Gutierrez v. Academy Corp.

967 F. Supp. 945 (1997)

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Gutierrez v. Academy Corp.

United States District Court for the Southern District of Texas
967 F. Supp. 945 (1997)

Facts

In October 1991, Gutierrez (plaintiff) began working for Academy Corp. (defendant). In exchange for receiving medical and other benefits under a company Work Related Accident Program, Gutierrez agreed to submit any and all disputes to arbitration by signing an arbitration, release, and indemnification agreement, entitled “Waiver, Release of Claims, Indemnification and Arbitration.” When Academy Corp. terminated her, Gutierrez filed a lawsuit in the United States District Court for the Southern District of Texas, alleging violations of Title VII. Academy Corp. filed a motion to compel Gutierrez to submit to arbitration based on the arbitration clause contained in the arbitration, release, and indemnification agreement. Gutierrez countered that the arbitration clause in the arbitration, release, and indemnification agreement was unconscionable, thereby requiring the intervention of the district court to decide the claim of unconscionability. Gutierrez alleged that she asked to review the arbitration, release, and indemnification agreement with her paralegal husband and an attorney for legal advice. In response, Academy Corp. told Gutierrez she would lose the opportunity for the benefits offered under the arbitration, release, and indemnification agreement if she did not sign the document immediately. Gutierrez further argued an inequality in bargaining positions existed when she signed the arbitration, release, and indemnification agreement.

Rule of Law

Issue

Holding and Reasoning (Kent, J.)

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