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Circuit City Stores5/8/1997
Introduction
This is an original petition for writ of mandamus. Relators Circuit City Stores, Inc. and Diana Beaufils challenge the trial court's denial of their request to order their dispute with the real party in interest Ronald Giacoma to arbitration. Because we find that the parties had an enforceable agreement to arbitrate, we conditionally grant the writ of mandamus.
Factual Background
Giacoma was the manager of a Circuit City Store. Beaufils was a district manager for Circuit City. In March 1995, Circuit City gave all associates and managers an Associate Issue Resolution Package (AIRP), which included an arbitration provision for most employee-employer disputes. The arbitration agreement included an "opt-out" form that the employee had to sign in order to not participate in arbitration. Giacoma did not return the opt-out form, but he did sign a receipt acknowledging that he received the AIRP. This acknowledgment form stated that by not returning the opt-out form, the employee "will be required to arbitrate all employment-related legal disputes [the employee] may have with Circuit City."
The rules and procedures section of the AIRP provided that the agreement was to be governed by the Federal Arbitration Act:
"The Dispute Resolution Agreement and any award rendered pursuant to it shall be enforceable and subject to the Federal Arbitration Act . . . and the Uniform Arbitration Act of Virginia . . . regardless of the State in which the arbitration is held or the substantive law applied in the arbitration."
The handbook portion of the AIRP stated that " he arbitrator can award monetary damages to compensate you for harm you may have suffered." In the rules and procedures section, the damages that were available were specifically listed.
Circuit City fired Giacoma on May 15, 1995 for a "security violation." On May 10, 1996, Giacoma submitted an arbitration request form to Circuit City, alleging that he had been fired for filing a workers' compensation claim.
The request form specifically stated that by submitting a request, the employee was agreeing to final and binding arbitration of the dispute:
"I hereby submit the above-described dispute for arbitration. I agree to accept the decision and award of the Arbitrator as final and binding as to all claims relating to my employment relationship with Circuit City or its affiliate which have been or could have been raised under my Arbitration Agreement with Circuit City . . . ."
Giacoma also participated in selecting an arbitrator. The arbitrator conducted a preliminary hearing by telephone with both Circuit City and Giacoma. About two weeks later, Giacoma sued Circuit City and Beaufils for retaliatory discharge and told the arbitrator that he would not proceed with arbitration.
Circuit City and Beaufils filed a motion to compel arbitration in Giacoma's suit. The trial court denied the motion and Circuit City and Beaufils's motion for rehearing. Circuit City and Beaufils then filed this petition for writ of mandamus.
The Standard of Review
Mandamus will issue only to correct a clear abuse of discretion or the violation of a duty imposed by law when there is no other adequate remedy by law. See Walker v. Packer, 827 S.W.2d 833, 839 (Tex. 1992) (orig. proceeding). Because this arbitration agreement is governed by the FAA, mandamus is the appropriate remedy to enforce the agreement. See Jack B. Anglin Co. v. Tipps, 842 S.W.2d 266, 272 (Tex. 1992) (orig. proceeding). Thus, our only question is whether the trial court abused its discretion in not enforcing the arbitration agreement.<
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