361 S.W.3d 123
Tex. App.2011Background
- Garcia worked for YMCA from 1997 to early 2010 and suffered a December 2009 on-the-job injury.
- After returning to light duty in January 2010, YMCA offered reduced hours and loss of benefits; Garcia refused and was terminated.
- Garcia filed suit alleging age/race discrimination and retaliatory discharge for workers’ compensation pursuit.
- YMCA moved to compel arbitration based on a dispute resolution policy in the personnel policy manual signed by Garcia in 2004.
- Manual states it is not a contract and may be unilaterally changed; dispute policy requires final and binding arbitration under FAA.
- Trial court denied arbitration; YMCA appealed interlocutorily under FAA procedures; issue centered on validity of the arbitration clause.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the parties form a valid arbitration agreement? | Garcia argues the manual disclaims contract creation and reserves unilateral change, negating arbitration. | YMCA contends the dispute resolution policy is a binding arbitration agreement despite disclaimers. | No valid arbitration agreement; order to compel arbitration affirmed. |
Key Cases Cited
- Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614 (1985) (FAA arbitration questions governed by federal law; contract formation principles apply)
- In re Palm Harbor Homes, Inc., 195 S.W.3d 672 (Tex. 2006) (state law contract formation governs arbitration agreements under FAA)
- In re Kellogg Brown & Root, Inc., 166 S.W.3d 732 (Tex. 2005) (Texas contract principles apply to arbitration agreement validity)
- J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) (burden shifting in arbitration: show valid agreement, then affirmative defenses)
- Forbau v. Aetna Life Insurance Company, 876 S.W.2d 132 (Tex. 1994) (specific contract language controls over general boilerplate language)
- In re AdvancePCS Health L.P., 172 S.W.3d 603 (Tex. 2005) (establishes standard for determining existence of a valid arbitration agreement)
