## Facts

- Jamie V. Holmes worked for Air Liquide USA LLC and Air Liquide Industrial U.S. LP (collectively, Air Liquide America).
- In March 2006, Air Liquide rolled out a company Alternative Dispute Resolution (ADR) agreement to U.S. employees by email, directing employees to log into an internal HR system to review the documents and choose “Accept” or “Decline.”
- The HR system used employee-specific login credentials and created a time-stamped record reflecting the employee’s choice.
- Air Liquide produced records showing Holmes clicked “Accept” on March 15, 2006, and it also produced an “Employee’s Certification of Electronic Signature” stating her electronic signature was the legally binding equivalent of her handwritten signature.
- In February 2011, Air Liquide terminated Holmes.
- Holmes filed suit alleging discrimination based on association with her disabled daughter under the ADA, gender discrimination under Title VII and the Texas Commission on Human Rights Act (TCHRA), and retaliation/interference under the FMLA and the TCHRA.
- Air Liquide moved to compel arbitration under the Federal Arbitration Act (FAA), relying on the 2006 ADR agreement.
- Holmes opposed arbitration, stating she did not recall accepting the agreement and arguing that the Dodd-Frank Act made the ADR agreement unenforceable because it could apply to certain Dodd-Frank whistleblower disputes, even though her claims did not arise under Dodd-Frank.

## Issues

1. Whether Air Liquide proved the existence of a valid, enforceable arbitration agreement with Holmes under Texas contract principles and the FAA, including through electronic acceptance records.
2. Whether Holmes’s ADA, Title VII, FMLA, and TCHRA claims were within the scope of the ADR agreement.
3. Whether the Dodd-Frank Act’s provisions limiting arbitration for certain whistleblower disputes rendered the ADR agreement unenforceable for Holmes’s non–Dodd-Frank employment claims.
4. If arbitration was compelled, whether the court should stay the case or dismiss it.

## Decision

- The court granted Air Liquide’s motion to compel arbitration.
- The court found Air Liquide met its burden to show mutual assent and an enforceable agreement, relying on the electronic “Accept” record and Holmes’s electronic-signature certification; Holmes’s lack of recollection did not defeat that objective evidence.
- The court held the ADR agreement covered Holmes’s employment-related statutory claims (ADA, Title VII, FMLA, and TCHRA).
- The court rejected Holmes’s Dodd-Frank argument, concluding the statute’s arbitration restrictions did not invalidate the ADR agreement for the claims she asserted and did not retroactively bar enforcement of the 2006 agreement in this case.
- Because all claims were subject to arbitration and retaining jurisdiction would serve no purpose, the court dismissed the action with prejudice.

## Legal Principles

- Under the FAA, a court generally decides (1) whether the parties formed a valid arbitration agreement and (2) whether the dispute falls within the agreement’s scope; doubts about scope are resolved in favor of arbitration.
- Texas contract law looks to objective manifestations of assent; an employee can be bound where the record shows acceptance of an arbitration program, including by electronic means.
- Electronic assent may be shown through authenticated system records (unique credentials, recorded acceptance, and time stamps) and an employee certification that an electronic signature is legally binding.
- A party’s statement that she does not remember accepting an arbitration agreement typically does not overcome reliable documentary evidence showing acceptance.
- Dodd-Frank’s anti-arbitration language for certain whistleblower provisions applies only to disputes arising under those specific provisions (“to the extent that” the agreement would require arbitration of such a dispute) and does not void arbitration agreements for unrelated statutory employment claims; the court also declined to treat Dodd-Frank as retroactively invalidating the 2006 ADR agreement here.
- When all claims in a suit must be arbitrated, a federal court may dismiss rather than stay the action.

## Conclusion

The Southern District of Texas enforced Air Liquide’s 2006 ADR agreement against a former employee asserting ADA association discrimination, Title VII/TCHRA sex discrimination, and FMLA/TCHRA retaliation claims, finding that electronic acceptance records and an electronic-signature certification established mutual assent and that Dodd-Frank’s whistleblower arbitration restrictions did not bar arbitration of Holmes’s non–Dodd-Frank claims; the court compelled arbitration and dismissed the case with prejudice.


Holmes v. Air Liquide USA, LLC, 2012 U.S. Dist. LEXIS 10678 (2012)