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Court Decisions about Arbitration
San Antonio Appeals Court Holds Signatory May Not Waive Non-Signatory’s Right to Arbitrate
By Beth Graham - April 14, 2011
The San Antonio Court of Appeals has held that a signatory’s waiver of its right to arbitrate could not be imputed to its non-signatory agent. In Garcia v. Huerta, No. 04-10-00688-CV (Tex. App. – San Antonio, March 30, 2011) Albert Garcia appealed a trial court’s order which denied arbitration against Edward and Margarita Huerta. The Huertas obtained a home equity loan from Wells Fargo and entered into an arbitration agreement with Wells Fargo as
N.D. of Texas Holds Signatory May Enjoin Another Signatory From Pursuing Litigation Against Non-Signatory
By Beth Graham - April 8, 2011
The Northern District of Texas has held that a signatory to an arbitration agreement may enjoin another signatory from pursuing litigation against a non-signatory. In Salad Bowl Franchise Corp. v. Crane, No. 3:11-CV-0034-D (N.D. Tex., March 17, 2011), Salad Bowl, a Texas corporation with its principal offices in Dallas, entered into a franchise agreement which contained an arbitration clause with New Mexico residents Mason and Henry Crane (“the C
Supreme Court of Texas Holds TAA Applies Where No Evidence to the Contrary Demonstrated
By Beth Graham - April 5, 2011
The Supreme Court of Texas has held in a per curiam opinion that the Texas General Arbitration Act (TAA) applied to a dispute where a party invoked the TAA in a hearing on a motion to compel arbitration and no evidence was offered to show the TAA did not apply despite that the motion itself failed to invoke the act. In Ellis v. Schlimmer, No. 10-0243 (Tex., April 1, 2011), Ron and Tana Schlimmer purchased a home in Corpus Christi, TX from Veronic
Corpus Christi COA Dismisses Interlocutory Appeal from an Order Compelling Arbitration
By Beth Graham - March 29, 2011
The Corpus Christi Court of Appeals has held it lacked jurisdiction to hear an interlocutory appeal from a trial court’s order which compelled arbitration and also refused to grant a writ of mandamus because a party failed to show an appellate remedy would be inadequate. In Circle Zebra Fabricators, Ltd. v. Americas Welding Corp., No. 13-10-00591-CV, (Tex. App. – Corpus Christi, March 17, 2011), Circle Zebra by and through Circle Zebra Management
N.D. of Texas Lifts TRO Enjoining FINRA Arbitrations
By Beth Graham - March 28, 2011
On February 18, 2011, The Northern District of Texas issued a Temporary Restraining Order (TRO) enjoining multiple arbitration proceedings before the Financial Industry Regulatory Authority (FINRA) in Billitteri v. Securities America Inc., et al., No. 3:09-CV-01568-F and related cases, (N.D. Tex., February 18, 2011). In the case, a group of representative plaintiffs in a class action lawsuit jointly filed a Motion for Preliminary Approval of a pa
Dallas COA Holds Arbitration Clause Illusory and Unenforceable
By Beth Graham - March 25, 2011
The Dallas Court of Appeals has held that certain language contained in an employee handbook rendered the contained and referenced arbitration and mediation agreements illusory and unenforceable. In Weekley Homes, L.P. v. Rao, No. 05-10-00570 (Tex. App. – Dallas, March 22, 2011), Len Rao, former Division President of David Weekley Homes, filed a lawsuit against the company which alleged breach of contract, conversion, breach of fiduciary duty, li
S.D. Texas Declines to Enjoin Pending Foreign Arbitration Proceeding
By Beth Graham - March 23, 2011
The Southern District of Texas has denied an ex parte emergency application for a temporary restraining order which sought to enjoin a pending foreign arbitration proceeding because the party seeking the order failed to meet its burden under Rule 65 of the Federal Rules of Civil Procedure. In S&T Oil Equipment and Machinery, LTD v. Juridica Investments Ltd., No. H-11-0542 (S.D. Tex., March 10, 2011), S&T Oil entered into an investment con
Dallas COA Refuses to Seal Arbitration Award Despite Parties’ Agreement
By Beth Graham - March 21, 2011
The Dallas Court of Appeals has held that a trial court properly rejected a party’s motion to seal an arbitration award as part of an enforcement petition despite the existence of a confidentiality agreement between the parties. In McAfee v. Weiss, 05-09-01102-CV (Tex. App. – Dallas, March 16, 2011), Kevin M. Weiss filed a petition to confirm an arbitration award against McAfee in state court. Weiss, a former president at McAfee, Inc. was t
Beaumont COA Holds Section 9 of the FAA Established One Year SOL
By Beth Graham - March 18, 2011
The Beaumont Court of Appeals has held in a memorandum opinion that Section 9 of the Federal Arbitration Act (“FAA”) established a mandatory one year statute of limitations for the enforcement of arbitral awards. In Arthur v. FIA Card Services, N.A., No. 09-09-00520-CV, (Tex. App. – Beaumont, March 10, 2011), Sally LaRue Arthur (“LaRue”) appealed a judgment which confirmed a National Arbitration Forum (“NAF”) award because she was served with a m
Texas Supreme Court Denies Cert. Where Agreement Required Arbitrator to be Saudi National or Muslim Foreigner
By Beth Graham - March 16, 2011
The Supreme Court of Texas has denied a party’s petition for a writ of mandamus after the Houston [1st] Court of Appeals held U.S. courts lacked authority to appoint an arbitration panel. In In re Aramco Services Co., No. 01-09-00624-CV, (Tex. App. – Houston [1st], March 19, 2010), DynCorp International, LLC and Aramco entered into a contract for a computer system which was to be manufactured in the U.S. and installed at Aramco’s offices in Saudi
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