Parilla v. IAP Worldwide Services VI
United States Court of Appeals for the Third Circuit
368 F.3d 269 (2004)
- Written by Emily Pokora, JD
Facts
Virgen Parilla (plaintiff) was a former employee of IAP Worldwide Services VI, Inc., Worldwide Services, Inc., Gene Ludlow, and Roy Varner (employers) (defendants). Parilla’s employment contract included an arbitration provision for resolution of disputes under the Federal Arbitration Act (FAA) and the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (AAA). Parilla brought suit against his employers for discrimination under Title VII of the Civil Rights Act, 42 U.S.C. § 2000e et seq. The employers moved to compel arbitration under the employment contract. The district court denied the employers’ motion, holding that the arbitration agreement was unenforceable. The court reasoned that the applicable AAA rules requiring confidentiality of the arbitration and award were unconscionable and favored employers by making it more difficult for plaintiffs to present subsequent discrimination cases proving patterns of discrimination by employers. The employers appealed.
Rule of Law
Issue
Holding and Reasoning (Stapleton, J.)
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