Lipshy Motorcars, Inc. v. Sovereign Associates, Inc.

944 S.W.2d 68, 1997 Tex. App. LEXIS 2084, 1997 WL 192542
CourtCourt of Appeals of Texas
DecidedApril 22, 1997
Docket05-96-02002-CV
StatusPublished
Cited by41 cases

This text of 944 S.W.2d 68 (Lipshy Motorcars, Inc. v. Sovereign Associates, 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
Lipshy Motorcars, Inc. v. Sovereign Associates, Inc., 944 S.W.2d 68, 1997 Tex. App. LEXIS 2084, 1997 WL 192542 (Tex. Ct. App. 1997).

Opinion

OPINION

BRIDGES, Justice.

Appellee Sovereign Associates, Inc. filed a motion to dismiss Lipshy Motorcars, Inc.’s appeal of an order compelling arbitration and staying litigation and a subsequent order denying Lipshy’s motion for rehearing and to stay arbitration. Concluding we do not have jurisdiction over thé two interlocutory orders, we grant Sovereign’s motion to dismiss. In addition to its motion to dismiss, Sovereign filed a motion for sanctions and attorneys’ fees. Because we have no jurisdiction over the appeal itself, we conclude that we have no jurisdiction to entertain Sovereign’s motion for sanctions and attorneys’ fees as well and, accordingly, deny it.

Lipshy filed suit against Sovereign on October 11, 1996. Within a week, Sovereign filed a motion to stay litigation and to compel arbitration. Lipshy responded by filing a motion to stay arbitration. On November 11, 1996, the trial court conducted a hearing and *69 orally ruled in favor of Sovereign and against Lipshy. Before the trial court reduced its order to writing, however, Lipshy filed a “Motion for Rehearing, Second Motion for Stay of Arbitration, and Motion for Interpretation of Arbitration Clause.” Subsequently, on November 19, 1996, the trial court reduced its ruling to writing and signed an order compelling arbitration and staying litigation. The trial court did not sign an order denying Lipshy’s “Motion for Rehearing, Second Motion for Stay of Arbitration, and Motion for Interpretation of Arbitration Clause” until December 17,1996.

On December 26, 1996, Lipshy filed an appeal bond in which it identified the trial court’s November 19,1996 and December 17, 1996 orders as the ones it sought to appeal. Promptly thereafter, on January 8, 1997, Sovereign filed a motion to dismiss Lipshy’s interlocutory appeal for want of jurisdiction. Relying upon section 171.017 of the Texas Civil Practice and Remedies Code, Sovereign argues that Lipshy could appeal only an order denying a motion to compel arbitration or an order granting a motion to stay arbitration. See Tex.Civ.Phac. & Rem.Code ANN. § 171.017(a)(1), (2) (Vernon Supp.1997). 1 Because the November 19, 1996 and December 17, 1996 orders do just the opposite, Sovereign concludes that they are not appealable under section 171.017.

Lipshy responds that notwithstanding the wording of section 171.017, the Texas Supreme Court has held that an order granting a motion to compel arbitration is appealable. See Jack B. Anglin Co. v. Tipps, 842 S.W.2d 266, 271-72 (Tex.1992) (orig.proceeding). At the time the supreme court decided Anglin, article 238-2 of the Texas Arbitration Act governed the appealability of interlocutory orders granting or denying motions to compel arbitration. Act of May 29, 1965, 59th Leg., R.S., ch. 689, § 1, 1965 Tex.Gen.Laws 1593, 1593, redesignated by Act of May 26, 1995, 74th Leg., R.S., ch. 588, § 1, 1995 Tex.Gen.Laws 3402, 3402 (current version at TexCiv-Peac. & Rem.Code Ann. § 171.017 (Vernon Supp.1997)). The supreme court in Anglin, relying expressly upon article 238-2, wrote that a party was entitled to appeal an interlocutory order “granting or denying a request to compel arbitration.” Jack B. Anglin Co., 842 S.W.2d at 271-72 n. 10. Article 238-2, however, did not authorize an interlocutory appeal of an order granting a motion to compel arbitration. 2

Lipshy notes that one appellate court has already addressed the inconsistency between former article 238-2 and Anglin. See Gathe v. Cigna Healthplan of Tex., Inc., 879 S.W.2d 360, 362 (Tex.App.—Houston [14th Dist.] 1994, writ denied). Lipshy relies upon the *70 dissent in Gathe, which argued that the supreme court in Anglin clearly construed article 238-2 to encompass orders granting a motion to compel arbitration. Id. at 363 (Brown, J., dissenting). The majority in Gathe, however, rejected that argument. The majority wrote that the supreme court’s discussion was dicta, because the order at issue in Anglin was an order denying, not granting, a motion to compel arbitration. Id. at 362. The majority also noted that article 238-2 did not support the supreme court’s statement. It, therefore, elected not to follow the dicta in Anglin and held that an order compelling arbitration was not appeal-able. Id.

We agree with the majority in Gathe. The Anglin discussion is dicta and, further, contradicts the very authority it cites. We decline to follow the dicta in Anglin.

Absent the dicta in Anglin, section 171.017 of the Texas Civil Practice and Remedies Code determines the scope of our jurisdiction. Section 171.017 does not authorize an interlocutory appeal of an order granting a motion to compel arbitration and stay litigation or an order denying a motion to stay arbitration. Tex.Civ.PRAC. & Rem.Code Ann. § 171.017 (Vernon Supp.1997); see Gathe, 879 S.W.2d at 362; Bethke v. Polyco, Inc., 730 S.W.2d 431, 434 (Tex.App.—Dallas 1987, no writ). We, therefore, conclude that we have no jurisdiction over either the November 19, 1996 order or the December 17, 1996 order. 3

Having determined that we have no jurisdiction over the appeal itself, we next address Sovereign’s motion for sanctions and attorneys’ fees. Sovereign maintains that Lipshy had no basis for an appeal under section 171.017 and that its reliance upon Anglin was unwarranted, especially in light of Gathe. Sovereign concludes that Lipshy brought this appeal in bad faith in an attempt to further delay arbitration.

Before addressing the merits of Sovereign’s arguments, we first question whether we have jurisdiction to consider them in the absence of jurisdiction over the underlying appeal. When a party attempts to appeal a nonappealable interlocutory order, appellate courts have no jurisdiction except to declare the interlocutory nature of the order and to dismiss the appeal. See Harper v. Welchem, Inc., 799 S.W.2d 492, 496 (Tex.App.—Houston [14th Dist.] 1990, no writ); Yancey v. Jacob Stern & Sons, Inc., 564 S.W.2d 487, 488 (Tex.Civ.App.—Houston [1st Dist.] 1978, no writ). Absent jurisdiction, courts cannot sanction parties. See Scott & White Memorial Hosp. v. Schexnider, 940 S.W.2d 594, 40 Tex. Sup.Ct. J. 198, 199 (1996) (per curiam); Jobe v. Lapidus, 874 S.W.2d 764

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944 S.W.2d 68, 1997 Tex. App. LEXIS 2084, 1997 WL 192542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lipshy-motorcars-inc-v-sovereign-associates-inc-texapp-1997.