New Third Circuit Arbitration Decision Worth Reading

by Brian Wolfman

A construction company hires a new employee, Mr. Morales, who speaks only Spanish. Morales attends a company orientation session conducted only in English. The company employee who runs the orientation asks another, reasonably bilingual employee to explain to Morales what is going on at the orientation and to present him with an employment agreement that includes a pre-dispute mandatory arbitration clause. The agreement is in English. Morales does not ask what he is signing, and the other employee does "not specifically explain the arbitration clause to Morales.” (During the orientation session, the guy who is running the session does explain the arbitration provision in English.) Morales signs the agreement. Was there mutual assent such that the arbitration clause is binding on Morales? Yes indeed, says the Third Circuit in yesterday’s 2-to-1 decision in Morales v. Sun Constructors, Inc., No. 07-3806 (Aug. 28, 2008).