In Re Van Blarcum

19 S.W.3d 484, 2000 WL 374817
CourtCourt of Appeals of Texas
DecidedJune 29, 2000
Docket13-99-281-CV
StatusPublished
Cited by16 cases

This text of 19 S.W.3d 484 (In Re Van Blarcum) 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
In Re Van Blarcum, 19 S.W.3d 484, 2000 WL 374817 (Tex. Ct. App. 2000).

Opinions

OPINION

Justice YÁÑEZ

delivered the Opinion of the Court,

in which Justices DORSEY and HINOJOSA joined.

In this original mandamus proceeding, relators James and Clara Van Blarcum (“the Van Blarcums”) request this Court to direct the respondent, Judge Marisela Sal-daña, to vacate her order of February 2, 1999 compelling binding arbitration of disputes arising from relators’ purchase of a mobile home. We conditionally grant the writ.

In the underlying proceeding, the Van Blarcums filed suit against the mobile home manufacturer, American Homestar of Lancaster, Inc. (“Homestar”); the retailer, Nationwide Housing Systems, Inc. (“Nationwide”); and the finance company, Associates Housing Finance Services, Inc. d/b/a Ford Housing Finance Services (“Associates”),1 alleging, inter alia, violations of the Texas Deceptive Trade Practices— Consumer Protection Act (“DTPA”),2 the Texas Manufactured Housing Standards Act,3 and breach of express and implied warranties. Anticipating that defendants would move to compel arbitration, they also requested a stay of arbitration, alleging the arbitration agreement they executed in connection with purchasing the home is void and unenforceable because it violates the Magnuson-Moss Warranty Act (“the Act”).4

This proceeding presents questions of first impression in Texas: (1) whether under the Act, a warrantor is prohibited from requiring the use of binding arbitration to resolve claims arising under written warranties for consumer goods pursuant to an arbitration agreement signed at the time of purchase, and (2) whether the trial court’s decision in relying on the Federal Arbitration Act (FAA) and its general mandate favoring arbitration to give effect to the arbitration agreement compelling binding arbitration of claims arising under a written warranty was an abuse of discretion.

By two issues, the Van Blarcums contend the trial court’s decision compelling arbitration was an abuse of discretion because: (1) the Act precludes binding arbitration of consumer warranty disputes and (2) by requiring the Van Blarcums to bear the costs of arbitration, the arbitration agreement effectively deprives them of a forum for resolving disputes and is therefore unconscionable.

[488]*488Facts

On May 23, 1997, the Van Blarcums and Nationwide executed a Retail Installment Contract-Security Agreement (“the Contract”) for the purchase of a mobile home in Corpus Christi, Texas. At the same time, and as part of the Contract, they executed with Nationwide a separate Arbitration Agreement (“the Agreement”). The Agreement specified that “all claims, disputes, and controversies arising out of or relating in any way to the sale, purchase, or occupancy of the [mobile home] including ... any claims under any warranties ... [would] be resolved by means of final and binding arbitration.” The Agreement also provided it “inures to the benefit of ... the manufacturer of the Home ... as fully as if the manufacturer was a signatory to the Retail Installment Contract” and “to the benefit of ... any lender or mortgagee ... who provides financing for the purchase of the Home.” At the time of purchase, the Van Blarcums were provided with a retailer’s written warranty by Nationwide. The mobile home was also covered by a separate written warranty by Homestar, which was not provided.

Subsequent to the purchase and installation of the mobile home, the Van Blarcums notified Nationwide and Homestar of various defects in its construction and installation. Despite receiving assurances that the deficiencies would be remedied, numerous complaints remained unsatisfied nine months after the Van Blarcums first requested that warranty repairs be made. On or about July 31, 1998, the Van Blar-cums filed an action in County Court-at-Law Number Three, Nueces County, Texas, seeking, inter alia, declaratory and injunctive relief, damages, and a stay of arbitration. Nationwide and Homestar filed a motion to compel binding arbitration of the Van Blarcums’ claims, arguing that the Agreement must be given effect under both the Federal Arbitration Act (FAA)5 and the Texas Arbitration Act (TAA),6 and that their dispute with the Van Blarcums was encompassed within the terms of the Agreement. Following a hearing on February 2, 1999, Judge Salda-ña ordered the parties to proceed to arbitration in accordance with the terms of the Agreement, and stayed litigation of the suit pending resolution of the matter by the arbitrator. Thereafter, the Van Blar-cums filed a Motion for Reconsideration, which the trial court denied following a second hearing on April 15,1999.

The Real Parties’ Jurisdictional Challenges

Before addressing the Van Blar-cums’ issues, we must first consider the real parties’ jurisdictional challenges. Real parties assert this Court lacks jurisdiction over the trial court’s order compelling arbitration pursuant to the TAA because mandamus is not an appropriate remedy under the TAA. Real parties contend the motion to compel was urged pursuant to both the FAA and the TAA, and because it was granted in its entirety, mandamus is improper as to “that aspect” of the order under the TAA.

In support of their argument that mandamus relief is unavailable under the TAA, real parties cite Jack B. Anglin Co. Inc. v. Tipps, 842 S.W.2d 266, 272 (Tex. 1992). Real parties’ reliance on Anglin is misplaced. In Anglin, the supreme court, in reviewing a trial court’s order denying a motion to compel arbitration, held mandamus relief is available when a trial court improperly denies a party’s motion to compel arbitration brought under the FAA. Id. at 272-73. In dicta, the court stated that “[b]oth the Texas and Federal Acts permit a party to appeal from an interlocutory order granting or denying a request to compel arbitration.” Id. at 271-72.7 At [489]*489issue in the present case is an order by the trial court granting real parties’ motion to compel arbitration. We therefore reject real parties’ argument that Anglin is applicable to the facts before us.

We need not, however, determine, whether mandamus relief is available under the Texas Act because the Agreement specifically provides arbitration “shall be governed by the provisions of the Federal Arbitration Act and the rules of the AAA [American Arbitration Association].” The parties may designate which arbitration act they wish to control proceedings under the contract, and the courts will honor that choice. See D. Wilson Constr. Co. v. Cris Equipment Co., 988 S.W.2d 388, 392 n. 3 (Tex.App.—Corpus Christi 1999, orig. proceeding [leave requested] ). Moreover, the FAA applies to all claims arising from a transaction involving interstate commerce, 9 U.S.C.A. § 2 (2000), and it is undisputed that the sale of the mobile home “involves” commerce. We conclude the transaction “involves” commerce. See Allied-Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 272-75, 276-78, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995); L & L Kempwood Assocs., L.P. v. Omega Builders, Inc., 9 S.W.3d 125, 127 (Tex.1999).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Seney v. Rent-A-Center, Inc.
909 F. Supp. 2d 444 (D. Maryland, 2012)
Coppernoll v. Custom Housing Center, Inc.
488 F. Supp. 2d 641 (W.D. Michigan, 2007)
Pest Management, Inc. v. Langer
240 S.W.3d 149 (Court of Appeals of Arkansas, 2006)
GeoSurveys, Inc. v. State National Bank
143 S.W.3d 220 (Court of Appeals of Texas, 2004)
Borowiec v. GATEWAY 2000, INC.
808 N.E.2d 957 (Illinois Supreme Court, 2004)
Glazer's Wholesale Distributors, Inc. v. Heineken USA, Inc.
95 S.W.3d 286 (Court of Appeals of Texas, 2001)
In Re American Homestar of Lancaster, Inc.
50 S.W.3d 480 (Texas Supreme Court, 2001)
In Re David's Supermarkets, Inc.
43 S.W.3d 94 (Court of Appeals of Texas, 2001)
In Re Godt
28 S.W.3d 732 (Court of Appeals of Texas, 2000)
In Re Van Blarcum
19 S.W.3d 484 (Court of Appeals of Texas, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
19 S.W.3d 484, 2000 WL 374817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-van-blarcum-texapp-2000.