With Agreed Waiver from Employer of Certain Provsions of Mandatory Arbitration Agreement, Court Enforces Agreement and Dismisses Discrimination Suit

In Ragone v. Atlantic Video, the defendant employer moved to dismiss the plaintiff's Title VII and State law discrimination suit on the grounds that her sole avenue of relief was arbitration as mandated by an Arbitration Agreement entered into between plaintiff and the defendant employer. Plaintiff argued that the Agreement was unconscionable and unenforceable in light of provisions which shortened the limitations period, permitted attorney's fees to be awarded in favor of the prevailing party, and prohibited the employee from appealing the arbiter's decision in court. The defendant employer, however, expressly agreed to waive these provisions in the agreement, and, relying on the severability clause of the Agreement, sought to enforce the remaining clauses of the Agreement. The Court, relying on the employer's agreed waiver of the challenged provisions of the Agreement, upheld the enforceability of the Agreement and dismissed the plaintiff's suit in favor of arbitration. A copy of the decision can be read here.

If you would like guidance or counsel in drafting or enforcing mandatory arbitration agreements, or otherwise defending discrimination claims, please contact Eric Gunderson and/or visit the Farrell & Gunderson website.