LDF Construction, Inc. v. Bryan

324 S.W.3d 137, 2010 Tex. App. LEXIS 1913, 2010 WL 1052863
Court of Appeals of Texas·Decided March 10, 2010·No. 10-08-00315-CV, 10-08-00348-CV, 10-08-00407-CV·Published·Cited by 18 cases

Opinion

OPINION

TOM GRAY, Chief Justice.

This is one of the last combinations of proceedings where a party has to pursue a mandamus proceeding if the Federal Arbitration Act (FAA) might be applicable and also pursue an interlocutory appeal if the Texas Arbitration Act (TAA) might be applicable. The invitation of the Texas Supreme Court has been acted upon. See Am. Std. v. Brownsville Indep. Sch. Dist. (In re D. Wilson Constr. Co.), 196 S.W.3d 774, 780 n. 4 (Tex.2006) (‘We again invite the Legislature, ‘[i]n the interests of promoting the policy considerations of rigorous and expedited enforcement of arbitration agreements, ... to consider amending the Texas Act to permit interlocutory appeals of orders issued pursuant to the Federal Act.’ ”) (citing Jack B. Anglin Co. v. Tipps, 842 S.W.2d 266, 272 (Tex.1992)). Effective September 1, 2009, section 51.016 of the Civil Practice and Remedies Code was amended to allow an interlocutory appeal of an order denying a motion to compel arbitration under the FAA. See Tex. Civ. Prao. & Rem.Code Am § 51.016 (Vernon Supp.2009). These proceedings, however, were filed before the effective date of the new statutory provision.

In these proceedings, the appellants/re-lators have had to do things the hard way — file both an appeal and petitions for a writ of mandamus. It has made the task for both the trial court and this Court more complex due to multiple issues and methods necessary to insure that the proper procedural vehicle was used to obtain review. Because in this instance we conclude that the FAA applies, we dismiss the interlocutory appeal, LDF Construction, Inc. v. Bryan, No. 10-08-00315-CV. We conditionally grant the petitions for writ of mandamus to compel arbitration filed by LDF Construction, Inc. and Lynn D. Foster (LDF) and Mark Todd and Mark Todd Architects (Todd).

A Brief History

Sam Bryan, an orthodontist, contracted with Joyce Matlack, a California resident who specialized in dental-related interior designs, to provide interior design services for a new office for Bryan. Bryan then. contracted with Todd to develop a set of master and schematic plans to be designed according to the interior plans provided by Matlack. Three years later, LDF entered into an agreement with Bryan to build the new office. The construction of the office was to comply with the specifications and designs by Todd. Bryan’s contracts with LDF and Matlack contained arbitration *142 provisions, but the contract between Bryan and Todd did not.

When construction of the office did not go as expected, Bryan, his wife, and Sammy R. Bryan, DDS, P.A. (Bryan) sued LDF, Todd, and Matlack and Matlack/Van Every Design, Inc. (Matlack). 1 Todd, Matlack, and LDF each moved to compel arbitration. The trial court initially granted Matlack’s motion to compel arbitration. However, that ruling was withdrawn at the hearing on Todd’s and LDF’s motions. The trial court ultimately denied Todd’s and LDF’s motions to compel arbitration but did not rule on Matlack’s motion. That motion remains pending in the trial court. LDF and Todd filed separate notices of appeal of the trial court’s decision and filed separate petitions for a writ of mandamus. Both notices of appeal were filed in one proceeding, Tex.R.App. P. 12.2(c), whereas each mandamus was filed as a separate proceeding.

General Law of Arbitration

The Texas statutes governing arbitration of disputes are found in Chapter 171 of the Civil Practice and Remedies Code. See Tex. Civ. Prac. & Rem.Code Ann. §§ 171.001-171.098 (Vernon 2005). The FAA, which applies to “any maritime transaction or a contract evidencing a transaction involving commerce,” is found in title 9 of the United States Code. See 9 U.S.C. § 2.

In evaluating a motion to compel arbitration, a court must first determine whether a valid arbitration agreement exists, and then whether the agreement encompasses the claims raised. Am. Std. v. Brownsville Indep. Sch. Dist. (In re D. Wilson Constr. Co.), 196 S.W.3d 774, 781 (Tex.2006); see In re Dillard Dep’t Stores, Inc., 186 S.W.3d 514, 515 (Tex.2006) (per curiam). Whether a valid arbitration agreement exists is a legal question subject to de novo review. Id. Although the Texas Supreme Court has repeatedly expressed a strong presumption favoring arbitration, the presumption arises only after the party seeking to compel arbitration proves that a valid arbitration agreement exists. J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223, 227 (Tex.2003) (emphasis added). Courts must resolve any doubts about an arbitration agreement’s scope in favor of arbitration. In re FirstMerit Bank, N.A., 52 S.W.3d 749, 753 (Tex.2001).

Arbitration agreements are interpreted under traditional contract principles. J.M. Davidson, 128 S.W.3d at 227. If the trial court finds a valid agreement, the burden shifts to the party opposing arbitration to raise an affirmative defense to enforcing arbitration. Id. Absent a defense to enforcing the arbitration agreement, the trial court has no discretion but to compel arbitration and stay its own proceedings. In re J.D. Edwards World Solutions Co., 87 S.W.3d 546, 549 (Tex.2002) (per curiam).

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

LDF Construction, Inc. v. Bryan, 324 S.W.3d 137, 2010 Tex. App. LEXIS 1913, 2010 WL 1052863 (Tex. Ct. App. 2010).

324 S.W.3d 137 (LDF Construction, Inc. v. Bryan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

in Re Nancy Graciela Cisneros
Court of Appeals of Texas, 2020
in Re Counsel Financial Services, L.L.C.
Court of Appeals of Texas, 2013
Gray Wireline Service, Inc. v. Cavanna
374 S.W.3d 464 (Court of Appeals of Texas, 2011)