Landmark Arbitration Decision from Texas Supreme Court

On August 29, 2008, the Texas Supreme Court ruled unconscionable certain provisions in an arbitration agreement that eliminated an employee’s right to seek punitive damages and reinstatement by his worker’s compensation retaliation/wrongful termination claim. G. Scott Fiddler represented the employee, Johnny Luna, in this landmark case, which was the first in which the Texas Supreme Court found provisions in an employment arbitration agreement to be substantively unconscionable. “I took this case nearly six years ago because I wanted to establish a decision that would make it easier for employees to bust unconscionable arbitration agreements,” Mr. Fiddler said. “We feel we have achieved that.” The case is In re Poly-America, L.P., 262 S.W.3d 337 (Tex. 2008).