Opinion ID: 2833120
Heading Depth: 2
Heading Rank: 4

Heading: Enforceable arbitration agreements must bind both the employer and the employee.

Text: There is no mystery to drafting an enforceable arbitration agreement. Capable counsel know that limitations on an employer = s right to terminate the agreement are necessary so the agreement is not illusory. See, e.g., In re Tenet Healthcare, Ltd., 84 S.W.3d at 766-67 (arbitration provision was enforceable because the right to terminate the agreement specifically excepted the arbitration agreement); In re Kellogg Brown & Root, 80 S.W.3d 611, 616 (Tex. App. B Houston [1st Dist.] 2002, orig. proceeding) (arbitration agreement enforceable because it provided that it could be amended or terminated by the company by giving at least 10 days notice to employees and that such amendment would not apply to a dispute that had been initiated); In re Jebbia , 26 S.W.3d 753, 758 (Tex. App. B Houston [14th Dist.] 2000, orig. proceeding). In this agreement, however, there was no limitation to Davidson = s right to terminate, amend, or cancel the agreement. The only consideration for the agreement was continued at-will employment, which amounts to no consideration. Light , 883 S.W.3d at 644 . Thus, the arbitration agreement is illusory and unenforceable.