Quiles v. Financial Exchange Co.
Decision Date | 06 July 2005 |
Citation | 2005 PA Super 250,879 A.2d 281 |
Parties | Luz C. QUILES, v. FINANCIAL EXCHANGE CO., c/o UCAC, Inc., d/b/a the Money Mart Appeal of Dollar Financial Group, Inc. |
Court | Pennsylvania Superior Court |
Stephwn G. Harvey, Philadelphia, for appellant.
William P. Coffin, Easton, for appellee.
Before: ORIE MELVIN, KLEIN, and MONTEMURO2, JJ.
¶ 1 Dollar Financial Group, Inc.3 ("Dollar") appeals from the order denying its Petition to Compel Arbitration and Stay Judicial Proceedings4 in a defamation action brought by Appellee, Luz C. Quiles. Quiles, a former employee of Dollar, claimed Dollar falsely accused her of stealing money from the company and that she was terminated for that reason. After Quiles filed her complaint in the Court of Common Pleas of Lehigh County, Dollar filed a petition to compel arbitration in accordance with dispute resolution procedures set forth in Dollar's Employee Handbook (Handbook). Finding that Quiles never received a copy of the Handbook, the only document containing the arbitration provisions, and, therefore, there could be no meeting of the minds to arbitrate in accordance with company policy, the trial court denied Dollar's petition.
¶ 2 Because Quiles was never given the handbook that included the information explaining the company's policy to exclusively arbitrate any workplace disputes, she was unable to accept the terms of the agreement to arbitrate. Without her acceptance, there was no agreement formed between the parties and, thus, no grounds to compel arbitration of the present claims. Accordingly, we affirm.
¶ 3 Quiles was hired in late July, 20015 as a part-time customer service representative (teller) in its Allentown, Pennsylvania store. On August 28, 2001, Quiles signed an Employee Acknowledgment Form (Form) given to her by her store manager, Catalina (Cat) Delgado. The Form stated that Quiles had received and read the company Handbook and that she understood and agreed to be bound by its terms. Notably, the Form stated that prior to signing it, the employee had carefully read the Handbook which "include[ed] the DISPUTE RESOLUTION PROGRAM and provisions relating to arbitration." This form did not contain any further language explaining the policy or process of arbitration adopted by the company. Although Quiles admits she signed the Form, she contends she never actually received a Handbook. She also avers that she requested a handbook from her district manager, but was never provided one.
¶ 4 The Handbook contained a section entitled "Dispute Resolution Program" (DRP),6 an internal dispute procedure, that provided for the use of an employee hotline or a conference between the employee and a representative of Dollar's management team. If these internal procedures did not prove successful in resolving an employee's claims, an employee had the option to request private arbitration with the American Arbitration Association (AAA). The Handbook also provided that all employees who accepted employment or continued current employment after July 1, 1995, agreed to be bound by the terms of the DRP, both during and after their employ with Dollar, as the exclusive means to resolve any legal claims against the company.
¶ 5 On July 21, 2004, the trial court held an evidentiary hearing to determine whether in fact a valid agreement to arbitrate existed between the parties. At the hearing Quiles and two former Dollar employees, all supervised by manager Cat Delgado, testified that they had not been given a copy of the employee handbook after being hired by Dollar.
¶ 6 The trial court ultimately denied Dollar's request to compel arbitration, finding that the employees' testimony was credible and established it was "customary practice by Ms. Delgado not to supply employee handbooks to new hirees." Trial Court Opinion, 10/18/2004, at 7. Specifically, the court found that because Quiles never received the Handbook, she could not have been fully informed of the arbitration policy and provisions. The court also noted that Quiles was from Puerto Rico, had difficulty with the English language, had never completed high school and was unfamiliar with the term "arbitration." Under such circumstances the court determined there was no "meeting of the minds on any of the handbook terms, including the arbitration procedure." Id. at 8.7
¶ 7 Dollar raises the following three questions on appeal:
However, because we find that there was no valid agreement to arbitrate the present claims, we need not reach the last two questions.
¶ 8 While this case presents a general question (the enforceability and effect of provisions in employer-employee agreements) that has been addressed in several jurisdictions, including ours,8 the more fact-specific question presented today of whether an employee is bound to arbitration provisions found in an employee handbook (when that employee was never given a copy of the handbook containing the actual arbitration provisions and had signed an acknowledgement form stating she read such handbook under suspect circumstances) has not been addressed in this Commonwealth to date. Therefore, in order to properly review the trial court's decision regarding the validity of the parties' agreement and determine whether the court's findings are supported by sufficient evidence, we have looked to case law outside our jurisdiction for guidance.
¶ 9 Courts have consistently expressed the sentiment that agreements to arbitrate are generally favored. Such agreements will be upheld when the agreement is specific enough (i.e., unambiguous) to cover the employee's claims and where the employee has expressly agreed to abide by the terms of that agreement. Case law generally equates the process of interpreting agreements to arbitrate with that of interpreting contracts, applying the same principles in both types of cases. It is well established that:
Nothing is better settled than that in order to constitute a contract there must be an offer on one side and an unconditional acceptance on the other. So long as any condition is not acceded to by both parties to the contract, the dealings are mere negotiations and may be terminated at any time by either party while they are pending. There must be a meeting of minds in order to constitute a contract. This doctrine is very familiar and has been recognized many times in our courts.
Cohn v. Penn Beverage Co., 313 Pa. 349, 169 A. 768-69 (1934); Parsons Brothers Slate Company v. Commonwealth, 418 Pa. 389, 211 A.2d 423, 424 (1965).
¶ 10 Presently, the court credited Quiles' testimony that she was never given a copy of the Handbook that contained the dispute resolution program, including the arbitration process, for employment-related claims. Specifically, Quiles testified to the following circumstances surrounding her signing of the Form acknowledging receipt of the handbook and its policies:
N.T., 7/21/2004, at 61-63. In addition to Quiles, two former Dollar employees testified that they never received or even saw an employee handbook after they began working for the company, under the direction of Delgado. Id. at 96. One of these employees testified that he did not even sign the acknowledgment form. Id. at 96. They also stated that no one at Dollar ever explained what arbitration is or the company's process for resolving disputes. Id. at 97, 103.
¶ 11 In Morosetti v. Louisiana Land and Exploration Co., 522 Pa. 492, 564 A.2d 151 (1989), our Supreme Court was faced with the issue of whether employees could enforce an employer's severance policy when the terms of that policy were never communicated as part of a definite offer of employment. The court found that the employees were unable to show that, other than an internal policy contained in a manual for use by the company's personnel manager, they had ever been offered the policy as a binding term of employment. The court stated "An offer must be intentional, definite, in its terms and communicated, otherwise the minds cannot meet." Id. at 152 (emphasis added).
¶ 12 Although Dollar published its arbitration process in its employee handbooks, unlike the facts in Morosetti, it has no binding effect on employment-related actions if that policy is never actually communicated to an employee by ensuring that the handbooks are distributed to its employees. Without receipt or delivery of the Handbook which was the only document containing the relevant arbitration provisions, Quiles was unable to knowingly and voluntarily waive all other means of dispute...
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