Daniel Blumberg and Daniel Blumberg and Associates v. David Bergh

CourtCourt of Appeals of Texas
DecidedMay 5, 2005
Docket02-04-00138-CV
StatusPublished

This text of Daniel Blumberg and Daniel Blumberg and Associates v. David Bergh (Daniel Blumberg and Daniel Blumberg and Associates v. David Bergh) 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
Daniel Blumberg and Daniel Blumberg and Associates v. David Bergh, (Tex. Ct. App. 2005).

Opinion

Blumberg v. Bergh

COURT OF APPEALS

SECOND DISTRICT OF TEXAS

FORT WORTH

NO. 2-04-138-CV

DANIEL BLUMBERG AND DANIEL APPELLANTS

BLUMBERG AND ASSOCIATES

V.

DAVID BERGH APPELLEE

------------

FROM THE 17TH DISTRICT COURT OF TARRANT COUNTY

MEMORANDUM OPINION (footnote: 1)

Introduction

Daniel Blumberg and Daniel Blumberg and Associates (collectively, Blumberg) appeal the trial court’s judgment confirming an arbitration award for David Bergh.  In eleven issues, Blumberg complains that the trial court erred by confirming the arbitration award without giving him sufficient notice and without conducting a trial, thereby violating his federal and state constitutional rights; striking Blumberg’s special exceptions and his motion to transfer the case to a different court; refusing to allow Blumberg to conduct discovery; denying Blumberg’s motion for continuance; awarding Bergh prejudgment interest on the amount of the arbitration award; and denying or refusing to consider Blumberg’s two motions for new trial.  We will modify the trial court’s judgment in part and affirm it as modified.

Background Facts and Procedural History

On April 2, 2002, Blumberg, an attorney, and Bergh, his former client, arbitrated a dispute regarding attorney’s fees.  The arbitration panel awarded Bergh $12,342.56 and ordered Blumberg to pay that amount to Bergh within thirty days.  Blumberg did not pay the arbitration award; therefore, in September 2003, Bergh petitioned the trial court to confirm the award. In response, Blumberg filed a general denial and specially excepted to Bergh’s pleadings.  Blumberg also raised the following affirmative defenses:  the arbitration award was unenforceable because Blumberg had not agreed to arbitrate the dispute; the award was invalid because it was rendered as a result of the arbitrators’ mistake concerning their authority to arbitrate; Blumberg’s participation in the arbitration proceeding was a result of fraud, duress, mistake, or misconduct; the arbitration award was unenforceable because the arbitration panel had misapplied the law; Bergh was estopped from arbitrating because he and Blumberg had contracted to mediate their dispute and had previously settled their dispute in mediation; and Bergh’s petition to confirm the arbitration award was barred by laches, waiver, and the nonoccurrence of one or more conditions precedent in the arbitration award.

Blumberg also served discovery on Bergh and moved to transfer  the case to the 342nd District Court in Tarrant County for consolidation with a matter pending there that had given rise to the fee dispute.  Bergh, in turn, moved for a protective order regarding the propounded discovery, moved to strike Blumberg’s motion to transfer and consolidate, and sought the imposition of sanctions against Blumberg based on procedural rules 13 and 215(2) and chapter 10 of the civil practice and remedies code. (footnote: 2)  

The trial court set these matters for hearing on December 11, 2003.  On December 11, Blumberg moved to continue part of the hearing to a later date due to the absence of his law partner, Peter F. Bagley, whom Blumberg planned to call as a witness.  The court ruled, however, that it would “conclude the matter today” after Bergh agreed to stipulate to the contents of Bagley’s affidavit, which was attached to the motion for continuance.

After allowing Blumberg to present evidence (footnote: 3) at the December 11 hearing and considering arguments from both parties, the trial court overruled Blumberg’s special exceptions, granted Bergh’s request for a protective order, struck Blumberg’s motion to transfer and consolidate, denied Bergh’s motion for sanctions, and rendered judgment confirming the arbitration award.  This appeal followed.

Propriety of “Summary Proceeding”

In his first issue, Blumberg contends that the trial court committed reversible error by confirming the arbitration award after conducting only a “summary proceeding” rather than holding a trial on the merits, or at least requiring Bergh to move for summary judgment on the arbitration award.  In his second issue, Blumberg asserts that the trial court improperly decided the merits of Bergh’s petition at the December 11 hearing because Blumberg had not been afforded the 45 and 75 days’ notice of the hearing required by the Texas Rules of Civil Procedure and the Tarrant County Local Rules, respectively. (footnote: 4)

Bergh sought confirmation of the arbitration award under the Texas General Arbitration Act (the Act). (footnote: 5)  After an arbitration award has been entered, the Act allows a party to apply for a court order confirming the award. (footnote: 6) The Act does not require the application to be in any particular format, although it does give the trial court the discretion to require certain basic contents in the application. (footnote: 7)

The Act also provides that the hearing on the application is subject to the same notice and hearing requirements that are applicable to a motion filed in a pending civil action in a district court. (footnote: 8) This provision is similar to section 6 of

the Federal Arbitration Act (footnote: 9) and has the same policy—to expedite judicial treatment of matters pertaining to arbitration. (footnote: 10) Thus, the procedure for deciding an application to confirm an arbitration award is the same as for any other civil motion:  three days’ notice and an evidentiary hearing if necessary. (footnote: 11) The Act does not place any additional notice or hearing requirements, such as those governing trials or motions for summary judgment, on award confirmation proceedings. (footnote: 12)

An arbitration award has the same effect as the judgment of a court of last resort; therefore, “[a]ll reasonable presumptions are indulged in favor of the award, and none against it.” (footnote: 13)  Accordingly, once an application to confirm an

arbitration award is filed, unless limited grounds are offered for vacating, modifying, or correcting it, the trial court must confirm the award. (footnote: 14)  The fact that the type of relief granted by the arbitrators could not or would not be granted by a court of law or equity is not a ground for vacating or refusing to confirm the award. (footnote: 15)

The party asserting grounds for vacating, modifying, or correcting the arbitration award has the burden of proving them. (footnote: 16)  Moreover, except in cases where it is alleged that the award was obtained by corruption, fraud, or other undue means, the statutory grounds for vacating, modifying, or correcting the award must be raised by the 90th day after delivery of the award to the party asserting such grounds. (footnote: 17) If corruption, fraud, or other undue means are alleged, the party asserting those grounds must do so by the 90th day after the grounds were or should have been known to him. (footnote: 18)

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