In a good win for employees fighting against the tide to bring their claims in court, the Fifth Circuit reversed a lower court’s decision to compel arbitration because the employer had failed to sign the arbitration agreement. Huckaba v. Ref-Chem, LP, No. 17-50341 (5th Cir. June 11, 2018) (click here for a copy of the decision).
The contract at issue contained language that the parties must each sign the agreement in order for it to become effective, and this language was significant for the Fifth Circuit’s reasoning. Also, the Fifth Circuit explained that the employee’s continued employment did not create an obligation to arbitrate because her continued employment did not negate the intent of the parties to require a signature for the arbitration agreement to become effective.
I’m a bit surprised, but pleased, that this pro-employee decision came from my hometown’s Fifth Circuit. The opinion also contains some good language that the strong pro-arbitration policy and presumption embodied in the FAA (a presumption and policy which, in my opinion, are completely manufactured by the Supreme Court) does not apply when a court is considering whether a contract has been formed. Attorneys representing workers should file this case away as a good case to use when briefing the enforcement of an arbitration clause under similar circumstances.