Did Maida sign the arbitration under economic duress? Amy Maida sued her employer, RLS Legal Solutions, for

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Did Maida sign the arbitration under economic duress?

Amy Maida sued her employer, RLS Legal Solutions, for various claims relating to her job.
RLS asked that the case be dismissed because Maida had signed an arbitration agreement. Maida had in fact signed the contract while already working at RLS. However, she responded that the agreement should not be enforced because she had signed it under economic duress. At trial, she was asked whether she had found the agreement acceptable:
I did not. The arbitration clause was going to allow me not to be able to be in a position that I needed to be in now, and that is, to have someone represent me to help me where I feel like the company did me wrong.
After I refused to agree to this arbitration clause, I was told that my payroll checks would not be direct deposited into my account until I signed the agreement and that I would not be paid until I signed the agreement. I had received my paychecks by direct deposit for three years. [RLS did in fact stop the direct deposit payment of Maida’s salary.]
I needed my paycheck to meet my financial responsibilities since I am a single family income household provider. I had no way to pay my mortgage, vehicle note, car and homeowner’s insurance as well as any household bills.
Maida testified that after signing and returning the agreement, she received a manual check. Maida said that when she asked why she had not been paid by direct deposit as usual, she was told her paycheck would be held until she signed the agreement.
RLS argued that Maida had eventually received every paycheck to which she was entitled, had suffered no losses, and was free to leave RLS at any time if she found her employment terms unacceptable.
The trial court refused to dismiss the case or order arbitration, and RLS appealed.

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Business Law and the Legal Environment

ISBN: 978-1111530600

6th Edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Dean A. Bredeson

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