Think every arbitration decision is final? Think again. Arbitration agreements can allow a court to review the decision, as long as both parties agreed.
Recent case: Nafta Traders terminated Margaret Quinn, its vice president of operations, claiming worsening business conditions. She sued, alleging sex discrimination.
Nafta demanded arbitration, since the employee handbook called for it. The arbitration agreement included limited judicial review.
Quinn won in arbitration and demanded her money—almost $200,000. That’s when Nafta appealed to a state court, asking for a review.
The Texas Supreme Court said the company had that right, but also limited Nafta’s appeal to the records and evidence already presented at arbitration. (Nafta Traders v. Quinn, No. 08-0613, Supreme Court of Texas, 2011)
- Arbitration agreement should stand on its own, separately from employee handbook
- Don't let your lawsuit fears prevent necessary discipline
- RIFs and age bias suits: Understand the power of statistics
- How much cooperation must we give to a state discrimination investigation?
- New job can't settle reverse bias suit—but $425,000 will