The issue of whether or not a contract can be upheld when one of the parties doesn’t understand the language the contract is written in was the subject of Juan Morales v. Sun Constructors, Inc. The final decision reflects the importance of having a professionally translated contract so all terms can be fully understood before the document is signed.
What happened:
Mr. Morales is a Spanish-speaking welder who was hired by Sun Constructors in 2004. According to Morales, Sun Constructors needed him to start work quickly. Morales attended a 2-½ hour orientation session that was conducted wholly in English, and at the end was asked to sign a 13-page employment agreement written in English. Because Morales could not read the document, Sun Constructors asked another attendee at the orientation whom Morales knew, Mr. Hodge, to help Morales complete the agreement.
Hodge was bilingual, but later testified that he only understood about 85% of what was in the agreement. Morales accepted assistance from Hodge and signed the required parts of the agreement. Later Morales would find out that Hodge did not explain the arbitration agreement provisions in the contract that covered 8 of the 13 pages of the total agreement.
Approximately a year later, Morales was terminated for what Sun Constructors perceived to be a violation of safety standards. Morales filed a wrongful termination suit in District Court against Sun Constructors and in turn, Sun Constructors filed a motion to stay the proceedings while arbitration proceedings were pending. The District Court denied Sun’s motion, and Sun Constructors filed an appeal with the US Court of Appeals for the Third Circuit.
Why did the District Court rule in favor of Morales?
The District Court denied Sun’s claim that the case must go through arbitration because they determined that Morales did not understand the full terms of the contract he signed. According to the Court, because he couldn’t read the contract, he was unable to provide mutual consent. Thus, the contract was unenforceable.
What was the determination from the Court of Appeals?
The Court of Appeals saw the situation differently. First, the court looked for any evidence of fraud within the contract and determined none existed. Next, the court evaluated whether or not mutual consent had been given or whether the language barrier prevented it.
In the end, the Court of Appeals reversed the District Court’s decision in favor of Sun Constructors. While they admitted the case “requires us to determine whether an arbitration clause is enforceable where one party is ignorant of the language in which the agreement is written,” they further found that a decision shouldn’t be based on Morales’ inability to understand the language alone.
The decision was complicated by the fact Sun Constructors asked another employee to provide translation services to Morales; but the Court also found that Morales did not ask Hodge to translate specific parts of the contract including the 8 pages of arbitration agreement terms, he did not request a professionally translated contract in Spanish, nor did he even request a copy of what he had signed.
As a result, the Court of Appeals did not remove Morales’ responsibility from the contract and decided in favor of Sun Construction with a stay pending arbitration.
The Takeaway: Professionally Translated Contract
When presented with a legal document written in a language you are not fluent in, it is extremely important to bring the document to a professional translator before you sign it. Your inability to understand some or all of the contract provisions will not remove your responsibility from contract provisions.
Contact The Perfect Translation for all of your translation needs. We provide certified professionally translated contract services for all document types associated with industries such as immigration, business, real estate, financial, academic, legal, and medical. Click here to get a quote today!
Leave a Reply