50/50 split is fair everywhere except [insert your answer here]

I don’t know about you, but I love fill-in-the-blank quiz questions and even use them in some of my law school classes. What worked in high school still works now! If you jotted in “arbitration” above, then give yourself an “A.” To learn about one Houston employer that ended up with an “F,” read on.

Have we got a deal for you

Walter Shattenkirk went to work as a general manager for AutoNation in Houston in May 2017. When he started work, he signed the following arbitration agreement:

Both employee signing below and the Company agree that any claim, dispute, and/or controversy between them which would otherwise require or allow resort to any court or other governmental dispute resolution forum arising from, related to, or having any relationship or connection whatsoever with Employee’s seeking employment with, employment by, termination of employment from, or other association with the Company, shall be resolved through mandatory, neutral, binding arbitration on an individual basis only.

The job did not go well, with Shattenkirk alleging his supervisor made racist comments in August 2017. He was subsequently written up for performance deficiencies in September 2017 and terminated two months later. He sued in court for race discrimination and retaliation.

AutoNation told the court to “send us to arbitration” per the agreement. The trial court refused to do so, and the Houston appeals court agreed. But why?

Follow the money!