law-void | voidable | contrary to public policy | void for lack of jurisdiction | plenary power |
unconscionable void contract
In re Poly-America, LP, No. 04-1049,262 S.W.3d 337 (Tex. Aug. 29, 2008)(O'Neill)
(arbitration in employment context, FAA, retaliatory discharge, employment law, limitation of remedies,
unconscionability argument challenge sustained, offending provision stricken, but remainder given effect)
We hold invalid, as substantively unconscionable and void, provisions of the parties’ contract that prohibit the
award of punitive damages or reinstatement and thus inhibit effective vindication of Luna’s retaliatory-discharge
claim in an arbitral forum. We further hold that the trial court did not abuse its discretion in allowing the arbitrator
to determine whether the fee-splitting agreement and discovery limitations — as applied in the course of
arbitration — are unconscionable. Because we find the invalid remedies-limitation provisions severable from the
agreement to arbitrate, which we conclude is otherwise enforceable, the trial court did not abuse its discretion in
compelling arbitration. Accordingly, we conditionally grant the writ of mandamus.