2010 Arbitration Case Law: Texas Supreme Court

Continuing our 2010 Year-End Highlights series, we present today a summary of noteworthy arbitration opinions handed down last year by the Texas Supreme Court.

In East Texas Salt Water Disposal Co. v. Richard Leon Werline, No. 07-0135, (Tex. Mar. 12, 2010), the Texas Supreme Court held that the Texas General Arbitration Act allowed an appeal from a trial court’s order which denied confirmation of an arbitration award, vacated the award and directed that the dispute be arbitrated anew. You may read more here.

In In Re Odyssey Healthcare, No. 09-0786, (Tex. May 7, 2010), the Court compelled arbitration between an employee and her employer where the plaintiff was employed in El Paso, the parties entered into an employment agreement which contained an arbitration provision, the employer was a non-subscriber to worker’s compensation and the arbitration provision required any arbitral panel be selected from Dallas. You may read more about this case here.

In In re Merrill Lynch & Co., Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc., No. 09-0161, (Tex. June 25, 2010), the Texas Supreme Court held that a trial court abused its discretion when it refused to stay litigation that could moot arbitration of related claims in the same lawsuit. Read more here.

In In re 24R, Inc., D/B/A The Boot Jack, No. 09-1025, (Tex. Oct. 22, 2010), the Court held that an arbitration agreement signed as a condition of continued employment was not illusory and did not require a savings clause. You may find more information about this case here.

In In re Olshan Foundation Repair Company, LLC, Nos. 09-0432, 09-0433, 09-0474, 09-0703, (Tex. December 3, 2010), the Supreme Court of Texas held that the Federal Arbitration Act preempted the Texas General Arbitration Act in three related general arbitration clauses, but that a similar, more specific arbitration clause was unenforceable under the TAA. Read more about this ruling here.

In MCI Sales & Serv. v. Hinton, No. 09-0048, (Tex. December 17, 2010), the Court held that participation in a non-binding mediation rendered a debtor a “settling person” under Chapter 33 of the Texas Civil Practice and Remedies Code for purposes of determining proportionate liability. Find more about this case here.

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