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In Texas, decisions raise bar on waiver of arbitration agreements

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in Employment Law,Human Resources

by Lawrence D. Smith, Esq., Ogletree Deakins, San Antonio

It’s relatively easy to enter into arbitration agreements with employees, but ensuring their enforcement can be a different matter. That’s why employers are rightfully cautious to avoid any steps in litigation that a court might consider to be a waiver of their right to enforce an arbitration agreement.

Two recent decisions from the Supreme Court of Texas and the 5th Circuit Court of Appeals are reminders that, under Texas law, it is difficult for employers to waive arbitration agreements.

Supreme Court on waivers

In Richmont Holdings, Inc., et al. v. Superior Recharge Systems, L.L.C., the Texas Supreme Court evaluated whether a party to an arbitration agreement that had initiated a lawsuit had waived the right to enforce the agreement.

Richmont Holdings had entered into an asset purchase agreement with Superior Recharge Systems and Jon Blake, containing a covenant no...(register to read more)

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