In the Matter of Lorraine C. Brady, Respondent, v The Williams Capital Group, L.P., Appellant, and American Arbitration Association, Inc., Respondent., 14 N.Y.3d 459

Summary

After the employee was hired to sell fixed income securities, the employer promulgated an employee manual that its employees were required to sign and abide by as a condition of continued employment. Incorporated within the manual was an arbitration clause and a provision that the parties would equally share the fees and costs of the arbitrator. When the employee was terminated, she sought arbitration of her employment discrimination claims. After numerous attempts to secure full payment of the arbitrator's fee from the employer, respondent arbitrator cancelled the arbitration. The Court of Appeals found, inter alia, that the lower courts properly determined that the terms of the parties' agreement, rather than the arbitrator's rules, controlled. However, the lower courts erred in determining the enforceability of the fee and cost sharing provision. Neither court took into account all of the relevant criteria in resolving the employee's financial ability to pay the arbitration fees and...