The Supreme Court Tangles with Mandatory Arbitration Clauses
Slate.com—April 27th, 2010
Antonio Jackson worked at Rent-A-Center in Nevada. The store rents out appliances and electronics and also—in the event of a contentious employment dispute—quality judges.
In 2004, when Jackson signed his employment contract, he agreed that disputes arising from his employment would go to arbitration. Specifically, his contract said, “The Arbitrator, and not any federal, state or local court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this Agreement.” And so, in 2007, when Jackson sued Rent-A-Center for racial discrimination and retaliation in federal district court, his former employer tried to dismiss the case, arguing that the arbitration agreement meant that only an arbitrator could determine whether the agreement was enforceable. (More legalese in the contract: The arbitration authority extended to “any claim that all or any part of this Agreement is void or voidable.”)
Jackson’s claim here is that the arbitration agreement he signed is unconscionable—so one-sided in favor of the employer that it cannot be enforced. But first, he has to argue to the Supreme Court today that it is for a judge, not an arbitrator, to rule on that question. Just to be clear, or as clear as you can be when fighting your way through 59 minutes of warm mud, the issue today isn’t whether Jackson’s employment contract is unconscionable, but whether an arbitrator gets to arbitrate that question or a judge gets to judge it.
Read More: Slate.com
