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361 S.W.3d 123
Tex. App.
2011
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Background

  • 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)
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Case Details

Case Name: Young Mens Christian Association of Greater El Paso, Texas and Rio Grande Valley and Fred and Maria Loya YMCA v. Jose G. Garcia
Court Name: Court of Appeals of Texas
Date Published: Oct 26, 2011
Citations: 361 S.W.3d 123; 2011 Tex. App. LEXIS 8505; 2011 WL 5110224; 08-11-00096-CV
Docket Number: 08-11-00096-CV
Court Abbreviation: Tex. App.
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    Young Mens Christian Association of Greater El Paso, Texas and Rio Grande Valley and Fred and Maria Loya YMCA v. Jose G. Garcia, 361 S.W.3d 123