Baker Hughes Oilfield Operations, Inc. v. Hennig Production Co., Inc.

164 S.W.3d 438, 2005 Tex. App. LEXIS 2304, 2005 WL 1331189
CourtCourt of Appeals of Texas
DecidedMarch 24, 2005
Docket14-04-00009-CV
StatusPublished
Cited by68 cases

This text of 164 S.W.3d 438 (Baker Hughes Oilfield Operations, Inc. v. Hennig Production Co., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker Hughes Oilfield Operations, Inc. v. Hennig Production Co., Inc., 164 S.W.3d 438, 2005 Tex. App. LEXIS 2304, 2005 WL 1331189 (Tex. Ct. App. 2005).

Opinion

OPINION

EVA M. GUZMAN, Justice.

In this arbitration case, Baker Hughes Oilfield Operations appeals from a summary judgment in favor of Hennig Production Company confirming an arbitration award and from the trial court’s order denying Baker Hughes’ request to vacate or modify the award. Baker Hughes argues the trial court erred in (1) granting summary judgment because the arbitrators allegedly exceeded their powers; (2) modifying the arbitration award; and (3) failing to issue findings of fact. We hold the arbitrators did not exceed them powers and the trial court did not otherwise err, accordingly we affirm the trial court’s judgment.

I. FACTS AND PROCEDURAL BACKGROUND

Hennig contacted Baker Hughes about perforating a formation in a well Hennig was operating. On July 30, 2001, Baker Hughes’ employees came to the well site and fired the perforation charges; however, the perforating tool — the “gamma gun” — collapsed in the well and Baker Hughes’ employees were unable to remove it. They rigged down the service unit, leaving the tool in the well. Hennig subsequently performed “fishing” operations, attempting to retrieve the tool.

On September 12, 2001, Hennig signed Baker Hughes’ field service order for “lost tools,” and on September 28, Baker Hughes invoiced Hennig for the tool remaining in the well. Shortly thereafter, Hennig retrieved a part of the tool from the well and then refused to pay Baker Hughes’ invoice, claiming the recovered part indicated the tool had collapsed because it did not conform to Hennig’s pressure specifications.

Baker Hughes filed a demand for arbitration in accordance with the arbitration provision contained in its field service order, seeking damages from Hennig for lost tools, interest, and attorneys’ fees. Hen-nig counterclaimed for damages to the well resulting from the collapse of the perforating tool. The arbitration lasted four days, during which time the panel received testimony from twelve witnesses, admitted twenty-nine exhibits from Baker Hughes, and fifty-eight exhibits from Hennig. The parties filed numerous arbitration pleadings, submitted post-hearing briefs and presented oral arguments. The panel found in favor of Hennig, awarding $351,090.43 in damages.

Hennig filed a motion to confirm and enforce the arbitration award in the trial court, but subsequently filed a motion for summary judgment seeking confirmation. Baker Hughes filed a motion to vacate the award or, alternatively, to modify it. The trial court considered both motions and signed a final summary judgment in favor of Hennig. This appeal ensued.

II. ANALYSIS

In its first appellate issue, Baker Hughes contends the arbitrators exceeded their powers and therefore, the trial court erred in confirming the arbitration award and in denying its motion to vacate. Baker Hughes asserts in its second issue that the trial court improperly modified the award by including a date for the accrual of prejudgment interest and, in its third issue, argues the trial court erred in failing to file findings of fact. We address Baker Hughes’ third issue first because, should we sustain the issue, we must remand the case to the trial court.

*442 A. Findings of Fact

Baker Hughes requests we abate this appeal and remand to the trial court for entry of findings of fact regarding the court’s order denying Baker Hughes’ motion to vacate or modify the arbitration award. Although the trial court rendered a summary judgment, Baker Hughes argues that findings of fact are required because the trial court signed a separate order denying its motion to vacate and the hearing on that motion was not a summary proceeding.

It is well settled that findings of fact are not proper in a summary judgment context. See, e.g., IKB Indus. (Nigeria) Ltd. v. Pro-Line Corp., 938 S.W.2d 440, 441-42 (Tex.1997); Golden v. McNeal, 78 S.W.3d 488, 495 (Tex.App.-Houston [14th Dist.] 2002, pet. denied). There cannot be a genuine issue as to any material fact for summary judgment to be properly rendered and the legal grounds are limited to those stated in the summary judgment motion and any response. IKB Indus., 938 S.W.2d at 441. Hence, there are no facts to find. Id. Because this case was disposed of through summary judgment, we conclude that findings of fact are not warranted under the circumstances of this case. Moreover, many of Baker Hughes’ proposed findings and conclusions were contrary to the trial court’s judgment and thus, were properly denied. See In re Marriage of Grossnickle, 115 S.W.3d 238, 254 (Tex.App.-Texarkana 2003, no pet.). Accordingly, we reject Baker Hughes’ request for a remand to the trial court to issue findings of fact and overrule its third issue.

B. Arbitration Proceedings

Baker Hughes also argues the arbitrators exceeded their powers by deciding an issue that was not submitted to them and, further, they committed a “gross mistake” that requires vacating the arbitration award. Both parties agree the suit is governed by the Texas Arbitration Act (“TAA”), 1 and we examine Baker Hughes’ arguments with reference to that statute when necessary.

1. Standard of review

Texas substantive law favors arbitration. Crossmark, Inc. v. Hazar, 124 S.W.3d 422, 429 (Tex.App.-Dallas 2004, pet. denied). An arbitration award has the same effect as the judgment of a court of last resort, and a court reviewing the award may not substitute its judgment for that of the arbitrators merely because it would have reached a different result. Id. Nor may a reviewing court set aside an arbitration award for a mere mistake of fact or law. Id.; Anzilotti v. Gene D. Liggin, Inc., 899 S.W.2d 264, 266 (Tex. App.-Houston [14th Dist.] 1995, no writ). A reviewing court lacks jurisdiction to review complaints that do not assert statutory, common law, or public policy grounds to vacate or modify the award. Crossmark, 124 S.W.3d at 429 (citing CVN Group, Inc. v. Delgado, 95 S.W.3d 234, 239 (Tex.2002)).

Under the TAA, upon application by a party, the trial court “shall” confirm an arbitration award unless the party opposing confirmation presents grounds for vacating, modifying, or correcting the award. Tex. Civ. PRAC. & Rem.Code Ann. § 171.087. An application under the Act is heard in the same manner and on the same notice as a motion in a civil case. Id. § 171.093. Generally, a summary judgment motion is not required for the trial court to confirm, modify, or vacate an arbitration award, but if a party chooses to pursue confirmation of the award through sum *443

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Bluebook (online)
164 S.W.3d 438, 2005 Tex. App. LEXIS 2304, 2005 WL 1331189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-hughes-oilfield-operations-inc-v-hennig-production-co-inc-texapp-2005.