General manager sues AutoNation for race discrimination, retaliation

In a recent case, a man claimed that his termination was due to discrimination and in retaliation for reporting racist comments to his senior director. In response, his employer alleged that it terminated him due to poor performance.

Houston AN USA, LLC – doing business as AutoNation USA Houston – hired a general manager for its Houston-based car dealership. During the onboarding process, he allegedly electronically signed and accepted an arbitration agreement.

The agreement required the arbitration of all claims and disputes arising from, relating to, or connected with employment, including termination and discrimination claims.

The manager reported that he heard one of his superiors making racist comments. AutoNation placed the manager on a performance improvement plan the next month and eventually terminated him. He sued AutoNation for race discrimination and retaliation under federal and state law.

Read more: Wells Fargo employee accused of being racist cyberbully

AutoNation filed a motion to compel arbitration and to stay or to dismiss the lawsuit. Opposing this, the manager made the following arguments:

• AutoNation failed to prove that he signed the arbitration agreement
• Alternatively, the agreement was unconscionable and invalid because excessive arbitration costs would prevent him from effectively pursuing his discrimination and retaliation claims through arbitration
• The agreement made the...

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