whitworth filed an amended petition alleging gender and age discrimination, and the Defendants appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a valid arbitration contract exists between Whitworth and McBride & Son | Whitworth argues no binding agreement existed | McBride & Son contends an arbitration contract exists via the Employment Contract, Application, Arbitration Agreement, and Handbook | No valid arbitration contract existed |
Key Cases Cited
- State ex rel. Vincent v. Schneider, 194 S.W.3d 853 (Mo. banc 2006) (establishes contract elements and that arbitration requires a valid agreement)
- Morrow v. Hallmark Cards, Inc., 273 S.W.3d 15 (Mo.App. W.D.2008) (continued at-will employment as consideration; preexisting duty rule)
- Johnson v. McDonnell Douglas Corp., 745 S.W.2d 661 (Mo.banc 1988) (handbook not a contractual offer; unilateral information only)
- Frye v. Speedway Chevrolet Cadillac, 321 S.W.3d 429 (Mo.App. W.D.2010) (illusionsary consideration when contract can be modified unilaterally)
- Nitro Distrib., Inc. v. Dunn, 194 S.W.3d 339 (Mo. banc 2006) (three-factor framework for arbitrability review)
