Melena v. Anheuser-Busch, Inc., 219 Ill. 2d 135

Summary

The Illinois Supreme Court held that an employer’s dispute resolution program created an enforceable agreement to arbitrate an employee’s retaliatory-discharge claim. Applying the Federal Arbitration Act and ordinary Illinois contract principles, the court concluded that the employer’s program constituted an offer and that the employee’s continued employment supplied acceptance and consideration. The court rejected a heightened knowing-and-voluntary standard for arbitration agreements and reversed the appellate court.

Holdings

1. An arbitration agreement in an employment contract is evaluated under ordinary state-law contract principles and need not satisfy a heightened knowing-and-voluntary waiver standard applicable specifically to arbitration of statutory claims.
2. The dispute-resolution program constituted an enforceable contract because Anheuser-Busch's distribution of the program materials was an offer, Melena's continued employment manifested acceptance, and continued employment supplied consideration.
3. The fact that the arbitration program was offered as a condition of employment and involved unequal bargaining power did not, by itself, make the agreement illusory, adhesive, or unconscionable.
4. Arbitration of a retaliatory-discharge claim based on the Illinois Workers' Compensation Act does not violate Illinois public policy where the arbitration agreement permits the arbitrator to award the full range of remedies available at law.
5. A party who enters into a valid agreement to arbitrate covered disputes is not entitled to resolve those disputes in court or before a jury.

Questions Presented

1. Whether Anheuser-Busch's mandatory arbitration program formed an enforceable contract under Illinois contract law.
2. Whether an arbitration agreement covering a statutory retaliatory-discharge claim must be entered knowingly and voluntarily under a heightened standard.
3. Whether compelling arbitration of the retaliatory-discharge claim violated Illinois public policy or deprived Melena of constitutional and statutory rights.
4. Whether continued employment supplied sufficient consideration for the arbitration agreement.
5. Whether the arbitration program adequately preserved Melena's ability to vindicate her statutory rights.

Disposition

reversed_and_remanded