HOUSTON – An arbitrator and not a court of law will decide the future of Stefani Bambace’s sexual harassment claim, thanks to recent ruling made by the 14th Court of Appeals.
The ruling stems from a 2018 lawsuit Bambace brought against Berry Y&V Fabricators.
Court records show Berry Company hired Bambace as a private tutor for the children of its president, Lawrence Berry. When she was hired, she signed an arbitration agreement.
Bambace asserts she worked in a sexually charged and hostile work environment and was repeatedly subjected to sexual harassment. After seven months, she reported her claims to Berry Company’s human resources department.
Three weeks later, Berry Company terminated her employment.
Court records show the trial court originally granted the Berry Company’s motion to compel arbitration. However, a different judge, following a motion for rehearing, denied the motion.
On March 8, 2019, the trial court ruled that the arbitration agreement requires Bambace to litigate her sexual harassment claim in confidential and binding arbitration and therefore violates Texas public policy.
On June 16, the 14th Court reversed the order and remanded the case with instructions that the proceeding be stayed while the parties are compelled to arbitration.
“Because the parties clearly and unmistakably delegated to the arbitrator all questions concerning whether Bambace’s claims are subject to arbitration, including enforceability questions, Bambace’s public policy argument must be decided by the arbitrator,” the opinion states. “The trial court abused its discretion by removing that issue from the arbitrator and denying Berry Company’s plea in abatement and motion to compel arbitration.”