Consideration for Arbitration Agreement and Delegation Clause Was Illusory

Telissah Johnson of Kansas City, Missouri sued her former employer, Menard Inc., alleging employment discrimination. Menard argued that she had signed an arbitration agreement in her Employee/Employer Agreement, which, if upheld, would have moved the claims out of state court and into arbitration instead. However, both the circuit court and Missouri Court of Appeals agreed that this arbitration agreement is unenforceable because of Menard’s “unilateral authority to modify the delegation clause without limit or notice to [employee] rendered [employer]’s promises illusory, and ‘[s]uch illusory promises provide no valid consideration.’”

Telissah Johnson vs. Menard, Inc.

Missouri Court of Appeals, Western District – WD84138

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