On Friday, the Third Court of Appeals handed down an opinion on a petition for writ of mandamus holding that a Burnet County judge abused his discretion in failing to compel arbitration of a breach of contract claim brought by a partner and his wife against a partnership. The Court held that, under Federal Arbitration Act analysis, Texas law governs questions of whether a valid arbitration clause exists and whether the claims asserted fall within its scope, but the scope of an arbitration clause is defined by federal law. In this case, the Court found both that the clause in question was broad enough to cover the asserted claims and that the partner’s wife, a non-signatory, was also bound by the arbitration clause.
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arbitration, litigation, Third Court of Appeals, law
