Young Mens Christian Association of Greater El Paso, Texas and Rio Grande Valley and Fred and Maria Loya YMCA v. Jose G. Garcia
Jose G. Garcia, a former employee of the YMCA, filed suit alleging discrimination based on age and race, and retaliatory discharge after being terminated for pursuing worker's compensation benefits. The YMCA moved to compel arbitration, citing a dispute resolution provision in its personnel policy manual which Garcia had acknowledged. Garcia argued that the manual's disclaimers, stating it was not an employment contract and that the YMCA reserved the right to unilaterally change its provisions, rendered the arbitration agreement invalid and illusory. The trial court denied the motion to compel arbitration. The appellate court affirmed this denial, finding that the disclaimers in the personnel policy manual prevented the dispute resolution policy from forming a valid arbitration agreement.