Rito Prospero v. Walmart Associates, Inc.

CourtDistrict Court, W.D. Texas
DecidedMarch 9, 2026
Docket3:25-cv-00001
StatusUnknown

This text of Rito Prospero v. Walmart Associates, Inc. (Rito Prospero v. Walmart Associates, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rito Prospero v. Walmart Associates, Inc., (W.D. Tex. 2026).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS EL PASO DIVISION

RITO PROSPERO, § § Plaintiff, § v. § EP-25-CV-00001-KC § WALMART ASSOCIATES, INC., § § Defendant. §

MEMORANDUM OPINION AND ORDER

Presently before the Court is Defendant Walmart Associates, Inc.’s “Brief in Support of Demand for Arbitration” (ECF No. 10), which the Court construes as a motion to compel arbitration. Therein, pursuant to the Federal Arbitration Act (FAA), 9 U.S.C. § 1 et seq., Walmart moves the Court to compel Plaintiff Rito Prospero to submit his claims to arbitration and stay the case pending arbitration. The Honorable District Judge Kathleen Cardone referred the motion to the undersigned Magistrate Judge. For the reasons that follow, the motion is GRANTED. I. BACKGROUND Prospero was employed by Walmart at a Sam’s Club store located in El Paso, Texas, from June 14, 2023, to November 21, 2024.1 On November 14, 2024, Prospero initiated this lawsuit in state court, asserting claims for negligence and non-subscriber negligence based on an on-the-job injury that he sustained at the store on March 25, 2024.2

1 Wright Aff. at ¶ 18, ECF No. 10; Stewart Aff. at ¶¶ 4, 10, ECF No. 21-1; Pl.’s Original Pet. at 1, ECF No. 1.

2 Pl.’s Original Pet. at 1; Joint Rule 26(f) Conf. Report at 3, ECF No. 7. Defendants removed the case to federal court in January 2025. Headquartered in Bentonville, Arkansas, Walmart operates stores across the United States, serving people from inside and outside of Texas and using interstate mail and travel systems.3 In Texas, Walmart is a non-subscriber to workers’ compensation insurance; instead, its Texas Injury Care Benefit Plan provides coverage for, inter alia, payments for medical care of Walmart’s Texas associates who sustain injuries in the course and scope of their employment.4

All Walmart associates working in Texas are required to complete certain computer- based learning (CBL) modules.5 The CBL modules are paperless and are accessed through computers at a Walmart location, such as the Sam’s Club store where Prospero worked, by the associate entering his or her confidential associate identification number and password.6 Whereas Walmart’s Learning Management System, a computerized system, assigns the identification number to the associate when he or she is first employed, the associate creates the password.7 Associates are directed not to share their password information.8 The CBL modules operate on the Learning Management System, and all completed modules are stored and recorded: Once a module is completed by an associate, an electronic record is retained which

identifies the date the module was completed, the completion status, and the score, if the module requires a test.9

3 Wright Aff. at ¶ 4.

4 Id. at ¶ 5; Def.’s Mot. Ex. B, at 41, ECF No. 10. Citations to Walmart’s Exhibits A, B, and C that Walmart submitted with its motion refer to the page numbers imprinted on the exhibits by the Court’s Case Management and Electronic Case Filing system.

5 Wright Aff. at ¶ 7.

6 Id.; Stewart Aff. at ¶ 4,

7 Wright Aff. at ¶¶ 7–9; Stewart Aff. at ¶¶ 5, 9.

8 Wright Aff. at ¶ 8.

9 Id. at ¶ 10; Stweart Aff. at ¶¶ 5–6. One of the CBL modules is entitled “Texas Injury Care Benefit Plan.”10 This module trains associates on the benefits under the Texas Injury Care Benefit Plan, the associates’ responsibilities for reporting an injury, the process to receive benefits, the process for appeal if benefits are denied—and mandatory arbitration for work-related injuries.11 The Texas Injury Care Benefit Plan module consists of 22 screens divided into multiple sections and includes

quizzes.12 One of the sections is entitled “Summary Plan Description”: a screen in this section states, “[y]ou can access the Summary Plan Description by selecting this button” and instructs the associate to “[s]elect the link to the plan and review it before continuing to the next page”; the selection button is labeled “Summary Plan Description.”13 The last screen of the module is entitled “Completing the Course”: on this screen, the associate is asked to click an “I understand” button located below a list of acknowledgements, including that “You have read and understand the Arbitration Acknowledgment and Policy.”14 The Texas Injury Care Benefit Plan CBL module is not recorded as “completed” unless the associate clicks the “I understand” button.15 Walmart submitted a copy of the Summary Plan Description (SPD). The SPD’s cover page states “Walmart Inc. Texas Injury Care Benefit Plan” and “Summary Plan Description.”16

Appendix A of the SPD, which is entitled, “Arbitration of Certain Injury-Related Disputes,”

10 Wright Aff. at ¶ 12.

11 Id.

12 Id.

13 Def.’s Mot. Ex. A, at 34, ECF No. 10.

14 Id. at 35.

15 Wright Aff. at ¶ 17.

16 Def.’s Mot. Ex. B, at 37; see also Wright Aff. at ¶ 15. contains Walmart’s arbitration policy.17 The policy states that “[t]he Employer hereby adopts a mandatory company policy requiring that certain claims or disputes must be submitted to final and binding arbitration under this arbitration requirement (‘Policy’)” and that “[n]either an Associate nor an Employer shall be entitled to a bench or jury trial on any claim covered by this Policy.”18 The policy defines “Covered Claims” as “any legal or equitable claim by or with

respect to an Associate for any form of physical or psychological damage, harm or death which relates to an accident, . . . []including . . . claims of negligence or gross negligence.”19 The policy further states that “[t]his binding arbitration will be the sole and exclusive remedy for resolving any such claim or dispute” and that it “is equally binding upon, and applies to any such claims that may be brought by[] an Employer and each Associate.”20 According to Walmart, Prospero completed the Texas Injury Care Benefit Plan CBL module on June 15, 2023, and he completed a refresher course on June 14, 2024.21 Walmart filed the instant motion on April 29, 2025.22 Prospero filed a response to the motion on May 21, 2025,23 and Walmart followed by filing a reply on May 30, 2025.24 After the

motion was referred to this Court in December 2025, the Court issued an interim order seeking

17 Def.’s Mot. Ex. B, at 91.

18 Id. at 91–92.

19 Id. at 91.

20 Id. at 96.

21 Wright Aff. at ¶ 19.

22 Def.’s Br. in Supp. of Demand for Arb. [hereinafter Def.’s Mot.], ECF No. 10.

23 Pl.’s Resp. in Opp’n to Def.’s Mot. [hereinafter Pl.’s Resp.], ECF No. 12-1.

24 Def.’s Reply in Supp. of Demand for Arb. [hereinafter Def.’s Reply], ECF No. 15. further briefs and affidavits from the parties.25 In response to that order, Walmart and Prospero each filed a supplemental brief, respectively, on January 28, 2026, and February 5, 2026.26 II. DISCUSSION Relying on the arbitration policy, Walmart argues that Prospero and Walmart are parties to an arbitration agreement and moves the Court to compel Prospero to submit his negligence

claims to arbitration. Def.’s Mot. at 1, 8–9. Prospero opposes the motion; he argues that there is no evidence that he agreed to arbitrate his claims, and in any event, any arbitration agreement is procedurally unconscionable and therefore invalid and unenforceable. Pl.’s Resp. at 2, 4, 6, 9; Pl.’s Suppl. Br. at 2. The FAA27 provides: A written provision in . . . a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract . . . shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.

9 U.S.C.

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