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Texas Supreme Court Compels Arbitration Of Employment Discrimination Claims

by Victoria VanBuren
November 2009

From the Disputing Blog of Karl Bayer, Victoria VanBuren, and Holly Hayes.

Victoria VanBuren

The Supreme Court of Texas held that an agreement to arbitrate discrimination claims between an employee and a staffing agency hired by the employer survives the dissolution of the contract between the staffing agency and employer.

In the present case, In re Polymerica, __S.W.3d __ (Tex. 2009) (No. 08-1064), Polymerica, L.L.C. d.b.a Global Enterprises, Inc. (“Global”), a manufacture of plastics, hired Angelica Soltero in 1998. In 2002, Global contracted with dmDickason Staff Leasing Company (”Dickason”) to manage the company’s human resources department.

Shortly thereafter, Soltero signed a Dispute Resolution Plan, which “appl[ies] to any disputes between dmDickason/Global Enterprises and any applicant for employment, employee or former employee, including legal claims such as discrimination, wrongful discharge or harassment.” The Plan calls for binding arbitration under the Federal Arbitration Act.

On December 31, 2005, Global ended its contract with Dickason and resumed the management of its human resources department. Global terminated Soltero five days later. Then, Soltero sued Global claiming wrongful termination based on her national origin as well as retaliation for reporting alleged sexual harassment.

The trial court denied Global’s motion to compel arbitration concluding that all of Soltero’s claims arose from the wrongful termination after the agreement between Global and Dickason had ended. Global appealed.

The Texas Supreme Court, distinguishing In re Neutral Posture, Inc., 135 S.W.3d 725, 730 (Tex. App.—Houston [1st Dist.] 2003, no pet.), stated that “[t]here is no such time limitation in the Dispute Resolution Plan, nor there is a condition that the Global and Dickason relationship must be in place for either to enforce the Plan.” The court concluded that Soltero’s promise to arbitrate includes her claims against Global and directed the trial court to compel arbitration.

Biography


Victoria VanBuren holds a B.B.A. in Finance from Southern Methodist University and a J.D. from the University of Texas School of Law.  She focuses on intellectual property law and arbitration. Known as a "worker bee," she is an active legal blogger and is currently pursuing a degree in computer science. Prior to joining the team at Karl Bayer, Victoria worked at a boutique intellectual property law firm in Austin. She is well versed in computer hardware and programming languages: Assembly, C/C++, HTML, XHTML, XML, Perl, JavaScript, and PHP.

While in law school, Victoria was a Graduate Research Assistant for Professor John S. Dzienkowski, from The University of Texas at Austin. She was responsible for selecting cases for inclusion in the textbook International Petroleum Transactions. Victoria was particularly involved in researching the areas of international business litigation and arbitration. She also performed extensive research on political and economic risks within the context of international licensing agreements.

Having lived and studied in Mexico, Canada, and the U.S., Victoria brings a unique perspective to Karl Bayer. Right after high school, Victoria moved to Canada to study English and French. Born and raised in Mexico, she is a native Spanish speaker and a graduate of the Monterrey Institute of Technology (Instituto Tecnologico y the Estudios Superiores de Monterrey), where she concentrated in Physics and Mathematics.

Professional Activities

- American Bar Association, Young Lawyers
- American Intellectual Property Law Association (AIPLA)
- Association of International Petroleum Negotiators (AIPN)
- National Hispanic Bar Association (NHBA)
- State Bar of Texas, Intellectual Property



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Website: www.karlbayer.com

Additional articles by Victoria VanBuren

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