U.S. Supreme Court Denies Certiorari after Texas High Court Overturns $26 Million Arbitral Award

The United States Supreme Court has declined to review a Supreme Court of Texas decision overturning a $26 million arbitration award.  In Robert L. Myer, et al. v. Americo Life, Inc., et al., No. 14-774, a divided Texas Supreme Court overturned a unanimous arbitration award after the American Arbitration Association (“AAA”) disqualified one party’s selected arbitrator due to partiality. An earlier Disputing blog post stated:

According to the Texas Supreme Court, the AAA lacked the authority to disqualify the parties’ proposed arbitrators due to alleged bias.  As a result, the court found that the arbitral panel which issued the award was created in a manner that was contrary to the express terms of the parties’ agreement.  Although four justices dissented, the Supreme Court of Texas ultimately reversed the Fifth District’s decision and vacated the arbitration award.

In Myer’s petition for certiorari, he alleged the Supreme Court of Texas was not appropriately deferential to the AAA. As a result, the petitioner asked the nation’s high court to consider:

Whether a court reviewing an arbitral award under the FAA should deferentially review the arbitral body’s interpretation and application of the parties’ agreement regarding the selection and qualification of an arbitration panel, or should instead decide such matters de novo.

On May 18th, the U.S. Supreme Court denied Myer’s petition without comment.

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