Seawright v. American General Financial

Lisa Seawright (plaintiff) worked for American General Financial Services, Inc. (American) (defendant). American notified its employees that it was implementing a dispute-resolution program for employees. American distributed a brochure and held informational meetings to inform employees about the program. The materials stated that employment-related disputes must be arbitrated and that by continuing employment with American, employees agreed to the program’s terms. American also stipulated that it would be bound by the agreement for 90 days after an employee’s termination and bound by any disputes that arose prior to termination. Seawright signed an attendance sheet for one of the informational meetings, acknowledging that she attended and received a copy of the program information. Eventually, American terminated Seawright’s employment, and Seawright filed suit in federal district court for violations of state and federal law. American moved to compel arbitration under the Federal Arbitration Act (FAA), citing the dispute-resolution-program terms. Seawright claimed that (1) she did not assent to the program terms, (2) the agreement was void because there was no consideration, (3) even if there was assent and consideration, the agreement was illusory, (4) the agreement was void as an unconscionable contract of adhesion, and (5) she did not sign a written agreement as required by the FAA. The district court ruled in favor of Seawright on lack-of-assent grounds. American appealed.