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Total Articles: 4

Fifth Circuit Decision May Endanger Many Texas Arbitration Agreements

Executive Summary: The Fifth Circuit has issued a decision which may affect Texas employers who utilize employment arbitration agreements. In Nelson v. Watch House Int'l, L.L.C., No. 15-10531 (5th Cir. Mar. 2, 2016), the court found an employment arbitration agreement unenforceable where the "savings clause" did not expressly require advance notice to employees of amendments and/or termination of the arbitration agreement.

Fifth Circuit Decision May Endanger Many Texas Arbitration Agreements

Executive Summary: The Fifth Circuit has issued a decision which may affect Texas employers who utilize employment arbitration agreements. In Nelson v. Watch House Int'l, L.L.C., No. 15-10531 (5th Cir. Mar. 2, 2016), the court found an employment arbitration agreement unenforceable where the "savings clause" did not expressly require advance notice to employees of amendments and/or termination of the arbitration agreement.

Decisions Raise Bar on Waiver of Arbitration Agreements Under Texas Law

While employers may enter into arbitration agreements with employees relatively easily, ensuring the enforcement of arbitration agreements can be a different matter. For this reason, employers are rightfully cautious to avoid taking any steps in litigation that a trial court might consider to be a waiver of their right to enforce an arbitration agreement with a current or former employee. Two recent decisions from the Fifth Circuit Court of Appeals and the Supreme Court of Texas serve as a reminder that under Texas law it is difficult for employers to waive arbitration agreements, even when an employer may have waited more than a year to compel arbitration.

Arbitration (Awards) Not Necessarily Private in Texas

Thanks to Professor Ross Runkel for calling my attention to a case decided in my own backyard, McAfee, Inc. v. Weiss, (Tx. App. - Dallas 3.16.11), which held that a trial court's refusal to seal an arbitration opinion and award attached to a motion to confirm the award was not an abuse of discretion.