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Applying Wisconsin law, the Seventh Circuit Court of Appeals affirmed a district court order compelling arbitration of an employment dispute because there was no merit to the employee's unconscionability challenge or allegation of waiver.
In Scaffidi v. Fiserv, Inc., No. 06-3123, 2007 WL 648178 (7th Cir. Feb. 28, 2007), Scaffidi sued Fiserv, her former employer, for alleged discrimination. After a failed attempt at mediation, Fiserv moved to compel arbitration. The district court granted the motion.
On appeal, Scaffidi argued that the arbitration agreement was invalid because there was no offer, acceptance, or consideration. In rejecting this argument, the Court explained that Scaffidi accepted the arbitration agreement by accepting employment with Fiserv. Additionally, it was irrelevant that no corporate officer signed the agreement because arbitration agreements need not be signed to be valid.
Invoking Wisconsin law, Scaffidi also argued that a lack of mutuality rendered the arbitration agreement unconscionable and therefore unenforceable. The Court rejected the unconscionability challenge because there was no foundation for the premise that the agreement lacked mutuality.
Finally, the Court rejected Scaffidi's argument that Fiserv waived its right to demand arbitration because the delay resulted from the attempt at mediation.
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