Jury Trial on Existence of Agreement to Arbitrate

Respondent Yum!  Brands, Inc. presented evidence that Claimant Azania Abebe allegedly agreed to arbitrate employment disputes via electronic signature.

Claimant provided evidence that Respondent utilized “impersonation” software, which granted approximately 100 specific users the ability to impersonate others and was regularly used by Yum.

Claimant also alleged that Yum had a “backdoor URL” which could serve as another means for someone to impersonate him and electronically sign the agreement to arbitrate.

Additionally, Claimant claimed there were potential issues with data migration that could have affected the accuracy of Yum!’s records regarding the Arbitration Agreement.

The Fifth Circuit found there was a genuine issue of material fact concerning whether Claimant electronically signed the Arbitration Agreement.  According to the Federal Arbitration Act, “[i]f the making of the arbitration agreement or the failure, neglect or refusal to perform the same be in issue, the court shall proceed summarily to the trial thereof” (9 U.S.C. §4).  Consequently, the court ordered limited discovery concerning the agreement to arbitrate, followed by a jury trial to determine the validity of the Arbitration Agreement.

Azania Abebe v. Yum!  Brands, Inc. and Yum Restaurant Services Group, LLC, Civil Action 4:23-cv-682 (August 21, 2024)