Karl Bayer's Disputing Blog » Texas Supreme Court

Texas Supreme Court Hears Interlocutory Appeal of an Arbitral Order

By Beth Graham - February 7, 2011

Last Thursday, the Texas Supreme Court heard oral argument in CMH Homes, Inc. et al. v. Perez, No. 10-0688. At issue in this case of first impression is an interlocutory appeal from an arbitration order filed pursuant to Section 51.016 of the Texas Civil Practice and Remedies Code. Section 51.016 is a recent addition to Code and became effective on September 1, 2009. Section 51.016 states: Sec. 51.016. APPEAL ARISING UNDER FEDERAL ARBITRATION ACT

Texas Supreme Court to Hear Interlocutory Appeal of an Arbitral Order

By Beth Graham - January 19, 2011

On January 11th, the Supreme Court of Texas agreed to hear CMH Homes, Inc. et al. v. Perez, No. 10-0688. In the case, a dispute between a creditor and a purchaser of a mobile home arose. After both parties agreed their dispute was subject to arbitration under the Federal Arbitration Act, a trial court signed an order compelling arbitration and appointing an arbitrator over CMH Homes’ objections that such an appointment was premature. CMH Ho

Houston Appeals Court Holds U.S. Courts Lack Authority Under Arbitration Agreement

By Beth Graham - January 6, 2011

In an interesting case currently on appeal to the Supreme Court of Texas, the Houston [1st] Court of Appeals vacated a trial court’s order appointing a three-person arbitration panel because the court was not the authority contemplated in the parties’ arbitration agreement. 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 comput

2010 Arbitration Case Law: Texas Supreme Court

By Beth Graham - January 3, 2011

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 direct

Supreme Court of Texas Holds Non-Binding Mediation Renders a Debtor a “Settling Person”

By Beth Graham - December 22, 2010

The Supreme Court of Texas has 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. In MCI Sales & Serv. v. Hinton, No. 09-0048, (Tex. December 17, 2010), the owner and operator of a motorcoach rental service, Central Texas, filed for Chapter 11 bankruptcy protection after an accident in which

Supreme Court of Texas Rules on Four FAA Preemption Cases

By Beth Graham - December 7, 2010

The Supreme Court of Texas has held that the Federal Arbitration Act (FAA) preempted the Texas General Arbitration Act (TAA) in three related general arbitration clauses, but that a similar, more specific clause was unenforceable under the TAA. In In re Olshan Foundation Repair Company, LLC, Nos. 09-0432, 09-0433, 09-0474, 09-0703, (Tex. December 3, 2010), Olshan was sued by four different customers (Waggoner, Kilpatrick, Tisdale and Tingdale) wh

Cull and Cull v. Perry Homes – the Saga Continues

By Beth Graham - December 2, 2010

Last week, a second round of mediation was ordered in Cull and Cull v. Perry Homes. The ten-year-old dispute has already been the subject of an arbitration, a trial and a court-ordered mediation. Briefly, here are the facts of the case: In 1996, the Culls purchased a house from builder Perry Homes. After problems with the foundation and construction caused the appraised value of their house to plummet from more than $233,000 to $41,000 in only a

Texas Supreme Court Holds Arbitration Agreement Does Not Require Savings Clause

By Beth Graham - October 25, 2010

The Texas Supreme Court has held that an arbitration agreement signed as a condition of continued employment was not illusory and did not require a savings clause. In In re 24R, Inc., D/B/A The Boot Jack, No. 09-1025 (Tex. Oct. 22, 2010), Frances Cabrera was an at-will employee for 24R, Inc. d/b/a “The Boot Jack” for approximately 15 years. In 2003, 2004 and 2005 she signed an arbitration agreement as a condition of continued employment. In 2007,

Commentary on In re Merrill Lynch & Co | Texas Supreme Court Case

By Victoria VanBuren - July 22, 2010

By William G. Whitehill In In re Merrill Lynch & Co., Inc. and Merrill, Lynch, Pierce, Fenner; Smith Incorporated, __ S.W.3d __ (June 25, 2010 slip op.), the Texas Supreme Court conditionally granted mandamus relief in favor of Merrill Lynch, staying litigation against it by a non-signatory company when that company’s sister company that was a signatory to an arbitration agreement was also asserting identical claims that were potentiall

Texas Supreme Court Rules that Court Abused Its Discretion By Refusing to Stay Litigation

By Victoria VanBuren - July 7, 2010

The Texas Supreme Court held that a court abused its discretion when it refused to stay litigation that could moot arbitration of related claims in the same lawsuit. In re Merrill Lynch & Co., Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc., No. 09-0161 (Tex. June 25, 2010) is similar to In re Merrill Lynch Trust Company FSB, 235 S.W.3d 185 (Tex. 2007). There, the court held that there are “many circumstances in which litigation must