New Mexico Supreme Court

Flemma v. Halliburton Energy Servs., Inc.

May 30, 20132013 NMSC 22

Summary

The Court held that although the arbitration agreement was formed in Texas and would be valid under Texas law, enforcing it would violate New Mexico public policy because the agreement was substantively unconscionable under New Mexico law. Applying New Mexico law, the Court concluded that Halliburton's promise to arbitrate was illusory because Halliburton could amend or revoke the arbitration program after an employee's claim accrued but before proceedings began, leaving the agreement unsupported by consideration. The Court reversed the Court of Appeals, affirmed the denial of arbitration, and remanded for further proceedings on the employment claims.