The Court of Appeals for the Fifth District of Texas at Dallas in the case of In re Hospitality Employment Group, LLC (Sept. 24, 2007) dealing with a provision in an employment contract calling for arbitration of personal injury claims which provided for an appeal of the award to a three-judge AAA panel, held that failure to challenge the appeal process at the outset as unconscionable because it reallocated shared cost of the arbitration on appeal to be loser pays all constituted a waiver that estopped the challenging party. The Court cites precedant from Minnisota and the 5th and 7th Federal Circuit Courts of Appeal in support of its decision. In light of opinions striking or severly limiting arbitration cluases in employment contcracts, this is a significant decision.
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Re Hospitality Employment Group, LLC
- Gardere Wynne Sewell LLP
- October 25 2007
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