Affirming a trial court ruling denying a motion to compel arbitration of an employment dispute, a Missouri appellate court found that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards requires parties to sign an arbitration agreement for it to be enforceable.

In Seaboard Corp v. Grindrod Ltd., No. WD67628, 2008 WL 123887 (Mo. Ct. App. Jan. 15, 2008), Seaboard sued its former employee Nielson, alleging that Nielson began working for Grindrod and attempted to lure other Seaboard employees to leave and work for Grindrod.

Nielson moved to compel arbitration pursuant to an arbitration agreement contained in his employment letter. Seaboard opposed the motion, arguing Nielson had never signed the letter and therefore there was no valid arbitration agreement. The trial court denied the motion to compel.

On appeal, the Court held that Article II of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards requires an enforceable arbitration agreement to be "an agreement in writing." Moreover, the Convention defines "agreement in writing," as "an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange of letters or telegrams."

Here, a Seaboard representative signed the employment letter it routinely sent to its foreign service employees. However, Nielson acknowledged not signing the employment letter. Further, the Court found no "exchange of letters or telegrams." Consequently, because arbitration is a matter of contract and Nielson failed to sign the employment letter containing the arbitration agreement, he could not use the employment letter to seek arbitration of the parties' dispute.