Texas court rejects challenge to arbitration clause

Many of you have an arbitration agreement or are considering implementing one. A question that arises is whether the employer and the employee are allowed to bring representatives. For a new case dealing with this issue, read on.

Facts

Alejandro Quintas and his former employer, Granite Construction, arbitrated their employment dispute. He lost. He sought to vacate the award, arguing that the arbitration was unfair. Why? The company had access to a lawyer, and he didn’t. But here, the agreement provided:

You [the employee] are not required . . . to hire a lawyer to participate in the arbitration. If you choose not to bring a lawyer to arbitration, the Company will also participate without a lawyer.

Although the company didn’t bring any lawyers, it reserved its right to consult with a lawyer before the arbitration, and it ended up using its lawyer to prepare company witnesses before the hearing. Quintas cried foul.

Decision

Both the arbitrator and the appeals court said you must read the instructions, namely the language of the agreement. The company adhered to the language. As the court held: