Thursday, April 22, 2004

Well, the Second Circuit has started issuing full opinions again. Yesterday, the Court rendered a decision in Gold v. Deutsche Aktiengesellschaft. In that case, Gold, a homosexual man, broght an action in which he alleged sexual harassment against his employer. Gold, however, had signed a Form U-2, which mandated arbitration of all claims. Gold asserted that such claims were not subject to arbitration, citing cases from the Ninth Circuit and Massachusetts. The District Court sent the case to arbitration, where, after 30 sessions, the arbitration panel found for the defendants and dismissed the claims. Gold went back to Court, continuing to assert that his claims should be heard in Court. The District Court disagreed and dismissed his action. The Second Circuit affirmed. First, it held that sexual harassment claims were subject to arbitration based on prior precedent in the Circuit. It did not find special circumstances warranting invalidating the arbitraion clause. Gold had not read the Form U-4 carefully nor did he question it. That was his responsibility. The case can be found at the Second Circuit website. It was decided on April 21, 2004.

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