Once upon a time, if there was doubt about whether an arbitration agreement was subject to the Federal Arbitration Act (FAA), a party complaining of a denial of a motion to compel arbitration had to file (1) an interlocutory appeal AND (2) a petition for writ of mandamus, then seek to consolidate the two separate
arbitration
Client’s malpractice claim must be arbitrated
By Byron Henry on
Posted in Opinions & Judgments
The Houston (14th) Court of Appeals recently held that a fee agreement that included a mandatory arbitration agreement does not violate public policy. In this case, the attorney had included an arbitration clause requiring arbitration in Harris County under the Federal Arbitration Act (FAA)according to American Arbitration Association rules. When the client brought suit against the…
Capacity to Contract is Issue for Courts, Not Arbitrators
By Byron Henry on
Posted in Opinions & Judgments
In a case of first impression the Texas Supreme Court recently held that the issue of whether a party has the mental capacity to contract is an issue for courts, not arbitrators. The Court traced the history of the so-called "separability" spawned by the United States Supreme Court’s decision in Prima Paint Corp. v. Conklin Manufacturing Co.…
Manifest Disregard of Law No Longer Grounds to Vacate Arbitration Award
By Byron Henry on
Posted in Opinions & Judgments
The United States Court of Appeals for the Fifth Circuit recently held that the United States Supreme Court’s decision in Hall Street Associates v. Mattel "restricts the grounds for vacatur" of an arbitration award and, thus, "manifest disregard for the law is no longer an indepdendent ground for vacating arbitration awards under the FAA." Consequently…
Application of TAA Necessarily Excludes FAA
By Byron Henry on
Posted in Opinions & Judgments
The Dallas Court of Appeals recently held that a provision calling for application of the Texas General Arbitration Act necessarily excludes application of the Federal Arbitration Act. First, the Court held that because the motion to abate was made under the FAA, the Court had jurisdiction to review the trial court’s order by mandamus. Next, the…