Raffaelli v. Raffaelli

946 S.W.2d 139, 1997 WL 242536
CourtCourt of Appeals of Texas
DecidedMay 13, 1997
DocketNo. 06-96-00067-CV
StatusPublished
Cited by1 cases

This text of 946 S.W.2d 139 (Raffaelli v. Raffaelli) 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
Raffaelli v. Raffaelli, 946 S.W.2d 139, 1997 WL 242536 (Tex. Ct. App. 1997).

Opinion

OPINION

GRANT, Justice.

Stephen A. Raffaelli and Virginia Raffaelli seek to have this Court set aside a judgment enforcing an arbitration award, or alternatively, modify the judgment. Thomas Raffa-elli and Mary Lou Raffaelli Court and other plaintiffs filed suit requesting dissolution and an accounting and division of all property of all partnerships in which Thomas and Stephen Raffaelli were involved, including but not limited to ten named partnerships. Virginia Raffaelli, involved in a domestic relations case with Stephen A. Raffaelli, intervened. Mary Lou Raffaelli Court, a defendant in the court below, settled.

The parties entered into an unconditional written agreement to submit all claims of any nature based in law or equity between them to an arbitration panel. The panel’s award would be made a nonappealable judgment of the court. The trial judge and Stephen and Thomas Raffaelli signed the order. Their attorneys approved it as to form.

On the mutual agreement of Stephen and Thomas Raffaelli, the trial court appointed four arbitrators. After only one panel meeting, one arbitrator died. No substitute arbitrator was appointed, and the panel continued its work with three arbitrators. On June 2, 1995, the trial judge and Stephen Raffaelli’s attorney signed an order appointing a substitute receiver. On August 18, 1995, the trial court conducted a hearing to consider the evidence, pleadings, prior orders of the court, and counsel’s argument.

The arbitration panel submitted two awards to the court. One filed October 27, 1995, disposed of some of the properties and reserved others for future consideration. One filed May 8, 1996, disposed of the remaining properties and claims. On May 14, 1996, the trial court entered its final judg[141]*141ment, adopting the arbitration panel’s awards and findings. Before the court entered its final order incorporating the final arbitration award, Stephen Raffaelli never complained or objected to proceeding with three arbitrators or requested that the court appoint another arbitrator. Stephen and Virginia Raffaelli contend that the trial court erred in unilaterally appointing a receiver, not appointing a fourth arbitrator, failing to address the debts and personal property for which each partner had equal obligations, ignoring the arbitration panel’s first and second report, and affirming and confirming its later report. Under their contention that the trial court erred in affirming and confirming the final report, Stephen and Virginia Raffaelli bring the following specific points of error: (1) the trial court failed to allow Stephen and Virginia Raffaelli to have any input in the variances contained in the three reports; (2) the panel asserted jurisdiction over property other than the property belonging to Stephen and Thomas Raffaelli; and (3) the panel awarded to Thomas Raffaelli property that clearly was Stephen Raffaelli’s and property that clearly was partnership property.

Absent a statutory or common law ground “to vacate or modify an arbitration award,” a reviewing court lacks jurisdiction to review complaints, including the sufficiency of evidence supporting the award.1 The statutory grounds for vacating an arbitration award are as follows: (1) the “award was procured by corruption, fraud or other undue means”; (2) evident partiality of “an arbitrator appointed as a neutral,” or an arbitrator’s corruption, misconduct, or willful misbehavior that prejudiced a party’s rights; (3) “the arbitrators exceeded their powers”; (4) “the arbitrators refused to postpone the hearing” upon a showing of sufficient cause, “refused to hear evidence material to the controversy,” or otherwise conducted the hearing “contrary to the provisions of Section 171.005,” so as to prejudice substantially a party’s rights; or (5) “there was no arbitration agreement,” the issue was not determined adversely in proceedings under Section 171.002, “and the party did not participate in the arbitration hearing without raising the objection.”2

Point of error two contends that “the panel asserted jurisdiction over property other than that belonging to Stephen and Thomas Raffaelli,” and points of error four and five contend that the Holly Ridge and Post Office properties were not subject to division by the panel. These points raise the issue of whether the arbitrators exceeded their power. Consequently, we only have jurisdiction to vacate the award on the grounds raised in points of error two, four, and five.

The statutory grounds for modifying an arbitration award are as follows: (1) it contains an evident miscalculation of figures or an evident mistake in the description of any person, thing, or property referred to in the award; (2) the arbitrators awarded on a matter not submitted to them, and the award may be corrected without affecting the merits; or (3) there is an error in form, not affecting the merits.3

Point of error two contends generally that the arbitration panel exceeded its authority by exercising jurisdiction over property not belonging to the parties. Points of error four and five contend that the panel exceeded its powers by awarding the Holly Ridge and Post Office properties. Again, no other point of error raises any ground falling under this statute. Consequently, we only have jurisdiction to modify the judgment based on the grounds raised in points of error two, four, and five.

Stephen and Virginia Raffaelli cite no controlling authority to support this Court’s jurisdiction over their other claims, nor do we find any other than the statutes we have cited. Under the authorities discussed above, we hold that we only have jurisdiction to modify or vacate the judgment on the grounds presented in points of error two, four, and five.

The general rule is that, on matters submitted to arbitrators, we give their award [142]*142“the same effect as the judgment of a court of last resort.” 4 Here we are reviewing the arbitrator’s award that was adopted by the trial court in its judgment. We indulge all reasonable presumptions “in favor of the award,” and none against it.5

Parties’ agreement that an arbitration award will be nonappealable is valid and enforceable.6 If parties waived the right to appeal, the appellee is entitled to have the appeal dismissed.7

Despite agreement that an arbitration award will be nonappealable, courts of appeals have reviewed arbitration awards based on common law grounds of fraud, misconduct, or mistake.8 Other courts of appeals have held that “[a] mere mistake of fact” is insufficient to set aside an arbitration award.9 Courts that will not set aside an arbitration award based on a mere mistake of fact reason that “[t]he common law grounds to set aside an arbitration award include fraud, misconduct, or gross mistake that implies bad faith and failure to exercise honest judgment.” 10

The record shows no allegation or evidence of fraud or misconduct; therefore, we review the record to determine if there has been a mistake. We are not permitted to consider the statement of facts from the hearing during which the agreed order was dictated because it was not timely filed. B.D. Click Co. v. Safari Drilling Corp., 638 S.W.2d 860 (Tex.1982).

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Bluebook (online)
946 S.W.2d 139, 1997 WL 242536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raffaelli-v-raffaelli-texapp-1997.