Daniel Mendivil v. Zanios Foods, Inc.
Daniel Mendivil, a former delivery-truck driver for Zanios Foods, Inc., appealed a trial court's decision to compel arbitration after his employment was terminated following an injury. Mendivil challenged the Arbitration Policy Statement (APS), arguing it was invalid due to lack of consideration, being illusory, and unconscionable. The appellate court examined the APS, a stand-alone arbitration agreement, and found that Zanios had not made mutual, binding promises to arbitrate its own disputes or be bound by arbitration results. Therefore, the court concluded that the APS lacked the necessary consideration, rendering it an illusory contract. The appellate court reversed the trial court's order compelling arbitration and remanded the case for further proceedings.