In the Interest of S.P. and H.P., Children v. .

Court of Appeals of Texas·Decided August 9, 2023·No. 04-22-00848-CV·Published

Opinion

Fourth Court of Appeals San Antonio, Texas MEMORANDUM OPINION

No. 04-22-00848-CV

IN THE INTEREST OF S.P. AND H.P., Children

From the 408th Judicial District Court, Bexar County, Texas Trial Court No. 2013-CI-00618 Honorable Angelica Jimenez, Judge Presiding

Opinion by: Lori I. Valenzuela, Justice

Sitting: Beth Watkins, Justice Lori I. Valenzuela, Justice Sandee Bryan Marion, Chief Justice (Ret.) 1

Delivered and Filed: August 9, 2023

REVERSED AND REMANDED WITH INSTRUCTIONS

The issue in this interlocutory appeal is whether the trial court abused its discretion in

denying appellant’s motion to compel arbitration. Concluding arbitration is warranted here, we

reverse and remand the cause to the trial court with instructions to render an order compelling

arbitration.

BACKGROUND

S.P. (born 2010) and H.P. (born 2012) are the minor children of appellant-father M.P. and

appellee-mother J.J. 2 On April 10, 2013, the trial court entered a final decree of divorce terminating

1 The Honorable Sandee Bryan Marion, Chief Justice (Retired) of the Fourth Court of Appeals, sitting by assignment of the Chief Justice of the Texas Supreme Court. See TEX. GOV’T CODE §§ 74.003, 75.002, 75.003. 2 To protect the privacy of the minor children, we use initials to refer to the children and their parents. TEX. FAM. CODE § 109.002(d); TEX. R. APP. P. 9.8(b)(2). 04-22-00848-CV

M.P. and J.J.’s marriage. The final decree contained alternative dispute resolution language,

including in relevant part:

It is agreed that before setting any hearing or initiating discovery in a suit for modification of the terms and conditions of conservatorship, possession, or support of the children, except in an emergency, the parties shall mediate the controversy in good faith. This requirement does not apply to actions brought to enforce this Final Decree of Divorce or to enforce any subsequent modifications of this decree. It is agreed that the party wishing to modify the terms and conditions of conservatorship, possession, or support of the children shall give written notice to the other party of a desire to mediate the controversy. If, within ten days after receipt of the written notice, the parties cannot agree on a mediator or the other party does not agree to attend mediation or fails to attend a scheduled mediation of the controversy, the party desiring modification shall be released from the obligation to mediate and shall be free to file suit for modification.

The parties agree that any claim or controversy arising out of this Final Decree of Divorce that cannot be settled by direct negotiations or mediation will be submitted to binding arbitration with WAYNE URBANOWSKI as provided in chapter 171 of the Texas Civil Practice and Remedies Code. The arbitrator, WAYNE URBANOWSKI, is hereby selected by mutual agreement. The cost of arbitration will be paid 50 percent by husband and 50 percent by wife.

Over the course of many months starting in the fall of 2021, M.P. sought to negotiate,

mediate, and, if unsuccessful, arbitrate certain custody issues. On July 21, 2022, counsel for J.J.

sent an email to counsel for M.P. stating their position that modifications need not be arbitrated.

After further attempts to negotiate or mediate failed, on August 1, 2022, M.P. emailed a demand

for arbitration to Wayne Urbanowski.

On October 13, 2022, J.J. filed a petition to modify the parent-child relationship. The

petition sought to: (1) deny M.P. access to the children or, alternatively, render a possession order

providing M.P.’s periods of visitation be continuously supervised and deny M.P. periods of

overnight possession; (2) grant J.J. exclusive right to consent to medical, dental, and surgical

-2- 04-22-00848-CV

treatment involving invasive procedures; and (3) grant J.J. the exclusive right to consent to

psychiatric and psychological treatment of the children.

On November 8, 2022, appellant filed a motion to compel arbitration. On December 5,

2022, the trial court entered an order denying appellant’s motion to compel arbitration. This appeal

follows.

ARBITRATION OF MODIFICATION PROCEEDING

In his sole issue on appeal, M.P. argues the trial court erred in denying his motion to compel

arbitration because J.J. expressly agreed to arbitrate “any claim or controversy arising out of” the

final decree.

A party seeking to compel arbitration must establish two elements: (1) the existence of a

valid arbitration agreement and (2) that the disputed claims fall within the scope of that agreement.

Wagner v. Apache Corp., 627 S.W.3d 277, 284 (Tex. 2021); see also TEX. CIV. PRAC. & REM.

CODE § 171.021. The parties do not dispute the existence of a valid arbitration agreement in the

final decree. However, J.J. asserts the arbitration provision specifically carves out (1) emergencies

and (2) modification suits.

A dispute over whether parties agreed to resolve their controversies through arbitration—

typically referred to as “arbitrability”—typically encompasses three distinct disagreements: (1) the

merits of the underlying controversy; (2) whether the merits must be resolved through arbitration

instead of in the courts; and (3) who (a court or the arbitrator) decides the second question.

TotalEnergies E&P USA, Inc. v. MP Gulf of Mexico, LLC, 667 S.W.3d 694, 701 (Tex. 2023). “The

second question must be answered before the first, but the third must be answered before the

second.” Id. Therefore, we begin with the third question.

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Should a court or arbitrator decide arbitrability of J.J.’s modification proceeding?

Where, as here, “the parties did not agree to submit the arbitrability question itself to

arbitration, then the court should decide that question. . . .” Id. at 702 (quoting First Options of

Chicago, Inc. v. Kaplan, 514 U.S. 938, 943 (1995)) (emphasis in original). Because the final decree

does not delegate the issue of arbitrability to the arbitrator, we hold the proper forum for resolving

arbitrability under the subject arbitration provision is the courts. And because the merits are not at

issue in this interlocutory appeal, the only question remaining before us is the second: the

appropriate forum for resolving the merits.

Does J.J.’s modification proceeding fall within the scope of the arbitration provision?

Standard of Review

Because M.P. established the existence of a valid arbitration agreement, “a ‘strong

presumption favoring arbitration arises’ and we resolve doubts as to the agreement’s scope in favor

of arbitration.” Wagner, 627 S.W.3d at 284 (quoting Rachal v. Reitz, 403 S.W.3d 840, 850 (Tex.

2013)). “The presumption in favor of arbitration is so compelling that a court should not deny

arbitration unless it can be said with positive assurance that an arbitration clause is not susceptible

of an interpretation which would cover the dispute at issue.” Henry v. Cash Biz, LP, 551 S.W.3d

111, 115 (Tex. 2018) (quoting Prudential Sec. Inc. v. Marshall, 909 S.W.2d 896, 899 (Tex. 1995))

(emphasis in original) (internal quotations omitted). Whether J.J.’s modification claims fall within

the scope of a valid arbitration agreement is a question of law we review de novo. Id.

Analysis

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