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Dispute Resolution Keyed to Folberg, 4th Ed.
Hooters of America, Inc. v. Phillips
Citation:
173 F.3d 933 (1999)Facts
Annette Phillips worked as a bartender at a Hooters restaurant in Myrtle Beach, South Carolina since 1989. In June 1996, she alleged that Gerald Brooks, a Hooters official and brother of the principal owner, sexually harassed her by grabbing and slapping her buttocks. After her manager told her to “let it go,” Phillips quit her job and threatened legal action. In 1994, Hooters had implemented an alternative dispute resolution program requiring employees to sign an “Agreement to arbitrate employment-related disputes” as a condition for raises, transfers, and promotions. Phillips signed this agreement in November 1994 and again in April 1995. The agreement stated that disputes would be resolved according to Hooters’ rules and procedures, but employees were not given copies of these rules when signing the agreement. After Phillips threatened to sue, Hooters sent her the arbitration rules then in effect. These rules were extremely one-sided, giving Hooters control over arbitrator selection, allowing Hooters to modify rules without notice, permitting only Hooters to record proceedings, and creating numerous procedural advantages for Hooters while limiting Phillips’ rights.
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