Dano MAGO, Plaintiff-Appellee, v. SHEARSON LEHMAN HUTTON INC.; Joseph Ulloa, Defendants-Appellants
Opinion
Opinion
Wallace, J.
Shearson Lehman Hutton Inc. (Shearson) appeals from the district court’s order denying its motion to stay the proceedings and to compel arbitration. The district court invoked jurisdiction under 28 U.S.C. § 1343 (a)(4) and 42 U.S.C. § 2000e-5(f)(3). We have jurisdiction over this timely appeal pursuant to 9 U.S.C. § 16 . We reverse and remand.
I
Mago was an employee of E.F. Hutton at the time it was acquired by Shearson. After the acquisition, Mago completed and signed an employment application for Shearson. The application contained an agreement requiring Mago to arbitrate any controversy concerning compensation, employment or termination of employment with Shearson. Mago later commenced this Title VII action against Shearson, alleging sexual harassment and gender discrimination. 42 U.S.C. § 2000e-2 (1982).
Shearson moved to stay the proceedings and compel arbitration under the terms of the employment agreement. The district court denied Shearson’s motion, holding that the arbitration agreement was unenforceable. We review de novo the district court’s order. C.H.I. Inc. v. Marcus Brothers Textile, Inc., 930 F.2d 762, 763 (9th Cir.1991) (C.H.I.).