In Stowell v. Roll Brothers, No. 06-cv-2103, 2007 U.S. Dist. LEXIS 287 (E.D.Pa. Jan. 4, 2007, a provision in the plaintiff's employment contract required that all disputes arising out of plaintiff's employment must be arbitrated through the American Arbitration Association (AAA). The plaintiff submitted the dispute to arbitration. AAA requested that the employer pay the the filing fee of $ 750. When the fee was not received AAA declined to administer the case. The employee sued the employer for money damages in court alleging violation of the FMLA. The court found that, under the Federal Arbitration Act, the employer's s failure to to remit the filing fee constitutes a default of the arbitration process. Because of the employer's default of the arbitration proceedings, the court concluded that it no longer had the authority to stay the court proceedings and compel arbitration. The Court observed:
The court concludes that compelling arbitration after Defendant's prevented the arbitration from going forward by failing to remit the proper fee would prejudice Plaintiff, who as a result of Defendant's failure , went forward with all of the administrative procedures required before filing a complaint in the District Court.
Comment: Employers who include arbitration clauses in employment contracts must take great care to ensure that all arbitration fees are timely paid to ensure that the matter will be heard by an arbitrator rather than through the traditionally more expense and time consuming civil jury trial process.
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