Hooters vs. Phillips

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Hooters of America, Incorporated v. Annette R. Phillips Facts Annette R. Phillips, an employee at Hooters restaurant in Myrtle Beach, South Carolina, quit after Gerald Brooks, a Hooters official and brother of the Hooters of Myrtle Beach primary owner, purportedly sexually harassed her by “grabbing and slapping her buttocks” in June of 1996.Phillips quit her job after she petitioned her manager for help and was told to “let it go.” Shortly after, Phillips threatened to sue Hooters in court, claiming that her Title VII rights had been violated. Hooters responded that she was required to submit her claims to arbitration due to the fact that prior to quitting she had signed an arbitration agreement, composed by Hooters, which specified the proceedings in regard to Title VII claims. In 1994, Hooters engineered an alternative dispute resolution program; this program entailed the agreement that both Hooters and the employees arbitrate employment related disputes according to the rules put forth by Hooters. Phillips signed the agreement on November 25, 1994 and again in April of 1995. However, Phillips was never provided with a copy of the rules and procedures for arbitration proclaimed by Hooters. Consequently, Phillips refused to arbitrate the dispute. History In November of 1996, Hooters (D) preemptively filed suit to force Phillips (P) to comply with arbitration under the Federal Arbitration Act, 9 U.S.C. 4. P disputed their claims on the basis that “the agreement to arbitrate was unenforceable.” P filed individual and class counterclaims against D for “violations of Title VII and for a declaration that the arbitration agreements were unenforceable against the class.” In response, D requested that the district court halt further legal process on the counterclaims until after arbitration as required by 9 U.S.C. 16. In March of 1998, the district court rejected this
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