27.01.2014 Views

here - FindLaw

here - FindLaw

here - FindLaw

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

In 24R, Inc., supra, 324 S.W.3d 564, the Texas Supreme Court summarized its<br />

holding in Halliburton, saying: ―[T]his Court held that because the [arbitration] policy<br />

contained a ‗savings clause‘ — including a ten-day notice provision and a provision that<br />

any amendments would only apply prospectively — [which] prevented the employer<br />

from avoiding its promise [to arbitrate], the arbitration agreement was not illusory‖ (24R,<br />

Inc., at p. 567, italics added).<br />

And in Odyssey Healthcare, supra, 310 S.W.3d 419, the Texas Supreme Court<br />

held that an arbitration agreement was not illusory because (1) the modification clause<br />

required 14 days‘ notice of an amendment, modification, or termination, and (2) the<br />

arbitration agreement stated that ―‗no amendment or termination will alter the arbitration<br />

provisions . . . in connection with[] an Injury occurring prior to the date of such<br />

amendment or termination‘‖ (id. at p. 424).<br />

In In re Golden Peanut Co., LLC (Tex.Ct.App. 2008) 269 S.W.3d 302, writ<br />

conditionally granted on another point (Tex. 2009) 298 S.W.3d 629, the Texas Court of<br />

Appeals upheld an arbitration agreement because it contained a savings clause in addition<br />

to a notice provision. T<strong>here</strong>, the agreement stated: ―Company shall have the right to<br />

prospectively terminate this Agreement. Termination is not effective for Covered Claims<br />

which accrued or occurred prior to the date of the termination. Termination is also not<br />

effective until ten (10) days after reasonable notice is given to Claimant.‖ (Id. at p. 308,<br />

italics added.) In concluding the agreement was enforceable, the court of appeals stated:<br />

―[The employer‘s] right to terminate the arbitration agreement operated prospectively<br />

only. It could not terminate the agreement for any accrued claim and could not terminate<br />

an employee‘s rights until providing at least ten days notice.‖ (Id. at p. 309, italics added;<br />

see In re H.E. Butt Grocery Co. (Tex.Ct.App. 2000) 17 S.W.3d 360, 370 (Butt Grocery<br />

Co.) [employer‘s injury compensation plan not illusory because it stated ―‗no amendment<br />

or termination of the Plan will affect any claim for expenses incurred prior to the date the<br />

amendment or termination is adopted‘‖ (italics added)], overruled on another point in<br />

Halliburton, supra, 80 S.W.3d at p. 571, fn. 3.)<br />

30

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!