Arbitration/Nonsignatories: Substantial Evidence Supported Trial Court’s Order Declining To Compel Arbitration–Employer Couldn’t Prove Employee Acknowledged And Signed Arbitration Provisions

Electronic Signing Procedure Didn’t Work Out For The Employer

      Did the employee or didn’t she agree to arbitrate?

      Bevmo used an on-line procedure to make the employment handbook and arbitration agreement available to employees, and employees provided an electronic signature, showing that they had received and read the employment handbook.  That procedure was employed in a wage and hours case brought by an employee against Bevmo.   Coffey v. Beverages & More, Case No. B243361 (2nd Dist. Div. 1 April 30, 2014) (Rothschild, Johnson, Miller) (unpublished). 

     Here, however,  though the employee had received and electronically signed for the employee handbook, which contained an arbitration provision, Bevmo was unable to show that she had ever signed and acknowledged the arbitration provision – even though there was an explicit acknowledgment provision and a place to sign.

      The Court of Appeal affirmed the order denying a motion to compel arbitration, concluding that substantial evidence supported the trial court’s determination that the employee had not agreed to arbitrate. 

     TIP:  If your intent is to enforce an arbitration agreement, don’t leave signature lines blank.   Yes, the point is obvious, but a problem can easily occur with signatures when the signing procedure involves an on-line procedure, as it did here.