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Houston Court Holds it Lacks Jurisdiction to Consider Interlocutory Appeal After Trial Court Compels Arbitration

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by Beth Graham

Monday, Sep 08, 2014


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Houston’s First District Court of Appeals has dismissed an interlocutory appeal over a trial court’s order compelling arbitration “for want of jurisdiction.”  In Bashaw v. Republic State Mortg. Co., No. 01-14-00427-CV (Tex. App.—Houston [1st Dist.], Sept. 4, 2014), Francis Bashaw entered into a branch agreement with Republic State Mortgage Company.  About five years later, Bashaw filed a lawsuit “alleging breach of fiduciary duty, fraud by nondisclosure, and defalcation” against the mortgage company in Harris County.  Almost one year later, Republic State filed a motion to dismiss the case and an alternative motion to compel arbitration.  The trial court granted Republic State’s motion to compel arbitration and stayed court proceedings for six months.

Later, the mortgage company filed an amended motion and the trial court again issued a stay in the court proceedings pending arbitration.  Bashaw responded to this order by filing a notice of appeal with Houston’s First District.  Republic State then filed a motion to dismiss the appeal for lack of jurisdiction.  According to the mortgage company, the appellate court did not have jurisdiction to consider the case because the lower court’s order was “a non-appealable interlocutory order.”  After Bashaw failed to respond to Republic State’s motion, the Court of Appeals held:

“Whether under the Texas Arbitration Act or the Federal Arbitration Act, there is no interlocutory appeal over an order granting a motion to compel arbitration. As a result, we have no jurisdiction over this appeal and must dismiss it.” Koontz v. Citibank (South Dakota), N.A., No. 01-05-01140-CV, 2007 WL 1299674, at *1 (Tex. App.—Houston [1st Dist.] May 3, 2007, no pet.) (mem. op., internal citations omitted); see In re Gulf Exploration, LLC, 289 S.W.3d 836, 839–41 (Tex. 2009) (quoting Perry Homes v. Cull, 258 S.W.3d 580, 586 n.13 (Tex. 2008)); Ortiz v. Junell Law Firm, No. 14-11-00805-CV, 2011 WL 5554620, at *1 (Tex. App.—Houston [14th Dist.] Nov. 15, 2011, pet. denied) (mem. op.).

Because Houston’s First District Court of Appeals lacked jurisdiction to consider Bashaw’s interlocutory appeal over the trial court’s order compelling arbitration, the appellate court granted Republic State’s motion to dismiss the appeal.

Photo credit: 401(K) 2013 / Foter / Creative Commons Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)

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About Beth Graham

Beth Graham earned a Master of Arts in Information Science and Learning Technologies from the University of Missouri-Columbia, and a Juris Doctor from the University of Nebraska College of Law, where she was an Eastman Memorial Law Scholar. Beth is licensed to practice law in Texas and the District of Columbia. She is also a member of the Texas Bar College and holds CIPP/US, CIPP/E, and CIPM certifications from the International Association of Privacy Professionals.

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About Disputing

Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.

To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.

About Disputing

Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.

To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.

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