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LARRY BROWN; ANGELICA BROWN DRAKE ALABANZA; and LOU ALABANZA, Plaintiffs-Appellees
vs.
KFC NATIONAL MANAGEMENT COMPANY a Delaware Corporation; KFC U.S.A. a Foreign Corporation; LARS PETERSON Defendants-Appellants and DOE DEFENDANTS 1-10 Defendants
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Issues:
Employer liability, arbitration, policy and procedure.
Case Summary:
Drake Alaabanza, a former employee of Kentucky Fried Chicken, brings a discrimination suit against the company after his employment is terminated. KFC asserts its right to compel arbitration of all claims against it based on an arbitration provision reflected in the company's application for employment. The company contends Alaabanza signed the application and must comply with its restrictions.
Decision of lower jurisdiction:
The First Circuit Court denied the company's motion to compel arbitration. The court determined that the employment application was only an application for employment, not a contract. The company now appeals.
Outcome:
A split decision. The Supreme Court of Hawaii determined that the company's employment application was a valid agreement under federal and state law. The court affirmed the lower jurisdiction's ruling on the company's motion to compel arbitration. However, the court also remanded the case to the lower jurisdiction for additional review.