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The Court of Appeals of Texas again enforced the terms of an arbitration agreement contained within an employee handbook acknowledgement form despite multiple employee objections.
In D.R. Horton, Inc. v. Hatton, No. 14-06-00262-CV, 14-06-00284-CV, 2006 WL 3193722 (Tex. App. Nov. 07, 2006), Brenda Hatton brought suit against her employer, D.R. Horton, Inc. (D.R. Horton), alleging discrimination and breach of contract. D.R. Horton moved to compel arbitration pursuant to the arbitration agreement contained in an employee handbook.
The Court disagreed with Brooks’s argument that the arbitration agreement was illusory, unconscionable, and too indefinite to form a binding contract. Here, D.R. Horton did not have the right to amend or rescind the arbitration clause, and the Court also disagreed that the costs of arbitration were prohibitive because D.R. Horton had offered to pay the costs of arbitration.
This Court found that the facts of this case were very similar to those in D.R. Horton v. Brooks, Nos. 14-06-00099-CV, 14-06-00152-CV, 2006 WL 3091457 (Tex. App. Nov. 2, 2006). In Brooks, the Court agreed with D.R. Horton’s argument that the denial of its motion to compel was an abuse of discretion.
The Court considered Brooks to be controlling and concluded that arbitration clause was valid. The Court issued a conditional writ of mandamus ordering the trial court to compel arbitration.
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