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Morales v. Sun Constructors, Inc. | 541 F.3d 218 (2008)
An enforceable contract requires the parties’ mutual assent to be bound by their agreement. When one party makes an offer, the clearest way for the other party to assent is by signing the written contract. But what if a party signs a contract without understanding its terms? In Morales versus Sun Constructors, Incorporated, the Third Circuit considered whether a language barrier and an incomplete translation of a contract caused a lack of mutual assent.
Juan Morales was a Spanish-speaking resident of the United States Virgin Island of Saint Croix. Sun Constructors hired Morales as a welder in two thousand four. Sun required Morales to attend an orientation and sign an employment contract as prerequisites to his employment. Because Morales understood very limited English, the Sun employee conducting the orientation asked Jose Hodge to translate the presentation and assist Morales with the contract. Hodge was another attendee who spoke both Spanish and English. More than half of the thirteen-page employment contract addressed mandatory arbitration for any legal claims arising out of the employment. Although the arbitration provisions were covered in the presentation, Hodge didn’t explain those provisions to Morales. After the orientation concluded, Morales signed his employment contract without asking Hodge any questions about the document.
After Sun fired Morales in two thousand five, Morales filed a wrongful termination claim. Sun filed a motion to stay litigation proceedings pending arbitration. The district court denied the motion, ruling that the arbitration provision was unenforceable because Morales wasn’t informed that the provision existed and thus never assented to it. Sun appealed to the Third Circuit.
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