Fifth Circuit Holds Arbitration Provision Included in Employee Handbook is Illusory and Unenforceable Under Texas Law
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In an unpublished opinion, the Fifth Circuit has affirmed a Texas federal court’s decision to deny a company’s motion to compel arbitration in an employment discrimination and retaliation lawsuit. In Scudiero v. Radio One of Texas II, L.L.C., No. 13-20114, (5th Cir., October 24, 2013), Vince Scudiero and Christel Thornton filed a lawsuit in federal court against their employer, Radio One of Texas II, L.L.C. (“Radio One”), alleging race discrimination and retaliation against Scudiero and retaliation against Thornton. Radio One responded by filing a motion to compel the parties’ dispute to arbitration.
In accordance with a magistrate judge’s recommendation, the district court dismissed Radio One’s motion to compel arbitration. According to the lower federal court, the arbitration clauses included in the Radio Oneemployee handbook were illusory and unenforceable because another provision in the handbook expressly stated that the company reserved the right to unilaterally “supersede, modify, or eliminate existing policies.” After the company’s motion to compel arbitration was dismissed, Radio One filed an appeal with the United States Court of Appeals for the Fifth Circuit.
Read original articleTags: Christel Thornton, FEDERAL COURT, Fifth Circuit, Fifth Circuit Holds Arbitration Provision, Vince Scudiero
