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Employer Loses Right to Arbitrate Due to Breach

Dispute Resolution Journal, February-April 2006 | Article details

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Employer Loses Right to Arbitrate Due to Breach


The 9th Circuit made clear on Dec. 6, 2005, in Brown v. Dillard's, Inc., 430 F.3d 1004, that when an employer enters into an arbitration agreement with its employees, it must participate in an arbitration commenced by the employee or lose its right to arbitrate.

Dillard's requires its employees to arbitrate employment-related claims under its "Fairness in Action Program." Stephanie Brown, a Dillard's employee, was fired for allegedly falsifying a time entry form. Claiming that her termination was wrongful, Brown filed a notice of intent to arbitrate, seeking actual damages, removal of negative statements about her termination from her personnel records, a letter of apology, and …

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