ADR Question

Adams and Taft ("A&T") is the largest real estate management firm in Santa

Ana, California. You have just accepted a new administrative position with A&T

and have been assigned to focus on ADR work for partner Howard Taft, a wealthy

owner of real estate who comes into the law office once a week.

Taft assigns you to work on "the Karen Bond dispute." Karen Bond was

hired last year as an entry level, hourly wage receptionist at A&T. Her job

qualification was a high school diploma. Three weeks after she was hired, Karen

was given an Employee Handbook, a 15-page booklet containing various rules and

practices regarding employment at A&T. The cover letter stapled to the top of the

booklet asserted that "the attached Employee Handbook is part of your

employment contract at A&T. If you disagree with anything in the Manual, contact

your supervisor within 24 hours." Included in the Handbook was a "Dispute

Resolution Clause" providing that "if a dispute arises between an A&T employee

and the firm, the dispute will be mediated, and, if the mediation fails to resolve the

matter, arbitrated. The parties agree that the arbitrator will decide whether the

contract is valid and binding and that the only ground for judicial review is bias of

the arbitrator."