Baker v. Bristol Care, Inc.
Missouri Supreme Court
450 S.W.3d 770 (2014)
- Written by Steven Pacht, JD
Facts
Carla Baker (plaintiff) was an hourly employee of Bristol Care, Inc. (Bristol) (defendant) until Bristol promoted Baker to an administrative position. In connection with her promotion, Baker and Bristol signed an arbitration agreement, which recited that Bristol’s consideration for Baker’s agreement to arbitration would be Baker’s continued employment and Bristol’s promise to arbitrate. However, the arbitration agreement also stated that (1) it was not an employment contract, (2) it did not change Baker’s at-will status, (3) either party could terminate Baker’s employment at any time for any reason, and (4) Bristol had the right to change or revoke the arbitration agreement with 30 days’ written notice. Baker and Bristol also signed an employment agreement, which provided that Baker’s employment would continue indefinitely unless she gave 60 days’ notice or unless Bristol terminated her employment with five days’ written notice or without notice (and potentially with five days’ pay) in certain situations. After Bristol fired Baker, Baker filed a class-action lawsuit against Bristol and David Furnell (defendant), seeking allegedly unpaid overtime. Bristol and Furnell moved to compel arbitration, which the circuit court denied. Bristol and Furnell appealed. In response, Baker argued that the arbitration agreement was not supported by consideration and thus was unenforceable because (1) she remained an at-will employee despite the employment agreement, (2) continued at-will employment was not consideration, and (3) Bristol’s promise to arbitrate was illusory due to Bristol’s unilateral right to change or revoke the arbitration agreement.
Rule of Law
Issue
Holding and Reasoning (Teitelman, J.)
Dissent (Wilson, J.)
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