ODL Services, Inc. v. ConocoPhillips Co.

264 S.W.3d 399, 2008 Tex. App. LEXIS 6155, 2008 WL 3522262
CourtCourt of Appeals of Texas
DecidedAugust 14, 2008
Docket01-08-00020-CV, 01-08-00039-CV
StatusPublished
Cited by29 cases

This text of 264 S.W.3d 399 (ODL Services, Inc. v. ConocoPhillips Co.) 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
ODL Services, Inc. v. ConocoPhillips Co., 264 S.W.3d 399, 2008 Tex. App. LEXIS 6155, 2008 WL 3522262 (Tex. Ct. App. 2008).

Opinion

OPINION

TIM TAFT, Justice.

By interlocutory appeal and petition for writ of mandamus, appellant and relator, ODL Services, Inc. (“ODL”), challenges the trial court’s order denying its motion to compel arbitration and granting the application to stay arbitration of appellee and real party in interest, ConocoPhillips Company (“Conoco”). We determine (1) whether the Federal Arbitration Act 1 (“FAA”) applies and whether review is proper by mandamus or interlocutory appeal, given that the motion invoked the FAA and the application invoked the Texas General Arbitration Act 2 (“TAA”); (2) whether the threshold issue of the existence of a written arbitration agreement between ODL and Conoco was for the trial court or for the arbitrator to determine; (3) whether the trial court erred in determining that there was no written agreement to arbitrate and, thus, in refusing to compel arbitration and in staying the arbitration proceeding that ODL had begun; and (4) whether the trial court abused its discretion in entering certain findings of fact. In the interlocutory appeal, we affirm that portion of the order that granted Conoco’s application to stay arbitration that was made under the TAA. In the mandamus proceeding, we deny the petition for writ of mandamus (1) complaining of that portion of the interlocutory order that denied ODL’s motion to compel arbitration that was asserted under the FAA and (2) complaining of the entry of certain findings of fact.

Background

The disputed issues in this case arise out of (1) a master agreement between the predecessors of ODL and Conoco and (2) events occurring during the installation of a floating storage and off-loading vessel in the Gulf of Paria, Venezuela (“the FSO project”).

A. The Master Agreement Between Co-noco and ODL

In March 1998, Conoco, Inc., the predecessor of Conoco, and Noble Denton & Associates, Inc., the predecessor of ODL, executed a “Master Agreement.” The Master Agreement provided in pertinent part:

WHEREAS, [Conoco] and its affiliated and subsidiary companies are engaged in drilling and production operations in various countries around the world; and
*404 WHEREAS, from time to time, [Co-noeo’s] affiliated and subsidiary companies may request certain support services in connection with their drilling and production operations in one or more such countries (other than the United States); and
WHEREAS [Conoco] wishes to enter into a Master contract with [ODL] setting forth the general terms and conditions to apply should [Conoco] request [ODL] to provide such services to any of its subsidiary or affiliated companies; and
WHEREAS, [ODL] is in the business of providing such services....
1. THE MASTER CONTRACT
[Conoco] and [ODL] agree that, commencing with the effective date of this Agreement, the general terms and conditions entitled “Master Support Services Contract Terms and Conditions” and attached to this Agreement (hereinafter “Master Terms”) shall apply to all services which [ODL] ... providefe] for [Conoco] or any of its parent, subsidiary and affiliated companies ..., pursuant to a “Request for Services” issued and accepted as set forth in Section 1.1 of the Master Terms.
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6. MISCELLANEOUS
... This Master Contract is the entire agreement between the Parties as to the Services.... This Master Contract may only be amended by a clear statement in writing signed by a duly authorized representative of each of the Parties.

(Emphasis added.)

The “Master Support Services Contract Terms and Conditions” that were expressly incorporated into the Master Agreement provided, in turn, as follows:

The following Master Support Services Contract Terms and Conditions (hereinafter “Master Terms and Conditions”) shall apply upon [Conoco’s] issuance and [ODL’s] acceptance of a Request for Services as set forth below. The term “Contract” as used below shall mean a Request for Services and the Master Terms and Conditions.
ARTICLE 1. THE SERVICES
1.1 The Services. When [Conoco] desires [ODL] to perform technical and support services for it, [Conoco] shall send [ODL] a Request for Services in the form set forth in Exhibit “1. ” The Request for Services shall name the contracting entity, describe in detail the services to be performed (hereinafter referred to as “the Services”) and shall specify the country in which the Services are to be performed (hereinafter referred to as “Country of Operation”). If [ODL] is willing to perform the Services under the terms set forth in the Request for Services, duly authorized representatives of [ODL] and [Conoco] shall sign the Request for Services and return it to [Conoco]. [ODL] shall perform the Services in accordance with the Request for Services and the terms of this Contract. In the event of any conflict between the Request for Services and these Terms and Conditions, the terms of the Request for Services shall prevail.
[ODL] shall arrange for its personnel, material and equipment as defined in the Request for Services to be available and ready for the commencement of Work at the designated location in the Country of Operations specified in the Request for Services.
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(Emphasis added.) The “Master Support Services Contract Terms and Conditions” repeatedly referred to various terms of the Request for Services (“RFS”) that was *405 required for each job. Finally, the “Master Support Services Contract Terms and Conditions” included the following article concerning choice of law and arbitration:

ARTICLE 17. GOVERNING LAW AND ARBITRATION

17.1 Governing Law. This Contract, and any matter arising out of or in connection with this Contract or the Sewices, shall be governed by and construed in accordance with the laws of the State of New York, U.S.A., except for any law, rule or court opinion that would apply the laws of another jurisdiction.
17.2 Arbitration. Any dispute, controversy or claim arising out of or in connection with this Contract, or the breach, termination or validity thereof, shall be settled by final and binding arbitration to be conducted in accordance with the following provisions:
17.2.1 The arbitration shall be conducted in accordance with the International Arbitration Rules of the American Arbitration Association.

(Emphasis added.) It was upon article 17 that ODL based its request for arbitration with Conoco.

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Cite This Page — Counsel Stack

Bluebook (online)
264 S.W.3d 399, 2008 Tex. App. LEXIS 6155, 2008 WL 3522262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/odl-services-inc-v-conocophillips-co-texapp-2008.