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Arbitration Award For Employer Set Aside.

November 2, 2012 by Leave a Comment

An employment agreement containing an arbitration clause stated “this Agreement can be amended, modified, or revoked in writing by the Company at anytime.”  The trial court granted the motion to compel arbitration.  The plaintiff not only failed to prevail at arbitration, but was ordered to pay the employer over $40,000 for its attorney fees and expenses.  The trial court confirmed the award and the plaintiff appealed.  The appellate court agreed with the plaintiff’s contention “that the Agreement is illusory because Neiman Marcus retained the unilateral right to amend, modify, or revoke it on 30 days‘ advance written notice, with the change to apply to any unfiled claim. We agree with that contention.”  Peleg v. Neiman Marcus Group, Inc.   (Cal. App. Second Dist., Div. 1;  April 17, 2012) 204 Cal.App.4th 1425, [140 Cal.Rptr.3d 38].

Filed Under: Appellate Law News, Arbitration Law News, Contract Law News, Employment Law News, Labor Law News, Legal News

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