No Arbitration for KBR, At Least Not for All Claims

Jamie Leigh Jones’s tort suit against KBR (and its former parent Halliburton) will, after the pure workplace claims are resolved, go to litigation.  Details at Forbes (AP story) and TimesOnlineTortDeform.  Past post here.

The opinion is here: Download KBR.pdf

It’s far from a rejection of arbitration, even arbitration of tort suits, or even arbitration of tort suits related to employment (though it’s clear that Judge Ellison has concerns about broad arbitration clauses).  He finds the arbitration clause valid and enforceable, rejecting arguments relating to fraud in the inducement, unclean hands, unfair bargaining power, and so on. 

His conclusion is fairly simple and not dependent on any policy arguments: even though the arbitration clause is valid and enforceable, it doesn’t reach some of this alleged conduct.  The more pure employment claims are arbitrable, and he stayed the non-arbitrable claims pending the arbitration of those claims.

–BC